< Previous20 CONSTRUCTION WEEK JULY 2021 EDITOR’S LETTER WWW.CONSTRUCTIONWEEKONLINE.COM I have so many emotions and feelings running through my mind as I write this piece. It’s been an extraordinary journey since I took over as Editor of Construction Week, but this is where the road ends as I form my final column for the title. From the bottom of my heart, I will be eternally grateful for my time at Construction Week. While it’s been a huge challenge and many obstacles to overcome, I don’t regret a single decision that I made and believe the title is in a fantastic position to continue growing, not just regionally but globally. My objective was to create the most authoritive media brand for construction in the Middle East and North Africa, and I believe I have achieved this goal. As a brand, we’ve created content that has generated conversations and debates within the industry by becoming more dynamic, innovative and creative with our editorial coverage. We’ve created new events, webinar series, YouTube series, revamped the magazine and website, and most recently gone behind a paywall to make our title more about our audience rather than advertisers. I still remember the first day where I was offered the role as Editor at Construction Week – my mind was split equally into fear and excitement. I was completely out of my comfort zone - I constantly told myself: “What am I doing? Is this really worth it?” This role has taught me many lessons and has certainly kept me on my toes, but the highlight for me during my tenure has been the people. The editorial team are some of the most talented people that I’ve ever worked with, but I’ve also been wowed by the exceptional contractors, engineers, consultants, architects that I’ve ever had the pleasure to write about every single day. I’ve learned so much, I’ve met extraordinary people who have given me insights and knowledge that will stay with me forever, and I’ve travelled to countries that I never thought I would ever experience in my life – the list could go on.. So, you may ask why am I departing? It has been a very difficult decision for me and many sleepless nights where my thoughts have been swirling around in my head constantly, but I am a big believer of change. Change comes in a variety of shapes and sizes. Change and adaptation is something that we’ve all had to experience, especially over the COVID-19 pandemic. It’s given us all time to reflect and establish what is important in life. Change can teach us to adapt and help us develop resilience, but only if we understand our own capacity for growth and learning. When change makes us better, it’s because we have learned how to turn a challenging situation to our own advantage. I thoroughly believe that I will be back to work in some capacity within the construction industry in the future. But for now, it’s time to pursue other challenges, opportunities and have a new focus. I wish everyone the best of luck in their future endeavours and I will no doubt miss the industry very much. Signing out – good luck to this fantastic industry The time has come for me to bid farewell to the industry - it’s been a rollercoaster ride with so many opportunities and experiences that will live with me forever “THIS ROLE HAS TAUGHT ME MANY LESSONS AND HAS CERTAINLY KEPT ME ON MY TOES, BUT THE HIGHLIGHT FOR ME DURING MY TENURE HAS BEEN THE PEOPLE” Ashley Williams Editor mn l ue ly. ld hi l khkiif hiiCONNECT. GROW. SUCCEED. THE ONLY LIVE IN-PERSON EVENT CONNECTING THE GLOBAL CONSTRUCTION INDUSTRY IN 2021 SCAN TO FIND OUT MORE: WWW.THEBIG5.AE LIVE IN-PERSON: 12 - 15 SEPTEMBER 2021 DUBAI WORLD TRADE CENTRE ONLINE: 22 AUGUST - 17 NOVEMBER 2021 Specialised events at The Big 5:ONE-ON-ONE 22 CONSTRUCTION WEEK JULY 2021WWW.CONSTRUCTIONWEEKONLINE.COM “It’s a busy time for Dubai Holding Real Estate”: Alex Davies, Chief Commercial Of cer of the company, speaks with Disha Dadlani about the real estate business’ agenda and pipeline for the year When Alex Davies, Chief Commercial Officer at Dubai Holding Real Estate, recently transitioned from facilities management to his current role and field, it could have seemed like quite a jump, but with his background in civil engineering, it panned out as a “natural progression,” he shares with Construction Week. He says: “I started my career in railway infrastructure maintenance, infrastructure renewals and infrastructure construction. Then, my career transitioned more into the services side of the business in energy and facilities management.” In his former role at facilities management company Emrill, Davies served as Managing Director, where “thousands of employees serviced a few hundred customers.” Suggesting that the switch from facilities management and energy to real estate and construction has prompted a more customer-focused approach, he says: “In this business, we have a few hundred employees serving thousands of customers.” “Going away from the traditional approach” In a real estate environment that is dynamic, it is only natural that the role of a developer or real estate business is ever-changing. On its part, Dubai Holding Real Estate are going away from the traditional approach of a developer developing a product, and that being delivered as an asset, Davies explains. “We are getting far more involved in the services and