< Previous20 CONSTRUCTION WEEK MAY 2021 EDITOR’S LETTER WWW.CONSTRUCTIONWEEKONLINE.COM Egypt has very much been in the global spotlight for good and bad reasons recently, and it was seemingly the perfect opportunity for Construction Week to be within the thick of the action by visiting the North African country last month. But while I was unfortunately not in Egypt to witness the historic procession of the country’s ancient rulers through the capital, Cairo, and part of discovering the 3,000 year old lost city near Luxor, I visited the many fantastic projects and powerful names taking on the huge challenges for infrastructure development and programmes set out by the government. While government pushes for infrastructure development is not alien to core markets within the MENA region, it’s interesting to see how they differentiate. In Saudi Arabia and the UAE, we are witnessing first-of-its-kind developments taking shape such as Expo 2020 Dubai and the multi-billion dollar gigaprojects in the Kingdom. But while these projects in the GCC are being seen and are well regarded, my recent trip to Cairo has proven that the North African country can go shoulder- to-shoulder and lead the regional market through its ‘can-do’ attitude and willingness to succeed. After speaking to two of Egypt’s biggest construction players – Hassan Allam Holding and Orascom Construction – I learned that Egypt has moved past the design stage and into the execution and delivery phases. Speaking to Construction Week, Eng. Hassan Allam said that “we’ve heard a lot but haven’t seen enough” when referring to the UAE and Saudi Arabia, while Orascom Construction CEO, Osama Bishai, stated that they will be selective in their approach to projects in the Kingdom and it “didn’t make sense” to compete with local contractors. However, while Egypt has a huge portfolio of defining projects such as the Line 4 of the Cairo Metro Line, Grand Egyptian Museum and the world’s longest monorail, the country has gone about its business quietly. One of our objectives is to make some noise about Egypt’s construction market with the launch of our Leaders in Construction conference, which will be rolled out for the first time in Cairo from July 2021. Through transparent and frank discussions, the conference will entail four panels; focusing on the evolution of new cities, why Egypt is leading the way for the water sector, public-private partnerships and construction methods for infrastructure development. And this doesn’t just stop there. Three months later we will also be celebrating the country’s achievements through an awards ceremony in October 2021. We have some very exciting plans for this ceremony, which we will reveal to you very shortly. As Osama Bishai told me, “construction is a very tough and resilient business”, but Egypt is slowly finding the key to open the door to endless opportunities. Despite Egypt utilising its expertise in an orderly fashion, Saudi Arabia and the UAE should be looking over their shoulder in the quest for construction dominance within the region. Why Egypt should be rivalling KSA and UAE for construction progress After witnessing first-hand Egypt’s construction industry, there’s no reason why the North African country shouldn’t be getting as much attention as the UAE and Saudi Arabia “I LEARNED THAT EGYPT HAS MOVED PAST THE DESIGN STAGE AND INTO THE EXECUTION AND DELIVERY PHASES” Ashley Williams EditorHANSCOMB INTERCONTINENTAL LENDS EXPERTISE TO GCC COUNTRIES The company’s CEO Sean Gibbs chats with Construction Week’s Disha Dadlani about its increasing activity in the GCC region, including its plans to establish an office in Saudi Arabia INTERVIEW MAY 2021 CONSTRUCTION WEEK 21WWW.CONSTRUCTIONWEEKONLINE.COM Expert witness services and advisory services have undergone a makeover, in light of the ongoing pandemic, witnessing the continuation of processes remotely. To quote Indian-American author Deepak Chopra, “All great changes are preceded by chaos” or in this case, a global pandemic. The industry is slowly but surely switching to a more digitally- driven way of working. Hanscomb Intercontinental, an international company that provides expert witness and expert advisory services for onshore, offshore construction engineering and shipbuilding industries, was not heavily impacted by COVID-19, in terms of its service delivery, explains the company’s Chief Executive Officer, Sean Gibbs. “We are quite a lean company. We have always provided global services and our experts tend to work from remote locations. The biggest hindrance to us has been going out for project visits because of travel restrictions, but other than that it has been business as normal. We have had a 60% increase in turnover in the last 12 months.” The ongoing pandemic has almost forced the [construction] industry to accelerate the adoption of technology