The Red Sea International Company has signed a contract worth US $7.76mn with The Fundamental Installation for Electric Work Company (known as ‘First Fix’) to design, manufacture, supply and install prefabricated buildings for a residential project in NEOM.

Elements of this work will involve the use of innovative 3D printing techniques, allowing more rapid on-site construction as well as considerably reducing overall time-frames and schedules. Hence, a relatively ambitious portfolio of project work is scheduled for inclusion in this new four-month contract.

The financial impact of the contract will be shown in revenues and profits in the period starting from Q3 2023, the company said in its most recent filing to Saudi bourse, Tadawul.

The contract specifically involves work on a prestigious and extensive housing compound that will be executed in Sharma, NEOM, to support the new city’s developmental projects. This will comprise contemporary housing units aligning with a raft of regulatory standards, particularly in terms of sustainability and observance of zero carbon goals.

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Source: MEConstructionNews

A loan agreement worth US $75mn has been signed by the Saudi Fund for Development (SFD) and the Prime Minister of Saint Lucia. The deal will see the reconstruction and rehabilitation of the St. Jude hospital.

The deal is SFD’s first in Saint Lucia, making the Caribbean country the 90th nation to receive funds from the organisation for a development project.

According to a statement, the project involves creating an integrated medical facility offering secondary medical care to Saint Lucia’s population, with a capacity of around 100 beds. It also includes the renovation of several of its wings and sub-buildings.

“Today, we are one step closer to making amends to the people of Saint Lucia, particularly to the people of the south of the island, by securing funding for the reconstruction of the St. Jude Hospital,” stated the Prime Minister of Saint Lucia, Philip Joseph Pierre.

He added, “We have been able to achieve this milestone with the support of the Kingdom of Saudi Arabia through the SFD, as we embrace a new era of collaboration to find sustainable solutions to tackle pressing issues.”

The signing ceremony was also attended by Saint Lucia’s Minister for External Affairs, International Trade and Civil Aviation Alva Baptiste; the Minister for Health, Wellness and Elderly Affairs Moses Jn. Baptiste; and government officials from both sides.

The funding follows three years of inactivity on the reconstruction of the hospital, which was hit by fire in 2009. The inaction had put at risk the availability of health care services for Saint Lucia’s population, a report noted.

The SFD is now said to have implemented more than 700 development projects and programs in 89 countries around the world since its operations began in 1975.

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Source: MEConstructionNews

Martin Brogan has been appointed Director of Health, Safety and Environment according to Dulsco Group. The appointment aligns with the company’s focus on unifying nationwide standards to improve HSE practices and culture across the UAE.

The firm notes that Brogan will be responsible for all HSE operations at a corporate and client level. Internally, he is working closely with all departments within the four portfolios to further enhance Dulsco’s already robust HSE policies and procedures. Martin also acts as the lead HSE advisor to Dulsco’s customers, many of whom want on-the-ground HSE support from the Dulsco team in their day-to-day operations, a statement from the firm explained.

Brogan is said to bring more than 20 years’ expertise to the company, and has extensive HSE experience in the UK and UAE in the oil and gas, aviation, food manufacturing and FMCG sectors. He has a degree in Health and Safety, is a certified ISO 45001 Lead Auditor and a graduate of the UK’s National Examination Board in Occupational Safety and Health (NEBOSH).

“Health and safety is the most important division of any business, and Dulsco is proud to have robust policies in place that go above and beyond to ensure our people remain safe. With Martin now on board, we will take HSE to new levels both internally and for our clients in the UAE and, as part of our global expansion strategy. His expertise and experience are of great value to Dulsco, and I am delighted to welcome him to our company,” said David Stockton, Chief Executive Officer at Dulsco Group.

He continued, “Government directives and industry initiatives have resulted in great strides in HSE, which is now taken much more seriously at most organisations and is seeing year-on-year improvements in the sector’s skill set. However, enhancements are still needed, starting with consistency in rules, policies and procedures and enforcement, which currently differ in organizations and geographies, as well as more measures to make health and safety an integral part of company culture.”

