CRC (Commercial Real Estate Consultants) has announced that the commercial market in Dubai reached an all-time high in Q3 2022. In a report on the quarter, the firm said this result was driven by existing businesses relocating to more prestigious sites, in addition to a significant number of new company licenses being issued in the emirate.

Government initiatives to boost the economy with the possibility of maintaining full ownership of a company without needing to have a local partner has led to a remarkable rise in international investment, the firm added.

Discussing the quarter, the firm said that Dubai Land Department (DLD) data on commercial real estate in Dubai had a sharp rise in overall sales transactions by 28%, with a 66% increase in the total value transacted compared to last year. In addition, Dubai experienced retail growth that was previously unheard of, with retail transactions up by 133% and transacted value up by 184%. The latter is said to be the result of prominent retailers such as Brands for Less (BFL), Forever 21, and LuLu opening additional locations to serve a wider spectrum of customers.

In June 2022, the firm said that it saw a surge in Grade A commercial real estate in May 2022.

With 254 commercial units sold, Business Bay remained the most popular area in Q3 according to DLD data. Areas such as International City, Dubai Marina and Mohammed Bin Rashid City were also top choices for many large and medium companies to launch and expand their retail footprint in Dubai, the report revealed.

CRC said it has observed overall buyer leads increase by 38% and demand for office spaces rise by 21% compared to Q3 2021. The firm said this is a clear indication of a stronger business environment in the UAE.

Government decisions, laws and initiatives have enabled businesses to resume work at full capacity, leading to offices, retail, and warehouses witnessing a notable growth in sales by 25% overall compared to Q3 2021, the firm stated.

In October 2022, Knight Frank predicted that Qatar’s hospitality sector would grow by 89% by 2025.

At CRC, the top communities transacted for offices were Jumeirah Lake Tower, Business Bay and Barsha Heights. It added that leasing transactions increased overall by 3%, and the top communities for retail leasing transactions were Majan, Dubai Marina and Arjan, with higher demand recorded in Al Quoz, DIP, and Jebel Ali.

Discussing key sectors in the report, CRC said that the information technology (IT) sector topped Dubai’s commercial leasing market. It stated that US-based Intel will open its first artificial intelligence R&D facility at Dubai Internet City (DIC), which highlights the emirate’s desirability as a major location in the GCC for establishing innovation centres.

The F&B and hospitality sectors were also listed among the top business types that showed exponential growth in Dubai during the quarter. In addition, numerous foreign businesses, including Meta, Optimizely, Rapyd, Folkart, Teneo, Directimo, and Pedersen & Partners, opened their operations following EXPO 2020 Dubai to serve a significant regional market, the report explained.

In early November 2022, Sharjah amended its real estate transfer and ownership laws.

In the upcoming quarters, CRC anticipates a continuous rise in sale and leasing transactions with further price growth as a result of increased demand for commercial properties in Dubai.

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Source: ME Construction News

Digital solutions provider Topcon Positioning Systems has unveiled MC-Mobile, a new 3-in-1 solution that brings machine control to small earth moving projects and compact equipment such as mini-excavators.

Through local positioning system (LPS) functionality, layout can be accomplished with the LN-150 tool for positioning information, a prism and tablet. MC-Mobile allows contractors to move from layout, to design, to the machine utilising the same hardware and software solutions.

It also provides the ability to self-perform construction layout, create designs in the field and build to exact specifications and accuracies.

In April 2020, Topcon’s Carsten Frantzen said that machine automation that can provide on-site real-time data, speed up construction and reduce costs will significantly lower project challenges.

“Measurement, design and building with machine control guidance can be accomplished with one system by taking the same tablet display used for measuring, placing it in the cab of the machine, and having a visual to deliver results with unparalleled accuracy. This helps contractors be more productive, reducing labor, time, and rework, and therefore increasing profits,” said Ulrich Hermanski, CMO and Executive Vice President for Topcon Positioning Systems.