across projects. “There is a lot more AI technology now available to us. This enables us to search, manipulate, and process a substantial amount of data. This, in turn, is cost-saving for clients,” he says. Speaking with Construction Week, Gibbs explains: “We had a lot of inquiries for support services and legal advice for people impacted by COVID-19. Initially, that focused on contracts and legal advice. That quickly then turned into quantum and delay advice.” “Some of the guidance and assistance offered to clients during the pandemic were to do with procurement. In the Middle East specifically, one of the key issues our clients suffered from was the flow of labour. Projects that were due to start had issues bringing in labour to get going.” He continues: “To add on to this, the operating procedures for projects changed, owing to social distancing and other precautionary measures, over and above what one normally expects.” Hanscomb Intercontinental focuses on multiple verticals and project types including oil and gas, refinery projects, rail and metro, mega-resorts, and more. Moreover, Hanscomb Intercontinental has been involved in projects for the GCC region including airports, rail, highways, universities, hospitals, and more. The company participated in some early advisory for an infrastructure public-private partnership (PPP) project in Kuwait and has been actively providing claims and dispute advisory services for Saudi Arabia. Commenting on the company’s work within the UAE, Gibbs says: “I was personally involved on the first PPP education project in the UAE, which ran into problems, since the nature of contracting in the GCC is different to everywhere else. There is a lot more confrontation and hence it is difficult to resolve matters amicably.” Hanscomb Intercontinental advised the aforementioned UAE-based PPP project on several aspects. “The client wouldn’t accept the course of delays; the contractor was not getting paid for variations that had been instructed, and was not granted extension of time,” outlines Gibbs. Hanscomb Intercontinental has several worldwide hubs including New York, London, Johannesburg, and Hong Kong, which serve as the main operational centres. Part of its upcoming business plans involves establishing an office in the Kingdom of Saudi Arabia, slated for opening later this year. “While we don’t have offices set up in Oman, Kuwait, UAE, and Qatar, we are very active in these countries, and regularly have people on-ground. We are keen on Saudi Arabia becoming the main hub in the GCC for us,” Gibbs says. “Our experts have had long connections with the GCC, and we want to continue that into the future,” he concludes. INTERVIEW 22 CONSTRUCTION WEEK MAY 2021WWW.CONSTRUCTIONWEEKONLINE.COM Construction Week’s Digital EditorConstruction Week’s Digital Editor Ranju WarrierRanju Warrier sits down withsits down with Pedram Rad, Managing Director Pedram Rad, Managing Director of U+Aof U+A to gain insights on the company’s operations in the UAE, presence in Saudi Arabia, to gain insights on the company’s operations in the UAE, presence in Saudi Arabia, expanding its current footprint, and expectations for 2021expanding its current footprint, and expectations for 2021 BEINGBEING “PEOPLE-FOCUSED” IS THETHE KEY TO SUCCESS FOR U+A AA pandemic that jolted the world in 2020 has left humans masked, but what it has also done to many industries including construction is change the way projects are designed for the future. Designs for new as well as up and coming offices, schools, universities, restaurants, as well as government buildings, are now looking at space from a different perspective. This shift in trend has driven architects and designers to change their approach to design and alter the space. Dubai-based U+A, a multidisciplinary firm providing contemporary architecture, planning and interior design, is also embracing this new trend and helping clients redefine spaces. Speaking to Construction Week in an exclusive interview, Pedram Rad, Managing Director of U+A, says: “We can look at the impact of the pandemic on design and architecture from two aspects. One from the impacts that it has created in a space, whether architectural or interior, or from a space planning perspective. “The second aspect would certainly be the impact on businesses and our lifestyle.” Explaining further, Rad says: “We are going back to basics, where we used to live more in nature. It is sort of changing the game in terms of making the space liveable. This is because, now it is not just a matter of having a square metre to sleep or a matter of lifestyle, it is now a matter of being healthy.” Talking about the actual impact of the COVID-19 pandemic on the business, Rad says: “A very significant impact of COVID-19 was on businesses. At the end of the day, we are also a business unit and we need to