construction week - issue 298

SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

ConstructionWEEK NEWS, ANALYSIS, PROJECTS,

TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST

NOV 28–DEC 4, 2009 [298]An ITP Business Publication CONSTRUCTIONWEEKONLINE.COM

INSIDENEWSIs property in lieu of payments acceptable? Some bosses think notPAGE 9

FREE ZONESHow will the new 100% ownership law affect free zones?PAGE 30

SHOWCASECW captures Burj Dubai in pictures ahead of its opening PAGE 38

CITY FOCUSThe latest news, projects and tenders in Yanbu, KSAPAGE 46

CW VISITS JEDDAH’S SITTEN FLYOVER, A SLUM WHERE WORKERS HOPE FOR DEPORTATION

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TROUBLEDprojein YaPAGE

CITYThe lWORKERS

CW VISITSWJEDDAH’S

BRIDGE OVER

CONTENTS

14 NEWS IN PICSTopical images with the latest news.

17 EVENTSIndustry dates for your diary.

19 FACE TO FACEFrench construction suppliers talk to Construction Week about their journey to the Middle East.

21 LEGALKK Bose draws up a comparison between mediation and arbitration.

REGULARS2 ONLINE4 MAIL

FRONT9 THREE-QUARTERS OF ALL CONTRACTORS STRUGGLING TO GET PAIDAccording to an online poll, 77.8% of respondents are facing serious diffi culty getting clients to pay them for their work.

11 NEWS IN BRIEFHighlights of the week.

12 THE BIG 5 NEWSHighlights from the biggest construction exhibition in the Middle East.

FEATURES22 SPECIAL INVESTIGATIONCW looks into the light of hundreds of runaway migrant workers who have spent months living under the Sitten bridge in Downtown Jeddah.

30 SPECIAL REPORTCW discovers the benefi ts of free zones and how a new ownership law could give foreign businesses more freedom.

DIRECTORY38 SHOWCASE40 TENDERS41 PROJECTS 42 SPECIALIST SERVICES

BACK46 CITY UPDATEThe latest news and projects from Yanbu, Saudi Arabia.

48 DIALOGUELytag managing director Andrew Doel discusses the advantages of lightweight concrete and how his company is progressing in the Middle East.

NOVEMBER 28-DECEMBER 4, 2009 | ISSUE 298

1NOVEMBER 28–DECEMBER 4, 2009 CONSTRUCTION WEEK

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CONSTRUCTION WEEK NOVEMBER 28–DECEMBER 4, 20092

PMV

QATAR FOCUSThere is still plenty of opportunity for suppliers, contractors and machine specialists in the once-sleepy country of Qatar.

Architect

Q&A WITH FLORIS SMITHDSA Architects’ newest director of architecture goes on the record.

FEATURESMEP

IMEC CHAMPIONS TECHNOLOGICAL INNOVATIONImec Electro Mechanical Engineering, which has been present in the region for 36 years, is pursuing some of the latest technological innovations in the HVAC market.

Architect

ARCHITECTURAL HARDWAREOpening the door on the secret to creating a remarkable project.

Systech Solutions are now distributing rescue equipment from UK fi rm SpanSet. Demonstrators from the UK held an exciting simulation at the Al Habtoor Leighton Group Employees’ Education and Training School (Heets) in Dubai to show some of the best ways of safely retrieving a worker, should they fall from height. Falls from height are the most common accidents to happen on construction sites and although fall arrest equipment can reduce the risk of industry, should a worker fall, it’s vital to know how to rescue them to avoid further injury.For more images visit www.ConstructionWeekOnline.com

IN PICTURES: RESCUEING FROM HEIGHT

ONLINEwww.ConstructionWEEKonline.com

MOST POPULARINDIAN PROFESSIONALS EARN BELOW ‘AVERAGE’ SALARIES‘AVERAGE’ CONSTRUCTION SALARY IS $6047 PER MONTHAL HAMAD WORKERS STRIKE IN BAHRAINTALLEST RESIDENTIAL BUILDING PAST HALF WAYITCC: SAUDI’S SMART CITY

TO VOTE IN THIS WEEK’S SPOT POLL GO TOwww.ConstructionWEEKonline.com

HAVE YOUR SAYHOW ARE YOU FINDING BIG 5?What you think of this year’s show?

JOBS OF THE WEEKCountry Manager, Dubai, United Arab EmiratesSenior Corporate Banker, GCCFirst Select International, Dubai, United Arab Emirates

ONLINE POLLDOES YOUR COMPANY WORK WITH LOCAL UNIVERSITIES TO DEVELOP AND RECRUIT TOP TALENT?

33.6%No, but it’s something that we’re looking at doing in the future.

62.4%No, we’ve no interest in hiring students in this region.

4.0%Yes, we work very closely to fi nd ways to support and recruit graduates.


MAIL

WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email [email protected]. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles.

Everyone knows that here the colour of the skin is very important. You may be a butcher or a fi shmonger back home, but if you are white then you can be a manager here. This is not just for project managers; this holds true for all jobs, whether managerial or administrative or clerical. We Indians are only here to do the donkey work and yes, we are to be blamed for it. ZEN

Back in the ‘empire days’ whenever there was an

The perceptions that exist are astounding. Perhaps some people are just worth more. Some qualifi cations were earned at a higher standard, and resulted in project managers from some countries having the opportunity to work on diverse projects thereby gaining signifi cantly wider experience. This is portrayed as effi ciency in projects. Look at the use of language in your comments. They are not what is expected from a senior project manager. FRED

Salaries are related to the home country of the applicant. Why would you leave your home and culture for a job abroad that pays less than you earn in your home country? Colour is not the only factor. Many non-whites, born and educated in the west earn the same salaries as their compatriots. The current downturn in Europe and the US may change the dynamic, and staff will come for a paying job here when they can’t get a job at home. Salaries for them will be relative to the situation, not just their birthplace. AD

RE: DEFAULTERS TO BE PROSECUTED This situation is only going to get worse before it gets better. I worked for an MEP Contractor in Dubai for over 12 months and was receiving my monthly salary over two months in arrears.

outbreak of any epidemic, the ‘empire administrators’ would decide that such a situation necessitated to be investigated by ‘an expert’ - and by ‘an expert’ it was always meant that a ‘body’ from UK had to come and investigate this. These so called experts could even be road sweepers in their home countries, but in the occupied countries of the empire, they were ‘experts’. This is a fact, and to some extent, this practice still continues today.CS

The situation became so unbearable that I had no option but to leave the company. People with whom I worked at this company are stuck with late payment of salaries and no other jobs to go to. The attitude these companies adopt is disgraceful with no apologies given to employees. The authorities need to clamp down heavily on these companies with severe penalties. If companies can not afford to pay their employees, then they should not be allowed to operate. ANONYMOUS

RE: WORKERS STRIKE IN BAHRAIN It’s all around us, but unfortunately Al Hamad got exposed. I can show you 100,000 such labourers, oppressed with their mouths shut by management. It’s unfair to blame Al Hamad. MOHAMMAD TAHAFAZE

RE: DEVELOPER REACTS TO READER COMPLAINTS It’s a shame that Damac didn’t explain why the building was handed over two months before the air-conditioning was commissioned. Can they also explain why maintenance fees were charged from December when the building was not ready for handover until the end of January? Damac must face the fact they have behaved terribly and are despised by their clients.CRAIG

RE: INDIAN PROFESSIONALS EARN BELOW ‘AVERAGE’ SALARIES Kudos to Construction Week for touching upon this subject. It is very true that Indians are paid below average salaries, not because they are not qualifi ed enough, but because the industry here feels that westerners deserve high salaries. A westerner, fresh out of college, without any experience lands in the Middle East as a manager because he is a westerner. But an experienced Indian will always work under a ‘green’ westerner.

K

The opinions expressed in this section are of particular individuals and are in no way a refl ection of the publisher’s views.

Regionally, you consider your salary to be…

Globally, you consider your salary to be…

PUBLISHED BY AND © 2009 ITP BUSINESS PUBLISHING, A DIVISION OF THE ITP PUBLISHING GROUP LTD,REGISTERED IN THE BRITISH VIRGIN ISLANDS COMPANY NUMBER 1402846

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According to an online poll on ConstructionWeekOnline.com, 77.8% of respondents are facing “serious diffi culty getting clients to pay” for work they carried out on projects with only 22.2% saying they’ve “had some delays but cash is still coming through.”

Not a single participant in the poll clicked on the option “we’ve been fairly paid, and paid on time,” with most contractors in the region claiming to have had trouble getting some private and government clients to pay up money owed to them for projects they’re working on.

