< PreviousCONSTRUCTION 30 CONSTRUCTION WEEK DECEMBER 2021WWW.CONSTRUCTIONWEEKONLINE.COM The UAE’s resilience to the pandemic has boosted a sense of optimism in the construction industry, says Peyman Mohajer, Group Managing Director of WME, as he looks back at the year that was The year 2020 was unlike any other for the construction industry worldwide, and while we were lucky in the UAE to have had a relatively short lockdown earlier in the year, there was still a lot of uncertainty about what 2021 would look like. Fuelled by government’s action As we approach the end of 2021, and look back, it’s almost inconceivable that the UAE has bounced back so quickly, due in no small part to the government’s speedy roll-out of the vaccine programme and the subsequent easing of restrictions, both of which boosted investors’ confidence in the UAE property market. Bustling construction market The UAE’s resilience is visible in its constantly changing skyline, its most recent addition being Ain Dubai on the Bluewaters with its striking LED lighting. And as I drive along Sheikh Zayed Road, I see that the Museum of the Future looks almost ready to open. In Abu Dhabi, there are a number of exciting projects happening on Saadiyat Island, which, when finished, will be world-class tourist attractions. In addition to those, there are numerous hotels, commercial, and residential projects that have been handed over in the UAE in 2021, including high-end residential projects, with developers launching new products to satisfy the demand for luxury villas - for high-net- worth-individuals - either as a home or an investment. Expo 2020 Dubai creates a buzz The ongoing Expo 2020 Dubai has created a buzz in the emirate, and with many countries around the world still closed to tourists, the UAE is reaping benefits due to the international event. When I visited the Expo site recently, I was absolutely astounded at the amazing achievement it is for the UAE, one that will hopefully bring in more investment here in the forthcoming years. Resourcing challenges The increasing demand for property in the UAE from overseas’ investors has created opportunities for growth and instilled THE INDUSTRY CAN LOOK FORWARD TO 2022 WITH “INCREASED CONFIDENCE” The UAE’s resilience is visible in its constantly changing skyline [Representative image: Shutterstock]DECEMBER 2021 CONSTRUCTION WEEK 31WWW.CONSTRUCTIONWEEKONLINE.COM CONSTRUCTION a sense of optimism in the construction industry. However, this brings resourcing challenges. We’ve been fortunate enough to retain our core teams, and indeed have increased our workforce in the second half of the year, but as design consultancies expand to cater for this growth, we’re all fishing in the same pool for qualified, experienced engineers. Cashflow remains an issue It will come as no surprise to anyone involved in the construction industry when I say that 2021 has seen margins being squeezed by increased competition. I know that cashflow is still very much an issue for many of us, particularly with the prevalence of back-to-back payment clauses, and we spend an inordinate amount of time trying to collect fees. Hopefully, next year will see a more stable financial environment for the construction industry throughout the region. Sustainability paves the future It’s been heartening to note that more and more projects are aiming for specific LEED and Estidama certification over the past year, and with the COP28 (Conference of the Parties) coming to Dubai in 2023, the construction industry must spend the time between now and then coming up with radical solutions to the issue of carbon emissions and embodied carbon in construction. The UN Framework Convention on Climate Change (UNFCCC) confirmed the UAE’s position to host the conference in 2023, following Furthermore, he expressed his confidence in the rich experience of the “young, inclusive nation in advancing practical, viable and shareable solutions to the world’s most pressing challenges,” which will again come to the fore when the UAE hosts the world for the UN Climate Change Conference in two years. A digitally-equipped industry During 2020, by necessity, the construction industry adopted new and improved ways of working, and even though most of us are back in the office now, these have continued throughout 2021. Video conferencing has reduced travel time and cost, and digitisation has improved efficiency and productivity by setting standards and implementing best practices and procedures. The benefits of technology are becoming more and more evident as tools like 3D laser scanning, 360° cameras and virtual reality have become accessible and affordable. However, we should be mindful that technology works best when you have the right people working in a collaborative environment. The UAE has shown great resilience over the past couple of years, and I think that the construction industry can look forward to Q1 and Q2 of 2022 with increased confidence. Peyman Mohajer is the Group Managing Director of WME, a multi-disciplinary engineering design consultancy based in the UAE for over 10 years. unanimous endorsement by the Asia Pacific Group of nations during COP26 this year, where nearly 200 countries gathered to take concerted action to cap global greenhouse gas emissions and unite against climate change. This will no doubt be challenging, but there’s definitely a will to change, and it’s a great opportunity for the region’s innovative engineers to make their