MC-Mobile was presented at Bauma 2022 alongside two new solutions for paving, the Virtual Ski solution for 3D cold milling machines, and an LPS solution for urban environments and bridge decks.

Both of these solutions are expected to complement the existing road building and paving system offerings for applications such as asphalt, concrete and curb and gutter work, as well as software and web-based services to assist with site management and logistics for projects and fleets.

In June 2021, Topcon said its robotic-based solutions can enhance curb and gutter paving performance and, in October 2022, Caterpillar expanded its Tilt Rotate System range to work with mini excavators.

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Source: ME Construction News

Saudi-based ACWA Power has announced the financial close for the Shuaibah 3 independent water project (IWP), with a total investment of US $821mn. The company said the project is a joint venture (JV) between itself (with a 68% equity stake) and Water and Electricity Holding Company (Badeel).

The project involves the development, financing, design, engineering, procurement, manufacture, factory testing, transportation, construction, erection, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of desalination, the statement said.

It added that the JV will complete the development, financing, design, engineering, construction, procurement, testing and commissioning, operation and maintenance of the project, under a 25-year off-take contract with Saudi Water Partnership Company (SWPC).

In June 2022, ACWA Power signed a $1.15bn deal to develop one of the largest windfarms in the world and, in August 2022, Doosan Enerbility won an EPC contract for the Shuaibah 3 IWP.

Once complete, Shuaibah 3 IWP, located 110-kilometres south of Jeddah, will become the world’s largest reverse osmosis desalination facility.

The financial close for the $632mn senior debt facilities was arranged on a non-recourse project finance basis from a consortium of financiers. These comprised of: Standard Chartered Bank, MUFG, ADIB, SNB, BOC, SAIB, ICBC, KDB and Warba Bank. In addition, the JV secured Equity Bridge Loan facilities of $189mn from SABB and Riyad bank, the statement outlined.

ACWA Power added that it achieved the Shuaibah 3 IWPP financial close for the refinancing of the existing senior facility denominated in US dollar and Saudi Riyal, the proceeds of which would be utilised by Shuaibah Water and Electricity Company (SWEC) for varied financial commitments, including the prepayment of its existing senior debt facility, financing expenses and for tax purposes. ACWA Power holds a 30% effective equity stake in SWEC, it stated.

In early October 2022, ACWA Power signed MoUs to develop SWRO and CCGT plants in Senegal and, later in the month, DEWA said its Jebel Ali complex won a Guinness World Record title.

SWEC has successfully replaced both dollar and riyal tranches of existing outstanding senior debt ($415mn) and (SR285mn) respectively, with $420mn and SR285mn facilities respectively, repayable semi-annually with the final instalment to be paid in January 2026.

The financial close for the $497mn senior debt facility arranged on a non-recourse project finance basis was from a consortium of financiers comprising Société Generali, Al Rajhi Bank, Riyad Bank, Saudi Fransi Bank and ADCB.

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Source: ME Construction News

JLL has outlined simple, rapid changes that can be made in Egypt, so that it can start its the journey towards Net Zero buildings and combat climate change. In a white paper titled ‘Egypt’s Road to Decarbonisation’, the firm looked at the decarbonisation of the built environment and examined ways in which Egypt can win its climate battle.

The report includes a real estate perspective on climate change and the critical role of transparency for decarbonisation; the power of Public-Private Partnerships (PPPs) in tackling climate change; and the importance of closing the funding gap with climate financing and green bonds.

“It is important for Egypt, alongside other nations, to review the plans and actions of the most climate-progressive cities we identified in our recent Global Real Estate Transparency Index, and follow their path in implementing and mandating suitable, climate-friendly real estate regulations, while aligning with international property measurement standards,” said Ayman Sami, Country Head Egypt at JLL.

In August 2022, South Korea Hydro and Nuclear Power won a $2.2bn contract from Russia’s Rosatom to build a nuclear plant in Egypt.