Due to the economic downturn, many devel-opers in the region have had fi nance issues, which have resulted in their being unable to pay contractors for work done. But con-tractors feel this is not good for the industry as it hurts the region’s image as a business hub. Some contractors like Besix have not tendered for the past nine months.

“If we’re not getting paid, what’s the point in putting in a tender?” asks Philippe Dessoy

FRONT

THREE-QUARTERS OF ALL CONTRACTORS STRUGGLING TO GET PAIDBy Conrad Egbert

ONLY 22.2% OF RESPONDANTS TO AN ONLINE POLL SAID THEY HAVE HAD SOME DELAYS WITH PAYMENTS BUT CASH IS STILL COMING THROUGH.

general manager Six Construct, which is part of a consortium working on the fi nish-ing touches on the Burj Dubai, scheduled to open on January 4.

“We’re not a bank, we are providing a service and we expect to be paid for it. It’s simple business. If we’re not paid, how will our business survive and in the end that would affect any company’s decision to be here,” he added.

Thomas Barry, CEO of Arabtec, which is the largest listed contractor in the UAE, also said that payment issues are an ongo-ing problem. “We’re trying to come up with various ways to overcome the issue but we’re still going around in circles,” said Barry.

“We’ve been offered property in return but that’s not going to help us in any way as the property is being sold to us at boom prices which are not reasonable anymore.”

Dutco Balfour Beatty general manager, Grahame McCaig said at the Construction Week Dubai Conference earlier this month

that property given in lieu of payments was not going to solve the problem.

“Accepting property in lieu of payments won’t allow us to pay our sub contractors or maintain a workforce of people. We have to pay their salaries so we need cash, not property.”

But Dubai’s Roads and Transport Authority (RTA) director of marketing and corporate communication Peyman Younes Partham told Construction Week that the RTA didn’t have these problems.

“There’s a contract that binds any work that we do. We have been operating for four years and have spent over US $8 bil-lion (AED30 billion) on different projects, so that’s a lot of contracts and we haven’t had any issues.

“That’s because the RTA doesn’t have a habit of not honouring contracts, and neither do its partners. If we do a lot of projects, there’s bound to be a lot of work going on and some differences, but nothing that can’t be solved,” he added.

>News in brief 11>Highlights from The Big 5 12>News in pics 14>Face to Face 19>Legal 21


FRONT

GFT has won a contract to

supply systems to the

$165 millionGolf Gardens in

Abu Dhabi –33 low-rise and

389 villas

DSI has acquired 82% of Passavant-

Roediger, a global developer of

wastewater, water and sludge treatment

technologies with over 5000 installations and a presence in 13

countries in a deal worth $39.4m

New offi ce space in 2009 and 2010 in the UAE is worth US $22

billion, with estimated fi t-out and interior design contracting

spend at $2.7bn. In KSA, offi ce space of

around 8 million m2 is expected to grow between 20-30%

by 2012

HIGHLIGHTS

UAE

SUMMERTOWN HQ GETS LEED GOLDDesign fi rm Summertown has won Leed Gold for its Jafza head quarters, making it the fi rst UAE-based interiors company to win the accreditation. “As interior design and fi t-out specialists of green interiors, it is vital that we lead by example. After successfully winning the Leed Gold rating we are in a position to effi ciently assist companies who are keen on going green or try to convince others of the importance of having energy and environmentally friendly interiors,” said Summertown International managing director Marcos Bish. The offi ce uses 35% less energy, up to 50% less water and diverts over 90% of its waste from the landfi ll compared to a conventional building.

Egypt

DAMAC ISSUES NEW CAIRO TENDERDeveloper Damac has issued a tender for main contractor on its Hyde Park – New Cairo project for the construction

of 88 buildings with 320 villas, with nine Egyptian contractors having submitted bids. “We promised our clients luxury in all our projects, and the issuing of this tender is a major step in our development. The successful tender bid will be announced by mid-December 2009 and the successful contractor will commence immediately after,” said Damac Properties Egypt CEO Alaa Ayoub. Hyde Park was launched in December 2007. The grading works have been tendered and work has commenced on site. Damac claims it will deliver the fi rst units by the end of 2011.

UAE

SOROUH CALLS FOR GREENER REAL ESTATESorouh COO Gurjit Singh last week called for the industry to take an ‘early adopter’ approach to sustainability.Speaking at Meed’s Middle East Green Buildings and Sustainability conference, Singh said: “Sustainability should be an important part of any real estate company’s overall strategy in both the

‘place making’ and ‘place management’ stage of the real estate value chain. “We believe that companies need to commit to a set of guidelines and today’s conference is an important catalyst for encouraging companies to make this happen.”

Saudi Arabia

CMCS TO OPEN RIYADH OFFICECollaboration, Management and Control Solutions (CMCS) will open an offi ce in Riyadh before the end of 2009 in order to capitalise on opportunities in Saudi Arabia. Having already opened an offi ce in Khobar this week, CMCS said it would target major project-intensive sectors in Saudi Arabia, such as engineering and construction, and select governmental departments. A recent report pegs the total value of ongoing and planned property projects alone in Saudi at around US $586 billion (SR2 trillion), representing 128% of the Kingdom’s GDP. “Project Portfolio Management is essential to the strategic

realignment of the region’s project-based industries,” said Bassam Samman, CEO and founder of CMCS.

UAE

SALARY DEFAULTERS TO BE PROSECUTEDCompanies that mislead the UAE’s Ministry of Labour over salary payments will be prosecuted, said Humaid bin Deemas, the ministry’s acting director general. “Each company must send through e-mail to the ministry a monthly report regarding their employees’ salary. If a company introduces its monthly report saying that they have paid the salaries on time, and then the ministry receives a complaint from any [person] in this specifi c company that they did not receive their salaries, this will lead to blocking the company.” In August this year a decision was issued by the Ministry of Labour, which stated that each company that employed more than 50 people must sign an undertaken at the ministry stating that they are paying the employees salaries on time.

NEWS IN NUMBERS

KSA’s US$1.65bn Information Technology

Communications Complex will cover 776,000m² once complete in 2012.

In 2008, a $65mn contract was awarded to El Seif Engineering

for construction of infrastructure for

487,000m² of the development

International road building equipment manufacturers are looking to the GCC and its many infrastructure works as a way to shore up sales while demand falls in the rest of the world.

“We’ve sold quite a few in Morocco and Algeria, but I really want this market” explained Antonio Alvarez from Mexican asphalt process equipment fi rm Triaso, which was exhibiting at the Big 5 show in Dubai. “This is one of the countries that are still kind of thriving, from an infra-structure and roads point of view.”

The drop off in business through the Americas has been harsh, according to Alvarez. “To give you some idea, we were selling eight machines per month last year, and that’s dropped to three.”

House of Equipment GM Waiel Manafaluti agreed: “Many of the countries in the region need modifi cation and improvement to the infrastructure whether it is roads, bridges or power supply and railways. All those infra-structure projects will soon be released, and some, as

ROAD BUILDING KIT MAKERS SET SIGHTS ON MIDDLE EASTBy Greg Whitaker

we are all aware, are already being built, notably the projects in Saudi Arabia.

“It’s a line which we are now explor-ing – asphalt equipment and paving equipment.” Throughout a gener-ally gloomy year, manufacturers of general construction equipment have also seen sales rise in their road building range. Chinese conglomer-ate LiuGong is best known in this region for a long-established line up of wheel loaders but, according to the general manager Huang Zha-ohua, it has been the fi rm’s line-up of vibratory drum rollers that have seen the largest increase in sales over the last year.

“This type of equipment has seen a 30% rise in sales over the last year, against a downturn of 30% in the market generally.” Major road building contracts are currently being offered in the UAE, Qatar and Saudi Arabia, with a number also being tendered in Oman and Syria.

HOUSE OF EQUIPMENT GM WAIEL MANAFALUTI.

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BIG 5 NEWS

Building companies have called upon the Dubai government to support their attempts to maintain quality within the industry.

Al Rajhi Holding CEO Oth-mar Wutscher lent his weight to the Dubai government’s drive to introduce new, tougher build standards, but warned that any new regulations would also have to be strictly enforced in order to succeed.

“They can’t just be on paper. Dubai has been built on quality, but with the economic down-turn, there’s too much low cost engineering at the moment and buildings that may look good on the surface are anything but that inside.

“We realise that, at this time, we need to be competitive but we also want to remain quality conscious,” continued Wutscher, speaking to CW at the Big 5.

