AN ITP MEDIA GROUP PUBLICATION DECEMBER 2023 • ISSUE 806 Bloom Holding on pioneering in the UAE’s real estate, hospitality, and educational sectors CREATING DESTINATIONSCONTENTS DECEMBER 2023 • ISSUE 806 10 24 20 10 QUOTE OF THE MONTH Türkiye begins the long-term process of revitalising its historic province ‘Hatay’ 20 OPINION AtkinsRéalis’ Campbell Gray on what sustainable growth really means for the construction sector 60 AWARDS Highlighting the winners and highly commended nominees from the CW Middle East Awards 2023 74 THE LAST WORD Devmark’s CEO discusses how repurposing existing buildings can solve the region’s sustainability challenges DECEMBER 2023 3 6074 COVER Bloom Holding’s CEO explores the company’s dynamic strategy in crafting vibrant, integrated communities and elevating living standards through its hospitality and educational venturesDECEMBER 2023 5 | EDITOR’S LETTER | LAYING TOMORROW’S GROUNDWORK Julianne Tolentino Digital Editor What a year it has been. And I say that with utmost contentment as we prepare to close 2023 on a high note. Personally, it has been a rollercoaster. From undertaking major site visits to unveiling stories of some of the most in uential gures in the industry, 2023 opened new opportunities not only for the sector but for the Construction Week brand as a whole. Every year, December is regarded as the month of retrospection, where curtains nally close to conclude a fruitful ending. For Construction Week Middle East, it comes at a time when we successfully wrap up not one, but two award ceremonies: the annual Construction Week KSA Awards and Construction Week Middle East Awards. These ceremonies were our way of giving back to the industry to proudly spotlight the fact that despite challenges and constraints, the industry remains resilient and stronger than ever. Speaking of resilience, the theme of this issue spotlights the future of living, its implications, and how Middle Eastern developers are approaching future-proof communities. On the cover this month is Bloom Holding (page 24), an Abu Dhabi- based developer responsible for crafting vibrant and integrated communities that will last and adapt for generations to come. Also in this issue are thought-provoking features and exclusive interviews with major industry players such as Nesma & Partners (page 18), AtkinsRéalis (page 20), and a special report (page 34) to analyse the growth of the Egypt construction market. In case you’ve missed it, we also shared the names of the winners and highly- commended nominees from the award ceremonies. As we bid adieu to 2023, I am extremely delighted to announce that we have of cially launched the inaugural issue of Construction Week Middle East’s real estate vertical, ‘ CW Property Middle East’. The copies will be available upon request and the website up and running from December onwards. We can’t wait to share the stories with you and we hope to become your trusted space for all things luxury real estate in the Middle East. My team and I had quite an eventful year in 2023, and we will further build on our content and mark numerous milestones in 2024, much like the construction industry. Signing off! 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Scan to learn more and register for our events!“The root cause for the sustained uptick in demand stems from Vision 2030 and the economic transformation unfolding in the kingdom” 6 DECEMBER 2023 | QUOTE OF THE MONTH | “SAUDI ARABIA CURRENTLY BOASTS THE WORLD’S MOST EXTENSIVE HOTEL DEVELOPMENT PIPELINE” In line with Saudi Arabia’s elaborate vision, the kingdom is also experiencing a period of high demand in its commercial property space. As noted in Knight Frank’s latest Saudi Commercial Market Review of H1 2023, the scarcity of prime Grade A offi ce spaces in Riyadh is not only pushing businesses to opt for Grade B spaces but also at more aggressively-priced rents. “A perfect storm of offi ce demand in Riyadh is supporting the rental growth being experienced across the market,” explained Faisal Durrani, partner and Head of Research, MENA at Knight Frank. “Program HQ, combined [with] the emergence of new public-sector linked entities, rising rates of job creation, and the fall in unemployment levels, are together driving up rents and occupancy levels.” Durrani added, “The root cause for the sustained uptick in demand stems from Vision 2030 and the economic transformation unfolding in the kingdom.” Jeddah saw the sharpest rise of offi ce rental rates in Grade A spaces at 12.7%; from an average of $277.5 per square metre