Brogan’s role covers all divisions of the Dulsco Group: Dulsco People, Dulsco Environment, Parisima and Advance Global Recruitment businesses. He also plans to expand his expert HSE team in line with the company’s growth, the statement concluded.

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Source: MEConstructionNews

As cities become denser and lifestyles get more integrated, urban planning places a greater emphasis on incorporating mixed-use development projects. This approach prioritises placemaking and sustainability, reflecting an increasing desire for diversification in order to future-proof property assets in a dynamic market. By seamlessly integrating various functions within a single area, such as residential, commercial, cultural, and leisure facilities, these projects can offer holistic living experiences that enrich the community and harmonise with the surrounding environment.

The idea of sustainable development has emerged as the most iconic, enigmatic, contentious and subversive concept in the last ten years of the twentieth century. In constant co-evolution and between quantity and quality of development, it promotes integration and balance between the economic, social, and environmental policy objectives (OECD 1999). Cities are thrust into the global stage of the future, thanks to the concept of urban sustainability, which can be exceptionally driven by the emerging trend of mixed-use developments.

In recent years, numerous developers are turning to mixed-use projects as the appeal of walkable urban surroundings grows. These projects typically combine office space, housing and retail space, occasionally with a hotel or community-serving uses. By including open space, pedestrian and transportation links, or ground-floor retail and dining alternatives, mixed-use projects contribute to enlivening the public environment. Furthermore, one of the ten guiding principles of ‘Smart Growth’, is a mixed-use planning approach that aims to promote community design and growth that benefits the economy, community, public health and environment.

Plentiful Benefits

One of the primary advantages of mixed-use developments is its ability to promote the local economy. It has the potential to bring together various aspects to create a diverse and vibrant environment that attracts a wide range of people. This, in turn, can lead to increased economic activity and job creation. In addition, mixed-use developments can help revitalise urban areas, which have often been neglected in the past.

Another benefit of mixed-use developments is its ability to offer an exceptional community living experience. By incorporating residential, commercial and cultural facilities within a single area, it creates a sense of community and provides residents with easy access to an array of amenities. This can be particularly beneficial for people who live in dense urban areas, where space is often scarce and expensive.

The Right Stuff

Mixed-use projects should be designed to integrate with their local surroundings rather than stand apart. It is essential to avoid duplicating existing offerings, although amenities within a single building are significant factors in attracting residents and building community. Vertical structures should seamlessly integrate various cohorts located on various levels with one another, along with the neighbourhood’s transportation infrastructure, such as metro lines, bus stops and other facilities.

Moreover, mixed-use developments often contribute to the economic vitality of a region by offering a variety of housing options and employment opportunities nearby. These developments provide an optimal balance between jobs, housing, and land usage, which further enables residents to maintain a sense of community living.

The mixed-use development approach further fosters several profitable residential, commercial, institutional and/or industrial uses to be housed in one building. As a result, there are a variety of residential units, retail spaces and cultural and entertainment venues available. The concept of horizontal mixed-use development entails combining single-use buildings with mixed-use developments. Moreover, combining businesses and residences in such a way allows for the development of a neighbourhood or even an emerging township.

However, it is crucial to remember that a successful combination is fruitful when it works well together, interacts favourably, and helps to create a society that is balanced and offers a wide range of services that are easily accessible. The different dimensions of buildings also enable distinctive uses to cooperate effectively. Similarly, with increased awareness of the impacts of climate change, urban mixed-use developments must also ensure opportunities for crucial climate mitigation strategies, including stormwater runoff control, sun shading, reduction in heat island effect, as well as water filtration and air purification facilities.

To ensure the long-term viability of mixed-use developments, it is essential to design flexible spaces that can adapt to evolving needs and demands. Currently, developers are placing an increasing emphasis on environment-friendly transportation options, such as integrated vehicle rental and public transportation, in response to the declining trend and evolving attitudes towards vehicle ownership. It not only addresses the present concerns, but also promotes a more sustainable influence for now and the future. These projects exemplify a forward-thinking approach that considers the needs of both present and future generations.