Cladtech International busi-ness operations director Bater Biyouk agreed, adding: “We compromise a little on price which we’re able to do at Cladtech [a curtain walls and cladding specialist], as we manufacture our own glass and steel; we can avoid the commission from the middle men, but we never compromise on quality. “However, testing has to be thorough.

Quality curtain walling is a matter of using the right material, in the right place at the right time – it has to be tested as a system, not as individual parts. We support the government is any moves it makes to improve those tests and standards.”

DUBAI GOVERNMENT ASKED TO SAFEGUARD QUALITYBy Matt Warnock

MASA CELEBRATES MIDDLE EAST MILESTONEMachinery manufacturer, Masa Group has sold its 200th plant in the Middle East.

“Our product range includes concrete block-making machines, aerated concrete machines and plants, and lime-stone plants. Around the world we have supplied more than 1000 block making machines and hundreds of aerated con-crete and limestone plants. In this region, we have just sold machine number 200, which is a real achievement,” said CEO and chairman of the board, Masa Group, Dirk Bunthoff.

‘Plant No 200’ was show-cased at the company’s stand at the Big 5. It was developed for Pasco, an Al Ain-based company that specialises in the construction of concrete blocks, concrete pavers and retaining walls.

TAKING A HARDER LOOK AT CONCRETEThe downturn has given concrete companies the chance to reassess their products and services.

“There is no denying there has been decline in the indus-try, and there is no longer cash in abundance. But it is important that companies have been prudent, not just penny pinching,” stated Cure-Crete MD Tony Hogg.

“The crisis has given us breathing space to refocus and make sure the things that are needed to be done to ensure good business are being done well,” he added.

Hogg also said that building standards were an issue. “When you look at standards in the Middle East – they’re in place but it’s the guy on site who makes the fi nal decision and it is hard to police that.”

HIGHLIGHTS

Construction suppliers now see Qatar and Abu Dhabi as the key places to do business, Big 5 exhibitors said last week.

Investors are showing growing confi dence in the Middle East, particularly Doha, where there is an opportunity to build new projects.

“We supply foundation pumps for piling, shor-ing and dewatering and a lot of our business is going on in Qatar and Abu Dhabi now as there are new projects developing there,” said Austin Parfett Foundations sales manager Devanand, who predicted business to pick up in Dubai shortly.

Simon Mrad, MD of Wilo, a manufacturer and supplier of pumps and pump systems for heat-ing, air-conditioning, cooling, water supply and sewage disposal agreed: “Local companies are investing in Qatar and Abu Dhabi. Developers and contractors feel comfortable starting new projects in the area because new developments are progressing at a steady pace and are not accel-erating too quickly.”

Mrad explained that The Big 5 gave his com-pany an opportunity to show the industry what it can do.

BRIGHT FUTURES FOR QATAR AND ABU DHABIBy Sarah Blackman

ALRAJHI HOLDING CEO OTHMAR WUTSCHER SAYS QUALITY HAS TO BE PRIME.


FRONT

ABOVE: HH Sheikh Hamdan bin Rashid Al Maktoum (centre), deputy ruler of Dubai and minister for Finance and Industry, offi cially opened the Big 5 show on Monday November 23. The show ran until November 26 and this year’s edition saw a 15% increase in the number of exhibitors. VP of construction for show organisers DMG World Media said he was “delighted and greatly honoured” that Sheikh Hamdan opened the exhibition.

RIGHT: Hundreds of immigrant workers – many of whom had moved to Saudi Arabia to work in construction – have been sleeping rough for weeks or, in some cases, months under the Sitten Bridge in the Kandarah District of Jeddah. Turn to page 22 to read Construction Week’s cover story.

BELOW LEFT: Gulf International Trading Group chairman and CEO Khalid Mohammed Ibrahim Al Midfa revealed that his company would be taking part in next month’s United Nations Climate Change Conference in Denmark – being dubbed ‘Hope in Hagen’. Midfa said that his dream was to create homes that relied solely on natural energy.

BELOW RIGHT: The joint venture between British architectural consultancies Barton Willmore and Buro Happold has completed the design for the King Abdullah International Gardens – the giant botanical garden project commissioned by the City of Riyadh as a gift to King Abdullah of Saudi Arabia to celebrate his accession to the throne. The JV won an international competition to design the gardens back in 2007.

NEWS IN PICS

> For more pictures log on to www.ConstructionWEEKonline.com

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System Approach


EVENTSEvent: FM Awards 2010Overview: The facilities management Middle East Awards ceremony aims to help raise the profi le of the industry and recognise and reward those who have made signifi cant contributions to its development.Date: MayLocation: DubaiPhone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: Construction Week KSA Conference 2010Overview: This one-day exclusive forum will gather top leaders from property developers and contractors alongside leading professionals from fi nancial houses and law fi rms to discuss vital aspects of construction and real estate.Date: JuneLocation: RiyadhPhone: +971 4 435 6127Email: [email protected]: www.itp.net/events

Event: Middle East Architect Awards 2010Overview: The Middle East Architect awards are an opportunity for the industry to come together and toast exceptional performance in architecture, engineering and design. Date: SeptemberLocation: DubaiPhone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: Building Sustainability Conference, Abu Dhabi 2010Overview: Delegates from the world of construction are invited to a one day event to discuss the vital aspects of building sustainability.Date: OctoberLocation: Abu DhabiPhone: +971 4 435 6127Email: [email protected]: www.itp.net/events

Event: Construction Week Awards 2010Overview: In its 6th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East. Date: OctoberLocation: DubaiPhone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: Construction Week Dubai Conference Overview: A one day event with two streams running concurrently covering the vital aspects of construction and real estate.Date: NovemberLocation: DubaiPhone: +971 4 435 6127

Email: [email protected]: www.itp.net/events

Event: CID Awards 2010Overview: This year’s CID Awards will celebrate the success of the Middle East design industry and demonstrate how the region’s sector can stand alongside its international peers. Date: NovemberLocation: DubaiPhone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: MEP Awards 2010Date: DecemberLocation: DubaiPhone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: Home and Life Style 2010Date: MarchVenue: Oman International Exhibition CentreWebsite: www.eventseye.com

Events: DWRW 2010Overview: A trade show for doors, windows, roofs and walls, as well as cladding products, machinery and accessories.Date: March 8-10Venue: Expo Centre SharjahWebsite: www.eventseye.com

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FACE-TO-FACE

JOUBERT PLYWOODGeneral manager Michael Geoffroy

CIAT MIDDLE EASTArea sales manager Mahidine Aït

For us it is a new market and a new opportunity. Our main market is

Europe but we also offer our products in the US, South Africa and New

Zealand so we believe that we can also sell our product here in the

Gulf. Although Dubai has been hit by the downturn, projects are still

on-going there.

WHAT ATTRACTED YOUR COMPANY TO COME TO THE MIDDLE EAST?

WHERE IN THE MIDDLE EAST ARE YOU BASED?

WILL THE NEW PROPOSED OWNERSHIP LAWS EFFECT YOUR BUSINESS DECISIONS?

WHAT PRODUCTS DO YOU OFFER?

WHAT MIDDLE EAST PROJECTS ARE YOU CURRENTLY WORKING ON?

We are in the heating, ventilating and air conditioning industry so

the Middle East is a huge market for us because air conditioning

here is not a luxury, it is vital. Even the poorest man in his small

apartment needs air conditioning.

We are currently setting up a branch in Ras Al Khamiah Free Trade

Zone. We have recently received our trade license.

We are based in Abu Dhabi and we have a branch in the north of

Syria to cover the northern countries in the Middle East.

The law could give us more freedom, but we will see how things

go. We have been trying to fi nd the best way to set up our business

here but there are so many different possibilities. We have a

product that is of that is not sold in the UAE so we need to do the

marketing ourselves. That’s why we decided to set up our business

in a free zone. We have 100% ownership of the company.

It will be benefi cial to us because it will give us 100% ownership.

At the moment we have a sponsor. We are not based in a free zone.

It was important for us to have a reputable offi ce in the UAE.

For me, a free zone is only suitable for warehouses. A sales offi ce

needs to be in a tower. I have no interest to relocate my company

into a free zone.

We offer plywood for many different applications including outdoor

joinery works and for door manufacturing. We also have fi re

retardant plywood, which can be used for public buildings. It is very

versatile and can be used for many different projects.

We are a district cooling provider. We have ice storage, which is a

fl exible solution for the management of important energy needs.

We also have heat exchangers, which enable the transfer of water

from the base of a building to the top. In addition we have fan coil

units, which are the visible components of central air conditioning.

We are looking to work within shopping malls. We have products

like Joubert paint, which is very easy to implement into any project.