mark. As Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Cooperation said, “COP28 in 2023 will and must be a ‘solutions COP’” and the construction industry will play its part. Peyman Mohajer, Group Managing Director, WME [Image: Supplied] The soon-to-open Museum of the Future is located near the Dubai’s nancial district [Image: CW Archives]REAL ESTATE 32 CONSTRUCTION WEEK DECEMBER 2021WWW.CONSTRUCTIONWEEKONLINE.COM Post-COVID and with the rise in tourism, residential real estate prices in Dubai are recovering strongly from a record low. Muhammad Shafi, CEO at Prescott Real Estate Development shares key observations Property market in general witnessed an uptick across the globe but Dubai got the bigger and a remarkable advantage due to its quality of infrastructure, good quality life, hospitality amenities, as well as healthcare benefits. Investors and expats are returning to Dubai’s housing market giving further rise to the property prices, which are expected to rise in 2022. Additionally, visa reforms and 100% business ownership rules have all contributed to attracting new real estate investors and residents to Dubai. Much of the uplift in the real estate activity is driven by villas and townhouses with prices for villas in prime communities seeing a substantial rise, while apartment price rises lagged those of villas over the last year many prime areas have seen double-digit growth this year. According to a recent report by real estate investment firm CBRE Group, average residential property prices in Dubai rose by 4.4% in the last 12 months till August, making it the highest annual growth witnessed since February 2015. The report further mentions that Dubai real estate market continued to set new records in Q3 with 15,406 transactions registered by the Dubai Land Department (DLD), 81% up from Q3 2020 and 48% up from Q3 2019. Overall, sales volumes in the first three quarters of 2021 have already surpassed total annual transaction volumes in all but two of the last 10 full years. The demand is driven by how Dubai and the UAE government have managed the pandemic, making it an attractive destination for people across Europe, the US, India, and South Africa to relocate. Dubai worked hard during DUBAI REAL ESTATE ON A REMARKABLE REBOUND The UAE real estate market is slowly becoming popular for budget-conscious buyers [Image: CW Archives]REAL ESTATE WWW.CONSTRUCTIONWEEKONLINE.COMDECEMBER 2021 CONSTRUCTION WEEK 33 lockdowns on healthcare and safety, and in ensuring that vaccines were available for everyone. The top-tier management of the pandemic by the government has instilled a sense of safety at large. Last year, people were confined to their homes due to the pandemic. However with vaccine rollout on a massive scale, tourism saw a rebound and Dubai became a preferred spot mainly because of how the city handled the pandemic. The UAE residential real estate sector has become increasingly competitive. During the pandemic properties were under-priced, which naturally increased the demand. Dubai in particular also witnessed an increase in leasing activities for such properties. The increasing spends on infrastructure, relaxed laws for foreign investors, new government initiatives to drive investments, and new project announcements are expected to bring an overall development in the real estate sector which will further enhance investor interest. In fact, the UAE real estate market is slowly becoming popular for budget- Much of the uplift in the real estate activity is driven by villas and townhouses [Image: CW Archives] conscious buyers in equal measure. The softening in house prices is steadily making the sector more affordable to investors and end-users. Off-plan sales accounted for a large share of transactions for properties below three million dirhams, whereas secondary market sales contributed a far bigger share in deals for properties worth five million dirhams and above, suggesting both investors and end- users prefer less pricey off-plan projects backed by post-handover payment plans. The local property market in the UAE is also maturing, and more developers are coming up with offerings for both ready stock and off-plan units to stimulate demand with local as well as foreign investors. To further sweeten the deal, developers are also offering attractive payment options to customers intending to turn tenants into property owners. Overall, developers are acting fast and releasing new projects that cater to people’s needs. Dubai is one of the best places to invest with projects and communities that have never been seen before. With the current boom in real estate, we are definitely in a buyer’s landscape. Therefore, it is significant for developers to make prompt decisions, realise buyer needs, and offer competitive deals to stand out in the sea full of new projects. Muhammad Sha , CEO at Prescott Real Estate Development [Image: Supplied]FUTURE FOCUS 34 CONSTRUCTION WEEK DECEMBER 2021WWW.CONSTRUCTIONWEEKONLINE.COM CEO of Engineering and Procurement at Al Hamra Kuwait, Mohammed Al Ghanim shares with Saadiya Ahmad how a global climate framework will help reduce carbon emissions and global warming AL HAMRA KUWAIT ON CREATING A NEW TRAJECTORY FOR ITS BUSINESS At the recent COP26 Summit, water and climate leaders concluded that the world’s water supplies required protection. Mohammed Al Ghanim, CEO of Engineering and Procurement at Al Hamra Kuwait, believes the climate framework that’s required around the world to reduce carbon emissions and to