< PreviousINTERVIEW 30 CONSTRUCTION WEEK JULY 2020WWW.CONSTRUCTIONWEEKONLINE.COM For more than 50 years, Arabian Construction Company (ACC) has commanded itself as one of the top contractors in the region with a portfolio comprising some of the Middle East’s most iconic developments including the Sheikh Zayed Grand Mosque and Etihad Towers in Abu Dhabi. While the majority of construction firms have faced many obstacles, such as the COVID-19 pandemic and recessions, for decades, ACC’s secret for overcoming these challenges is to navigate a “conservative approach”. Speaking e x clusiv ely to Construction Week, ACC’s director Rasheed Mikati, said: “It’s obviously a challenging period not only for Arabian Construction Company (ACC) director, Rasheed Mikati, discusses modular construction, project pipeline, and adapting to the region’s changing marketplace with Construction Week editor Ashley Williams ACC director Rasheed Mikati [Photo courtesy: ACC] the region but on a global scale. Throughout ACC’s 53-year history, we have witnessed many recessions; and our conservative approach has helped us navigate through every one of them.” Expanding on how the business is responding to COVID-19, ACC has implemented several measures across its sites to help relieve pressures for the firm. “Across our Africa, Middle East and India operations, we have seen increased operating difficulties during the coronavirus outbreak associated with travel restrictions on staff, reduced supply of materials and more onerous self-imposed workplace practices.” He adds: “ACC has instituted new measures to help workers stay physically distant. These include practices like splitting shifts, staggering breaks and creating separate walkways for workers. We have had to source more buses to ensure that distancing is maintained during travel and opened up more space for storage and laydown areas offsite to permit round the clock delivery.” Mikati expands that the firm’s short term focus is to deliver its ongoing projects by making the necessary changes needed to maintain a healthy business while protecting its employees. “We believe the interests of our customers and our projects are best served by working together with all project stakeholders to identify the greatest risks and coordinate our efforts to prevent or mitigate any impacts that may arise,” Mikati explains. “Naturally, forward-thinking companies focusing on self- preservation will scale back their operations in anticipation of decreased backlog over the coming months. Though it may mean fewer profits in the short term, it helps businesses adapt to an ongoing recession in the future.” In terms of its project pipeline, ACC revealed that they have delivered “extremely large projects” throughout the Middle East and North Africa recently, as well as being awarded a new contract to extend one of the largest children’s cancer hospitals in the world. “In the UAE, we delivered the megaprojects of Address Sky View and Address Fountain Views for Emaar and the iconic new Mashreq Bank HQ,” says Mikati. “In Egypt, ACC have been heavily involved in renovating and restoring historic buildings such as the Mena House, Old Cataract Hotel and the Nile Ritz Carlton. We have also recently been awarded a new contract to build an extension to the Children’s Cancer Hospital, a project ACC originally completed and is one of the largest children’s cancer hospitals in the world.” ACC also elaborated on expanding further into the “promising and growing” market of Saudi Arabia, but Mikati insisted that the firm must remain “careful” to ensure their track record is not compromised by putting too much on their plate. “It’s [Saudi Arabia] a massive market and has its own unique challenges. The supply chain is stretched, and many contractors have hurt their operations there by growing too quickly,” says Mikati. True grit -ACC’s path to successJULY 2020 CONSTRUCTION WEEK 31WWW.CONSTRUCTIONWEEKONLINE.COM “ACC has secured, delivered or is currently constructing high-profile projects between Riyadh, Jeddah, Makkah and the Southern Regions, including recently handing over the twin tower Hilton Hotel in Makkah and is on schedule to deliver more than 2,500 housing units for the Ministry of Interior.” The contractor also revealed to Construction Week that it is in discussions to set up a joint facility in Saudi Arabia with a leading European modular contractor as modular construction becomes “more pronounced” for future developments. “What we feel the local market is currently lacking are high quality volumetric producers who can produce fully integrated modules suitable for residential, hospitals and hotels,” explains Mikati. “With the advent of the COVID-19 pandemic, the need for offsite modular has obviously become more pronounced for future developments. “However, this poses a challenge for the logistics