We, at Sobha Realty, recognise the soaring demand for integrated living and working environments in an ever-evolving real estate landscape. Mixed-use developments are expected to become more popular in the coming years, as an increasing number of people desire walkable neighbourhoods that encompass residential, professional, and recreational amenities. As one of the leading developers in the UAE, we understand that the fusion of residential, commercial and retail spaces is an irresistible magnet for buyers, paving the way for a truly transformative experience.

The transitioning trend towards mixed-use development projects is seen as a positive development for urban planning. These projects certainly have the potential to create thriving, sustainable urban communities by fostering local economies, offering a healthy living environment and placing a significant value on placemaking and sustainability as key long-term goals.

The post Embracing the future of urban development appeared first on Middle East Construction News.

Source: MEConstructionNews

Ambuja Cements has announced that it has acquired Sanghi Industries in a deal worth US $600mn. The deal makes the company India’s second largest cement maker.

The firm said it is acquir­ing 57% of the shares in Sanghi from its fam­ily own­ers, with the com­pany val­ued at around $600mn after tak­ing into account debt and liquid assets. Sanghi has India’s largest plant for cement and clinker and pro­duces approximately six million tonnes of cement per year.

According to a report in the Financial Times, the deal is leveraging the firm’s own cash, as opposed to taking on debt to complete the transaction.

“We are optim­istic about the acquis­i­tion by Ambuja Cements, recog­nising it as a mutu­ally bene­fi­cial oppor­tun­ity for both of the share­hold­ers,” said Ravi Sanghi, Sanghi Indus­tries’ Chair and Man­aging Dir­ector.

India’s cement market is expected to increase due to Nar­en­dra Modi’s drive to improve infra­struc­ture.

Ambuja Cements, which is owned by the Adani Group, said it aimed to increase Sanghi’s pro­duc­tion to 15m tonnes per year. Its cur­rent assets pro­duce 67.5m tonnes a year, with a tar­get of 140m tonnes by 2028.

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Source: MEConstructionNews

A report from global real estate consultancy Knight Frank shows that the housing market in Qatar faces challenges, as a fall in demand for residential properties is coupled with a rise in supply following the construction boom linked to the FIFA World Cup 2022.

‘The Qatar Real Estate Market Review for Spring-Summer 2023’ showed that rents are dropping in the majority of districts, with Lusail’s Waterfront and Fox Hills districts experiencing the highest quarterly depreciation of 23% and 18% respectively.

The municipalities of the capital Doha and Al Rayyan recorded the highest volume of residential transactions during the second quarter, it added.

Faisal Durrani, Partner, the Head of Research, Middle East and North Africa, Knight Frank said, “The supply-demand imbalance, rising interest rates, and affordability challenges are contributing to a shrinking mortgage market and impacting the volume of home sales, while also undermining residential values. Indeed, the total number of residential sales transactions has fallen by 36% over the last 12-months. Simultaneously, the total value of residential transactions has declined by 24%.”

Durrani pointed out that the sharp decline in rents would undoubtedly put landlords under pressure to remain competitive, particularly as the Knight Frank’s 2023 Destination Qatar report shows that Qatari high net worth individuals most prefer Lusail for a residential acquisition, with an average budget of $1.8mn.

“Among the HNWI we spoke to, 71% already own a home in Lusail. Additionally, Lusail Marina and Lusail Waterfront were identified as the two most favoured locations for residential real estate acquisition. Moving on to rental yields, during Q2 2023, the gross single-let rental yield for residential properties in Qatar averaged 6%. Apartments had a higher yield of 6.4%, while villas yielded slightly lower at 4%,” he added.

On its office market, Knight Frank said there were challenges in this sector too, which is experiencing a widespread drop in average rental rates.

Adam Stewart, the Partner and Head of Qatar, Knight Frank explained, “Despite strong demand from the public sector and oil and gas industries, the Qatari office market’s biggest challenge is an oversupply of office space, which is undermining rents, leaving occupiers firmly in the driving seat. Notably, the public sector is driving most of the activity in Qatar, particularly in Lusail.”

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Source: MEConstructionNews

Oman property developer Alargan is set to break ground this month on a new low-water bridge – technically known as an ‘Irish’ bridge – within its Telal Al Qurm development in Muscat.

