< PreviousSPECIAL REPORT 10 CONSTRUCTION WEEK MAY 2020 Construction Week speaks with the UAE's key steel industry players about the impact of the ongoing pandemic on their operations and business, the future of UAE steel, and the potential localisation of steel WWW.CONSTRUCTIONWEE WWW.CONSTRUCTIONWEEKONLINE.COM WILL COVID-19 RE-MOULD UAE STEEL?WILL COVID-19 RE-MOULD UAE STEEL? Image: ShutterstockMAY 2020 CONSTRUCTION WEEK 11 SPECIAL REPORT The ongoing COVID-19 pandemic has impacted varied sectors' outputs and deliveries; artificial demand, supply chain, and manpower restrictions are looming over the steel industry in the region, UAE's key players tell Construction Week. The global crisis has sent certain countries into lockdown, caused border closures as well as travel and entry restrictions and the UAE's steel industry has had to bear the brunt and taken a hit as well. The chief executive officer of Dana Steel, Dr Ankur Dana tells Construction Week that while not very significant, there has been a drop in prices in the steel industry. Among the logistical issues that currently obstruct the smooth functioning of the industry is "the closure of boundaries of various countries, causing an artificial demand of steel in certain regions, while an oversupply in others," he adds. "We previously saw a lot of consolidation in the industry and we see that would be the trend going forward as well.” Dana Group is a UAE-based stockist for flat steel products; it specialises in the manufacturing of sandwich panels, fencing, profiles, and cable trays. In addition, the company supplies steel coils and sheets to MEP and main contractors, Dr BS Dana, chairman of the group tells Construction Week. "We also recently completed the commissioning and commercial production for Phase 1 of our Dana Steel Industry, as well as Dubai Industrial City Steel mill project, which included completing record orders for the Colour Coating Steel Mill complex in Dubai Industrial City." Tracing the trends in an industry is possible when the industry and market sentiment, in general, is volatile or dynamic. However, the sudden and harsh impact of the pandemic has seen many industries come to an abrupt halt. Stating that the trends in the steel industry were "positive" till the outbreak of the novel coronavirus, M Zubair, general manager of German Steel Contracting, which was heavily involved in the steelworks for several pavilions at the Expo 2020 Dubai says that new project awards have now seen postponements, with no major order confirmations in March and April. Is COVID-19 spelling trouble for UAE steel? Noting the impact of the pandemic on Dana Steel's operations, Ankur says, "The main challenges that we're currently facing are in supply and manpower. In addition, we are facing problems in terms of transportation for our employees; our day-to-day operations have been affected because of the limited transport options available. "We are experiencing some hiccups in terms of receiving payments from our clients. Also, movement of our goods to clients in the GCC regions including Bahrain and Kuwait are suffering due to the closure of boundaries and restricted movement." UAE-based German Steel Contracting has worked on several Expo 2020 Dubai pavilions including Korea, Netherlands, Brazil, Azerbaijan, Slovenia, USA, as well as Abu Dhabi's Reem Mall and Ras Al Khaimah's Movenpick Hotel. Addressing the considerations about the potential postponement of the Expo 2020 Dubai, Zubair, general manager of the company says: "If delivery dates for the awarded pavilions are extended, planned production speed will have to be reduced WWW.CONSTRUCTIONWEEKONLINE.COM RUCTIONWEEKONLINE.COM RENITHERM ® Fire Protection Coatings for Structural Steel The fi re protection effect of RENITHERM ® is provided by a robust, heat-resistant carbon foam layer, that forms in case of fi re from 30 up to 50 times higher than its original low layer thickness. The coated components are protected against overheating, com- bustion and loss of their structural properties for a period defi - ned in the product approvals. This period can be used to rescue persons and retrieve material assets. 