of importing such modules that would have been greatly impacted with recent worldwide border closures and supply chain disruptions. They need to be based here. “At the moment, we are in discussions with a leading European modular contractor to set up a joint facility in Saudi Arabia to fill this gap.” Looking towards the future of the business and the industry, ACC said it remains committed to its long term visions of sustainable growth and quality project acquisitions, but admitted the longer the crisis continues, the more economic impact it will have. “We have had to make necessary changes in the short term to adapt to the new reality. “There is a sense of upheaval that comes from many arenas: how to keep employees safe, whether local jurisdictions will shut down jobsites, potential supply chain delays and government actions to respond to the crisis.” He concludes: “ACC’s senior management team is working to stay on top of the rapidly changing situation within the region in order to ensure that employees and clients are satisfied.” ACC has been involved in the Address Makkah hotel in Saudi Arabia [Image: ACC] Address Sky View in Dubai [Image: ACC]INTERVIEW 32 CONSTRUCTION WEEK JULY 2020WWW.CONSTRUCTIONWEEKONLINE.COM W hen Parsons’ Pierre Santoni took the helm of president for the Middle East and Africa at the beginning of the year, he admitted that he was filled with “excitement” at the prospect, but it hasn’t come without its challenges during his short spell in charge. Seven months into his new role, Pierre Santoni has been responsible for restructuring the Middle East and Africa division to deliver its services more efficiently and with further agility. But as most companies have experienced, it’s not been an easy ride for Santoni who said the business was “thrown a curveball” from COVID-19. “2020 started off with a lot of excitement in my new role as president. In early January, I really thought that the first quarter would be the hardest and that it was going to be fairly smooth sailing once the organisation settled and we got going,” Santoni told Construction Week. “But then we were thrown a curveball in the shape of COVID-19 and had to regroup, rethink and figure out how to deal with it. And that is when agility really helps.” Following the impact of the pandemic, Santoni said he was happy with how the business reacted to the crisis and showed “tremendous fortitude”. Santoni’s focus for the business lies on its people and technology. “Parsons’ DNA has always been about making the world a better place and overcoming our customers’ toughest challenges for the past 75 years. Simply put, my role is to ensure that we continue to stand out,” adds Santoni. “Our strategy for the past couple of years has been to differentiate ourselves through innovation and the delivery of new technology to our customers. Parsons developed truly game-changing proprietary solutions which we are excited to bring to the region. “For example, Dfuze, which allows organisations to collect and aggregate data into reports using secure multi-platform live video streaming, could revolutionise the way construction inspection is performed. COVID-19 restrictions gave us the opportunity to live test its capabilities and it is very promising.” “Parsons’ DNA is to make the world a better place” The Middle East and Africa president of Parsons, Pierre Santoni, speaks exclusively to Construction Week’s editor Ashley Williams on life in his new role, the focus on technology, and activities in Saudi ArabiaJULY 2020 CONSTRUCTION WEEK 33WWW.CONSTRUCTIONWEEKONLINE.COM core values of safety, innovation, quality, integrity, diversity and sustainability, which he said “are more important than ever” during challenging times. “There is no rule book for what is happening to us today. We, like our customers and the communities we live in, are facing turbulent times with an uncertain future,” said Santoni. “Our values will help us stay true to our mission and, even if I cannot give a definitive outlook for our business, I can tell you that we aim to come out of this crisis stronger, more resilient and more innovative than when it started.” Pierre Santoni was also recognised in this year’s Construction Week Power 100 list after he was ranked in 24th place alongside some of the most influential members of the region. In terms of projects, one of the main GCC markets that Santoni is targeting for the Middle East’s division of Parsons is Saudi Arabia. The American engineering firm, which is known for its involvement in the development of the Riyadh metro, is rapidly expanding its project portfolio in the kingdom. “Saudi Arabia has been good to us in the last three years. In some cases, we have had to resist taking on too much work so that we could remain focused on delivery and supporting work with our existing clients and maintaining