ITP MEDIA GROUP / BUSINESS 21 MARCH - 17 APRIL, 2020 • ISSUE 761 “In 2010, we had the global financial crisis and all of a sudden the tap turned off resulting in a lack of construction work” STEPHEN FLINT, group general manager of Khansaheb CONTENTS 21 MARCH - 17 APRIL, 2020 • ISSUE 761 Construction Week’s Ranju Warrier speaks with Khansaheb’s Stephen Flint about on-going projects and his focus on sustainability SITE V ISI T 24 INTERVIEW Anup Oommen speaks with NEOM’s CISO, Mike Loginov, about threats facing future smart cities EXPO EXCLUSIVE Anup Oommen reveals details on Expo 2020 Dubai’s “Light and Enlightenment” France Pavilion EDITOR’S LETTER Ashley Williams calls for calm as the industry takes a big hit from the COVID-19 pandemic LEGAL INSIGHT Ranju Warrier nds out the implications of COVID-19 from law rm King & Wood Mallesons SPECIAL REPORT Disha Dadlani gathers information on what is fueling the surge of smart cities SITE VISIT Ashley Williams speaks with Alba’s chief executive of cer, Ali Al Baqali, about the rm’s achievements, his 2020 objectives, and most importantly, the challenges faced while expanding its Potline 6 project 10 14 20 22 30 34 STAT OF THE WEEK SAUDI ARAMCO INCOME FALLS The world’s largest oil producer felt the effects of “lower crude prices and production volumes” QUOTE OF THE WEEK THE POSITIVES OF COVID-19 The outbreak is increasing industrial real estate opportunities for Dalma Capital 08 06 21 MARCH - 17 APRIL, 2020 CONSTRUCTION WEEK 34 CONSTRUCTION WEEK 21 MARCH - 17 APRIL, 2020WWW.CONSTRUCTIONWEEKONLINE.COM PUBLISHED BY AND © 2020 ITP MEDIA GROUP FZ-LLC. PO Box 500024, Dubai, United Arab Emirates TEL +971 4 444 3000 WEB : www.itp.com Offices in Abu Dhabi, Dubai, London & Mumbai ITP MEDIA GROUP CEO Ali Akawi MANAGING DIRECTOR Sue Holt DEPUTY MANAGING DIRECTOR Anil Bhoyrul EDITORIAL EDITORIAL DIRECTOR shane.mcginley@itp.com CW EDITOR ashley.williams@itp.com CW DEPUTY EDITOR anup.oommen@itp.com CW REPORTER ranju.warrier@itp.com CW MULTIMEDIA REPORTER disha.dadlani@itp.com MEP EDITOR tom.oxtoby@itp.com PMV EDITOR dennis.daniel@itp.com FM EDITOR rajiv.pillai@itp.com ADVERTISING GROUP COMMERCIAL MANAGER Saraswati Agarwal TEL +971 4 444 3352, EMAIL saraswati.agarwal@itp.com SENIOR SALES MANAGER Moutaz Gadelhak TEL +971 4 444 3177, EMAIL moutaz.gadelhak@itp.com ITP LIVE GENERAL MANAGER Ahmad Bashour TEL +971 4 444 3549, EMAIL ahmad.bashour@itp.com STUDIO SENIOR PHOTOGRAPHERS Efraim Evidor, Adel Rashid STAFF PHOTOGRAPHERS Aasiya Jagadeesh, Ajith Narendra, Fritz John Asuro, Jessica Samson PRODUCTION & DISTRIBUTION GROUP PRODUCTION & DISTRIBUTION DIRECTOR Kyle Smith PRODUCTION MANAGER Basel Al Kassem PRODUCTION CO-ORDINATOR Mahendra Pawar SENIOR IMAGE EDITOR Emmalyn Robles CIRCULATION DISTRIBUTION & WAREHOUSE MANAGER Praveen Nair CIRCULATION EXECUTIVE Loreta Regencia MARKETING DIRECTOR OF AWARDS & MARKETING Daniel Fewtrell EVENTS MANAGER, BUSINESS EVENTS Teri Dunstan ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies WEB www.ConstructionWeekOnline.com SUBSCRIBE online at www.itp.com/subscriptions NOTICE The publishers regret that they cannot accept liability for errors or omissions contained in this publication, however caused. 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The most attractive joints are always by Mapei. 5 collections to suit every taste and 3 products to cover all your needs: Ultracolor Plus, Kerapoxy and Keracolor. coverings, make room for Mapei coloured joints. Learn more on www.mapei.ae SERENE TRADITIONAL ROMANCE NATURAL PERSONALIZE YOUR SPACE WITH MAPEI GROUT COLOUR COLLECTIONS SET the MOOD GL AM OURQUOTE OF THE WEEK WWW.CONSTRUCTIONWEEKONLINE.COM6 CONSTRUCTION WEEK 21 MARCH - 17 APRIL, 2020 “COVID-19 IS INCREASING THE OPPORTUNITY IN THE MARKET” WWhile it may be doom and gloom for GCC businesses as a result of the pandemic COVID-19 outbreak, some firms are actually benefitting from the virus through behavioural changes and consumer spending patterns in the e-commerce market. The latest World Health Organization (WHO) report revealed that on 18 March 2020, the total number of confirmed coronavirus (COVID-19) cases around the globe crossed the 200,000 mark with more than 8,000 fatalities. But while this has had catastrophic consequences for the global economy, Dubai-based investment capital firm Dalma Capital revealed that the firm is seeing “great opportunities” in the market right now, especially in the e-commerce sector, as a result of the virus. Speaking exclusively to Construction Week, the chief executive officer of Dalma Capital, Zachary Cefaratti, said: “This is a time to grow our portfolio. The fundamentals underlying our portfolio are solidified, if anything, by the current COVID-19 situation.” The firm’s long-term view is that the market share of e-commerce sales