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Meanwhile, Zubair tells Construction Week that "around 20-30% output and deliveries at German Steel Contracting" have been impacted. The future of UAE steel "Uncertain present but positive future," Ankur predicts will be the overall sentiment in the industry, going forward. "There will be a good recovery in the steel market by June-July, and once the boundaries open up, the supply chain will become streamlined, banks will work as normal, and companies will become more efficient to handle the steel orders worldwide, leading to the recovery of the market," he adds. The region has partially relaxed restrictions that were earlier put in place as preventive measures to curb the impact of the COVID-19 outbreak. Once the restrictions are eliminated, "running projects can move in full swing," Zubair suggests, stating that the two months lag in acquiring new projects could impact the subsequent months and beyond if the situation does not "return to normality" soon. Localisation of steel In the post-COVID-19 world, will the steel industry eventually rise to the occasion by localising crucial material and adapting to newer technologies that eliminate the need for travel and imports or exports? "We see further localisation of not just the steel industry but almost every industry. In the long run, every country should be self-sufficient, so it’s good that we have a local manufacturing facility, and the UAE government is doing a lot in terms of supporting the local industries," board member of Dana Group, Dr Ruchi Dana says. Lauding the region's efforts to curb the impact linked with the novel coronavirus, with the implementation of a stimulus package and banks' offerings, she adds: "In the UAE, the AgriTech and hydroponics sector have been boosted, and we foresee similar support to all the core sectors and industries to build up the economy." What's the way forward for the industry? "Once the global pandemic is over, things will come back to its original shape, except for financially, and there will be no requirement for the adaptation of new technologies," Zubair tells Construction Week. WWW.CONSTRUCTIONWEEKONLINE.COM which we will not prefer. We will move ahead considering the same delivery dates, with the hope that it will not change." The construction industry - which was identified as one among the region's vital sectors - was exempted from the government's prescribed restrictions on movement and operations, in light of the COVID-19 outbreak. However, the imposed movement restrictions has hampered German Steel Contracting's shipping to site and between the plants, Zubair tells Construction Week. He further notes that absenteeism in the company is at its peak, due to the fear surrounding COVID-19, with 30-40% staff members off for the most part of the day. "Staff and labour transport is costly and time-consuming during this time, due to the movement restrictions and new safety rules. Moreover, many main contractors are using COVID-19 as an excuse to stop or delay payments, which, in turn, is affecting our operations." Noting that most of the challenges faced by the company point towards the ongoing pandemic impact, general manager of Standard Steel Fabrication, Ravi Chander identifies a general unavailability of high-end section material from European countries as well as the postponement in the scheduled delivery of high-end raw material. The issues, Chander notes, is resultant of nationwide lockdowns and imposed restrictions on import. Shifting the focus to Standard Steel Fabrication's internal operations, Chander tells Construction Week: "We are concerned about the health and safety of our technical staff who work on-site. All the non-technical staff have been advised to work from home. Work hours have been brought down by 80% of regular hours, and a significant amount has been spent on transportation since travel is essential for 50% of the company staff. Slowdown of output and deliveries Stock piling and excess inventory are seemingly the byproduct of COVID-19, as viewed from the manufacturing lens. Dana Group has faced stock piling on both, finished and unfinished products, Ankur says. "Apart from local supply, we also export goods to various GCC and Arab League countries. At the moment due to transport restrictions, many of our overseas clients are unable to pick up the goods, so we are having a slight excess inventory of steel coils, sheets, and also our end products." With the construction industry having LAW LIST 14 CONSTRUCTION WEEK MAY 2020WWW.CONSTRUCTIONWEE WWW.CONSTRUCTIONWEEKONLINE.COM