focus on our strategic vision of client relationships vs. transactional relationships,” Santoni explains. “I am happy to say that we have made great strides in balancing our portfolio with built environment programs.” Some of the projects include The Royal Commission of Yanbu where Parsons will manage the development of the Jazan City for Primary and Downstream Industries (JCPDI), a new 106km2 industrial city around the kingdom’s southernmost port. They were also responsible for delivering buildings and infrastructure of Area 2 of The King Abdullah Financial District ahead of the G20 meeting, while they were awarded a PMC role to support the Diriyah Gate Development Agency in Riyadh with the redevelopment of the area’s infrastructure. Most recently, Parsons announced its next exciting partnership with Saudi Arabia’s AMAALA for Phase 1 of the gigaproject’s Triple Bay masterplan. As part of its role across the 4,155km2 Phase 1 development, Parsons will take on the role of engineer, and supervise the execution works. Speaking during a signing ceremony with AMAALA’s chief executive officer Nicholas Naples, Parsons’ managing director of Saudi Arabian Parsons Limited, Ken Murray, said: “As an iconic development in the kingdom, AMAALA is set to become a preeminent destination for travellers from over the world.” Murray added: “Parsons is thrilled to join the delivery team, and we look forward to supporting the Triple Bay development and continue our proud participation in the delivery of Vision 2030 for Saudi Arabia.” Looking ahead for Parsons, Santoni concluded that its goal is to stay true to its “Given the impact COVID-19 and the drop in oil prices is having on global markets we expect a downturn in Saudi Arabia’s economic activities at least for the fi rst half of 2020” [Image: ITP Images/ Shutterstock] Parsons’ managing director for its Saudi division, Ken Murray, signing the construction contract with AMAALA Image: Supplied Parsons president for the Middle East and Africa, Pierre Santoni Image: SuppliedIN CONVERSATION 34 CONSTRUCTION WEEK JULY 2020WWW.CONSTRUCTIONWEEKONLINE.COM Ranju WarrierRanju Warrier gets exclusive details fromgets exclusive details from Dimitri PapakonstantinouDimitri Papakonstantinou, managing , managing director of Al Shafar Interiors (ASI), on the firm’s expansion plans into the GCC, director of Al Shafar Interiors (ASI), on the firm’s expansion plans into the GCC, keeping sustainability at the front, current & future projects, and technology adoptionkeeping sustainability at the front, current & future projects, and technology adoption TECHNOLOGY “INCREMENTALLY IMPROVED THE WAY WE DO THINGS” Dimitri Papakonstantinou is the managing director of Al Shafar Interiors (ASI) [image: Supplied] Construction projects in the region, despite the slowdown caused by the COVID-19 pandemic, are gradually getting back on pace. This means, it is business as usual for interior fit-out companies, which make properties — unlike commercial, residential, or leisure and entertainment — a desirable and comfortable space. However, the fit-out industry has been witnessing many challenges, the biggest of which are “reduction in sales and availability of work”, according to Dimitri Papakonstantinou, the managing director of Dubai-based fit-out company, Al Shafar Interiors (ASI), a subsidiary of construction conglomerate ASGC. In an exclusive interview with Construction Week, Papakonstantinou says: “This obviously means you have to work harder to get it.” ASI has, in the past, worked on some of the most renowned projects in Dubai, including City Walk Phase 1 & 2, La Mer, Valiant Clinic, Bay Square, Emirates International School (EIS), Waldorf Astoria, among others. EXPO 2020 DUBAI PROJECTS The fit-out firm has been involved with five national pavilions that it is working on alongside the parent group, ASGC. Papakonstantinou states: “We are very fortunate to have secured some exciting projects. “We have a fair amount of work going on at the Expo 2020 Dubai site at the moment, with five national pavilions including Azerbaijan, Australia, and Ukraine, and two others, names of which cannot be disclosed.” “We are also involved with the Sustainability Pavilion, where our scope of work is fairly limited. We are fitting-out the auditorium and doing the base fit-out of the exhibition and bathroom areas.” At the World Expo’s site, ASI is also fitting-out a G+9 storey building near the Al Wasl Plaza for Dubai- headquartered real estate developer Emaar. “During the Expo, Emaar will be hosting its functions here.” Explaining about the firm’s scope of work for the pavilions, Papakonstantinou says: “For the national pavilions, we are covering a whole bunch of elements starting from exploration to structural works to fit- out to the exhibition and the content. However, structural works is not