essentially, in the lifestyle we deliver, as well as the customer experience from sales, through to construction and the ‘moment of truth’, the handover process, and then the customer living experience.” Focus on homeownership He continues: “We are seeing a shift away from investors looking for an asset with returns; we are seeing more homeowners coming into the market. Even with people looking for a yield or an asset, the focus remains on seeking quality. Dubai’s real estate sector has witnessed a big transition to secondary market homes or ready properties from off-plan, and this, in turn, indicates an increased interest towards homeownership.” Tapping into this and responding to the shift away from “investors looking for an asset with returns”, Dubai Holding Real Estate is focused on the ongoing delivery of a service rather than just delivering an asset, Davies explains. “This is a transition that is absolutely underway and a trend that will continue. The focus on delivery of a service over an asset is something I bring into my new role from facilities management,” he adds. Taking on a new identity Meraas and Dubai Holding have entered a year since their consolidation, which was completed in June 2020, as per CATERING TO AN INCREASED INTEREST TOWARDS HOMEOWNERSHIP Madinat Jumeirah Living is among Dubai Holding Real Estate’s key urban properties and located opposite Madinat Complex [Image: Supplied]ONE-ON-ONE WWW.CONSTRUCTIONWEEKONLINE.COMJULY 2021 CONSTRUCTION WEEK 23 the directives of the Vice President and Prime Minister of the UAE, and Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, and in an effort to advance growth through a unified vision that boosts Dubai’s global competitiveness. The consolidation of both forces represented “the legacy and track record of Dubai Holding Real Estate,” Davies says. “During the consolidation and integration process, Dubai Holding Real Estate was formed as a vertical within Dubai Holding. Dubai Holding Real Estate brings together all of our real estate built environment functions within one team. That amalgamates Dubai Properties; Meraas, for development and land business; North25 for project management; and Ejadah for facilities management,” he adds. An extensive pipeline “It’s a busy time for us at Dubai Holding Real Estate,” Davies says. The real estate development business is engaged in several key projects including Madinat Jumeirah Living; Port De La Mer; 1/JBR; La Vie; Sur La Mer; Central Park; Bluewaters; Mudon; Remraam; Villanova; and more. Sharing a snapshot into the real estate business’ extensive portfolio, which spans across the emirate, Davies says: “Villanova, which is a master community located in Dubailand, will commence handovers in July, and we are still launching parts of it, so we have years of construction to go. We have projects within Villanova that are still in the infrastructure phase. Meanwhile, construction is ongoing in City Walk’s Central Park, which is an urban destination lifestyle. It is due to be delivered in 2023.” The first properties at Madinat Jumeirah Living, which is opposite the Madinat Complex and among Dubai Holding Real Estate’s key urban properties, are now ready and will be welcoming customers in Q3 2021, Davies states. “The latest phase of Madinat Jumeirah Living, which is Asayel Madinat Jumeirah Living, has marked commencement of on-site work, with heavier construction to follow soon.” “There is a real pipeline of projects coming to an end,” he smiles. Strong waterfront portfolio Identifying the emirate’s historical and cultural association with water, Dubai Holding Real Estate has maximised its focus on waterfront and beachfront projects including Port De La Mer; Sur La Mer; Jaddaf Waterfront with Manazel Al Khor and Dubai Wharf; Dubai Water Canal; La Vie within Jumeirah Beach Residence; Bluewaters; Jumeira Bay; and waterfront premises around Business Bay. Commenting on the business’ waterfront [and beachfront] portfolio, Davies says: “The water is deep ingrained and embedded in the legacy and history of Dubai. Hence, many of our projects have been focused around the waterfront. Our latest waterfront projects, La Vie and Port De La Mer are being developed at present. We still have some capacity within Port De La Mer and are looking at how we can further utilise that space and develop a new lifestyle destination for Dubai. The first units of Port De La Mer are to be handed over in Q3 or Q4 of this year, with future phases to go.” Meanwhile, Sur La Mer, which is a townhouse development, adjacent to Port De La Mer, and set to be the first freehold townhouse community located in the Jumeirah 1 district, is progressing well, he confirms. “Work on [Sur La Mer] the project is ongoing and expected to be finalised at the end of next year,” Davies says. “It’s all about the balance” With its pipeline, which maps the mighty coastline of the emirate, Dubai Holding Real Estate strikes the right balance between an urban and a waterfront project portfolio. Davies says: “Our waterfront portfolio perhaps attracts more visitors, but we also have more family-oriented, homeownership focused properties in suburban locations.” On a concluding note, Davies says: “We are heavily focused on the quality of what we’re delivering. We really want to differentiate ourselves in this