TOP 20 LAW FIRMS HFW UK’s London-headquartered global law firm HFW — formerly known as Holman Fenwick Willan — has a network of 600 lawyers working across its offices in Americas, Europe, the Middle East, Asia, and Australia. In the Middle East, the law firm operates through its offices in the UAE, Kuwait, and Saudi Arabia, with its Dubai office having opened in 2006. Active in the construction, aviation, and shipping industries, as well as insurance, commodities, and energy sectors, HFW entered into an association with Saudi Arabia’s Mohammed Al Khiliwi in 2019 to boost its Middle East presence. In the construction sector, the law firm advises contractors, owners, consultants, and insurers alike, on procurement, risk management, and disputes. REED SMITH Touted as one of the first international law firms to have established in the UAE, Pittsburgh- headquartered Reed Smith opened its office in Abu Dhabi in 1978. Later in Dubai, the law firm opened its office at the Dubai International Financial Centre (DIFC) in 2006. In 2018, in a push to expand its offering in the construction and projects sector, the firm appointed Sachin Kerur, Michelle Nelson, and Shourav Lahiri. Kerur heads the law firm as the managing partner for the Middle East. Reed Smith has provided counsel on projects in the real estate sector, including commercial, industrial and mixed-use developments, as well as for projects under public private partnerships (PPPs). HKA Formed in 2017, following the completion of the management buyout of Hill International’s Construction Claims & Consulting Group (CCG) — backed by Bridgepoint Development Capital — HKA is an amalgamation of six brands. These brands include Hill International CCG and its subsidiaries — Knowles; Hill-PCI Group; McLachlan Lister; Binnington Copeland & Associates; and Cadogans. In the Middle East and Asia, HKA is led by Haroon Niazi and Jad Chouman in the leadership team. HKA is well-known for advising its clients on some of the world’s most intricate projects including Burj Khalifa. The law firm also advises on projects across the transportation, infrastructure, power and utilities, among other sectors. PINSENT MASONS With its presence in the UK tracing back to 1769, London-headquartered international law firm Pinsent Masons has set up offices in the Middle East, Asia Pacific, Europe, Americas, and Africa. Appointed in October 2019, Catherine Workman heads the company’s Middle East chapter. Pinsent Masons has advised clients on Dubai Electricity and Water Authority’s (DEWA) 900MW Phase 4 of the Mohammed Bin Rashid Al Maktoum Solar Park in the UAE. Meanwhile in Saudi Arabia, where it operates in association with AlSabhan & AlAjaji, it has advised on the Haramain High Speed Railway Project on various aspects including the implementation of the project’s contracting and construction management. Construction Week's Ranju Warrier outlines an unranked list of 20 law firms in the region and how these legal specialists have made an impact on construction stakeholders. MAY 2020 CONSTRUCTION WEEK 15 LAW LIST WWW.CONSTRUCTIONWEEKONLINE.COM RUCTIONWEEKONLINE.COM ADDLESHAW GODDARD Addleshaw Goddard was founded in 2003, following the merger of Addleshaw Booth & Co and Theodore Goddard, with the law firm’s presence dating back to 1775. Andrew Johnston was appointed as the regional head of the GCC chapter at Addleshaw Goddard in 2018. In the GCC, the law firm has advised companies including Al Turki Enterprises, Arabtec Construction, Bahwan Engineering, Dubai Roads and Transport Authority, McLaren Construction, WSP, Target Engineering, among others in the construction sector. Some of Addleshaw Goddard’s projects include Bahrain International Airport, Barakah Nuclear Power Plant, Mall of Muscat, as well as King Abdullah Economic City in Saudi Arabia. FENWICK ELLIOTT Fenwick Elliott, termed as the largest construction and energy law firm in the UK, provides legal services for construction, engineering, and energy projects across the world. Late last year, Fenwick Elliott inked a strategic alliance with Saudi Arabian law firm Hammad & Al-Mehdar. The alliance comes as a part of the firm's plan to expand its footprint across the Middle East, with the team focusing on construction and energy law matters in the kingdom. In May 2019, the firm revealed plans to relaunch its Dubai office – located in the Jumeirah Lake Towers (JLT) neighbourhood – as its global hub to strengthen its international presence. The firm is led by Ahmed Ibrahim as the managing partner of the Middle East and Africa. AL TAMINI & CO Since opening its first office in Sharjah in January 1989 by chairman Essam Al Tamimi, Al Tamimi & Co — touted to be the largest law firm in the Middle East — has been operating through 17 offices across nine countries. As part of its services in the construction and infrastructure sector, Al Tamimi & Co has advised government entities, developers, contractors, district cooling companies, as well as healthcare service providers. These services range from advising on a long-term wastewater concession project to construction of a clinic, redrafting construction and consulting suite of contracts, acquisitions, in addition to claims and disputes for several infrastructure contracts. BSA Since launching in Dubai in 2001, BSA Ahmad Bin Hezeem & Associates (BSA) has grown into an award-winning regional law firm. The firm’s construction practice is led by its seasoned arbitration practitioners, Antonios Dimitracopoulos, a Fellow of the Chartered Institute of Arbitrators (FCIArb) and Jonathan Brown, who have a combined experience of more than three decades in the region. Its long-established reputation for arbitration within the construction industry, particularly amongst subcontractors, is coupled with strong arbitration advocacy and litigation capabilities. BSA’s construction practice encompasses front- and back-end work as well as representation in the UAE Federal and DIFC litigation, providing an all-inclusive base from contract negotiation to award enforcement.LAW LIST 16 CONSTRUCTION WEEK MAY 2020WWW.CONSTRUCTIONWEEKONLINE.COMWWW.CONSTRUCTIONWEE WWW.CONSTRUCTIONWEEKONLINE.COM BRYAN CAVE LEIGHTON PAISNER Bryan Cave was first founded as King, Phillips & Stewart in St. Louis, Missouri. In 2018, Bryan Cave merged with London-based Berwin Leighton Paisner to form Bryan Cave Leighton Paisner (BCLP). Established in the Middle East in 2009, BCLP has an office in Abu Dhabi in ADGM Square and in Dubai’s DIFC, where the company employs eight partners and 25 lawyers. The law firm has worked alongside Aabar Investments, Abu Dhabi Ports Company, Al Tayer Group, DAMAC, Dubai Airports, and Dubai Multi Commodities Centre. Additionally, BCLP has also advised GS E&C, Hyundai C&E, Majid Al Futtaim, Miral, Nakheel, Samsung E&C, Thales, and Tamouh Investments, among others. BAKER MCKENZIE Baker McKenzie is an international law firm headquartered in Chicago. The firm has a presence across 46 countries, where it operates through 77 offices employing 12,080 employees, according to its August 2019 factsheet. In the Middle East, the law firm has a presence in countries including the UAE, Saudi Arabia, Bahrain, Egypt, and Morocco. Dubai-based Baker McKenzie Habib Al Mulla is a member of Baker McKenzie International and has been advising UAE and international arbitrations across various sectors including construction, finance, commerce, and maritime. In Saudi Arabia, the company operates in an association with Abdulaziz A. Alajlan & Partners, with the associate being called Legal Advisors. HADEF & PARTNERS Founded in 1980 by Dr. Hadef Al Dhaheri, who served as Minister of Justice from 2008-14, Hadef & Partners employs over 100 lawyers in its Abu Dhabi and Dubai offices. In 2004, Hadef & Partners acted for the Government of Abu Dhabi in the reclassification of Saadiyat Island to set it up as a hub for cultural, touristic, and residential real estate projects. The company has also worked on the refinancing of Shuweihat 2 independent water and power project (IWPP) in the UAE. In addition it has also worked on the Fujairah 1 IWPP, where it was required to interface with the Fujairah authorities to get a substantial extention to register the security required by the financiers of the project. CLYDE & CO Following its establishment in 1933 by Richard Arthur Clyde in London, Clyde & Co has since then expanded across the globe, with 52 offices across the Americas, Africa, Asia Pacific, the UK and Europe, and the Middle East. In the region, the firm has 45 partners and employs 400 staff. Its services include advising on company structuring and governance, policy setting and licensing arrangements, procurement, technology and general commercial contracts. Clyde & Co has advised Sorbonne