survive, we need to earn, we need to make revenue and profit. “From that perspective, the pandemic was eye-opening and quite different in terms of how the impact made us change, in a sense that accelerated the use of technology.” Technology accelerationTechnology acceleration According to Rad, the pandemic pushed companies to make sure the “infrastructure of internet” is correct. He says: “We were very lucky because the technology infrastructure we have is excellent. That is one of the main reasons we didn’t have any hiccups during the pandemic, and we managed to still support our clients and vice versa.” Rad explained that for U+A, it was very important to keep moving forward during the time of the crisis. “I don’t think we are going to go back to before. Even when things might go back to normal, we are still going to use virtual platforms to meet and talk because of the time and the better arrangement it provides for communication. “Technology, for me, has been a big game changer. We are using artificial intelligence (AI) as a business unit, and COVID-19 has accelerated this use and has improved the overall industry.” Change in spaceChange in space While the shift to technology was inevitable during the pandemic, considering the change in space too was unavoidable. According to Rad, when it comes to either changing the space within an existing building or a new project, developers might not have the appetite to make such changes. He says: “Even though a building might need to be improved in terms of having better space, it might sometimes be very difficult to implement this especially when it comes to residential. This is mainly The U+A team [Image: Supplied]Bait Al Naboodah Museum is one of Sharjah’s notable heritage architecture projects [© ITP Media Group]. In February 2020 ASI was awarded t-out, false ceiling, drywall partition, and joinery works for Meraas’ Dubai Cruise Terminal [image: Supplied] INTERVIEW MAY 2021 CONSTRUCTION WEEK 23WWW.CONSTRUCTIONWEEKONLINE.COM because most developers are building to sell the development.” Staying people-focusedStaying people-focused During the pandemic, it wasn’t just economies and industries that were impacted. The safety, mental health and well-being of people too felt the burn. U+A, according to Rad, made sure that it supported the team members by safeguarding their health and safety. The firm has been associated with some of the most iconic projects in its home country of the UAE. These include Arabian Ranches 3, Jewel of the Creek, Creek Harbour, Burj Royale, Marasi Riverside, Aykon City as well as Midtown by Deyaar, among others. A collaborative approachA collaborative approach Highlighting its status as a repeat choice for clients in the UAE and the company’s projects, Rad says: “The UAE is our home. Here, we have a good relationship and a great track history with our clients. This kept us running our business in 2020, which for many was a tipping point. We have been working collaboratively with our clients such as Emaar Properties and Aldar Properties. “We are also working with Eagle Hills in different areas such as Bahrain and Belgrade, as well as Arada in Sharjah, which has become a great client for U+A. We are also building our relationship with Nakheel and we are working on some very exciting projects with them.” One thing that Rad says has been a stand out for U+A is the fact that many of its clients are coming back, because of the firm’s “long history” with them and the trust that has been built with these clients. Supporting KSA Vision 2030Supporting KSA Vision 2030 In 2021, U+A is aiming to make its presence stronger in Saudi Arabia, which is witnessing a series of transformations with the development of gigaprojects to support the nation’s Vision 2030 agenda. “Our journey in KSA started in 2010. Since then we are working on projects in the Kingdom. Vision 2030 has accelerated and pushed the boundary not only from the development perspective, but the variety of the projects, including NEOM, The Red Sea Project, AMAALA, and Diriyah Gate,” Rad explains, as he continues to talk about the firm’s presence in KSA. In 2019, U+A opened its office in Saudi Arabia. “We luckily had projects when we started and we were supported by our people in the Kingdom. When the lockdown came in place due to the pandemic in 2020, we saw a diversion and we had to bring our people back,” Rad tells Construction Week. However, in 2021, U+A has deployed its people in Riyadh and Jeddah to support its client base. “In the past, we have delivered hotels, malls, schools, low-, mid- and high-rise residential projects, as well as entertainment projects. All of these projects are assets, and we can offer similar work to our clients in the Kingdom, mostly Saudi developers,” Rad stresses. He adds: “We are working with NEOM and AMAALA on hospitality projects, as well as