respect, and are working hard to achieve this in collaboration with our consultants and contractors.” Dubai Holding Real Estate prides on delivering a diverse portfolio in a balanced manner; to date, the real estate development business has delivered 35,000 units to 100,000 people in master-developed communities, and boasts a land bank of 69.8 million square metres. Alex Davies, Chief Commercial Of cer, Dubai Holding Real Estate [Image: Supplied] Dubai Holding Real Estate boasts a strong waterfront and beachfront portfolio, of which Port De La Mer forms an integral part. [Image: Supplied]COVER STORY WWW.CONSTRUCTIONWEEKONLINE.COM24 CONSTRUCTION WEEK JULY 2021 INTERVIEW BY ASHLEY WILLIAMS | PHOTOGRAPHS COURTESY Al Bawani Al Bawani’s CEO Eng. Fakher Al Shawaf shares exclusively with Construction Week’s Editor Ashley Williams how Saudi Arabia’s “unparalleled” potential and determination will enable the Kingdom to become a “touristic hotspot” in the near future “The most important success factor in a construction company is the people”COVER STORY WWW.CONSTRUCTIONWEEKONLINE.COMJULY 2021 CONSTRUCTION WEEK 25COVER STORY 26 CONSTRUCTION WEEK JULY 2021WWW.CONSTRUCTIONWEEKONLINE.COM Five years after Saudi Arabia’s Vision 2030 was unveiled, many noteworthy achievements have been made to support the Kingdom’s economic diversification objectives and build a prosperous future for its people. The Public Investment Fund (PIF), the sovereign wealth fund and investment vehicle of the Saudi government, has seen its assets double to reach almost SAR 1.5 trillion ($400 billion) in 2020, compared to SAR 570 billion ($152 billion), according to the Vision 2030 government portal. But the Kingdom is also investing in its most important asset: it’s people. The ‘Saudisation’ initiative prioritises the growth and empowerment of local people, and local business and supply chains. The Vision 2030 portal also notes that the rate of Saudi Arabia’s international foreign investment has decreased by 58% since 2015, whereas foreign direct investment into Saudi Arabia increased to reach SAR 17.6 billion ($4.6 billion), an increase of 331% in comparison to SAR 5.3 billion ($1.4 billion) before the launch of the Vision 2030. Forming a huge part of this initiative is the launch of multiple multi-billion dollar projects such as The Red Sea Project, Diriyah Gate, AMAALA, and many more that are contributing to the welfare of society, providing jobs and boosting tourism prospects. While these impressive projects are certainly in the global spotlight, it is often forgotten that the local contractors are key to ensuring these destinations are brought to life. One of the KSA-based contractors heavily involved in making this ambitious vision a reality is family-owned business Al Bawani. Established in 1991, Al Bawani is a diversified group of Saudi companies that has grown from a modest civil-works firm into a fully-fledged general contracting corporation with a sizable portfolio, a strong financial position, and a significant presence in a broad range of industries. Leading the business is their CEO, Eng. Fakher Al Shawaf, who shares with Construction Week what it takes to succeed as a contractor in the Kingdom of Saudi Arabia. “Only the fit and competitive companies will be able to thrive in today’s economy. The bar has been raised. The government has many ambitious targets and the opportunities are there to be grabbed,” says Eng. Al Shawaf. “However, the challenges cannot be underestimated as many of those projects have tight timeframes. They assume big responsibilities on the contractors such as design responsibilities, and some are in frontier locations.” Despite operating in difficult market conditions brought upon by the COVID-19 pandemic, Al Bawani’s success has shone through in the past 12 months. The contractor was recognised for its efforts by Construction Week’s editorial team after being crowned at number one in our Top 50 KSA Construction Firms list and entering the Top 10 in our annual Power 100 list for 2021. “Honestly, it’s been quite overwhelming, and we are extremely humbled by this. So many industry players congratulated us, especially our partners, local and international. This adds to our challenge to live up to our clients’ and partners’ expectations,” Eng. Al Shawaf smiles. The COVID-19 pandemic has had a profound impact on Saudi Arabia. The lockdown restrictions, slower production rate and the halt on travel lowered global demand negatively; affecting government budgets and adversely impacted oil prices. The Saudi government imposed a strict lockdown at the early stages of the pandemic and raised the VAT to 15% to help balance the budget, and on the other hand the Public Investment Fund (PIF) started injecting SAR 150 billion ($40 billion) of investment to mitigate the economic impact of the pandemic. While these measures were put in place, Eng. Al Shawaf said the business was “fortunate” to maintain a healthy backlog in 2020 and continued winning projects. “We increased our backlog by more than SAR 6 billion ($1.6 billion) in 2020 as we won numerous strategic projects for the Al Bawani was among the rst contractors to work on The Red Sea Project in KSA JULY 2021 CONSTRUCTION WEEK 27WWW.CONSTRUCTIONWEEKONLINE.COM COVER STORY government and PIF companies. Given the importance