University, Zayed University, and New York University in Abu Dhabi on the construction and operation and maintenance (O&M) contract provisions for public private partnership (PPP) projects.MAY 2020 CONSTRUCTION WEEK 17 LAW LIST WWW.CONSTRUCTIONWEEKONLINE.COMWWW.CONSTRUCTIONWEEKONLINE.COM RUCTIONWEEKONLINE.COM KING & WOOD MALLESONS (KWM) Hong Kong-headquartered multinational law firm King & Wood Mallesons (KWM) formed in 2012, following the merger of King & Wood and Mallesons Stephen Jaques. KWM has represented clients on litigation cases in Dubai, where its partners include Tim Taylor QC, Joanne Strain, and Daniel Xu. Taylor has advised on the Meydan vs Arabtec case on a racecourse construction. Meanwhile, Xu has represented a DIAC arbitration against a UAE developer regarding a large-scale residential development, with claims and counterclaims exceeding $200m (AED734.6m). Strain has an expertise in the construction sector, and has acted for multiple developers in the Middle East. DWF UK's DWF was founded in 1977 by Jim Davies and Guy Wallis as a Liverpool-based law firm, specialising in real estate and licensing. In 2007, DWF merged with Leeds-based Ricksons, becoming DWF LLP. Based in Dubai International Financial Centre (DIFC), DWF established its Dubai office in 2015. The Dubai chapter advises on contentious and non-contentious construction matters, professional indemnity, and insurance work. DWF made two senior appointments to its Dubai- based division in October 2019, naming Slava Kiryushin as partner and global head of energy, and Abdalla Eisa as senior associate for the dispute resolution practice. The firm floated its shares on the London Stock Exchange in 2019. DLA PIPER Global law firm DLA Piper has a presence in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. In the Middle East, the firm has offices in Oman, Bahrain, Kuwait, Saudi Arabia, and the UAE. The firm advises on all aspects of the construction sector, including regulations, M&A, financing, projects, intellectual property, commercial agreements, political environment, construction, disputes, restructurings, investigations, and tax. Some of the projects that it has advised on includes rail and highway infrastructure, including bridges, tunnels, depots, digital rail, and smart motorways. DLA Piper appointed Will Seivewright as a partner and head of corporate for the Middle East. HOGAN LOVELLS Hogan Lovells is an American-British law firm co-headquartered in London and Washington, with the company having formed with the merger of US-based Hogan & Hartson and UK-established Lovells in May 2010. The law firm has acted for a Japanese contractor on a construction dispute regarding a water and power plant project in Algeria. Hogan Lovells has an office in Dubai and an associated office in Riyadh with ZS&R Law Firm. In November 2018, Hogan Lovells advised Natixis, which acted as sole underwriter, initial mandated lead arranger, bookrunner, hedge provider, offshore security agent, and offshore account bank to the ACWA Power-led consortium on the financing of the 300MW Sakaka Solar IPP in Saudi Arabia.LAW LIST 18 CONSTRUCTION WEEK MAY 2020WWW.CONSTRUCTIONWEE WWW.CONSTRUCTIONWEEKONLINE.COM DENTONS UK-headquartered law firm, Dentons, was created in 2013 following a merger of Salans, Fraser Milner Casgrain (FMC), and SNR Denton. In April 2020, Dentons advised Saudi Arabia’s ACWA Power in reaching the financial closure of the $400m (OMR154m) on Oman’s 500MW Ibri 2 photovoltaic Independent Power Project (IPP). Dentons’ finance team was led by Udayan Mukherjee, with assistance from counsel, Michelle Teng; senior associate, Carina Onzer; associate, Annabel Vince; and trainee, Asila Al Hinai. The law firm has also advised Omani Authority for Partnership for Development (OAPFD) on the Oman Aviation Academy; and the Muscat National Development Company (ASAAS) on the acquisition of a 150ha plot of land in Barka, Oman. TROWERS & HAMLINS Trowers & Hamlins is an international law firm with over 150 partners and more than 900 people, located across the UK, Middle East, and Asia. In Dubai, the law firm has been present since 1991, with its origin dating back to more than 230 years. Meanhwile, in the GCC the company also has offices in Abu Dhabi, Oman, and Bahrain. The firm’s team advising in the construction sector include specialists in residential and commercial