King Abdullah Financial District (KAFD) on a couple of repurposing projects. Our approach to working with stakeholders including consultants in KSA is collaborative.” “At U+A, we have our share of projects to design for our respective clients in the Kingdom. We continue to remain optimistic about a successful journey towards the country’s Vision 2030,” Rad exclaims. Right partnership is keyRight partnership is key Talking about business expansion plans this year, Rad tells Construction Week: “One of the key elements about expansion is the right partnership. “I like to encourage our partnerships in Canada and London. Therefore, we are trying to use the current business environment to our advantage to encourage partnerships and collaboration with other strong parties. With this motto, we are hopeful of expanding into South East Asia as well as South Africa.” He adds: “With Expo 2020 Dubai happening later this year, and other elements including the Dubai 2040 Urban Master Plan and KSA Vision 2030, we will grow together as an industry.” “The excitement for 2021 is about going back to basics,” Rad concludes. Pedram Rad, Managing Director, U+A [Image: Supplied] U+A has been associated with Deyaar’s Midtown project in Dubai Production City to provide design solutions for the residential towers [Image: CW archives]COVER STORY “What we do touches the lives of Egyptians” INTERVIEW BY ASHLEY WILLIAMS | PHOTOGRAPHS COURTESY Orascom Construction Construction Week’s Editor Ashley Williams sits down for an exclusive interview with Orascom Construction CEO Osama Bishai in Cairo to discuss how the company plans to “positively contribute” to Egypt’s development through transportation 24 CONSTRUCTION WEEK MAY 2021WWW.CONSTRUCTIONWEEKONLINE.COMFOLLOW CONSTRUCTION WEEK @CWMIDDLEEAST COVER STORY WWW.CONSTRUCTIONWEEKONLINE.COMMAY 2021 CONSTRUCTION WEEK 25COVER STORY 26 CONSTRUCTION WEEK MAY 2021WWW.CONSTRUCTIONWEEKONLINE.COM From developing landmark attractions such as the largest museums, ancient pyramids, as well as the crystal blue waters of The Red Sea, Egypt has showcased its ability to innovate construction for millennia. Now, it aims to continue that legacy to solidify the nation’s strong presence within the MENA region. As part of Egypt’s plans to grow and diversify its economy, infrastructure development is being placed at the forefront to cater to Egypt’s surging population and with the goal of ultimately resolving traffic congestion, a constant issue in the country’s capital city. In alignment with Abdel-Fattah Al- Sisi’s Vision 2030 agenda, the government is working with the public and private sector to stimulate connectivity amongst Egyptians through rail and road projects. Supporting this infrastructure movement is Onsi Sawiris-founded, Orascom Construction, which has been among the frontrunners in transport development in Egypt for the past 20 years. “Egypt is our backyard and we like to contribute positively to the development of the country,” says Orascom Construction CEO Osama Bishai during a sit-down interview in Cairo. “Transport is a big chunk of our portfolio and what we like about transport is that it reflects some of our core competence which is infrastructure and railway work.” Orascom Construction has been involved in the nation’s metro project programme since the 1980s, Bishai notes, and the company is currently working on all of the major transport projects in Egypt, including Line 4 of the Cairo Metro Line and the largest monorail system in the world, which will start from Eastern Egypt, travelling through the New Capital all the way into the West of the nation. “We have been involved in the transport sector for the last 20 years,” says Bishai. “Transportation and infrastructure has formed a decent part of Orascom’s backlog for 2020, which reached $5.4bn. “Our new awards range across core sectors such as transportation, infrastructure, data centres and logistics, and complement our existing backlog as we initiated work on important projects including the world’s longest monorail system in Egypt and additional scopes for the data centre sector in the US.” He adds: “Revenues increased 5.9% year-on-year in 2020 as our projects operated on a full-fledged basis despite the additional challenges on the health, safety and business fronts. The group also generated positive operating cash flow and maintained a net cash position, reflecting healthy operations and our successful collection and working capital efforts.” Part of the Vision 2030 agenda is to improve the quality of life and standard of living for Egyptian citizens, and Bishai says that this is being replicated by Orascom Construction. “We want to carry out work that directly impacts the quality of life for the Egyptian people and we want to make a difference,” says Bishai. “We know that there will be millions of people using the metro