ITP MEDIA GROUP / BUSINESS MAY 2020 • ISSUE 763 THE CEO OF AMAALA, NICHOLAS NAPLES, TALKS ABOUT “DISRUPTING THE TOURISM SECTOR” WHILE PROMOTING SUSTAINABILITY THROUGH NET-ZERO STRATEGIES “CREATING A COASTAL OASIS” ITP MEDIA GROUP / BUSINESS MAY 2020 • ISSUE 763CONTENTS MAY 2020 • ISSUE 763 CW’s Anup Oommen chats to AMAALA CEO, Nicholas Naples, on the progress of the KSA gigaproject INTER V IE W 24 SPECIAL REPORT Key gures of the steel industry speak with Disha Dadlani on trends, COVID-19, and localisation TOP LAW FIRMS Ranju Warrier outlines business backgrounds of 20 law rms across the Middle East EDITOR’S LETTER Ashley Williams discusses how KSA’s construction sector will re- ignite the economy INTERVIEW Ranju Warrier chats exclusively to US-Saudi Arabian Business Council on the impact of COVID-19 CW INVESTIGATES Contractors and consultancies talk anonymously to Ashley Williams about contract price re-structuring METITO Anup Oommen gathers exclusive comments from Metito’s managing director Rami Ghandour on its pipeline of desalination and wastewater projects and future plans for the business 10 14 20 22 30 34 STAT OF THE MONTH BUILDING PERMITS UP 10% Abu Dhabi DMT issued 2,583 building permits for various sectors in Q1 2020 QUOTE OF THE MONTH “ISLANDS FREE FROM VIRUS” Kliendienst Group on how they escaped COVID-19 impacting its Heart of Europe islands 08 06 MAY 2020 CONSTRUCTION WEEK 34 CONSTRUCTION WEEK MAY 2020WWW.CONSTRUCTIONWEEKONLINE.COM PUBLISHED BY AND © 2020 ITP MEDIA GROUP FZ-LLC. 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MEDIA WWW.CONSTRUCTIONWEEKONLINE.COM The most important project, contract, and tender information, updated every week To have your copy of Construction Week delivered to your doorstep, subscribe by logging on to www.itp.com/subscriptionsREGISTER TODAY WEDNESDAY 30TH SEPTEMBER 2020 Sheraton Riyadh Hotel & Towers The Construction Week Leaders in Construction KSA Summit will bring together senior executives from the construction sector to discuss and debate the key subjects facing industr y professionals today. F ind out the oppor tunities and challenges within the Kingdom of Saudi Arabia and how they will impact the construction landscape in line with the countr y’s V ision 2030. FOR SPONSORSHIP ENQUIRIES, CONTACT: Moutaz Gadelhak Senior Sales Manager T: +971 4 444 3177 E: moutaz.gadelhak@itp.com FOR SPEAKING ENQUIRIES, CONTACT: Ashley Williams Editor T: +971 4 444 3302 E: ashley.williams@itp.com FOR ATTENDANCE ENQUIRIES, CONTACT: Sherdil Babar Conference Producer T: +971 52 153 9621 E: sherdil.babar@itp.com GOLD SPONSORS: To register to attend for free, please visit www.constructionweekonline.com/leaders-ksa ASSOCIATION PARTNER:QUOTE OF THE MONTH WWW.CONSTRUCTIONWEEKONLINE.COM6 CONSTRUCTION WEEK MAY 2020 “ISLANDS ARE FREE FROM ANY PANDEMIC THAT AFFECTS LIFE ONSHORE” W hen Kleindienst Group, the developer of the $5bn (AED18.3bn) the Heart of Europe master-planned leisure tourism island destination in Dubai, shifted its operations to the islands before the global outbreak of novel coronavirus (COVID-19) pandemic, chairman Josef Kleindienst had one thing to say: “Islands are free from any pandemic that affects life onshore and that’s the beauty of life on the islands. “The Heart of Europe islands remain completely free from the virus.” The developer has continued construction in all the seven islands across the megaproject — where microplastics have been banned — confirming that they are free of the pandemic. Talking about construction progress at the development, Kleindienst said: “We are enjoying uninterrupted work as we are preparing to deliver the Phase 1 of the Heart of Europe in Q4 2020.” “As we get ready for delivery of the Phase 1 of the project, our investors will see the price appreciation of their assets once local, regional and international tourists start booking the facilities.” Phase 1 of The Heart of Europe comprises three islands — Sweden, Germany and the Honeymoon Island — and 78 floating ‘seahorses’, which are three-level floating homes offering underwater views, as well as the Portofino Hotel. More than 1,200 construction workers, technicians, engineers and environmental experts are currently working on-site to deliver the project which is touted to “rival the islands in the Maldives”. The developer has deployed a medical team on the site to monitor the health, safety, and well-being of the workers as part of the precautionary measures that have been adopted on the Heart of Europe development. In addition to ensuring food supply and safety checks, the medical team has been carrying out disinfection operations throughout the project. The developer also confirmed that none of its workers has been detected with any COVID-19 symptoms since the outbreak began. The chairman of Kleindienst Group, Josef Kleindienst, on how the firm’s master-planned leisure tourism development the Heart of Europe islands “remain completely free from the virus” “We are enjoying uninterrupted work as we are preparing to deliver the Phase 1 of the Heart of Europe in Q4 2020” [Photo courtesy: Kleindienst Group]FOR MORE INFORMATION PLEASE VISIT WWW.COMMERCIALINTERIORDESIGN.COM/cid-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 & table sales NOW OPEN! DEADLINE: WEDNESDAY 24TH JUNE PRESENTED BY GOLD SPONSORSSTAT OF THE MONTH ABU DHABI DMT RECORDS 10% INCREASE IN BUILDING PERMITS FOR Q1 2020 The Abu Dhabi Department of Municipalities and Transport’s (Abu Dhabi - DMT) subsidiaries recorded the issuance of a total of 2,563 permits for buildings in various vital sectors in Q1 2020, marking a 10% increase