“This could eventually lead to the country committing to a Net Zero goal and the development of a plan to conserve energy and reduce carbon emissions across new and existing stock, including establishing a national retrofitting program.”

Egypt will be hosting the 27th Conference of the Parties of the UNFCCC (COP 27) in Sharm El Sheikh between 6-18 November. The country has emphasised the coming global climate summit will be specifically important, as it will be the year of ‘implementation’ and ‘unlocking climate finance’. COP 27 will also be an opportunity for Egypt to represent the entire African continent and voice all its financial and technological needs to the world.

Sami added, “More governments are becoming aware of the drastic effects of buildings’ carbon emissions on the climate and are starting to mandate energy efficiency and emissions standards for buildings, as well as adopting green building certificates. For Egypt, it’s an opportunity to encourage investors, landlords and occupiers to develop a greener mentality and take their own initiatives to act quickly, without waiting for regulatory measures to kick-in – given the urgency of the climate emergency.”

In early September 2022, Egypt’s Archplan Developments said the region’s first urban forest project reached the 60% completion mark.

Research suggests that now, especially as the host of COP 27, Egypt can drive simple, rapid and effective actions in the real estate sector, such as (retrofitting) LED lighting and installing photo voltaic solar panels – which drastically reduce emissions from electricity, he pointed out.

Over the years, Egypt has made great progress to strengthen its position as an advocate for green financing, most notably with its first sovereign green bond in the Middle East and North Africa (worth US $750mn) issued in September 2020 to finance its climate action plan and achieve its sustainability goals and ambitions.

However, proceeds from the debt sale will be used to finance or re-finance green projects in the transportation sector (46% of proceeds have been allocated for the Cairo monorail), as well as clean water and wastewater management (54% has been dedicated to this sector), with no funding plans relating to buildings.

In early October 2022, Bloom Holding expanded its educational portfolio into Egypt via a joint venture agreement.

Egypt has stated that it requires $250mn to install energy efficient cooling in buildings, and an additional $345mn to incorporate energy efficiency and renewable energy measures in hotels and resorts. The government has also stressed that without the complete support from developed countries, it will not be able to allocate the right financial, technological, and human resources to fulfill the emission reduction pledges of the Paris Agreement.

According to the Climate Action Tracker (CAT), Egypt will only be able to meet its Paris Agreement temperature goals by 2030 if it reduces greenhouse gas (GHG) emissions by at least 25% from current levels. Egypt’s recently updated Nationally Determined Contribution (NDC) to achieve the Paris Agreement temperature goal remains conditional on receiving funding to the tune of $246bn for its mitigation ($196bn) and adaptation ($50bn) plans.

In addition to Egypt’s enhanced goals and ambitions to address climate change, the whitepaper also highlighted the need for enhancement to achieve its Paris Agreement pledges. The country could further strengthen the enforcement of its existing laws, establish a long-term Net Zero carbon goal and join other nations in mitigating climate change, while keeping in mind the built environment’s role in the mitigation process as it is a major contributor to global carbon emissions.

Late in October 2022, Orascom Construction said it added $670mn to its backlog in Q3 2022.

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Source: ME Construction News

Project development firm, Compass, has appointed Mathew Lamont as Regional Director of Project Management for the group. Lamont officially took the reins on 1 November 2022, the firm said.

Lamont’s appointment is said to highlight Compass’ strategic drive to reinforce its unique offering as the Middle East’s leading project development consultancy, facilitating agile, transformative, and tailored project solutions for its clients via the region’s brightest talent.

The group currently employs a team of around 130 people and operates globally from its offices in Dubai, Abu Dhabi, Riyadh and Jeddah, as well as multiple remote site-based operations. Compass entered into a strategic partnership with Saudi developer Dar Al Arkan in December 2021.

In January 2022, the consultancy appointed a new CEO and, in February 2022, the firm was announced as the winner in the ‘Project Management Company of the Year’ category at the 2021 Middle East Consultant Awards.