reduce the increase in global warming is exceptionally important. “What we do is more of a study on hydropower and we are seeing there is a surge in that, particularly in Asia and other parts of the world,” he explains, citing renewables as exceptionally important. Secondly, as it relates to what EPC firms can be doing, he points out that EPC firms or the construction industry can either be viewed as a standalone construction provider or a holistic participant in providing adequate solutions to social and infrastructure problems. He elaborates: “If you take the latter approach, you are therefore having a dialogue as to how to solve these issues by providing the higher engineering standards that enable you to create the technology set up to mitigate solutions to these pressing problems.” Cross-country infra development With regards to infrastructure and renewables, Al Ghanim suggests a refined framework which includes involving the private sector in public expenditures and public projects. He explains: “In fact, at the recent G7 Summit held in 2021 in the UK, American President Joe Biden announced the ‘Build Back Better World’ initiative which highlighted a certain level of criteria and a requirement in order to have the benchmarking identify which infrastructure projects are of priority, how to ensure that there’s a cohesive effort to garner the required funding to spend it for societal problems.” “This is why the OECD, at the request of the US, Japan, France, and Australia launched ‘The Blue Dot Network’ which I am a member of, and who are currently working to identify what benchmarks are required to create a sustainable infrastructure platform to funnel the funding that brings together governments, the private sector, and civil society to encourage adoption of trusted standards for quality, global infrastructure development in an inclusive framework,” Al Ghanim added, noting the importance of such framework. For Al Hamra Kuwait, COVID-19 was an opportune juncture to transform into something bigger and better [Image: CW Archives]Bait Al Naboodah Museum is one of Sharjah’s notable heritage architecture projects [© ITP Media Group]. Al Hamra aims to become a global EPC rm by 2030 [Image: CW Archives] FUTURE FOCUS CONSTRUCTION WEEK DECEMBER 2021 35WWW.CONSTRUCTIONWEEKONLINE.COM Putting governance at the core The benchmark of these government standards is known as the Environmental Sustainable Government Standards (ESG Standards) which is helping ensure governance models are not only being implemented, but have a responsibility towards their shareholders to ensure those they’re providing lending to are meeting these standards. “As a result, this is creating a new trajectory with how business is being perceived,” he says. “For companies like ours, we’ve already made the commitment to our lenders and to our clients that we will be implementing ESG Standards within the next two years fully, both in our projects and in our corporate government structures and ensure we have the required compliance to audit that this is currently in place.” Becoming a global EPC firm With a goal to become a global EPC firm by 2030, Al Ghanim indicates that the post-pandemic scenario implied resilience as a survival mode to overcome this challenge. “On the other hand, Al Hamra Kuwait took a different approach and felt that COVID-19 was an opportune juncture to transform into something bigger and better,” he says. According to him, transformation for Al Hamra Kuwait was the by-product of COVID-19, not necessarily resilience. He adds: “We have been working on an opportunistic basis so we have seen projects, for example, in Saudi Arabia, the UAE, Oman, and Iraq where we felt we have the competencies that enable us to effectively deploy our resources to deliver these projects.” A market-focused strategy Furthermore, rather than going after a project, Al Hamra prefers to go after the market. “We are looking at markets like Egypt and Oman that are showing promise; and then of course, we have our government standards, the minimum thresholds that need to be manifested such that we make a decision to go for these projects and enter these markets is one of the things we are looking at,” he explains, citing governance and procedures as intrinsic to ensuring they achieve this goal within the next couple of years. He adds: “Also, there are two other issues we are scrupulously identifying at this point; one is how to effectively deploy up-to-date technologies, either through acquisitions or through partnerships. “The second is by becoming a one- stop-shop where we can bring in lenders, our technology providers or larger EPC firms with whom we have a good working relationship to move into these projects and markets together.” He concludes: “Also, from a post- COVID and transformation perspective, I think EPC firms in general, are now beginning to reassess their risk appetite. They can now mitigate this risk as they pursue future businesses; and these are the basic tenets of how we hope to achieve our global growth over the next few years.” Mohammed Al Ghanim, CEO of Engineering and Procurement, Al Hamra Kuwait [Image: Supplied]BUSINESS 36 CONSTRUCTION WEEK DECEMBER 2021WWW.CONSTRUCTIONWEEKONLINE.COM The business of stones can lend itself to quite an interesting, extensive and rewarding entrepreneurial journey, if you’ve carved yours as intrinsically as Umesh Punia, Chief Executive Officer, GLAZE GRANITE & MARBLE. With a self-affirmed passion for marbles, Punia dedicates