development, engineering, asset management, and offsite and modern construction methods such as modular procurement. In April 2020, Trowers & Hamlins appointed partner Matthew Showler to head its commercial dispute resolution team in Dubai. SQUIRE PATTON BOGGS Squire Patton Boggs was formed in 2014 after the merger of Patton Boggs and Squire Sanders. The law firm has a network of over 1,500 lawyers in 45 offices across 20 countries. The firm has acted as legal advisers to the private office of HH Sheikh Zayed Bin Sultan Al Nahyan for more than 20 years. In March 2018, Dubai finalised the $2.45bn, 17-year financing to complete the construction of Dubai Metro's Route 2020 extension project. Squire Patton Boggs completed the finance deal for the project on behalf of the Government of Dubai. The firm expanded its Middle East presence with the appointment of Campbell Steedman, Shibeer Ahmed, and Christopher Skipper, to its financial services practice. BONNARD LAWSON Founded in 1998 in Switzerland, Bonnard Lawson has a network of more than 50 lawyers working across its offices in Geneva, Lausanne, Nyon, Shanghai, Paris, Dubai, and Hong Kong. Within its activities in the construction sector, the law firm advises and represents public and private companies, contractors, subcontractors, architects, engineers, and individuals. Bonnard Lawson has three partners at its Dubai office, including Firas Adi, Anne-Caroline Albrecht, and Giovanni M. Rossi. While Adi has drafted EPC and oil & gas contracts, Albrecht advises on local and international succession laws, and Rossi has worked in fields such as IT, construction, distribution, editing, and healthcare.DUBAI MUNICIPALITY MAY 2020 CONSTRUCTION WEEK 19WWW.CONSTRUCTIONWEEKONLINE.COM COVID-19 GUIDELINES FOR CONSTRUCTION WORKERS The construction sector in the region has been identi ed as one among the ‘vital’ sectors which will continue operations and is exempted from the 24-hour restriction on movement, subject to obtaining a permit from Dubai Municipality and the Permanent Committee for Labour Affairs, in light of the ongoing National Sterilisation Programme, and to curb the impact of the COVID-19 outbreak. Hence, it is crucial that construction companies practise precautionary measures on-site to ensure health and safety of workers, while ensuring normal and continuous operations. In view of this, Dubai Municipality’s Health and Safety Department and Building Control Department has issued a guidance document covering the precautionary measures to be adhered to across residences, buses and construction sites, as well as a permit to transport construction workers in the emirate. The precautionary measures to be followed within labour accommodations include increased frequency of disinfection and cleaning, limited gatherings, and social and physical distancing of 2 metres to be practised in speci c areas. In addition, construction workers’ body temperatures must be tested before their entry and exit in the premises. If upon testing, a worker is found to have a body temperature of 37.8°C or more, it is imperative that the worker is placed in isolation and is constantly checked for temperature and appearance of symptoms. Concerned authorities must contact the Dubai Health Authority (DHA) in the case of any follow up actions or queries. Dubai Municipality has issued certain guidelines for construction workers in the emirate to ensure health and safety on site as well as labour accommodation In the event of workers posing symptoms of the novel coronavirus, isolation rooms in appropriate numbers must be made available, the guidelines dictate. In addition, a transportation permit must be lled by the accommodation management before a worker goes to site. The permit must contain details such as bus number, project plot number, Makani number, and number of workers, among other information. Buses will undergo frequent cleaning and sterilisation, with Dubai Municipality-approved products. Lastly, across the buses, workers must practise safe distancing and sanitisation upon entry, and on-site large gatherings must be avoided. Buses will undergo frequent cleaning and sterilisation, with Dubai Municipality-approved products. Dubai Municipality’s Health and Safety Department and Building Control Department issued a guidance document to be adhered to across residences, buses and construction sites [Image: Shutterstock]Next >