Lamont is said to be an experienced leader with over 24 years of operational and project management specialisation. Compass said his construction delivery proficiency coupled with his multi-sector experience spans the United Kingdom, Oman, Qatar, Egypt, Jordan, and the UAE, where he recently led infrastructure projects for Emirati Neighbourhoods in Zayed City and Mohammed Bin Zayed City in Abu Dhabi, alongside a range of mega projects and programmes.

“What an exciting time to be joining a company that is on a significant growth trajectory. Their commitment to continuous improvement, to disciplined processes, and their agility to make decisive moves that ultimately help clients deliver projects more effectively, were all immediate positives for me. I’m thrilled by the opportunity to help shape the future of a company with such a unique history – it is a huge privilege to be working alongside the team to expand the project management business in the UAE and across the Middle East,” said Lamont.

As an active Global Working Group Member (Policy and Affairs) with the Chartered Institute of Building (CIOB), Mathew is kept steps ahead in best in business competence, professionalism, and practice of building and construction for the benefit of society. This ensures that clients and other professionals procuring built assets can rest assured that Mathew has the knowledge and experience necessary to deliver the high-quality projects they need, the firm pointed out.

In May 2022, Rachel Willacy joined the firm as its Head of Procurement and, in July 2022, it announced a partnership with technology provider Mastt.

Mathew is passionate about building successful teams and bringing people together to achieve their goals. His proven track record as a respected mentor, giving a voice to all whilst encouraging progressive career growth opportunities, aligns seamlessly with Compass’ core values and mission, the firm added.

William Hitch, Regional Director and Compass Co-Founder concluded, ‘’Mathew’s appointment marks an exciting period of development for our business. We’re thrilled to welcome him to the team, and we’re confident his attitude and robust pedigree in project management and construction will perfectly complement our own homegrown success story and growing reputation. His background – working for some of the most well-respected companies in the world – means he has both a strong work ethic, and a wealth of experience under his belt, so we know he’ll be able to hit the ground running and continue building on Compass’ reputation of excellence for many years to come.’’

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Source: ME Construction News

The Oman Power and Water Procurement Company (OPWP) has invited bids from leading global companies to provide technical consultancy services for the development of the Ibri III solar independent power project (IPP).

In its tender notification, OPWP said that it aims to initiate the process of procuring additional solar projects connected to MIS with a capacity of 500MW. It said that it expects to launch the Ibri III project’s commercial operations by Q4 2026.

It added that the last date for submitting bids has been set at 7 December 2022. Winning bidders will be required to provide advice on the competitive tendering of the project, in addition to technical consultancy for the project’s development, it explained.

In March 2020, Oman’s largest PV solar plant achieved financial close and, in April 2020, an Acwa Power-led consortium announced it had reached a deal on a 500MW IPP in Oman.

In January of this year, a consortium led by ACWA Power inaugurated the 500MW Ibri II solar independent power project in Oman, in partnership with OPWP. Located in the Ad-Dhahirah Governorate, Ibri II was built with a US $417mn investment and developed on a build-own-operate basis.

The Oman Power and Water Procurement Company (OPWP) is responsible for ensuring that there is sufficient electricity and water production capacity available at the lowest cost to meet the growing demands in the Sultanate of Oman.

It is a member of Nama Group and it is the single buyer of power and water for all IPP/IWPP projects within the Sultanate of Oman.

In July 2020, OPWP issued RFPs for two 500MW IPP solar projects.

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Source: ME Construction News

Abu Dhabi’s Department of Municipalities and Transport (DMT) and Bishkek City have signed a twinning agreement to strengthen cooperation between the two cities and further enhance the friendly relations between the UAE and Kyrgyzistan.

The agreement was signed by His Excellency Falah Al Ahbabi, Chairman of the Department of Municipalities and Transport, and Emilbek Abdykadyrov, Mayor of Bishkek City.