something that we generally get involved in, but we do have the capability within the group. So, we started to pursue it that way.” He continues: “Additionally, some of these contracts are design-and-build, such as the Australia and Ukraine pavilions,” and adds that “working on these pavilions have been some of the most unique opportunities to be involved in. The exhibition and the content too are very specific to Expo projects, which are once in a career opportunity,” he exclaims.Bait Al Naboodah Museum is one of Sharjah’s notable heritage architecture projects [© ITP Media Group]. In February 2020 ASI was awarded fi t-out, false ceiling, drywall partition, and joinery works for Meraas’ Dubai Cruise Terminal [image: Supplied] IN CONVERSATION JULY 2020 CONSTRUCTION WEEK 35 CURRENT & FUTURE PROJECTS In February this year, ASI was awarded fit-out, false ceiling, drywall partition, and joinery works for Meraas’ Dubai Cruise Terminal, located between Bluewaters and Palm Jumeirah at Dubai Harbour, by the main contractor ASGC. Despite the fact that ASI’s parent firm, ASGC, is the main contractor, the fit-out company, like others, bids for its projects. Papakonstantinou says: “We never automatically get any other work from our parent company. They make us work for it, and rightfully so, to show that they are getting the best price in the market. All the work we do for ASGC is tendered.” He adds: “It is not a definite thing that we will always win [tenders] from ASGC. But, we certainly tender all our work with them.” SUSTAINABLE APPROACH Like its parent company, ASI too considers sustainability as one of the main elements to focus on within its scope, and at work. “It is something that we practice on all our projects,” Papakonstantinou says. “We measure on a constant basis the ways to execute our work by minimising paperwork, in terms of digitising our processes. This is currently also being practiced at our factory in Dubai Investment Park (DIP), where we segregate our waste and ensure that we reduce it as much as possible.” PRIORITISING HEALTH & SAFETY Health and safety is among “the highest ranking KPIs for individuals and not just the HSE department and all of the management,” according to Papakonstantinou. “We ensure constant communication with our workers at the construction sites. We have to understand that the risks are constantly changing, because of which, continued communication has become a thing of paramount importance.” The managing director adds: “Even at the expo sites we along with ASGC have set a benchmark in regards to health and safety. We have separate health and safety programmes for our projects, as each project is different in terms of its conditions and sites.” 2019 MARKS MILESTONES The year 2019 had been exciting for ASI that delivered fit-out and joinery works for projects across entertainment, healthcare, hospitality, and residential sectors in Dubai. These projects include the Coca- Cola Arena, where the company was awarded joinery works, with the main contractor being ASGC, and Dar Al Handasah acting as the consultant. Another project was the 10-storey Mediclinic Parkview Hospital, located on Umm Suqeim Road in Al Barsha. ASI was in-charge of the joinery works at the 188-bed development. Papakonstantinou tells Construction Week: “We also did the full fit-out of the residences and some of the public areas at the Taj Hotel in JLT.” The company was also awarded joinery works at the hospitality project. He adds: “At Bluewaters we were involved with the residential side of the project providing joinery works.” Meanwhile, the firm also won another joinery contract for the Green Community Expansion project, developed by Dubai Financial Market- listed Union Properties. TECHNOLOGY ADOPTION The construction sector has embraced the use of technology, wherever possible, to be able to deliver projects better and avoid faults. This has been the case for construction stakeholders including fit-out firms. ASI too has kept open arms, adopting technological advancement for good. “Technology is something that not just ASI, but ASGC as a group has a strong policy for. “All of the technologies, whether it is Revit, virtual reality (VR), or drones, have incrementally improved the way we do things,” Papakonstantinou explains. GOING BEYOND THE UAE Currently, ASI only operates in the UAE. Papakonstantinou notes that the firm is “looking at opportunities beyond the UAE”. “We do have plans to venture out in other GCC countries. We are looking at possibilities in the Kingdom of Saudi Arabia. “In fact, our parent company ASGC has a long presence in Egypt, so we are also looking at that as the possible next step,” he concludes. ASI is working on fi ve national pavilions at Expo 2020 Dubai, including Ukraine [image: Supplied]THE HEART OF EUROPE 36 CONSTRUCTION WEEK JULY 2020WWW.CONSTRUCTIONWEEKONLINE.COM