We defi nitely want to do lots of work with architects, consultants to

introduce our products to them and into new projects.

We are hoping to work on Jabal Omar in Saudi Arabia, which is a

Saudi Oger project. We are trying to sell 15,000 units there. The

contract will be awarded in 2010. We are also working on Hamad

Medical City in Qatar.

SPEAKING FRENCH

WHICH MIDDLE EASTERN COUNTRY IS LEADING THE WAY, IN YOUR OPINION?

There are still projects going on in Dubai and in Abu Dhabi. I think

things in Qatar are booming and I have met some people from

Kuwait who say that the economy is still going strong. Saudi Arabia

and Oman are also showing signs of growth.

For me it is Saudi Arabia. It has not been badly affected by the

fi nancial crisis and it has much more new income and lots of

projects. Princess Nora University, for example, is a huge project.

We are also hoping to supply our systems for this.

TWO FRENCH COMPANIES TALK TO CW ABOUT THEIR JOURNEY TO THE MIDDLE EAST

Emirates Glass, L.L.C., P.O. Box 29769, Dubai, UAE Tel: +971 4 7094700 Fax: + 971 4 3471440 E - m a i l : e m i g l a s s @ e m i r a t e s . n e t . a e W e b s i t e : w w w. e m i r a t e s g l a s s . c o m

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LEGAL> For more legal advice log on to www.ConstructionWEEKonline.com/comment

The opinions expressed in this column are of the author and not of the publisher.

Mediation lets parties solve their own disputesKK BOSE DRAWS UP A COMPARISON BETWEEN MEDIATION AND ARBITRATION AND EXPLAINS WHY MEDIATION IS QUICKLY BECOMING THE POPULAR CHOICE TO SOLVE DISPUTES

The UAE construction industry should use mediation, instead of arbitration or litigation, to resolve the technical disputes that abound in the industry.

Though the principle of arbitration, as opposed to litigation, has been generally accepted in the region and arbitration cen-ters have been set up, a major stumbling block is that arbitration tends to replicate litigation procedures.

Arbitration often leads to a waste of time, and diffi culties for the contestants, which arbitration was supposed to eliminate in the fi rst place.

Unlike in the common law countries, arbitration here is very expensive and time consuming. Instead of paying a court fee, which is US $8000 (AED30,000) on the higher side, a litigant ends up paying arbitration fees, which are huge in some cases, coupled with a court fee to ratify the arbitration award. And they end up going through the same procedures as they would have in court litigation. There are many chances of an arbitration award get-ting nullifi ed by a court of law on various technical grounds.

I am of the view that the legal profession is “selling” arbitration as an inexpensive and quick method of dispute resolution. But once arbitration starts, the disputing parties often fi nd that they are going through the same procedures they would, were they to take their case to court.

Normally, in litigation the judge gives judgment shortly after the conclusion of the case, whereas in arbitration, often the arbitrator gives an award many weeks or even months after the end of the hear-ing. There are instances that the arbitra-tion awards are nullifi ed by the courts due to delay caused by the arbitrators in delivering awards.

In litigation, if an expert body is to be consulted, the decision is taken fast and the matter referred to the expert as soon as possible. But in arbitration, the decision to refer to an expert body is often arrived at, after time consuming deliberations between the arbitrators.

Most importantly, however, arbitrators are constrained by court procedures. Most of the disputes in the construction industry concern technical aspects, such as ‘reasons for delay’, ‘quality of materials supplied’ or ‘quality of work done’. Such cases do not require the detailed treatment of court proceedings or arbitration.

These can be resolved on an ad hoc basis bypassing all matters irrelevant to the juris-diction of a particular court, examining valid-ity of trade licenses, asking for permission to sue a government body or department.

Mediation can lead to a mini-trial and it gives an opportunity for the parties to exchange information as a prelude to settle-ment negotiation.

Each party’s lawyer makes the presentation and thereafter settlement talks commence. If the parties cannot agree among themselves, then the neutral adviser may be called upon to give a non-binding opinion.

It is important to recognise that media-tion is not a legal process – the emphasis is put on empowering the parties to settle their own disputes themselves.

Though mediation is not a legal process, it is fi nding increasing acceptance in the west, as well as in India because most tech-nical disputes are founded on an inadequate understanding between the two disputants, and there is rarely a menacing intent on either side.

Mediation will benefi t the economy as technical disputes, which hold up payments, will be resolved expeditiously.

“UNLIKE IN THE COMMON LAW COUNTRIES,

ARBITRATION HERE IS VERY EXPENSIVE AND

TIME CONSUMING”

KK Sarachandra Bose is a partner/corporate, commercial

and contract lawyer at Dar Al Adalah Advocates & Legal

Consultants, Dubai. He has been in practice for over 30 years

and advises several banks and corporate bodies. He is also a member of the International

Bar Association and a visiting professor in International

Business Law. He obtained his law degree from RL Law College,

Belgaun, Karnataka, India.


If ever the failures of the sponsorship system for migrant workers in the Gulf were glaringly appar-ent, it is under the Sitten Bridge in the old district of Jeddah, Saudi Arabia.

It is beneath this enormous concrete overpass where more than 1000 migrant workers live on the pavement with limited access to basic needs such

as food and water, desperately hoping to be deported.Some came on pilgrimage to Makkah and stayed to work ille-

gally, but many others were abandoned by their sponsors or fl ed abusive or non-paying employers.

More than half are men mainly from Pakistan, India, Nepal, Sri Lanka and Bangladesh, who congregate in groups according to nationality. They came to work in the construction industry.

The rest are a mix of Filipino and Indonesian women, who mostly came to work as domestic workers.

They all sit on cardboard sheets huddled up together on one end of the bridge, waiting to be deported.

Sudhakaran, a 28 year old Sri Lankan, says he has spent 17 months in Saudi Arabia, 10 of them under the bridge.

He came to work as a construction labourer to support his wife and two young children, but left his sponsor who only paid him US $106 (SR400) a month, less than half of what he had agreed to.

Like many others, he headed to the Sitten Bridge, a place which has become a well known recruiting ground for illegal workers across the kingdom.

SITTENDUCKSCW INVESTIGATES THE LIGHT OF HUNDREDS OF RUNAWAY MIGRANT WORKERS WHO HAVE SPENT MONTHS, AND IN SOME CASES YEARS, LIVING ROUGH UNDER THE SITTEN BRIDGE IN DOWNTOWN JEDDAH

Words by Benjamin Millington; Photos by George Dipin


> For more special reports visit www.ConstructionWEEKonline.com


There he gets intermittent labouring work and earns a signifi cantly better daily wage, but it is not without its pitfalls and he is still owed two months’ salary with no legal recourse to ensure he is paid.

Now, Sudhakaran says he has no money and there is limited work. He survives on scraps from rubbish bins, begging in the streets and food donations.

His ten or so friends, who are also Sri Lankan, share similar stories of employer abuse, hopelessness and misery. They have nothing more than sheets of cardboard and possibly some clothes. They are allowed to wash and use the toilet in the local mosque, but puddles of urine are everywhere and the smell ever-present.

All the men say they want to go home, but don’t have money for the airfare, don’t have their passports or the crucial exit visas.

Faced with this situation, Sudhakaran says the only option he is now left with, is to be caught by the Saudi police.

“I will wait here until they catch me, I don’t know when that will happen, but I want it to happen now. This is what every-body here wants,” he says.

OVER 1000 MIGRANT WORKERS, THE MAJORITY OF WHOM WORK IN THE CONSTRUCTION SECTOR, LIVE UNDER THE SITTEN BRIDGE (PICTURED) IN JEDDAH.

“I WILL WAIT HERE UNTIL THEY (SAUDI AUTHORITIES) CATCH ME. THIS IS WHAT EVERYBODY HERE WANTS”

THE SPONSORSHIP SYSTEM

The sponsorship system is used in Saudi

Arabia and most Arab Gulf states to

employ foreign workers, who work under

a sponsor/employer. The sponsor is

responsible for the resident and must

approve exit visas, without which they

cannot leave the country. Workers are

also not allowed to switch jobs without the

consent of the sponsor. The system has

been heavily criticised by many human

rights organisations since sponsors

routinely confi scate workers’ passports and

withhold salaries as methods of control.

In August 2009 Bahrain was the fi rst Gulf

state to reform the system by allowing

workers to freely switch jobs under certain

conditions, but the reforms are yet to be

proved effective.

SUDHAKARAN SAYS HE IS WAITING FOR THE SAUDI POLICE TO PICK HIM UP AND DEPORT HIM BACK HOME.

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Indeed, everybody seems to have the same goal, but “getting caught” isn’t easy.