The agreement was signed in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, the President of the UAE, and Sadyr Japarov, the President of Kyrgyzistan.

In early July 2022, the DMT revealed redevelopment plans for Al Bateen Ladies Beach and, later in the month, it was announced that the Abu Dhabi real estate market saw over $6bn in transactions in H1, 2022.

As part of the city twinning agreement, the two capital cities will enable mutual exchange between delegations and business community members to develop trade, economic, scientific, cultural, sporting and other ties. The agreement will also facilitate exchange of knowledge in urban planning and explore the feasibility of joint venture projects.

“The agreement will enhance friendly bilateral relations between our nations, and the exchange of experiences between our two municipalities will be facilitated. Furthermore, the agreement will be a helpful tool for promoting cross-cultural exchanges between Abu Dhabi and Bishkek in the fields of culture, sports, and tourism,” concluded Al Ahbabi.

In October 2022, the Department of Municipalities and Transport unveiled the Abu Dhabi Digital Twin project.

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Source: ME Construction News

The newly rebranded third edition of Construction Machinery Middle East (CMME)’s popular Access & Handling Summit – ‘finding smarter ways to work at height’, will take place in Dubai on 23 February 2023, the magazine’s editorial team has announced.

In an expanded form of the original, the event aims to provide a platform for work-at-height customers in facility management, oil and gas, and construction, to engage in dialogue with equipment manufacturers and operators across a variety of key topics.

The event will feature a number of panel discussions and presentations and will kick off at 9am on the day. Registration is complementary for professionals from the access and handling, crane, construction, facilities management, oil and gas, power, transport, and equipment rental sectors.

Discussing the reason behind expanding the event’s outreach, Mark Dowdall, Editor of Construction Machinery Middle East explained, “One of the things we realised was that working at height involves such a wide scope of critical tasks that it should not just be confined to one particular segment or sector. We are increasingly seeing smarter ways of working at height in facility management, oil & gas and construction alike, and I believe there is a lot that can be learned by sharing these innovations in the right forum.”

He added, “In addition to machine enhancements, advances in technology do not just mean fleet operators are better equipped to manage large, diverse fleets of access equipment but it has allowed operators find new ways to tackle work-at-height challenges. The event will offer the opportunity to explore these changes and delve into other challenges being faced by manufacturers, rental companies, fleet managers and operators including safety and training.”

The first panel discussion of the day will focus on how technology is changing mobile elevated work platform (MEWP) management and work-at-height practices across key sectors in the Middle East, while the second will centre on training regional machinery operators. As with previous editions of the event, there will be outdoor machinery demonstrations, as well as several opportunities to network. Read the full agenda here.

The work-at-height market has been impacted by several trends in the last couple of years and has seen players in the sector evolving to keep pace. Commenting on some of the trends he’s observed in the market in 2022, Dowdall notes, “Over the last several months alternative power sources such as lithium batteries and hydrogen technology have continued to develop, making these further viable alternatives to diesel engines on job sites.”

Earlier in the year, Construction Machinery Middle East unveiled its dedicated website, which focuses on key topics across a multitude of sectors, and news products.

“When it comes to aerial work platforms (AWPs), more models of this type have been added in the region with companies increasingly considering the total cost of ownership (TCO) before making a purchase. Some local municipalities have also started to specify electric machines only, so this is encouraging the electric machine change further.”

Dowdall believes that dialogue amongst stakeholders is vital for every player in the market to keep abreast of changes and keep pace with them. He notes, “Whether it’s training operators or increasing the maximum lifespan of the machine, doing these things effectively means having open forums of dialogue between all the different stakeholders. This conference aims to provide just that.”

Sharing his thoughts on the one key takeaway he hopes delegates will leave the summit with, Dowdall concludes, “I hope through this forum delegates not only get an insight into what’s happening on the ground level in these key sectors of facility management, oil & gas and construction but that they can walk away better equipped to deal with their own unique challenges.”