P icture a sustainable island, complete with lush landscapes, sandy beaches, stunning seascapes, and “floating” villas. This mystical island - far and free from the fear of the ongoing COVID-19 pandemic - offers both rain and snow in a Maldives- style setting while located in the UAE’s The World island, 4km from the Dubai coastline. The Heart of Europe island destination, which is the brainchild and fruit of labour of property developer Kleindienst Group stands out for its sustainability approach as well as its protection of marine life. The flagship project, when complete entirely by 2023, will draw the curtains on Josef Kleindienst’s, chairman of Kleindienst Group, illustrious career, who tells Construction Week: “I want to retire after The Heart of Europe achieves completion.” While the ongoing pandemic has sent the world into a panic state of mind, the developer behind the upcoming project remains undeterred, with a total of 1,200 workers accelerating efforts on-site. In April, UAE contractors reported to have undergone a pricing negotiation process with developers and clients, in view of the current environment. Speaking about the project, Kleindienst, said: “Coping with the pandemic comes with a cost for everyone involved, but we are not increasing or re-pricing any of our projects. No contractor or sub-contractor is allowed to use the situation to increase the price of the project.” Phase 1 of The Heart of Europe is inching towards completion, to achieve delivery by Q4 2020, Kleindienst confirms, adding that the group is progressing “full speed ahead to achieve this.” Phase 1 of The Heart of Europe comprises three islands — Sweden, Germany and Honeymoon Island — and 78 floating ‘seahorses’, which are three-level floating homes offering underwater views, as well as the Portofino Hotel, which is touted to be the “first family exclusive hotel.” Furthermore, Phase 1 of the project comprises 1,500 units under construction, with 2,500 yet to be constructed. Delivery of Phase 1 of The Heart of Europe project was initially aligned with Getting to the “heart” of UAE’s upcoming island destination Josef Kleindienst, who is the chairman of Kleindienst Group, the developer behind The Heart of Europe project speaks to Construction Week’s Disha Dadlani about the progress on the destination despite the current pandemic as well as its sustainability and marine elements The Heart of Europe project aims to achieve entire completion by 2023 Image: SuppliedJULY 2020 CONSTRUCTION WEEK 37WWW.CONSTRUCTIONWEEKONLINE.COM team in February this year. “We are carrying out rapid testing and implementing measures on site; tourists will be allowed entry to The Heart of Europe destination only after testing.” The developer announced that it shifted operations to the islands just before the COVID-19 outbreak in the region. The project was put on lockdown, with all engineers, architects, labourers and contractors staying on the island to mitigate impact of the virus, Kleindienst explains, adding that the labourers working on the project are now hosted in labour camps on the island. Sub-contractors are not allowed to visit the island as part of a precautionary measure to limit the spread of the virus. “Work is going on more than usual because we have nothing to do on the islands but to work,” he jokes. the Expo 2020 Dubai. However, the mega event has now been postponed and will be held between October 2021 and March 2022, in light of the implications associated with the novel coronavirus outbreak globally. “It [the COVID-19 outbreak and the consequential postponement of Expo 2020 Dubai] does not change anything for the delivery of Phase 1 of The Heart of Europe in terms of the construction, but will definitely change things in terms of the expectant tourists mix as well as the operations,” Kleindienst speaks about the project, which aims to attract international tourists as well as UAE residents. Kleindienst Group’s tryst with all things marine and sustainable is apparent in the way it is developing The Heart of Europe destination. The project is home to the Coral Institute, which is aimed at the development of marine life in the surrounding waters. The Heart of Europe also has a zero-discharge policy and zero micro-plastics policy to ensure the protection of the Arabian Gulf and species of marine life that reside around the seven islands. “We are taking steps to ensure that micro-plastic does not pollute the oceans around us. The water around us is crystal clear and we need to maintain that,” Kleindienst says. The developer foresees a sustainable future where tourists’ hospitality preferences will be driven by hotels’ sustainability offerings. “Sustainability in construction and operation of hotels and resorts is key. While sustainability comes with a cost, avoiding it would bear a much bigger cost,” he