Forty-year-old Madhu from the Indian state of Kerala has been under the Sitten Bridge for more than two years. He says the police regularly patrol the area but won’t deport a person unless they pay.

“There are agents for each nationality and if you pay them SR500 ($133) the police will pick you up and send you home,” he said.

“Otherwise you have to wait for the passports offi ce to send a van, these come every now and then, but they only take cer-tain groups of people. This is what I am waiting for.”

Until then Madhu said he would continue to work as an illegal labourer. He too said he ran away from his employer after not being paid his salary.

As the gateway to Makkah and the more liberal of Saudi cities, Jeddah has become

somewhat of a last post for migrant workers without papers hoping to be deported.

Several workers tell stories of paying money to be traffi cked more than 1000km from Riyadh or Dammam, riding concealed in the back of utilities and trucks with other runaways.

KK Vijayan from the welfare section of the Indian Consulate in Jeddah said the concentration of illegal migrants is high in the city, but is skeptical that any have lived under Sitten Bridge for longer than a few months.

He describes it as a temporary problem, a quasi-waiting room for people wanting to

be deported, which recently overfi lled due to the Haj season when many overstayed their pilgrim visas.

Even so, Vijayan concedes that it is diffi cult to get stranded migrants home quickly.

While the consulate can easily issue new travel documents and even has mecha-nisms to pay for the return fl ights of Indian nationals, he said the exit visa requirements cause delays.

“If they can’t get the exit visa signed by the sponsor then the only way is getting caught by the passports offi ce, investigated and sent home. And because these people are in large numbers this takes time,” he said.

“All the consulates are fi ghting to get the government to give some kind of an amnesty on the exit visas. Then we can wipe out the problem and send everybody home.”

The government will apparently not declare an amnesty because of “security concerns,”

“THERE ARE AGENTS FOR EACH NATIONALITY AND IF YOU PAY THEM, THE POLICE WILL PICK YOU UP AND SEND YOU HOME”

ILLEGAL MIGRANT WORKERS REST IN THE EARLY HOURS OF THE MORNING, HOPING FOR A MINISTRY VAN TO COME ROUND AND PICK THEM UP FOR DEPORTATION.


but even if they did, Vijayan admits it would only be a band-aid solution.

“As soon as these 1000 people under the bridge are removed and sent back home, in ten days another 1000 will come,” he said.

“The problem is much larger than the bridge and has been happening for the last three decades. The government is doing a lot but the problem is big.

“Around 1.8 million Indians are living in Saudi Arabia and every year we issue around 30,000 temporary passports.”

For many years human rights groups have been arguing that the only long-term solution to the problem is to reform the sponsorship system and the labour courts process.

Vijayan said he understands that the gov-ernment is looking at various options. In the past, proposals have been put forward to transfer sponsorship from individual employers to a government agency or large labour agencies monitored by the state.

Christoph Wilcke of international NGO Human Rights Watch (HRW) said either proposal would mark a signifi cant improve-ment in conditions for migrants and the numbers who run away.

At the same time he said the government must improve migrant access to the criminal justice system and enforce stiffer penalties on employers who fl out the rules.

“It’s been extremely hard to force sponsors to go to the labour court or pay up, they just

don’t go and the Saudi system now is just not interested in enforcement,” he said.

“Until that happens, some sponsors will obviously just continue to mistreat workers.”

One option which is being looked at is getting sponsors to pay a lump sum into an escrow account, which could be used when there are contractual violations and money needs to be paid to the worker.

Wilcke believes such reforms need to be implemented now and in the meantime the Saudi government must address the wish-es of all stranded workers who want to go home.

“Under the universal declaration of human rights everybody has the right to leave his or her country and return to it. What is clear is that the government is not abiding by its own laws and international obligations,” he said.

“The Interior Ministry must step in and waive the need for an exit visa, they do it all the time with criminals; it’s just a mat-ter of political will.” Saudi authorities were unable to be contacted. �

THE NEED FOR AN EXIT VISA IN KSA HAS FORCED ILLEGAL MIGRANT WORKERS TO REMAIN IN THE COUNTRY.

CONSTRUCTION CONCERNS

The Sitten Bridge and other similar areas

in Jeddah have become well known

recruiting grounds for illegal labourers

for the construction industry. One man

said he regularly works in construction

despite having no knowledge of or training

in the industry, which raises concerns

over occupational health and safety and

the quality of construction. Last month

a worker was killed and nine injured

in Jeddah when a roof collapsed on a

mosque under construction. The Civil

Defense Department said the contractor

was using illegal workers whose lack of

experience in the construction sector may

have caused the collapse.

MANY CONSTRUCTION WORKERS LIVE ON 6X4 SPACES WITH NO FOOD AND WATER UNDER SITTEN BRIDGE.

“THE PROBLEM IS MUCH LARGER THAN THE BRIDGE AND HAS BEEN HAPPENING FOR THE LAST THREE DECADES”


The fast developing Middle East has proven to be a key area of opportunity that is too good to miss for foreign inves-tors hoping to expand

into an international market and offer their services to the construction sector.

Despite the downturn, projects are pro-gressing in the region and there is still a demand for building materials, which is expected to increase as the economy gradu-ally picks-up.

But, where is the best place for these com-panies to do business?

SETTING UP SHOPSince their introduction into the UAE, free zones are arguably the best place to set up

shop. The main reason being – they play a vital part in the growth of the economy by allowing companies to operate with 100% foreign ownership and 100% exemption from income and corporate taxes.

The construction industry is benefi ting from this in two ways: the ability to set up in the UAE without altering their global company status and operational methods, and secondly, the ease with which foreign fi rms can operate in the free zones has meant a wider choice of international standard services and products are readily available in the local market.

Free zones also provide easy access to air-ports and seaports, which is ideal for com-panies importing and exporting cargo.

“We provide our clients with a key loca-tion at the apron of the busiest airport in the Middle East. This unique advantage offers

THE MANY BENEFITS OF FREE ZONES CANNOT BE IGNORED BUT, WITH THE POSSIBILITY OF A NEW OWNERSHIP LAW COMING INTO PLACE, WILL CONSTRUCTION COMPANIES DECIDE TO TAKE THEIR BUSINESS ELSEWHERE?

By Sarah Blackman

FREEDOM OF CHOICE

unparalleled convenience to businessmen,” says Dubai Airport Free Zone (DAFZ) direc-tor general Mohammed Al Zarouni.

“Easy access to the airport reduces cargo costs, which results in an increased profi t-ability of products.”

SIGNS OF GROWTHThe popularity of free zones has grown in recent months, even amid the global crisis, according to recent reports.

“The market is improving,” says George Abra-ham, marketing manager of Global Resourc-es, a consultancy fi rm, which helps foreign companies set up in UAE free zones.

During the summer Abraham said month-ly enquiries fell to around 200, but since Ramadan the market had improved and now they were receiving closer to 350 a month.Interest has mainly come from within the

> For more special reports visit www.ConstructionWEEKonline.com

Middle East, mostly from Saudi Arabia and Kuwait and Qatar.

“People are focusing mainly on the service industry and management consultancy busi-

ness. Manufacturing companies have also begun to come in again,” he observes.

RAK Free Trade Zone (RAK FTZ) is one of the fastest growing free zones in the area with 7000 companies registered there since its establishment in the year 2000.

“From January to November 2009, we have registered 1662 companies from dif-ferent sectors,” says RAK FTZ CEO Ous-sama El Omari.

“Next year, we are expecting to increase this number by more than 50%.”

Business is also booming in Dafza. The fi rm reported a 48% increase in revenue during the fi rst half of this year, compared to the same period in 2008.

And, Al Hamriyah Free Zone (Hafza), Sharjah issued more than 100 trade licences monthly in Q1 of 2009, which shows a rea-

sonably sustained level of growth compared to 2008 when an average of 125 licences were issued monthly.

“To date we have approximately 4500 companies from 132 countries, specialised

BENEFITS OF FREE ZONES• 100% foreign company ownership

• 100% corporate and income tax

exemption

• 100% repatriation of capital and profi ts

• Fast issuing of trade license, often within

24 hours

• Exemption from commercial levies

• Locations are adjacent to bulk trading

and transit areas such as airports and

seaports

• Range of accommodation options on a

lease basis

• Simplifi ed sponsorship and visa process

for staff

RAK FREE ZONE CEO OUSSAMA EL OMARI.

“FROM JANUARY TO NOVEMBER 2009, WE HAVE REGISTERED 1662 COMPANIES FROM DIFFERENT SECTORS”

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in heavy and medium manufacturing, to import, export and re-export as well as services,” says Hafza marketing director Hadi Kassem.

