< Previous50 Diriyah Gate Development Authority (DGDA) will deliver the first elements of the $50.6bn project this year – the UNESCO World Heritage site at At- Turaif will permanently open to the world for the very first time. This is a significant moment for Diriyah: At-Turaif sits at the cultural heart of the mud-brick city, the home of House Al Saud, the birthplace of the kingdom and site of the First Saudi State established in 1727. Meanwhile, Bujairi Terrace, Diriyah premium dining district will open in autumn 2022. The fully- pedestrianised precinct will be home to over 20 restaurants, which as with all buildings in Diriyah, is being built using authentic 300-year old methods from mud bricks in the traditional Najdi architectural style of the region. Mohamed Saad, the vice president of DGDA elaborates to Construction Week Saudi about the significant on- site construction milestone achieved: “Most notable is the completion of seven million cubic meters of rock excavation, which is one of the largest enabling works projects implemented in the Kingdom of Saudi Arabia and provides the basis for the entire phase one of the Diriyah masterplan. “Additionally, in Wadi Safar, we have successfully constructed a central pumping station on a 1-acre plot, a 400mm diameter potable water line and a 600mm diameter TSE line outputting 3,000m3, which will later be raised to 6,500m3.” DGDA has also completed several key diversions including the SWCC pipe, cabling for key locations and the At-Turaif Road which opened earlier this year in April. Among the various infrastructure assets that have been installed at the site, the key ones include the 1km Wadi Hanifah spine infrastructure pipeline, and temporary bridges, which wil allow for the smooth passage of construction vehicles across the development. Saad notes that there have also been very active in awarding contracts: “The northern portion of the development’s infrastructure was awarded to SaudiCo in 2021 at a value of $400mn, while the southern contract was awarded to a joint venture by El Seif and China State Construction Engineering Corporation Middle East (CSCEC ME) at the value of $450mn. “Additionally, we awarded another $980mn contract for the Diriyah Square Super Basement car park to Salini and a $350mn contract to Nesma to provide critical transportation works on Diriyah’s circulatory transport system.” Saad also points out that as part of the Najdi architectural preparatory works, and the authentic conservation of Diriyah, 180 million handmade mudbricks have already been prepared, ensuring that each aspect of the project correctly represents a sympathetic and accurate interpretation of Najdi living. DGDA, since September 2020, has more than doubled its staffing headcount, and currently employees over 1,300 staff members across its four master plans, which is represented with an 85% Saudisation employee rate. Saad notes that this allows them to support their goal of acting as an incubator and nurturer of talent, and a repository of excellence for the Kingdom of Saudi Arabia. In terms of implementing sustainability, Saad says: “All DGDA masterplans have an appointed Environmental Monitoring Consultant who conducts inspections of construction activities and prepares a periodic Environmental Performance Report to the National Centre for Environmental Compliance, which is the agency responsible for ensuring adherence to Saudi Arabia’s environmental regulations. “Furthermore, our use of locally sourced materials contributes to the reduction of whole-life carbon associated with the development, reducing the transportation miles associated with material procurement and installation, while also supporting the local economy.” DIRIYAH GATE | DIRIYAH GATE |51 | DIRIYAH GATE |52 SAUDI ARABIA: THE DESTINATION FOR BUSINESS LEADERS ROSHN | ROSHN | Contributed by: David Grover, CEO 5253 | ROSHN | 5354 | ROSHN | There’s probably never been a better time to lead a company in Saudi Arabia than right now. Since my arrival in the kingdom just two years ago, I’ve been astonished at how quickly this country is taking its place on the world stage, by advancing a range of ambitious goals in support of Vision 2030. As a result, the kingdom is fast becoming one of the world’s most exciting and dynamic markets for a real estate company, with the scale and ambition of ROSHN. Experiencing the transformation begins at the airport, which in my case, featured a warm welcome at Riyadh’s King Khalid International Airport. The kingdom has recently opened itself up to the world through a revised visa process that allows international visitors now from 49 eligible countries to apply for entry via the eVisa platform, launched by the Ministry