his efforts in discovering new and quality marble and introducing it granite slabs. In that first visit, I realised that most customers preferred buying locally over importing; ready stock was lacking in the market. It didn’t take me very long to realise the potential of setting up my own shop. So, I started at micro level, importing just one or two containers a month at a very low operating cost,” he says. Now, 26 years in the nation, Punia affirms that the UAE is the right place for aspiring entrepreneurs to grow a business from the ground up. As an established entrepreneur himself, he prides on increasingly adding better-quality marble to GLAZE’s stone gallery. “I believe this is the reason why today we not only have the largest collection of stones in the Middle East, but probably even in the world,” he stresses. “Sourcing top-quality marble” Helming the affairs and operations at GLAZE, Punia has changed and elevated the way marble and other natural stones to the market for use. This passion dates back to circa 1995, when Punia first put on his entrepreneurial cap while working at a granite company in India, after completing a course in civil engineering from Maharashtra Institute of Technology, Pune, India. “During my time there, I was required to travel to the UAE for the sale of some GLAZE'S JOURNEY INTO THE BUSINESS OF STONES Umesh Punia, CEO, GLAZE GRANITE & MARBLE speaks with Construction Week's Disha Dadlani about how the company has elevated the way marble and other natural stones are sold in UAE Umesh Punia, Chief Executive Of cer, GLAZE GRANITE & MARBLE The GLAZE GRANITE & MARBLE of ce is located in Emirates Industrial City, Sajja, Sharjah DECEMBER 2021 CONSTRUCTION WEEK 37 BUSINESS WWW.CONSTRUCTIONWEEKONLINE.COM are sold in the UAE. He says: “My main role has always been the same – sourcing top-quality marble, at the best prices, from all around the world. Natural stones can be quite deceptive for an end user, and our job is to source and stock the best options. Even today, my role is to supervise, monitor imports, and uncover the best value for investment on behalf of our clients using all of our expertise, network, and resources.” A dedicated team facilitates this process and tends to the details by overseeing operations, sales and finance. “After more than two decades in the industry, we can guarantee that we are sourcing the best selections for our clients from every corner of the world.” Flooring and countertops Putting its spin on the flooring and countertop industry, GLAZE has introduced a variety of materials including reconstituted quartz for flooring and counters. The company brought to the UAE a leading quartz brand Caesarstone and Coante, another BRETONSTONE technology quartz for kitchen tops, both of which provide a 20-year warranty for kitchen countertops. Sharing more details, Punia says: “Last year, we introduced a revolutionary product, a sintered stone, called NEOLITH. This next-generation product is non-porcelain, and is a nearly indestructible slab which can be used for exterior cladding, countertops, and floors. No other product can match its quality and character. These slabs are completely scratch, heat, water, chemical, and fire resistant.” “In the second quarter of this year, we introduced GEOLUXE, another next- generation product, which is applicable for all surfaces, and is produced with 3D printing technology using melted minerals as ink. We have also introduced some other products including ARIOSTEA, entailing an impressive porcelain slab brand from Italy, which belongs to the oldest and largest Italian porcelain group, Iris Ceramic Group,” he continues. GLAZE is focused on constantly evolving its position as a brand through the conceptualisation and introduction of engineered and natural stones. Outlining the company’s achievements in this regard, Punia says: “We [GLAZE] were the first to introduce Brazilian natural quartzite as a flooring and countertop product. Quartz or quartzite are hard in nature, so their performance as flooring or counter material is incredible. The most popular quartzite is from Brazil and is extremely popular in the US. The trend of quartzite emerged in the US in the 2010’s, and it took us no time at all to introduce these products to the UAE market. Quartzite such as Mont Blanc, Super White, Quartz Cremo, Fusion, and Corteccia were once very new in the UAE, and they were a risky investment because they are expensive, but they are now some of the most popular products in the gallery. At this current moment, there are over 400 natural stones in our collection. The introduction of these exotic and rare stones was our brainchild - many of them are extremely popular today, and found exclusively at GLAZE.” Into a GLAZE showroom Across GLAZE’s showrooms, our clients walk through the real stock, which would finally end up as the floor in their home or office. The company has created a totally different experience for clients in its state-of- the-art gallery, whereas in other places, clients can only preview a sample of the materials they are interested in, although the final material for delivery would be stored far away in an open yard. Going into the specifics around natural stones, Punia says: “The final product you would receive may look and feel completely different, as is often the case with natural stones especially. In fact, you should never buy a natural stone from a sample, because no two pieces of natural stones can ever be the same. Nature never