will continue to grow as a proportion of overall retail spending in the UAE and across the GCC. This will result in a catching-up effect compared to other markets where the e-commerce penetration is about three to four times higher than it is in the UAE. Cefaratti adds: “The catching-up effect will also be accelerated because of the behaviour changes and consumer spending patterns being catalysed by the COVID-19 situation. The firm has witnessed growth in e-commerce sales at $6bn to $8bn per year at the top line, which is leading to demand for 8 million to 10 million square feet of new industrial-grade logistics and warehouse real estate per year. Cefaratti says: “Approximately half of that industrial-grade logistics and warehouse property supply is coming from Dubai alone, as the emirate continues to solidify its position as the region’s logistics hub. “All of these factors, including COVID-19, are only increasing the opportunity in the market, and driving us to want to grow our portfolio more aggressively.” Construction Week spoke to Dalma Capital’s chief executive officer, Zachary Cefaratti, on the company’s plan to buck the coronavirus trend through the rise of e-commerce sales The rm has witnessed growth in e-commerce sales at $6bn to $8bn per year [Image: Pixabay]shawafintl.com Together creating future. Zoomlion Heavy Industry Science & Technology Co. Ltd. is engaged in developing and manufacturing major high-tech equipment in the areas of agricultural, building, energy, environmental & transport engineering, it is a continuously innovating global enterprise. STAT OF THE WEEK SAUDI ARAMCO NET SALES PLUNGE BY 20.6% TO $88.2BN IN 2019 Tadawul-listed oil and gas giant Saudi Aramco’s sales took a hit this month after they posted their nancial results which showed a 20.6% decline in net income to $88.2bn in 2019 compared to $111.1bn in 2018. In a stock market ling, the company said that the decrease in net income was affected by “lower crude oil prices and production volumes”. The decrease was also attributed to the declining re ning and chemical margins and a $1.6bn impairment associated with Sadara Chemical Company, which is jointly owned by Aramco and The Dow Chemical Company. The company posted a free cash ow of $78.3bn, compared to $85.8bn in 2018, due to lower income that was balanced by capital expenditures and favourable working capital movements. Saudi Aramco paid total dividend of $73.2bn in 2019. The dividends of $3.9bn will be paid on 31 March 2020 to registered shareholders as of 18 March 2020. The oil giant’s capital expenditure in 2019 was $32.8bn, compared to $35.1bn in 2018. Meanwhile, the company expects a capital spending for 2020 between $25bn to $30bn based on the volatility in commodity price. Commenting on the results, president and CEO of Saudi Aramco, Amin H. Nasser, said: “2019 was an exceptional year for Saudi Aramco. Through a variety of circumstances – some planned and some not – the world was offered unprecedented insight into Saudi 20.6% TO $88.2BN IN 2019 The world’s largest oil producer attributed its decline from $111.1bn in 2018 to $88.2bn in 2019 on “lower crude prices and production volumes” Aramco’s agility and resilience.” “These strengths, combined with a strong balance sheet and a disciplined and exible approach to capital allocation, allow us to underpin our goal of sustainably growing free cash ow to support dividends to our shareholders despite continued volatility of markets. Nasser added: “The recent COVID-19 outbreak and its rapid spread illustrate the importance of agility and adaptability in an ever-changing global landscape. “This is central to Saudi Aramco’s strategy and we will ensure that we maintain the strength of our operations and our nances.” Nasser concluded by saying that Saudi Aramco has “taken steps to rationalise” its “planned 2020 capital spending” following the nancial announcement. 8 CONSTRUCTION WEEK 21 MARCH - 17 APRIL, 2020WWW.CONSTRUCTIONWEEKONLINE.COM Saudi Aramco blamed the fall in net income to “lower crude prices and production volumes” [Image: CW archives]FOR MORE INFORMATION PLEASE VISIT WWW COMMERCIALINTERIORDESIGN.COM/AWARDS OR CONTACT ONE OF OUR TEAM TODAy For sponsorship enquiries: Laura Collinder Sales Manager Tel: +971 4 444 3576 Mobile: 971 55 401 1628 Email: laura.collinder@itp.com For NOMINATION enquiries: JANE O'NEILL EDITOR Tel: +971 4 444 3626 Email: jane.oneill@itp.com For event enquiries: teri dunstan Events manager Tel: +971 4 444 3277 Email: teri.dunstan@itp.com For Table sales enquiries: anthony chandran table sales executive Tel: +971 4 444 3685 Email: anthony.chandran@itp.com silver SPONSOR category SPONSORs Social media SPONSOR WEDNESDAY 9TH SEPTEMBER 2020 NOMINATIONS NOW OPEN! 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