Celebrations of success could soon be silenced, however, as proposed new leg-islations to allow international companies to hold 100% ownership of businesses any-

where in the UAE could lead companies to move out of free zones.

CHANGES IN THE LAWAt present, foreign businesses must have a UAE national as a sponsor and are limited to a maximum 49% stake, except in free zones.The move could give construction suppliers more freedom to choose a home for their companies, paving the way for technology fi rms to make large capital investments in the UAE and diversify the economy away from its present status.

Also, as units outside free zones undergo a price correction, rental prices of units inside free zones are showing no signs of change.

“We are yet to witness a drop in rental prices in Sharjah Airport International Free Zone (Saif Zone), which in time will make expansion unattractive in this zone,” says Bruce Shahabi, director of operations for Combisafe Gulf, a fi rm operating in Saif Zone, which offers safety solutions to con-struction sites.

RAK FREE TRADE ZONE IS REPORTED TO BE ONE OF THE FASTEST GROWING FREE ZONES IN THE UAE. IT CURRENTLY HAS 7000 BUSINESSES REGISTERED THERE.

“A recent increase in power charges does not help the situation either.”

Dafza and RAK FTZ admits that its prices will not alter but are becoming more fl exible.

“Our prices stay the same, however we do consider payment terms for companies facing some diffi culties,” says Zarouni.

“This year we have been sensitive to the economic situation and applied a reduc-tion on our fees, as well as adding value by

NEW LEGISLATION

The UAE government is preparing

legislation within the next month that

allows investments in developing the

country’s industrial base outside free

zones with full ownership privileges for

investors. Foreigners who set up industrial

companies may be the fi rst to have

100% controlling interests in their fi rms

under the relaxation of ownership rules,

according to recent reports.

CURRENT OWNERSHIP LAW

At the moment UAE law requires

foreigners to have an Emirati as a sponsor

and limits them to a maximum 49%

ownership of businesses. The exceptions

are free zones, where foreign companies

can have 100% ownership.


including services at zero cost that would be otherwise charged. We are not planning to alter our price structure at this moment. In 2010 we will work on introducing a series of value added services designed to allow businesses to reduce their start up time and costs,” adds Omari.

So, how will free zones remain competi-tive for national investors when or if the new legislation is implemented?

COMPETITIVE EDGE“In my opinion, free zones will remain competitive for international investors seeking a base in the UAE, even after a proposed new law allows companies to operate outside their jurisdiction with full ownership rights,” insists Jebel Ali Free Zone (Jafza) chief commercial offi cer Ibrahim Al Janahi.

“A company based in Jafza will have advantages over other companies as part of an established business community with excellent infrastructure services.”

One of the key benefi ts that free zones offer is convenient access to various service companies that operate around them. Dafza Online Electronic Services is one example.

“This service was specially developed to cater to the needs of Dafza’s customers for speeding up all types of services required by them, which ranges from on-line proceeding of visa applications, residence, license, and the renewal of these documents,” explains Ophelia Pais executive assistant of Newell Rubbermaid, a supplier of labelling solu-tions, which operates in Dafza.

Wherever foreign investors choose to lay their hats, it seems that international com-panies are driving the economy forward by offering their enterprise to the Gulf’s developing construction sector.

The UAE has a strong head-start in this respect, as it allows international companies to work in the country independently, but its neighbours are already playing catch up.

Saudi Arabia, for example, is working on establishing six economic cities to promote foreign investment. Planned free zones for the kingdom include Eastern Economic City, Hail Economic City and Madinah Economic City.

The fact that Middle Eastern countries are willing to learn from developed countries refl ects a maturing market and bodes well for the future of the construction industry. �

CONSTRUCTION SUPPLIERS OPERATING IN FREE ZONES

COMBISAFE GULF – SAIF ZONEA UK-based fi rm providing safety

solutions, such as fall protection for

construction sites.

NEWELL RUBBERMAID – DAFZAA supplier of industrial label printers, which

can be used to label cables and to highlight

dangerous machinery.

TRIPLEFAST – JAFZAA manufacturer and supplier critical

threaded fasteners and gaskets.

ISTA – DAFZAAn energy and water consumption-based

billing fi rm.

CLIPSAL MIDDLE EAST – SAIF ZONEA regional subsidiary of the Australian

electrical accessories fi rm.

ONYX BUILDING SYSTEMS – SAIF ZONEA civil contracting company, which

also manufactures steel and

aluminium products.

IF THE NEW OWNERSHIP LAW IS IMPLEMENTED, FOREIGN SUPPLIERS COULD HAVE MORE FREEDOM.

www.ConstructionWEEKonline.com/directory

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DIRECTORY

NOVEMBER 28–DECEMBER 4, 2009 CONSTRUCTION WEEK 37

38 SHOWCASE40 TENDERS41 PROJECTS

SPECIALIST SERVICES42 Building materials43 Construction chemicals/concrete44 Education & training/fl ooring45 Recruitment/steel

CITY UPDATE46 Yanbu, Saudi Arabia

SHOWCASE | TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE

TOP: Work on the Burj Dubai started in

January 2004 and the tower reached 100

levels in January 2007. A month later, it

surpassed the Sears Tower in Chicago as the

building with the most fl oors in the world. Burj

Dubai is now the world’s tallest building and

tallest man-made structure, having surpassed

the height of the KVLY-TV mast in North

Dakota, US. The tower will be the fi rst mega-

high structure in which certain elevators

will be programmed to permit controlled

evacuation for certain fi re and security events.

RIGHT: The lights on the Burj Dubai have now

begun to be lit up at night adding to Dubai’s

already marvellous night skyline on Sheikh

Zayed Road. The tower’s peak electricity

demand is estimated at 36MVA, equivalent to

roughly 360,000 100W light bulbs all operating

at the same time.

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�SHOWCASEITP IMAGESFOR IMAGES WITHIN THESE PAGES PLEASE EMAIL [email protected]

CONSTRUCTION WEEK AWARDS 2009: Emaar’s tallest tower in the world, Burj Dubai won the award for Tower Poject of the Year.

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BURJ DUBAI

The marvel of the Middle East and the envy of the world, the Burj

Dubai, is getting ready for its offi cial opening on January 4, 2010. The

day is also the fourth anniversary of HH Sheikh Mohammed bin Rashid

Al Maktoum becoming the ruler of Dubai.

Information source: www.burjdubai.com

For im

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CLOCKWISE FROM LEFT: At the peak

cooling times, the tower will require

approximately 10,000 tonnes of cooling per

hour, which is equivalent to the capacity

provided by 10,000 tonnes of melting ice

in one day; the tower will have the world’s

highest elevators; hot and humid outside air,

combined with the cooling requirements of

the building, will result in a signifi cant amount

of condensation of moisture from the air. This

condensed water will be collected and drained

in a separate piping system down to a holding

tank located in the basement car park, after

which it will be pumped into the site irrigation

system for use on the tower’s landscape

plantings. This system will provide about 15

million gallons of supplemental water per

year, equivalent to nearly 20 Olympic-sized

swimming pools.


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�TENDERSFREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRYTO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO [email protected]

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BAHRAIN

Issuer: Electricity and Water AuthorityTender No: 307/2009/6015Description: The scope of work includes renovation of an administration building at Sitra Power and Water Station.Closes: December 2Fees: BD15Contact: www.tenderboard.gov.bh

EGYPT

Issuer: Egyptian Railways Integrated Services CompanyDescription: Engineering, design, installation and commissioning of four stationary trains washing systems in Cairo.Closes: January 24Fees: EP5000Bond: EP200,000Contact: The Railways Workshops, Al Farz, El Sharabiya, Cairo

OMAN

Issuer: Ministry of Regional Municipalities and Water ResourcesTender No: 297/2009Description: The scope of work includes the construction of a sewage treatment plant and sewerage network system for Misfat Al Abrean suburb in Wilayat Al Hamra.Closes: November 30Fees: OR500Contact: www.tenderboard.gov.om

Issuer: Ministry of Foreign AffairsTender No: 320/2009Description: Expansion of Ministry of Foreign Affairs at Al Qurm Bausher.Closes: November 30Fees: OR1000Contact: www.tenderboard.gov.om

Issuer: Ministry of EducationTender No: 298/2009Description: Construction of Atuffail bin Amr Boys Basic School at Al Owaid.Closes: December 6Contact: www.tenderboard.gov.om

Issuer: Ministry of HousingTender No: 301/2009Description: Construction of 32 housing units and a mosque in the Al Sharqiya region.Fees: OR500Closes: December 7Contact: www.tenderboard.gov.om