year-on- year. The department stated that 1,817 building permits were issued for residential purposes, which accounted for 68% of the total municipal permits during Q1 2020. The department issued 280 building permits for commercial purposes; 239 for governmental and public institutions; 33 for healthcare and educational purposes; 30 agricultural land building permits; and 28 for mosques. The maintenance licenses issued in Q1 2020 reached 238, compared to the 169 licenses issued in Q1 2019. The total demolition licenses reached 134, compared to 13 last year, while the average performance index for issuing building permits reached 4.7 days, compared to 5.3 days in 2019. According to the Building Permits Performance Report issued by the Department of Municipalities and Transport, the number of building permits issued by the Abu Dhabi Municipality reached 1,641 permits for various sectors and institutions, governmental, residential, commercial, governmental services, religious, social, cultural or other services. Abu Dhabi Municipality permits were divided as 978 permits for new buildings on vacant lands that had not been previously built, 302 permits for external and internal modifications to buildings BUILDING PERMITS FOR Q1 2020 The department stated that 1,817 building permits were issued for residential purposes, which accounted for 68% of the total municipal permits during Q1 2020 without any additions, 239 permits for separate buildings on lands that have existing buildings, and 122 permits for horizontal and vertical expansion on a group of existing buildings. Al Ain Municipality permits reached 698 – divided as 440 permits for new buildings on lands that had not been previously built; 180 permits for new and separate buildings on lands with existing buildings; 42 for horizontal and vertical expansions on a group of existing buildings; and 36 permits for external and internal modifications to buildings without additions. In Q1 2020, Al Dhafra Municipality issued 224 permits. The number of consultancy offices in the field reached 663, while the number of contractors for construction in various vital sectors and housing reached 3,244. 8 CONSTRUCTION WEEK MAY 2020WWW.CONSTRUCTIONWEEKONLINE.COM Abu Dhabi DMT revealed a 10% year-on-year rise in building permits in Q1 2020 [Photo courtesy: Pixabay]COMMENT MAY 2020 CONSTRUCTION WEEK 9WWW.CONSTRUCTIONWEEKONLINE.COM SOBHA REALTY’S OUTLOOK FOR UAE REAL ESTATE I recall when over a decade ago, as Dubai weathered the global economic downturn, the headlines were dominated by the impact on real estate, stalling projects, rampant speculation, and the plight of buyers and investors that were left stranded. Times have changed signi cantly and even as we are ravaged by the worst crisis of modern times, COVID- 19’s impact is being felt across the globe and different sectors, with real estate not the worst hit. According to Savills, the global real estate consultant, the pandemic is likely to only disrupt the UAE’s real estate sector in the short-term. So, what are the factors that lend credence to a positive outlook for the real estate sector in the long-term? The rst and most critical component is speed. Most of the GCC countries have taken swift action and put in place a range of measures to control the spread of the virus. These measures, mostly enacted about as early as mid-March, have been vital in containing the spread. Secondly, as part of its commitment to support the businesses and residents during these challenging times, the UAE government has come up with a range of economic stimulus packages. While the UAE federal government’s stimulus package is to the tune of $27.2bn (AED 100bn), the government of Dubai also unveiled a $408.3m (AED 1.5bn) economic stimulus package over the next three months to support the economy. Even though the immediate reaction from most real estate players was to be smart about the situation and protect the safety and health of their employees, residents, tenants, and other end users of space, it is imperative to note that the future of the sector will also depend greatly on how we navigate the next few months. It is time to think about how the real estate landscape may be permanently changed in the future and alter our strategies accordingly. Those companies that will succeed in strengthening their position through this crisis will go beyond just adapting, SOBHA REALTY’S OUTLOOK FOR UAE REAL ESTATE Sobha Realty’s president, Jyotsna Hegde, outlines how “speed” and “digitisation” will boost the United Arab Emirates real estate’s long-term outlook following the outbreak of COVID-19 it will come down to taking bold actions that will have far reaching in uences across the value chain. In the UAE, going smart and paperless has always been a keen focus of the government, and now is the time when we will reap the bene ts of a strong AI mandate and ICT infrastructure. Even before the pandemic, the real estate industry had been moving toward digitising the processes and creating digitally enabled services for tenants and users. The closing of borders, physical distancing and the lockdown has thrown a sharper focus on the importance of digitisation, particularly when it comes to tenant and customer experience. Residential real estate developers will need to make greater investments in digital sales and leasing processes and look at conducting virtual open houses. It is inevitable that the real estate sector, like many others, will reinvent itself. But what will determine our fate is how quickly and smartly we act. Sobha Realty president Jyotsna Hegde [image: Supplied]Next >