of Tourism in 2019. For those who have never been, it is now incredibly easy to access and explore the kingdom, and I would encourage everyone to do this to see for themselves. In 2021 and again in 2022, ROSHN was recognised as one of the top ten employers in Saudi Arabia by the UK- headquartered “Best Places to Work” organisation. This is not an easy achievement for what was a start-up company, but it was voted for by our staff. You can see and feel this in how ROSHN employees readily roll their sleeves up and support the business in a cohesive manner, and I am proud to be an integral part of this new company. ROSHN represents a new generation of Saudi corporates that are getting the most from its people, investing in its workforce and ensuring that a fulfilling career path is open to all. Witnessing my co-workers thrive in such a supportive environment is certainly one of the most rewarding aspects of working at ROSHN and in Saudi Arabia. The scale and speed of the reforms I have witnessed across the kingdom are equally remarkable. The construction and real estate sectors rely on a complex ecosystem that spans a vast range of David Grover, CEO, ROSHN.55 economic activity - from concrete production to the installation of smart irrigation systems. The benefits arising from Vision 2030 and its various Realisation Programs are now making a real and positive difference to the economy, jobs, and GDP. ROSHN, in its support role to this changing economy, is now well-equipped to build new homes on a massive scale across the kingdom. Our first project in Riyadh is deep in construction and selling successfully; meanwhile, ALAROUS in Jeddah, Al Kharj in the Central Region, Al Hofuf and Al Qatif in the Eastern Region, and the Western Region’s Makkah and Abha all represent new projects, that have been recently activated and will be delivered over the next few years. Ease of travel and ongoing reform are two other factors helping shape the kingdom into becoming the region’s business hub. As a Riyadh resident, I have certainly enjoyed watching this process unfold in front of my eyes - which is particularly visible in the accelerating development of the King Abdullah Financial District (KAFD), where ROSHN is headquartered. KAFD is now occupied with similar companies and supported by excellent infrastructure, apartment living, restaurants/ coffee shops and more comprehensive amenities. Moreover, encouraged by a vastly improved business environment and government initiatives such as the Regional Headquarters Program, global brands are now flocking to the kingdom to enrich the wider business environment. There are also significant social and cultural changes taking place in Saudi Arabia that are making it easier to attract new companies to the kingdom. In addition, a new generation of Saudis are discovering ways to honour their traditions and heritage as they enjoy a growing array of sporting, cultural, and entertainment events, and at ROSHN, we are committed to supporting these changes and raising the quality of life for all Saudis, not just our direct customers. Over the past year, ROSHN has been featured in a myriad of historic events, as a sponsor and supporter, events that have become emblematic of the new Saudi Arabia. These include Riyadh Season (an extensive cultural showcase), the F1 Saudi Arabia Grand Prix, the Riyadh Marathon and sell-out concerts by the legendary Mohammed Abdo and Abdul Majeed Abdullah, and many international artists who have helped showcase and support these changes. As a result, ROSHN is helping to ensure that the years ahead will be thrilling for Saudi Arabia, playing our part in improving the wider quality of life for all. In conclusion, Saudi Arabia is a fascinating place to be, and through the support and empowerment I get, there is, in my opinion, no better place to be on the planet right now, than here. | ROSHN |56 Saudi Arabia’s Public Investment Fund (PIF)-backed ROSHN, launched in 2019, is targeted toward meeting the demands for new housing supply while developing neighbourhoods featuring integrated communities. The gigaproject also aims to raise the country’s homeownership rate to 70%. ROSHN encompasses two integrated communities: SEDRA in Riyadh, inspired by the designs of Salmani architecture, will be built on an area of 20 million m2 and contain over 30,000 homes and more than 300 amenities within the community. Meanwhile, ALAROUS in Jeddah, inspired by the historic city, will blend modern and traditional architecture to emphasise the kingdom’s rich culture and heritage. ALAROUS’ total land area will be 4 million m2 and include more than 18,000 homes. Regarding the project timeline, in August 2022, ROSHN launched the apartment