Issuer: Ministry of HealthTender No: 307/2009Description: Construction of health centre at Musanah.Closes: December 7Fees: OR375Contact: www.tenderboard.gov.om

Issuer: Oman Tourism DevelopmentTender No: 308/2009Description: Provision of consultancy services for the development of Fort Hotel.Closes: December 7Fees: OR375Contact: www.tenderboard.gov.om

QATAR

Issuer Public Works AuthorityTender No: PWA/ITC/040/09-10Description: Construction of sewer manholes.Closes: December 6Fees: QR1000Contact: Contract Department, Public Works Authority

Issuer: Public Works AuthorityTender No: PWA/GTC/045/09-10Description: Reconstruction of the Najma Road extension.Closes: December 8Fees: QR7000Contact: Contract Department, Public Works Authority

Issuer: Public Works AuthorityTender No: PWA/GTC/042/09-10Description: Construction of main roads, as well as internal roads for packages one to fi ve. The project is located around 3km north of Doha.Closes: December 8 Fees: QR5000Contact: Contract Department, Public Works Authority

Issuer: Public Works AuthorityTender No: PWA/GTC/049/09-10Description: Modifi cations and additions with associated services to exiting 36 schools around Doha.Closes: December 8Fees: QR2000Contact: Contract Department, Public Works Authority

SAUDI ARABIA

Issuer: Royal Commission for Jubail and YanbuTender No: PIC G-1679EDescription: All work necessary for a complete operational facility of Juma Mosques.Closes: December 5Contact: Director, Purchasing and Contracting Department, PO Box 30031, Madinat Yanbu Al Sinaiyah

Issuer: Saudi Railway OrganisationTender No: 218Description: Specifi cation for the design of new bridges for the rail line with the assessment of the existing railway bridges and concrete sleepers on the rail line in various locations between Dammam and Riyadh.Closes: December 7Contact: www.saudirailways.org

UAE

Issuer: Dubai Electricity and Water AuthorityTender No: CE/0423/2009Description: Supply, installation, testing and commissioning of 132/11KV substations.Closes: December 6Fees: AED5000Contact: www.dewa.gov.ae

Issuer: Ministry of Public WorksTender No: 2009/167/10-341104-7091-7048Description: Construction of a maternity and children’s hospital in Sharjah, UAE.Closes: December 22Fees: AED8000Contact: www.mopw.gov.ae

The Ministry of Health is responsible for ensuring the availability of health care to the people of Oman. The government body is currently running its seventh five-year plan for health development (ending next year) to improve primary, secondary, tertiary and pharmaceutical health care.

It has recently opened a tender for the construction of a health centre in Musanah as part of this plan. The bidding deadline is December 7. The ministry has also issued tenders for the construction of health centres in Saham in Al Batinah region and Al Ajaiz. Closing dates for tenders are December 14 and December 21 respectively. �

Tender focus

OMAN MINISTRY OF HEALTH

THE MINISTRY IS AIMING TO IMPROVE ALL SECTORS OF HEALTH CARE IN OMAN.

> For more tenders check online at www.ConstructionWEEKonline.com/tenders

� PR

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�PROJECTSA SAUDI ARABIA DATABASE - BUILDING PROJECTS FOCUSTO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO [email protected]

The project calls for construction of district cooling networks. The development will be used to supply cooled water and electricity for the 2nd Jeddah Industrial City and will also include the construction of steam networks. In September 2009, Saudi Industrial Property Authority awarded National Tri-generation CHP Company (NTCC) the built, operate and transfer

contract. NTCC will operate the district cool network for 30 years. The project value is US $300 million (SR1 billion). Construction has started and is expected to be completed by quarter four of 2011. The district cooling networks will reduce the need for new infrastructure facilities for industrial areas and in-turn constr-uction costs. �

Project focus

DISTRICT COOLING NETWORK IN JEDDAH

THE CONSTRUCTION CONTRACT WAS AWARDED IN SEPTEMBER.

PROJECT TITLE CLIENT CONSULTANT MAINCONTRACTOR

VALUE(US$MN)

STATUS

SAUDI ARABIAMUZAHIMIYAH POWER PLANT Saudi Electricity Company Fichtner Not Appointed 950 project under design

NEW DAM IN HAIL Ministry of Water & Electricity SaudConsult Progressive Construction 53 project under construction

202KM TRANSMISSION LINE BETWEEN QURAYYAH POWER AND THE NATIONAL GRID

Saudi Electricity Company Hyundai Engineering & Construc-tion Company

106 project under construction

BADER SUBSATION - YANBU OHTL Saudi Electricity Company Al Saleh & Massoud Company 5 project under construction

YANBU INDEPENDENT WATER & POWER PROJECT Marafi q / Saline Water Conver-sion Corporation

Mohammed Turki Mott MacDonald

Not Appointed 4000 project under design

PRINCESS NOURA BIN ABDULRAHMAN UNIVERSITY - HIGH VOLTAGE SUBSTATION

Ministry of Higher Education / Ministry of Finance

ABB Contracting Company / Al Fanar


110/13.8KV AL BAIDAA SUBSTATION Saudi Electricity Company In House Siemens 10 project under construction

132/33KV SUBSTATION IN NMAS Saudi Electricity Company Iscosa Industries & Maintenance 40 project under construction

380KV MANIFA SUBSTATION Saudi Electricity Company National Contracting Company 123 project under construction

33KV HV LINE IN ABHA Saudi Electricity Company In House National Contracting Company 10 project under construction

REINFORCEMENT OF SIX 132KV SUBSTATION IN JIZAN

Saudi Electricity Company In House Iscosa Industries & Maintenance 65 project under construction

SHUQAIQ - ABHA EAST OHTL Saudi Electricity Company Middle East Engineering & Development Company


QSAI DAM AT JIZAN Ministry of Water & Electricity Zuhair Fayez Partners Bin Jarallah Group 40 project under construction

1200 MW THERMO ELECTRIC POWER PLANT IN RABIGH

Saudi Electricity Company/Acwa Power International/Kepco

Not Appointed Not Appointed 2000 project in concept stage

NEW DAM IN ABHA Ministry of Water & Electricity Zuhair Fayez Partners Bin Jarallah Group 16 project under construction

33KV HV LINE IN AL HAGU VILLAGES Saudi Electricity Company In House Al Saleh & Massoud Company 10 project under construction

132/380KV SUBSTATION IN NAMERA Saudi Electricity Company In House ABB Contracting Company 162 project under construction

EXPANSION OF 20 DISTRIBUTION SUBSTATIONS Saudi Electricity Company ABB Contracting Company 34 project under construction

132/13.8KV 8829-SUBSTATION IN AL MOROOJ AREA Saudi Electricity Company Al Osais Contracting Company 50 project under construction

115/380KV HALF MOON SUBSTATION - PHASE 2 Saudi Electricity Company In House ABB Contracting Company 66 project under construction

> For the latest projects information visit www.ConstructionWEEKonline.com/projects


�SPECIALIST SERVICESCONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORYTO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL [email protected]

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BUILDING MATERIALS

Supplier focus

RIMAL ENGINEERING PRODUCTSMANUFACTURER OF BUILDING AND FINISHING MATERIALS

Rimal Engineering Products was founded in 1989 in Abu Dhabi and it has grown to become one of the UAE’s longest established agents in the construction industry. It supplies construction, building and fi nishing materials from leading international brands to construction companies, builders, specifi ers, and interior design fi rms, as well as the oil and gas, power, and water industries.

Its product range stretches from pre-mixed plaster for internal, external and decorative uses, to architectural ironmongery, kitch-ens, solid surfaces, masonry blocks, and more. Rimal also provides fi bre-glass gratings, handrails, ladders and structures.

The company specialises in help-ing suppliers and manufacturers of construction materials and chemi-cals build their brands and gain a foothold in the UAE market, and it has developed strong partner relationships with all major construction com-

panies across the region over the past two decades.

Through its proud legacy of pro-fessional service, Rimal has some involvement with most new projects under construction in Abu Dhabi, including some of the residential and commercial developments, from large scale residential and commercial tower developments to high end residential villa com-pounds, hotels, oil and gas installa-tions, refi neries, power and water plants and palaces.

Rimal is the exclusive agent for international brands such as Con-mix and Arabian Concrete Prod-ucts, among others. The company is currently involved in Abu-Dhabi based projects such as Shams Abu Dhabi, Al Reef Villas, Al Raha, Golf Gardens and Etihad Towers, and it has worked with some of the

Emirate’s biggest developers, including Sorouh, Aldar and Manazel. �

RIMAL ENGINEERING PRODUCTS HEAD OFFICE.


