ITP MEDIA GROUP / BUSINESS JULY 2020 • ISSUE 765 DESPITE COVID-19 CONSTRUCTING The men behind Qiddiya – Saudi Arabia’s “capital of entertainment, sports, and the arts”C M Y CM MY CY CMY K ai15807933783_Aquazone AdWorks 205 x 275 mm.pdf 1 04/02/2020 9:16 AMCONTENTS JULY 2020 • ISSUE 765 Qiddiya CEO Mike Reininger and CDO Kareem Shamma speak to CW’s Anup Oommen about KSA’s 366km2 entertainment city CO V ER S TOR Y 24 EXPO EXCLUSIVE Ranju Warrier talks to Patrick Vercauteren Drubbel about the Belgium Pavilion construction FUTURE TALENT Next-generation engineers from ALEC & Cundall chat about the Project of the Future initiative EDITOR’S LETTER Ashley Williams evaluates the “mess” that the industry is in and what it will take to salvage it THE LEGAL TABLE Fenwick Elliott & Hammad Al-Mehdar talk to Ashley Williams about KSA construction law INTERVIEW ACC director Rasheed Mikati on delivering high-profi le projects despite COVID-19 challenges IN CONVERSATION ASI managing director Dimitri Papakonstantinou reveals details about its Expo 2020 projects, its role in digitalisation, and more to Ranju Warrier 10 12 20 22 30 34 STAT OF THE MONTH DSI RETURNS TO PROFIT After huge losses in 2018, Drake & Scull bounces back with a net profi t of $71.3m in FY 2019 QUOTE OF THE MONTH “FLATTENING THE CURVE” Emrill CEO Stuart Harrison explains the impact of COVID-19 on work and business continuity 08 06 JULY 2020 CONSTRUCTION WEEK 3 THE HEART OF EUROPE Kleindienst Group tells Disha Dadlani that work is progressing “more than ever” on its “pandemic-free” island destination in Dubai 364 CONSTRUCTION WEEK JULY 2020WWW.CONSTRUCTIONWEEKONLINE.COM PUBLISHED BY AND © 2020 ITP MEDIA GROUP FZ-LLC. 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Barandah Building, Prince Faisal Ibn Fahad RD,KHOBAR www.rgsksa.comQUOTE OF THE MONTH WWW.CONSTRUCTIONWEEKONLINE.COM6 CONSTRUCTION WEEK JUNE 2020 “COVID-19 HAS CHANGED THE WAY WE WORK, PERHAPS FOREVER” I ndustries and sectors across the region are doing their bit to combat the ongoing COVID-19 pandemic. The facilities management sector, in particular, is critical in the fight against the spread of the virus, UAE facilities management (FM) firm Emrill’s chief executive officer, Stuart Harrison explained. “These are unprecedented times. Within months of the first case being recorded, the COVID-19 pandemic has changed the way we work, perhaps forever,” he said. Speaking about Emrill’s bid to flatten the curve from the global pandemic and ensure business continuity, Harrison said: “With a workforce of more than 7,500 employees, we have managed the disruptions and met challenges head- on, ensuring we maintain business operations throughout the outbreak.” Emrill, along with several other firms in critical sectors across the region, has provided cleaning and FM services on the frontlines during the pandemic. “Our employees have been entrusted to maintain communal areas in malls, airports, beaches, leisure and entertainment facilities, and residential buildings,” Harrison said. Harrison added that its “cleaning services are the first line of defence in infection control,” as the UAE starts to return to work and residents are able to get out more. The firm is working in conjunction with authorities such as Dubai Health Authority and Dubai Municipality, to accelerate robust hygiene and cleaning regimes; continuously review and update; and adapt methodologies to prevent cross-contamination and the spread of infection. Speaking about the company’s focus on physical and/or social distancing during these times, Harrison explained: “To effectively keep people safe, we have updated the way our teams work, the products used, and accommodations. “People’s journeys to site have also changed. In line with physical distancing, temperature checks, and deep cleaning guidelines, we have reduced the number of people that can travel in vehicles.” Elaborating on the firm’s focus for digital tools, Harrison added: “Emrill has invested in technology and equipment to be used on-site, enabling teams to work efficiently together while maintaining distance. “It was critical to build the right infrastructure to support the virtual workplace,” he said, adding that the FM firm follows a virtual open-door policy, so teams can communicate more. UAE FM firm Emrill’s chief executive officer Stuart Harrison explains why facilities management is so critical in the fight against the spread of the virus “With a workforce of over 7,500 employees, we have met challenges head-on” Stuart Harrison, CEO, Emrill Image: SuppliedFOR SPONSORSHIP