of our projects, we were able to operate at 80% capacity even during the pandemic,” explains Eng. Al Shawaf. “It was no doubt a huge challenge for governments, organisations and individuals; the Saudi leadership managed to navigate this crisis with a great deal of discipline and wisdom. At Al Bawani we have done everything we can to protect the welfare of our employees and to meet our obligations towards our clients, suppliers and lenders. “All-in-all we can claim that we turned the crisis into an opportunity.” But as we have all witnessed since the start of the pandemic, the global health crisis forced contractors to stringently adapt by becoming more innovative and dynamic in order to remain afloat. Eng. Al Shawaf explains that its digital transformation committee has been “working tirelessly” on keeping Al Al Bawani increased its backlog by more than SAR 6 billion in 2020 [Photo courtesy: Al Bawani]COVER STORY 28 CONSTRUCTION WEEK JULY 2021WWW.CONSTRUCTIONWEEKONLINE.COM Bawani on the forefront of technological advancements in the sector. “Technology is transforming gradually and making inroads in the construction sector. We have been one of the early adopters of Building Information Modelling (BIM) as well as 3D scanning. We monitor our projects closely through regular meetings and dashboards that are financially driven,” he says. “We are working on them to become more comprehensive. For example, our health and safety teams as well as our quality control teams to enter all their observations and reports electronically. We track all our vehicles and equipment to assess their utilisation, and we are experimenting with a number of productivity measurement technologies.” Another area of “high priority” is the implementation of public-private partnerships (PPPs), according to Eng. Al Shawaf, who plans to align with the Privatization Program, launched by the Council of Economic and Development Affairs (CEDA) to achieve the objectives of Vision 2030. “These projects are made available to the private sector in support of the national economy, and we have taken a broad approach to these opportunities across sectors such as education, housing, Privatization (NCP) and Supervisory Committees. NCP’s role is to develop frameworks that will enable and manage privatisation, and the committees will provide technical, financial and legal framework for privatisation. I am happy to say that family groups are teaming up together and are being supported by lenders to embark on these opportunities.” While Al Bawani is stringently focusing its efforts with local partners, Eng. Al Shawaf gives his thoughts on the participation of foreign firms tendering for projects in the Kingdom. “The market in Saudi has been open for foreign firms for decades. In fact some of the landmark projects we have in the Kingdom have been built by foreign firms. Our ability to import and export goods from all over the world makes Saudi one of the most dynamic and competitive economies in the world,” says Eng. Al Shawaf. “International EPC players will need to proactively address major risks in KSA through right partnerships and by assessing which clients to work with and what risks to accept” he adds. “Scope might change and the timetable might be very tight. Fast decision making and stakeholder management is a must. Managing the approval process and reliable subcontractors is an on-going healthcare and transportation during this year,” says Eng. Al Shawaf. “Al Bawani has partnered in joint ventures with local strategic partners to build the world’s largest PPP desalination plant with a capacity of 600,000 m3/ day and another joint venture to build, operate and transfer 60 schools for Tatweer Building Co. We see that as an enhancement of the private sector to reduce the government burden and provide a variety of services as well as improve the quality and enhance the overall efficiency in the economy.” He adds: “The government has been incredibly generous and supportive for decades and I strongly believe the private sector has grown and matured in the past 40 years to be able to share that responsibility and play a pivotal role in improving the welfare of every Saudi and resident in the Kingdom.” Elaborating on the government’s effort to push private sector participation, Eng. Al Shawaf continues: “The government now can focus on being the legislator and regulator as well as the facilitator where they set performance targets and let the most competitive and qualified parties deliver the required services. To govern the privatisation process, the Kingdom has established the National Center for Al Bawani is working alongside key local partners to build the Coastal Village at The Red Sea Project Photo courtesy: Al BawaniJULY 2021 CONSTRUCTION WEEK 29WWW.CONSTRUCTIONWEEKONLINE.COM COVER STORY challenge in the market and lenders that believe in your ability to close projects successfully is vital.” Eng. Al Shawaf also believes that Saudisation will continue to be a challenge, however, the government is working closely with the private sector to better equip Saudis to join the workforce. “It is important to note that those challenges are faced equally by local as well as international contractors and we are all at the same level playing field, making the whole ecosystem fair and transparent,” he