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BUILDING MATERIALS HARD LANDSCAPING SUPPLIER

> For directory information visit www.ConstructionWEEKonline.com/directory

DEWATERING

Engineering Works Foundation Infrastructure (L.L.C.)

SPECIALIZED DEWATERING SERVICES:• Specialized in Deepwell, Wellpoint,

Open pumping techniques

• Professional Service

• Round the clock backup

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P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E.Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: [email protected]

CEILINGS/PARTITIONS

CONSTRUCTION/MANUFACTURERS

CONSTRUCTION CHEMICALS

CONSTRUCTION/MANUFACTURERS

Calcium silicate and cement � bre boards of thickness 6mm, 9mm and 12mm.Tiles vinyl fabricated and painted.

Full range of plaster, tiles and gypsum tools

OTAL (LLC) Dubai, U.A.EPhone: (+971-4) 267 9646 e-mail: [email protected] website: www.otal.ae


�SPECIALIST SERVICESCONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORYTO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL [email protected]

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CONTRACTORS/MANUFACTURERS

FLOORING

HVAC & PLUMBING RELATED EQUIPMENT

POST TENSIONING

Albert +971 50 854 5629

Office +971 4 885 8825Simon +971 50 854 5327

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> For directory information visit www.ConstructionWEEKonline.com/directory> For directory information visit www.ConstructionWEEKonline.com/directory

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CITY UPDATEYANBU, SAUDI ARABIA

Jubail, continues to go from strength to strength.

After the fl urry of summer openings, includ-ing the US $5.3 billion (SR20 billion) Yanbu National Petrochemicals Company, road and bridge projects worth $35 million and other developmental projects worth $533 Buoyed by the ever-

growing petrochemi-cal industry, Yanbu, one of two economic cities established by Saudi Arabia in 1975, along with

million, other companies are increasingly looking at expanding into the city.

Yanbu was chosen as the site for Jotun Paints’ newest factory in Saudi Arabia, bring-ing the fi rm’s total capacity in the kingdom to 110 million litres. The fully automated plant cost US $26.6 million (SAR100 mil-lion) and was constructed as a response to growing demand in Saudi Arabia.

“The Yanbu development is a refl ection of our commitment and support toward Saudi Arabia. Not only does this represent a sig-nifi cant business opportunity and develop-

Plans for YanbuCONNECTING YANBU TO THE REST OF SAUDI ARABIA COULD BE A VERY PROFITABLE EXERCISE

By James Boley

PETROCHEMICALS REMAIN AN IMPORTANT PART OF THE YANBU ECONOMY.


“THE YANBU DEVELOPMENT IS A REFLECTION OF OUR COMMITMENT AND SUPPORT TOWARD SAUDI ARABIA AND REPRESENTS A SIGNIFICANT BUSINESS OPPORTUNITY”

people are crazy, don’t bother doing it’ – everybody was gambling about its failure and now everybody is talking about its suc-cess. It proved to be the right decision at the right time,” says Saudi Arabia’s deputy minister for town planning, Dr Abdulrah-man Al Shaikh.

“I know there are some people who have their doubts about the success of the eco-nomic cities, but this is the nature of peo-ple. I believe they will prevail, because the Kingdom’s economy and resources are sound and if it is the will of the government to support it, then it will go on.”

Proof of this confi dence comes from the Saudi Landbridge project. The US$10 billion rail link will connect the country’s Red Sea coast to the Gulf, and Yanbu will be one of the stops on the line. The Landbridge will connect Yanbu to Jeddah, Damman, Riyadh

TOP PROJECTS US$Waterfront Development at Yanbu - Dredging Package 100mExpansion of Plaster Plant 100mPublic housing 80m and 75mDoctors’ housing 50mYanbu industrial College (YIC) and Yanbu Technical Institute (YTI) dormitories 45m

and Jubail. The project involves the construc-tion of 950km of new railway tracks between Riyadh and Jeddah, and another 115km line between Dammam and Jubail.

However, despite this growth, the city still lags behind some of its rivals. Many companies are shipping their products from the Islamic Port of Jeddah instead of using the port of Yanbu, as there is not enough shipping happening there,” says Jamal Malaikah, president and COO of National Petrochemical Industries (Natpet).

Meanwhile, the current tenders list for the city indicates strong growth in the health-care sector, with several health clinics and medical staff accommodation planned for the industrial city. Construction on the $12 million clinics package by Rezayat Trading began in Q1 this year and is expected to be complete by Q1 2011. �

ment of the industry, but it also enables us to contribute to the community by creating career and development opportunities,” says Jotun chairman Odd Gleditsch Dy.

Confi dence in the future of Yanbu remains very high. “Jubail and Yanbu are very suc-cessful stories. When they were started in the 1980s everybody was saying ‘these

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DR.ABDULRAHMAN H AL SHAIKH. JOTUN CHAIRMAN ODD GLEDITSCH DY.

CONSTRUCTION WEEK NOVEMER 28–DECEMBER 4, 200948

DIALOGUEANDREW DOEL

What products and services do you offer?We manufacture and supply a lightweight aggregate, which is used primarily within lightweight concrete. One of the major disadvantages of concrete is its deadweight (density). If you use Lytag in your concrete you can reduce your deadweight down to about 1400kg and 1800kg per m³. The density of normal concrete made with plain cement is about 2400kg per m³. The product itself is manufactured from pulvarised fly ash, which is generated from electricity production in coal-fired power stations. The density of Lytag is around 850kg per m³ and dry density is about 750kg per m³. The low density of the conrete also improves its insulating properties. Thermal conductivity can be reduced by over 25% by using light weight aggregate as opposed to natural aggregate. We set up business in the early 1960s and I think it was a product that was a little bit before its time during that period.

Does the density of Lytag affect the performanceof the concrete produced?No. Lytag concrete will have the same structural integrity as normal concrete – you produce the same strengths. Sixty Newton is perfectly achievable with Lytag. It can certainly be used in high-rise towers, where light weight is an important factor, and any other structure for that matter. The reduction in dead weight means that considerable savings can be made in foundation and reinforcement costs. There are also no issues with pumping the concrete.

Which Middle East projects have you supplied your product to?We are relatively new in the Middle East, however, we have supplied a number of projects with Lytag. The two that spring to mind are Terminal 3 at Dubai Airport and the new aluminium smelter in Abu Dhabi. These are the larger projects that we have worked on in the Middle East. We supply the product to the ready mix producer,

Lightweight ChampionLytag managing director Andrew Doel discusses the advantages of lightweight concrete and how his company is progressing in the Middle East

By Sarah Blackman

which then makes the concrete. Lytag is usually specified by the engineer or architect in order to take advantage of the end product.

When and why did Lytag come to the Middle East?Lytag is not set up here in the Middle East, we have partnered with Bulk Materials International in September last year. We certainly plan to continue working with them but one never knows what the future holds. At the moment, our material is manufactured in Europe but we are looking to start manufacturing the product in India, which would open up the volume of product that we have available. There are one or two projects that we have planned for the future, for example we have been talking with clients in Dubai and Doha.

How sustainable is light weight aggregate?It is environmentally friendly in a number of ways. Over the years that Lytag has been operating we have used around 16 million tonnes to 17 million tonnes of fly ash. If we didn’t use it, it would generally go to a landfill. Natural aggregates are around twice the density of Lytag. For every tonne of Lytag you use, you prevent the extraction of two tonnes of natural aggregate, which you can’t ever replace. Also, a lot of steel that goes into concrete is there to support the dead weight, therefore you can reduce the quantity of steel that goes into a structure when using a light weight aggregate. One project in the UK recorded a

13% reduction in the quantity of steel they used. Two recommendations put forward by the World Commission on the Environment are to conserve and enchance the resource base and combine environment and economic considerations in decision making, which is what we do at Lytag. The aggregate also improves fire resistance, partly due to particle stability at elevated temperatures, as well as chemical and frost resistance.

Doel has worked in the construction

industry for more than 20 years,

specialising in the cement, concrete and

aggregate markets. After joining the

company in 2000, he has fulfi lled the role

of managing director of Lytag since 2008.

Overseeing the growth of the Lytag brand

worldwide, Doel divides much of his time

between the UK and the Middle East.

Alumil Gulf fzcsubsidiary of ALUMIL in the Middle East

Technology Park, RAK FTZ, RAKtel +971 7 2444106, fax +971 7 2444107email [email protected]

construction week - issue 298

Documents

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construction sites

middle eastnov

worker fall

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free zoneshow

rescue equipment

bene ts of free zones