phase at its residential project SEDRA. SEDRA Residential Apartments will provide residents with a pedestrian- | ROSHN | ROSHN’S GROWTH AS AN INTEGRAL GIGAPROJECT IN THE KINGDOM OF SAUDI ARABIA57 | ROSHN | friendly modern living experience while supporting an array of amenities. The developer noted that around 45% of each plot within SEDRA Residential Apartments would be open-space while a 2.8 km green stretch adjacent to a wadi will give the neighbourhood its unique character. The apartment phase will also have private gardens for a few of the ground floor units, while the upper units will have private balconies, in addition to most buildings having a semi-private majlis, further committing to its vision of building integrated communities. In a recent interview with Construction Week Saudi’s sister title Construction Week Middle East, David Grover, the group CEO of ROSHN, noted that launching their flagship community, SEDRA, at the end of 2021 was undoubtedly the most significant milestone over the past year. “The strategy, as well as the implementation plan that we formulated in 2019, were finally made visible as streets and buildings began construction. The market reaction to the opening of SEDRA sales was overwhelmingly positive. The booking pipeline was oversubscribed 30-fold for the first 3,500 units,” Grover added. ROSHN is also looking at blending cutting-edge technology in areas such as building methods and irrigation while respecting the tradition and heritage of the region. For instance, in 2021, they signed an agreement with SAMSUNG C&T to explore the use of modular construction techniques that will allow them to build efficiently at the highest quality standard. Additionally, Grover pointed out that their mix of local talent and global expertise is a powerful base for future development. “I’m very proud of our success in this area. We targeted a Saudisation rate of 60% by the end of 2021 and managed to exceed it to hit a rate of 69%. “As well as building our domestically sourced talent pool, we want to remain plugged into global networks of expertise to ensure that we offer our customers the best possible experience when they buy a ROSHN home,” he stated. ROSHN’s broader mandate in the kingdom also includes acting as an enabler for the private sector, boosting cash circulation in the economy, contributing to the nation’s GDP and supporting the government’s localisation efforts, in addition to providing high- quality homes for Saudis. the future of supply For Saudi Arabia, having a strong localised supply chain proved invaluable at the time of the pandemic. Now the nation is busy strategising the future of the supply market as it builds multi-billion dollar mega developments Words by: Mina Vucic | Images: Shutterstock | SUPPLY CHAIN | 58 The Kingdom of Saudi Arabia has seen rapid growth in the construction sector, and the market is intensively developing, with construction costs escalating simultaneously. With such price escalation of imported materials project delivery has further witnessed constraints, becoming a widespread challenge throughout the region. While the booming construction market in the kingdom offers many opportunities and rewards, there are inevitably accompanying risks and challenges. Some of the challenging trends currently faced by contractors in the market are liquidity issues, risk allocation, and contract administration, acting as key pressure points in the KSA construction market. Steel prices have increased globally, with shipping costs also on the rise, resulting as unsustainable for stakeholders. Additionally, inflationary pressures are increasing, contractors are starting to feel the impact of claims, cash flow, and supply chain solvency issues. Facing such challenges may lead to market problems arising for contractors in the foreseeable future. On the bright side, the diversification of the Saudi economy beyond oil & gas and religious tourism towards creation of new cities, development of cultural tourism and industrial areas has created unprecedented opportunities for localisation of the supply chain in the construction sector. In the relationship between suppliers and contractors on a project-supply chain management, success rolls out once stakeholders have a full understanding of the resources, logistics, and the people involved to ensure the project and programme are delivered on time and budget. Construction Week Saudi speaks exclusively with HKA’s Nader Emile, director and regional manager, and Adham Kotb, associate director, on the current supply chain situation in the kingdom, and what the near future holds for the industry in line with the realisation of Vision 2030 goals. | SUPPLY CHAIN | 59Next >