adds. “The Saudi population is one of the youngest in the world, over half of it is below 30 years old which is without a doubt a strong advantage,” he notes. “The new business market will target the next generation by recruiting younger talent or fresh graduates which will be an advantage to local businesses. They bring a fresh new perspective and a better understanding of the new audience.” He adds: “It isn’t ‘just adding paperwork’ but crucial for the success of their business in the Kingdom. The more compliant we are, the better it is for people in an organisation, it portrays companies with better values like trust and shows that companies have a solid long-term vision for their businesses.” Putting its workforce at the forefront, Eng. Al Shawaf is also looking at boosting its CSR initiatives across the company. Although CSR is relatively new in Saudi Arabia, the Al Bawani CEO said family-owned business owners have been engaging in CSR in light of moral and religious obligations. “Stemming from Islamic principles, charity and philanthropy are not new concepts in Saudi Arabian culture. Zakat, translated as alms-giving, is one of the pillars of Islam and has been institutionalised in Saudi Arabia. In addition, the concept of Sadaqa (voluntary giving) is flourishing in Saudi Arabia, as in many Muslim countries,” says Eng. Al Shawaf. “However, CSR is not only used as a way to achieve moral goals but also as a positive reinforcement of brand image. It helps build trust and loyalty between the business and its stakeholders. A survey on CSR perceptions in the Kingdom, conducted by the National Commercial Bank, revealed that 62% of respondents believe that CSR facilitates the development of a stronger relationship between customers and the organisation.” He adds: “Family-owned businesses today are also inclined towards implementing CSR to showcase their contribution towards the Saudi Vision 2030 goals as it recognises the importance of a vibrant society where everyone enjoys a rich, happy and fulfilling life as a strong foundation for economic prosperity.” In terms of the project pipeline for Al Bawani, Eng. Al Shawaf revealed that they are working on the majority of the high- profile developments in the Kingdom such as The Red Sea Project. Al Bawani’s scope of work for the Red Sea Project comprise being responsible for the civil and structural works across 40 hotel villas on the Southern Dunes site of the tourist destination, as well as utility works and site-wide roads. Additionally, the Saudi-based company will also be responsible for the earthworks and stabilisation of each of the villas, along with their structures and underground utilities connections. Other projects include the earthworks package for the $40 billion Diriyah Gate Development, Phase 1 of King Salman Park, Saudi Rail Company (SAR) and King Abdullah University of Science and Technology’s (KAUST) Housing Expansion Project. Discussing its participation on major projects in Saudi Arabia, Eng. Al Shawaf shares its success in winning significant contracts across the Kingdom. “The most important success factor in a construction company is the people who are running the business, their loyalty and their dedication are essential,” explains Eng. Al Shawaf. “Other aspects include the trust of clients, long term relationships and solid financial capabilities that allows us to be in good standing with the supply chain and with our lenders. You have to be diligent and conduct a proper study of the project and its risk matrix, providing the client the best technical offer with reasonable profit margins.” Reflecting on his career which spans more than 22 years at Al Bawani, Eng. Al Shawaf shares how proud he is of his home country in terms of the Kingdom’s progression. “Considering our young age as a country in development, which doesn’t exceed 45 years, we have come a long way,” says Eng. “THE GOVERNMENT HAS BEEN INCREDIBLY GENEROUS AND SUPPORTIVE FOR DECADES AND I STRONGLY BELIEVE THE PRIVATE SECTOR HAS GROWN AND MATURED IN THE PAST 40 YEARS ” Fakher Al Shawaf. “The level of education of people, the infrastructure, the stability and safety and health care, the extensive developments of the two holy mosques, and many more represents the bright spots in our nation. The determination to improve is what sets us apart. I believe our leadership has taken a decision to position Saudi as a global player in the economic, cultural and touristic stage besides being the heart of the Muslim World.” Concluding the interview, Eng. Al Shawaf outlines how aspiring engineers can succeed within the region’s construction industry, particularly those looking to enter the Saudi Arabia market. “The rediscovery of our hidden gems such as AlUla and the creation of new destinations such as The Red Sea project, AMAALA and NEOM are all contributing to the country’s development, improvement of the quality of life and prosperity. I am a big believer in hard work and loyalty. Hard work is more important than being knowledgeable. If you work hard, you can always learn and develop,” says Eng. Al Shawaf. “There are many opportunities in Saudi Arabia today and it is up to each young man and women if they want to participate in building the new Saudi… Or just watch us build it,” he jokes. Eng. Fakher Al Shawaf Al Bawani CEONext >