Read more about the Summit here.

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Source: ME Construction News

Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, has issued Law No. (2) of 2022 on the amendment of Law No. (5) of 2010 on real estate registration in Sharjah.

As per the law, the text of Article (4) of Law No. (5) of 2010 will be replaced by the following wording:

The right to own real estate in the emirate is limited to persons who are citizens of the UAE and citizens of the Cooperation Council for the Arab States of the Gulf, and as an exception to this, the right of ownership may be granted to others according to the following:

• Ownership with the agreement of the Ruler
• Transferring by inheritance by virtue of a legal notification
• Assignment by the owner to one of his first-degree relatives in accordance with what is specified in the executive regulations of this law
• Ownership in real estate development areas and projects in accordance with the regulations set by the Council’

In August 2022, Sharjah Commerce and Tourism Development Authority (SCTDA) announced a new regulatory framework – Sharjah Tourism’s ‘Holiday Homes Project’.

The law also stipulated that the text of Article (7) of Law No. (5) of 2010 would be replaced by the following wording:

Subject to the provisions of Article No. (4) of this Law, a legal person who owns real estate in the emirate shall abide by the following:

• Inform the Real Estate Registration Department of any change in the ownership of the legal person if it will lead to a decrease or increase in the partners’ shares, transfer of ownership, or a change in its legal form or trade name
• Correcting the contravening situation in case of adding a partner or transferring his ownership to persons who are not entitled to own real estate in the emirate

It is understood that these amendments take place with immediate effect.

In September 2022, construction works were completed on the Kalba Waterfront developer and, in early October, Arada launched the Masaar Discovery Centre within its forested villa community in Sharjah.

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Source: ME Construction News

Developer Union Properties has reported a net profit of US $224,000 for the third quarter of the year, compared to a net loss of $8.44mn last year. The developer attributed the upturn in performance to its turnaround strategy, which continues to show positive results, with good progress made on cost efficiencies.

In a statement, Union Properties said that its consolidated financial results for the nine months and three-month period ending 30 September 2022, saw revenue from contracts with customers increase by 3% to $27.5mn in Q3 2022.

The group’s subsidiaries delivered healthy performance improvements that were supported by strong market dynamics in the UAE’s real estate sector, it added.

In May 2022, the developer said it saw a 7.6% increase in revenues in Q1 2022.

The developer’s operating profit in the nine-month period increased significantly to $1.93mn, from a loss of $10.8mn in the same period last year, it said.

On the results, Amer Khansaheb, Board Member and Managing Director stated, “We have maintained our strong growth trajectory in the third quarter, building on the positive momentum in the first six months of 2022. We are continuing to see the positive benefits of our business Turnaround Strategy and remain confident that we will see further progress in the months ahead. We remain focused on driving growth and delivering cost efficiencies, particularly at a subsidiary level. Looking ahead, we are cautiously optimistic as we explore several development options that we expect to generate long term value for our investors.”

Union Properties also highlighted the continued progress made in the execution of its turnaround strategy during the quarter, pointing out that it has delivered significant cost efficiencies.

In early August 2022, the firm saw net profit for Q2 2022 after a healthy performance from its subsidiaries.

Its administrative and general expenses were reduced by 50% year-on-year to $4.57mn in Q3 2022, and by 39% to $14.7mn over the first nine months of 2022, compared to the same period last year, it stated.

The continued efficiency and productivity achieved across the business builds on the momentum from recent major milestones, including the successful completion of the $162mn debt restructuring plan and subsidiary ServeU being awarded 58 new contracts worth $73.5mn, Khansaheb added, though he asserted that the company remains focused on reducing the overall level of debt in the business.

He concluded by stating that Union Properties’ management remains focused on maintaining the efficiencies that have enabled the company to preserve its book value at $517.2mn, equivalent to AED 0.446 per share.

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Source: ME Construction News