ENQUIRIES Anup Nagpurkar Group Sales Manager +971 4 444 3373 + 971 52 895 0931 anup.nagpurkar@itp.com FOR NOMINATION ENQUIRIES Tom Oxtoby Editor, +971 4 444 3419 tom.oxtoby@itp.com FOR EVENT ENQUIRIES Daniel Fewtrell Director of Awards & Marketing +971 4 444 3684 daniel.fewtrell@itp.com FOR TABLE BOOKING ENQUIRIES Anthony Chandran Table Sales Executive +971 4 444 3865 anthony.chandran@itp.com Visit www.mepmiddleeast.com/awards for more information or contact one of the team today SUBMIT YOUR NOMINATIONS TODAY Wednesday 30th September 2020 GOLD SPONSORSPLATINUM SPONSOR The MEP Middle East Awards are an opportunity to highlight the excellence in MEP design and installation underpinning those iconic projects contributing to the evolving construction landscape in the Middle East.STAT OF THE MONTH DRAKE & SCULL DEALS WITH “HUGE LOSSES” IN 2018 TO REPORT NET PROFIT OF $71.3M IN 2019 For Dubai Financial Market-listed (DFM) contractor Drake & Scull International (DSI), returning to profit in FY 2019, is a sign of stabilised operations, as the company continues its restructuring progress that will be completed in 2020. DSI marked a net profit of $71.3m (AED262m) in its audited financial results for the year ended on 31 December, 2019, compared to a net loss of $1.4bn (AED5.1bn) for the corresponding period in 2018. In FY 2019, gross profit stood at $2.2m (AED8m) compared to gross loss of $259.2m (AED952m) in 2018. Additionally, total negative equity improved from $1.3bn (AED4.8bn) in 2018 to $1.1bn (AED4bn) in 2019. According to the financial statements released on DFM on 9 June, 2020, profit from continued operations at DSI topped $63.7m (AED234m) in 2019 compared to a loss of $1.3bn (AED4.9bn). A company focusing on integrated design, engineering, and construction aspects of the mechanical, electrical, and plumbing (MEP), water and power, and oil and gas projects, DSI also posted revenue of $185.4m (AED681m) for the full year. While backlog for the same period, including $84.1m (AED309m) from joint ventures driven by on-going operations in the UAE, Germany, Kuwait, Algeria, and Iraq remained steady at $170.2m (AED625m). Since October 2018, following the appointment of a four-member committee to restructure the firm and return it to profitability, DSI’s senior management and board has undergone several changes. In fact, DSI conducted internal investigations last year through a fact- finding committee and a professional group of financial and legal experts, who were appointed by the committee. The contractor found out that during the previous management’s tenure between 2009 and 2017 it suffered a series of annual losses that were hidden from shareholders. Speaking about the financial results that remained in green in 2019, chairman of DSI, Shafiq Abdelhamid, said: “The Board of Directors and I would like to 2018 TO REPORT NET PROFIT OF $71.3M IN 2019 The contractor posted revenue of $185.4m (AED681m), as backlog remained steady at $170.2m (AED625m), for the period ending on 31 December 2019 thank the executive management for their vision, tenacity, and their tremendous efforts in stabilising the company which will enable the restructuring to be completed this year.” Abdelhamid added that the team at DSI “worked tirelessly for the past year to tackle the real challenges of dealing with the huge losses recorded in 2018, and the burden left by the previous management”. “The financial restructuring is progressing with the lead banks, and we have made real efforts to reach out to all the trade creditors ahead of finalising the restructuring proposal which will need the continued support of all stakeholders. Once the restructuring is complete it will position DSI to be able to regain its position as a profitable international MEP contractor”. The chairman concluded: “Finally we will continue to engage with all our stakeholders, including regulators, financial lenders, trade creditors, and employees to ensure that Drake & Scull emerges from the last few years of difficulties as a strong UAE company.” 8 CONSTRUCTION WEEK JULY 2020WWW.CONSTRUCTIONWEEKONLINE.COM DSI is stabilising its operations and plans to complete its restructuring in 2020, according to the chairman, Shafi q Abdelhamid [Image: ITP Images/ Shutterstock]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: daniel Fewtrell Director of Awards & Marketing Tel: +971 4 444 3 684 Email: daniel.fewtrell@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 25th November Good luck to all our nominees! 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