adds. The island is committed to be totally car- free, use clean energy and will eventually offer sustainable water transportation. While the ongoing pandemic had crippled businesses globally, it was interesting to note that work progressed on The Heart of Europe, like the project is being built in a parallel world, readying to welcome tourists soon. Kliendienst had earlier said in a statement: “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 maintains that “the key to operate in any place in the current environment, is testing.” Kleindienst Group appointed a safety “The water around us is crystal clear, and we need to maintain that,” Josef Kleindienst says about the sustainable project Image: Supplied Josef Kleindienst, Chairman, Kleindienst Group “Sustainability in construction and operation of hotels and resorts is key. While sustainability comes with a cost, avoiding it would bear a much bigger cost.”PROJECTS WWW.CONSTRUCTIONWEEKONLINE.COM ON SITE CW provides a collection of its most recent site and plant visits to keep you up-to-date with project progress PROJECT UPDATE FOLLOW CONSTRUCTION WEEK @CWMIDDLEEAST 38 CONSTRUCTION WEEK JULY 2020 WANT TO UPDATE YOUR PROJECT'S PROGRESS, OR HAVE IT INCLUDED HERE? Email the editor: ashley.williams@itp.com FOLLOW CONSTRUCTION WEEK @CWMIDDLEEAST One of the largest brownfi eld projects in the region, Alba's Line 6 expansion project was completed at the end of 2019 and is among the fastest expansion projects to be ever commissioned in the aluminium industry after just 23 months. Line 6 is one of the longest reduction lines in the world comprising 424 reduction cells built over an area of 1,400m2 – will add 540,000 metric tonnes per annum to the company’s total production capacity. ALBA Location Bahrain Visited March 2020 Dubai-based contractor ASGC Construction LLC, as the main contractor, is tasked with the Dubai Mall Boulevard Expansion project, which includes the conversion of multiple levels of the existing car parking to a double-height retail mall. Both, overall construction and MEP works at the project are 65% complete, with ASGC now moving ahead with fi t-out and fi nishing works, which includes the fi nal phase and external façade. ASGC is aiming to complete the project by September 2020. DUBAI MALL EXPANSION Location Dubai Visited April 2020 Dubai-based developer Samana Developers is currently in the fi nishing stages of its fi rst residential project with the handout letter being planned to be delivered in weeks. The development has a total of 122 units, with 116 comprising residential units. Samana Greens is located in the heart of Arjan within Dubailand. Samana Greens is an residential complex development comprising of studios, one and two bedroom apartments. SAMANA GREENS Location Dubai Visited May 2020PROJECTS WWW.CONSTRUCTIONWEEKONLINE.COMJULY 2020 CONSTRUCTION WEEK 39 Located within the Jumeriah Golf Estates, Beaver Gulf's fi rst real estate development project - Zafran - is a $75m 40,413m2 residential development comprising 178.4m2 two-bedroom houses, as well as three-bedroom houses covering an area of 207.4m2 and 217.6m2. The project has crossed the 30% on site completion and is expected to be handed over on 20 October, 2020, coinciding with the start of the Expo 2020 Dubai. ZAFRAN Location Dubai, UAE Visited December 2019 Located in Downtown Dubai, the 75-storey tower will comprise 946 units, including studios, one-bedroom apartments, and two-bedroom lofts and duplexes. Construction of the tower has been ongoing for 30 months, with the building being topped out in April 2019. Work on SLS Dubai Hotel & Residences is being carried out by Mapa & Gunal Construction, Aedas is involved as the architect, and the interiors are being led by Bishop Design SLS Location Dubai, UAE Visited January 2020 Located off the shores of Muharraq, the kingdom’s historic former capital, Diyar Al Muharraq is a 12.2km2 waterfront development comprising a mix of residences, hotels, beaches and a shopping mall. Work on the project started in 2007 which will be divided into four to fi ve phases. Several contractors have been appointed for certain projects across the project, including Almoayyed Contracting Group, who are working on the Souq Al Baraha market. DIYAR AL MUHARRAQ Location Muharraq, Bahrain Visited February 2020 Located at Dubai's Science Park, Deyaar's fi rst design-and- build project is progressing ahead of schedule and will be delivered by December 2020. During an exclusive site visit to the project’s site, Ababneh told Construction Week that Deyaar had appointed design and engineering fi rm Kling Consult to supervise Bella Rose's design in April 2018. The project comprises 478 units, and its main contract was awarded to Condor Building Contracting in September 2018. DEYAAR'S BELLA ROSE Location Dubai, UAE Visited March 2020Next >