everyday and it gives me satisfaction that what we do benefits Egypt and the Egyptian people.” Another objective of the Vision 2030 is to strengthen Egypt’s position and leadership at both regional and international levels, and Bishai believes that the North African country is a very exciting place to be at the moment. “We are excited about Egypt and it’s even more exciting because it’s home,” he explains. “We have a lot of leverage in the market as far as vendors, suppliers, supply chain and subcontractors, and for infrastructure development, you need a massive population.” “Construction is a very cyclical business,” he adds. “In 2006-2007, we Orascom Construction-built Burullus Power Plant has a 4,800MW capacity [Image courtesy: Orascom Construction]MAY 2021 CONSTRUCTION WEEK 27WWW.CONSTRUCTIONWEEKONLINE.COM COVER STORY had around $2.5bn of backlog in Algeria. Currently our backlog in Egypt has grown in excess of $3bn.” Despite infrastructure being a key focus for Orascom, the contractor boasts an impressive pipeline of other projects in Egypt including the iconic Grand Egyptian Museum. Covering an area of approximately 50ha, the megaproject is located near Egypt’s Giza Pyramids and is being built in a joint venture with BESIX, the largest Belgian construction company. Bishai revealed that they have reached 98% construction completion, and the Ministry of Antiquities will determine the opening date. “The Grand Egyptian Museum is a soft spot for me,” he admits. “It is up to The Ramses statue will be placed at The Grand Egyptian Museum [Image: Orascom Construction28 CONSTRUCTION WEEK MAY 2021WWW.CONSTRUCTIONWEEKONLINE.COM the client to determine the timing of the inauguration.” Orascom is also focusing its efforts into healthcare development after being selected by the Magdi Yacoub Heart Foundation to build the Magdi Yacoub Global Heart Centre in 6th of October City, Egypt. The centre will have a land size of 37 acres, a built-up area of 27 acres and include 300 beds, making it the largest healthcare facility in the region for cardiac care, treatment and research. Upon completion, the Magdi Yacoub Global Heart Centre will have a patient capacity of over 120,000 annually. The landmark project adds to Orascom Construction’s vast portfolio of healthcare projects, entailing the building and refurbishing of several hospitals and medical centers throughout Egypt. “We are proud to be selected to partner with the Magdi Yacoub Heart Foundation to build a state-of-the-art complex that will provide world-class healthcare and turn Egypt into a leading heart research and training hub,” says Bishai. “Orascom Construction prides itself on executing projects that result in a direct, tangible difference on its communities, and this project epitomises this ethos. It is an honour to play an integral role in bringing Professor Sir Magdi Yacoub’s vision to life.” While momentum is gaining in Egypt for infrastructure development, Bishai also spoke about the potential for the whole of Africa, but concedes there are some challenges to overcome for the continent. “I personally have a big interest in Africa,” he says. “Unfortunately Africa is quite slow and there is a lot of need for funding, but we have been successful to get some funds for particular projects. However, it’s not moving at the speed and with the numbers that we want to see.” He adds: “The potential growth in Africa is unlimited, but we haven’t had the right key to open up the continent’s growth potential yet. If you look at it from a population point of view and consider that the average age is around 19-20 years old, there will be a need for massive schools and homes.” Since its formation in the 1950’s, Orascom Construction has grown from a small family-run construction business into a global engineering and construction contractor with projects and investments around the world. In concluding the interview, Bishai reveals that the secret to the businesses success has come from its “perseverance and hard working nature”. “Since joining the company in 1985, the environment that this company provides for young people joining is attractive. This is a company that fosters a range of initiatives, and welcomes new ideas,” Bishai explains. “You need to be bold and take risks. The founders are fostering talent all around the company. “Perseverance and hard work is the key to success,” Bishai smiles. “INNOVATION, QUALITY AND PERSEVERANCE ARE SOME OF THE KEYS TO THE SUCCESS OF THE BUSINESS” Osama Bishai Orascom Construction CEO Orascom Construction worked in a JV with Arab Contractors Company to build the Port Said Tunnel [Image courtesy: Orascom Construction] COVER STORYMAY 2021 CONSTRUCTION WEEK 29WWW.CONSTRUCTIONWEEKONLINE.COM Orascom Construction commissioned Egypt’s Ras Ghareb Wind Farm in November 2019 [Image courtesy: Orascom Construction] COVER STORYNext >