in Q3 2022 to $320 per square metre in Q3 2023. Meanwhile, though Riyadh’s Grade A saw modest gains at 6.2%, increased demand is refl ected in the 17.3% increase in the demand for Grade B offi ce spaces in the capital — a continuation from 2022. At the same time, Dammam’s offi ce space market also saw modest gains at 5.2% and 3.3% for Grades A and B respectively in Q3 2023. Additionally, performance for retail lease rates remains a mixed bag, likely due to a shift to digital. Q3 2023 saw Riyadh break a streak of decreasing rates of regional and super regional mall rental rates with a 2.9% increase to arrive at an average of $726 per square metre. Meanwhile, Dammam’s retail space rents saw a small decline, all with a stable and high occupancy rate year-on-year. As tourism continues to take off in the kingdom, the hospitality sector is also experiencing rapid growth in the number of hotel developments. Occupancy levels showed a marked improvement year-on- year as a greater number of domestic and international tourists are drawn to an expanding calendar of leisure and business events. “Saudi Arabia currently boasts the world’s most extensive hotel development pipeline,” explained Turab Saleem, Partner and Head of Hospitality at Knight Frank, “encompassing approximately 289,000 new rooms slated for introduction by the conclusion of the year 2030. This fi gure nearly doubles the hotel room inventory of its neighbouring emirate, Dubai, which anticipates adding around 154,000 rooms.” Knight Frank reveals trends and key ndings in the kingdom’s growing commercial market Dubai Marina skylinewww.glaze.ae/ SINTERED STONESINTERED STONE | PORCELAIN | MARBLE | QUARTZQUARTZ | ONYX | PRECIOUS STONE Visit our latest showroom at Sheikh Zayed Road and discover theVisit our latest showroom at Sheikh Zayed Road and discover the ultimate selection of Natural Stones & top brands of Porcelain Slabs.% OF ANNUAL GDP TO BE SPENT ON DECARBONISATION EFFORTS 10% NO. OF JOBS TO BE CREATED PER YEAR 4.2 MILLION AMOUNT POURED INTO GREEN INVESTMENT FUNDS IN EU AND US $156 BILLION the goal of achieving net zero emissions in the next 25 to 40 years. Fully achieving net-zero would require one critical other step, namely developing a clean electric grid powered by renewable energies. The tangible benefi ts of rigorously applying sustainable methods and materials to the built environment will be measured not just in tons of carbon dioxide that is not emitted, but also in terms of better quality of life, incremental economic growth, and the development of enhanced local skills and jobs. % DECLINE IN GREEN FINANCING IN THE GCC 40% 8 DECEMBER 2023 | STAT OF THE MONTH | THE MIDDLE EAST HAS A $2 TRILLION OPPORTUNITY TO BUILD A SUSTAINABLE FUTURE Ahead of the upcoming COP28, at a time when the Middle East is amplifying its commitment to net- zero targets, the signifi cance of sustainable infrastructure has never been more pronounced. Wherever you go in the region these days, it is impossible to overlook the metal cranes dotting the landscape. They are visible signs of a massive construction boom that is bringing forth whole new cities, from NEOM in Saudi Arabia to Lusail in Qatar, and the Mina Rashid Redevelopment Project in the UAE, to name a few. According to a report by Dar al Handasah and Strategy& Middle East, it has been estimated that spending on construction in the region will amount to $2 trillion by 2035. And, consequently, nowhere else has such a large opportunity to establish global leadership in ensuring that the built environment is sustainable. The construction boom will not just alter the landscape across the Middle East: it could also become the testing ground for innovative technologies and processes that reduce carbon emissions from the construction and operation of buildings and their supporting infrastructure systems. This would mean adding a focus on sustainability, quality of life, and localisation to the existing strategic objectives of cost, time, and building quality. Pioneering the development and use of sustainable technologies and techniques could give a signifi cant push to eff orts by Middle Eastern governments to reduce emissions. Strategy& estimates that adopting a sustainable approach to the built environment could reduce life-cycle greenhouse gas emissions for urban development by about half — and this would also take the region halfway toward meeting Strategy& Middle East details four strategic moves to pioneer the use of sustainable technologies to reduce emissions in the construction industryNext >