Telal Al Qurm is a signature project by Alargan, providing a lifestyle-themed community in the heart of the city. The mixed-use development includes over 1,500 apartments and 46 townhouses, as well as 190 serviced apartments. The picturesque setting is complemented by two four-star hotels with a total of 370 keys, an aqua park, cinema complex and commercial spaces.

Breaking ground on August 20, the four-month ‘transformative’ Irish bridge project will adhere to the strict Oman Highway Design Standards 2017.

The approval was granted following a comprehensive hydrology study, which will ensure structural stability and efficient water flow during rainy seasons and all year round. The implementation of meticulous drainage measures will further optimise surface water drainage.

Alargan has gone beyond the development’s land boundary, showcasing its dedication to community development by solely funding the Irish bridge connection in the public domain.

The bridge, measuring 4x4m with 27 cells, will play a pivotal role in establishing an uninterrupted connection to Telal Al Qurm throughout the year, ensuring the safety and security of the residents in the new development as well as the neighbourhood and the general population.

Commenting on the milestone, Engineer Maher Joujou, Acting General Manager of Telal Al Qurm, said: “At Alargan, we consistently strive to enhance the living experience for our valued residents and investors. Safety remains a paramount concern, making it a top priority throughout the bridge’s development. The approval of the Irish bridge reflects our unwavering commitment to creating thriving communities with top-tier infrastructure and safety.”

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Source: MEConstructionNews

The Big Project Middle East (BPME) editorial team has announced a comprehensive revamp of its highly anticipated annual awards. The Big Project ME Awards 2023: Excellence in Construction Awards (BPME Awards) has been significantly expanded to place greater focus on construction professionals and teams, contracting companies, regional developers, a diverse array of projects, and sustainability achievements.

Scheduled to take place in Dubai on 18 January 2024, the BPME Awards now has several distinct groups of categories: Individual Awards (five awards); Sustainability Awards (four awards); Developer Awards (four awards); Contractor Awards (seven awards); Project Awards (11 awards).

For the first time in its over decade long history, the event will recognise developers from small- (project development values up to US $30mn) to giga-sized (projects exceeding $1bn in value) with individual categories. The team has also applied this distinction to the contractor awards, expanding the previous overall contractor category into three: small (turnover up to $25mn); mid-sized ($25mn to $900mn) and large (over $1bn in turnover). These categories are joined by specialist contractor categories such as MEP, infrastructure etc.

In addition, the project categories have been significantly expanded and now include: Project of the Year: 3D Printed; Project of the Year: Offsite Construction; Project of the Year: Fit-Out; Project of the Year: MEP; Project of the Year: Refurbishment & Retrofit; Project of the Year: Energy; Project of the Year: Water; Project of the Year: Infrastructure & Transport; Project of the Year: Leisure & Hospitality; Project of the Year: Commercial, and Project of the Year: Residential. Read more about the categories by clicking here.

“The BPME Awards has credibly recognised excellence in construction across the Middle East for well over a decade, and the time was right to relaunch the event with a significantly expanded focus, given how much the construction sector has grown in recent years. With the Big Project ME Awards 2023: Excellence in Construction Awards, we will now recognise excellence across 31 distinctive categories, which we think best represents the regional construction sector and what it is striving to achieve,” said Jason Saundalkar, Head of Content at Big Project Middle East.

Nominations for the BPME Awards are now open, and will close on 15 November 2023, with no possibility of extension. Read the nomination guidelines here.

As before, there is no cost to submit a nomination for the awards, however should you be shortlisted in a category, a member of the BPME commercial team will get in touch to discuss table costs for the gala dinner event on 18 January 2024, the editorial team confirmed. Sponsorship inquires can be addressed to Raz Islam (raz.islam@cpitrademedia.com) and Madeleine Martin (madeleine.martin@cpitrademedia.com).

To read more about the Big Project ME Awards 2023, click here.

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Source: MEConstructionNews

Saudi Arabia’s National Water Company (NWC) said it has awarded a Long-Term Operation and Maintenance (LTOM) contract worth over US $426mn to Alkhorayef Water and Power Technologies Company for the rehabilitation, operation and maintenance of sewage treatment plants (STPs) in Riyadh.