repeats its designs, and so each block or lot is completely different from the others, in terms of quality, colour, texture, tone and veining. Even in the case of porcelain slabs, you never get a real feel of the final finished floor from a sample in a showroom display.” It is important that clients are able to walk through the “real stock”, Punia says, adding that this is possible only at GLAZE, enabling the homeowner or designer to realise his/her vision, with “no chance of an error” in selecting the most suitable surface solution. He continues: “Our gallery is like a fresh fruit store, you get to feel, touch, and smell before putting anything in your cart. Our store not only allows our clients to touch, feel and see how the final floor or wall would look like, but ensure there is no scope for misjudgment." Investing in marble In 1995, when Punia started out his • Hosts top brands such as NEOLITH, Caesarstone, Coante, ARIOSTEA, KoZo, and GEOLUXE • Signed exclusive agreements with top quarries in Italy, Spain, Turkey, Greece, and Brazil • Created a totally different experience for clients in its state-of- the-art stone gallery • Enables clients to walk through the "real stock" • Currently establishing its newest stone gallery in ICAD Musaffah BUSINESS FOCUS The GLAZE GRANITE & MARBLE of ce is indicative of its commitment to the best quality of natural stonesBUSINESS 38 CONSTRUCTION WEEK DECEMBER 2021WWW.CONSTRUCTIONWEEKONLINE.COM business, he noted that marble was kept in open dusty yards, treated like ordinary masonry stones. Taking a leaf from the top galleries in Europe, GLAZE conceptualised marble from a totally different perspective, backed by Punia’s passion and excitement about exotic stones – their origin, source, chemical composition, grain size, texture, hardness, and polishing degree. He says: “Marble is no less of an investment than a gemstone from a reputable jewellery store. People don’t buy marble as a basic necessity; people invest in marble for their home or office and to benefit future generations. It [marble] is a statement, a declaration of success, and an arrival. This attitude has translated into all aspects of our business, from handpicking the best stones from every corner of the world, and to showcasing these materials in our gallery." GLAZE’s quality of natural stone in the UAE is “far ahead of other GCC countries and the Middle East,” Punia says. Initially, their concept of selling “stone” as a luxury product was met with surprise and confusion, he adds. “Understanding the value of these stones radically changed the way the marble business and its trade takes place in the UAE. I consider this as my biggest accomplishment and contribution to the industry,” Punia reckons. He adds: "Whatever profession or business one has made their fortune in, when they picture their dream home or office, do you think they would settle for a cheap ceramic floor? We at GLAZE believe that marble stone deserves the same respect and appreciation as any other gemstone does.” Forward-looking approach Sharing the company’s plans for the remainder of this year, he says: “We are currently working on establishing our newest stone gallery in Abu Dhabi, in Industrial City of Abu Dhabi (ICAD), Swiss Pavilion at Expo 2020 Dubai is based on the theme "Re ections" [Image: Supplied] A look at GLAZE's inside view gallery for customers to walk through the real stock The GLAZE of ce features Amazonite, which is a quartzite with its primary origin from BrazilDECEMBER 2021 CONSTRUCTION WEEK 39 BUSINESS WWW.CONSTRUCTIONWEEKONLINE.COM Mussafah, which is under construction at the moment. We aim to complete this gallery by the first quarter of 2022, and as always are adding new natural stones, as well as engineered stones to our collection from different parts of the world.” GLAZE hosts leading brands such as NEOLITH, Caesarstone, Coante, ARIOSTEA, KoZo, and GEOLUXE, but its real strength comes from the exclusive agreements it holds with top quarries in Italy, Spain, Turkey, Greece and Brazil, Punia explains. “This allows us a continuous flow of material and exclusive access to the very best collection in this regard. And, of course, replenishes our huge inventory, which means we are able to deliver immediately for projects of any scale,” he concludes. GLAZE holds its suppliers to the highest and most rigorous standards to ensure the very best quality of material. These specifications are aimed at particularly benefitting the market, climate, and clients here in the Middle East, using 20mm or 30mm thickness of slabs, homogeneity in thickness, controlled variation in colour, ideal processing quality, etc. The company's rigorous standards of quality control aim to meet the approval of architects and consultants, and allow customers to complete their projects successfully and in a timely manner. As of today, GLAZE stocks a total of over 400 unique styles of stones including marble, granite, quartzite, onyx, travertine, limestone, sandstone, slate, quartz, and sintered stone in order to provide customers with an expansive Clients can preview a sample of the materials they are interested in at GLAZE's sample room range of natural stones. GLAZE brings these natural stones from different parts of the world to its customers, to elevate the aesthetic appeal of varied spaces. For more details about GLAZE's products, visit www.glaze.ae GLAZE holds its suppliers to the highest and most rigorous standards to ensure the very best quality of materialNext >