The 15-year-long deal will contribute to the objectives of the National Water Strategy, which is mainly aimed at achieving environmental sustainability, increasing investments in the water sector and opening up partnership opportunities for the private sector.

This is executed under an innovative agreements model that aims at engaging the private sector in investment opportunities involving the rehabilitation, operation and maintenance of NWC strategic assets.

The contract was signed by Engineer Nemer Mohammed Alshebl, the Chief Executive of NWC and CEO of Alkhorayef Water and Power Technologies Company, in the presence of Engineer Abdulrahman Abdulmohsen AlFadley, Minister of Environment, Water and Agriculture and Chairman of NWC.

Nemer Mohammed Alshebl said the contract signed with Alkhorayef is for a levelised tariff of about $11cu/m. The contract aims to cover the rehabilitation, operation, and maintenance of three STPs in Riyadh (Manfouha STPs complex) with a total treatment capacity of 700,000cu/m per day.

As part of the contract, AWPT will invest over $146.6mn in rehabilitation works, which will improve overall operational performance and environmental compliance. It is also the third LTOM contract being awarded by NWC in a bid to revamp the existing STPs.

This, however, is just the beginning of an extensive works and allocations campaign, as Nemer Mohammed Alshebi explained: “In addition, the NWC LTOM programme will continue, as NWC intends to tender 113 existing treatment plants with a total capacity of 2.4m cu/m per day starting in 2024.”

These contracts are investment opportunities open for local and international companies. The partnerships will attract important consortia, with the goal of rehabilitating existing assets for 15 years with capital investments at competitive prices.

Through these contracts, NWC aims to support the national economy by enabling expansion and growth in the water sector and creating opportunities and long-term partnerships with local and international private sector companies.

Another goal is to attract and localise new technologies and transfer knowledge to Saudi professionals, as well as attracting capital into Saudi Arabia. Hence, they are all offered as part of an innovative partnership model that interests water sector players locally and globally, the statement concluded.

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Source: MEConstructionNews

RAK Properties has recorded solid growth for the first half of the year with a 164% jump in its revenue, hitting $140mn, primarily propelled by robust demand for new project launches in both Abu Dhabi and Ras Al Khaimah. This is also combined with the successful handover of completed residential projects.

Announcing its financial results for the six-month period ended 30th June, 2023, RAK Properties said its net profit surged more than three-fold to hit $24.01mn from $6.96mn last year. Additionally, the company’s hospitality assets played a crucial role in enhancing revenue streams, fortifying the balance sheet, and elevating Mina Al Arab’s allure as a premier lifestyle destination in Ras Al Khaimah.

During the first half, RAK Properties said it had seen intensified demand for its projects in both Abu Dhabi and Ras Al Khaimah, underscoring the strong market interest in the company’s offerings.

For example, all the units that had been released at the Julphar Residence apartment building on Reem Island, Abu Dhabi, were sold out; and over 75% of sold units have been handed over, with the ongoing handover process continuing for the remainder.

According to RAK Properties, the beachfront residential buildings are experiencing strong demand, as demonstrated at Bay Residences, located on Hayat Island, Mina Al Arab. At Bay Residences Phase 1 all units are sold out and both towers are under construction, with development on track according to the plan, the developer said.

Meanwhile, Bay Residences Phase 2, comprising 324 apartments, proved hugely popular when sales were launched in Q1 2023, with all units fully sold out by H1 2023. Construction has commenced and is progressing as per the set timeline.

On the solid performance, CEO Sameh Al Muhtadi said: “These remarkable results mark the onset of an exciting phase of growth, fuelled by our re-imagined development pipeline and designs. We are witnessing enthusiastic demand from both local end-users and international investors driving our sales across the board. Looking ahead, we have an exhilarating period in store, with multiple launches to be announced in the coming months. Our primary focus remains on driving transformational projects within existing locations across Ras Al Khaimah, where we have further developments planned that align with our dedications to RAK’s Vision 2030. As we steadfastly pursue growth opportunities, we are committed to investing in strategic acquisitions and maintaining a robust liquidity position to support our long-term growth strategy.”

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Source: MEConstructionNews