Infrastructure MENA

Qatar and Saudi Arabia's road investment

Wed, 10 Mar 2010 11:39:00 +0000

Both Qatar and Saudi Arabia are set to invest billions into upgrading their road networks. Qatar, in particular, is said to have put aside US$20 billion in order to proceed with infrastructure projects over the next five years. Saudi Arabia on the other hand is planning an underpass project in order to relieve traffic congestion in Al-Khobar.

The US$50 million project has been conceived to connect King Abdullah Highway in Dhahran to Makkah Road. The project is expected to take 18 months to complete, no doubt causing problems for thousands of motorists on an already congested strip of road.

The new underpass will hopefully allow traffic to flow more easily on the highway, which is the main connecting road from Al-Khobar leading to King Fahd International Airport, Saudi Aramco, King Fahd University for Petroleum and Minerals, King Faisal University, first and second industrial cities and various schools and shopping malls.

Road to Qatar

Qatar's road projects are much more extensive with the Public Works Authority announcing that they will award five contracts worth US$10 billion over the next three months. Currently, only 10-15 percent of the US$20 billion put aside for roadworks has been used.

Speaking to Emirates Business, Jamal Al Kaabi, Acting Manager of Ashghal Design Department, said, "While US$12 billion is earmarked for road and infrastructure like electrical wiring, water, rail, roads, street lighting and road furniture, US$8 billion is for drainage."

"But we won't stop here. There is still the Doha big crossing, the outer rings and the sub-sea tunnel between the capital's new airport and our new financial centre to be built. These are under study."

Among the proposed projects are the 11km Lusail Street project, Dukhan, the Shahaniya-Rayyan roundabouts route, which is a major highway and the F ring road project, which will link the New Doha International Airport (NDIA), alongwith the East-West Corridor.

None of the tenders include the 12-kilometre sub-sea tunnel, which is slated to cost more than US$1 billion.

It is a bold move on Qatar's part, as more than 80 percent of projects in the emirate have been delayed due to contractors' failure to finish on time as well as the lack of coordination between utility providers.

Relevant articles:

Work begins on Qatar's epic rail project | Qatar's $1bn 'subsea' tunnel | Qatar's multi-billion-dollar hospital project

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

Could Oscar glory bolster Jordan's reputation?

Tue, 09 Mar 2010 16:25:00 +0000

As The Hurt Locker swept the board at Sunday's Oscars ceremony, one country in the Middle East was especially jubilant - Jordan.

The country played host to the film's cast and crew and served as a backdrop to the story about a US bomb disposal team working in Iraq. The film's success and director Kathryn Bigelow's endorsement could see the country serve as a hub for Hollywood films in the future, bolstering its economy as a result.

The Iraqi themed war thriller took home a landslide six awards and became only the second film shot in the Arab kingdom, following the 1963 Lawrence of Arabia, to net an Oscar.

Traditionally, film-makers have found shooting in the Arab world difficult, but every now and then a film-maker endorses a country by shooting their films there bolstering the country's reputation in the wider world. Sir Ridley Scott, for example has a fondness for Morocco and has shot the likes of Gladiator, Black Hawk Down and King of Heaven there, employing local crew and bring a large amount of revenue to the country as a result.

Jordan is helping for similar luck.

"A young film infrastructure"

The country could not have had a better endorsement than on Sunday, when Kathryn Bigelow paid tribute to Jordan whilst accepting her Oscar for Best Director, becoming the first woman to win the award in the Academy Awards’ 82-year history.

In front of Hollywood's elite, she said "If I could also just thank (…) the people of Jordan who were so hospitable to us when we were shooting."

Bigelow, who spent a two-month stint filming in Jordan in the summer of 2007, has previously said of the location, "You could look 360 degrees in any given day of the shoot and it would be perfect. Shooting in Jordan was a great experience. It’s very cosmopolitan; they have a very rich film school and a young film infrastructure."

Jordan's Royal Film Commission (RFC) had over 150 Jordanian actors and crew working on The Hurt Locker set, and despite the film's modest, independent budget hopes its success will bring other Hollywood productions to the area.

Her Royal Highness Princess Rym Ali, a member of the RFC's board of commissioners, said to the Associated Press, "The success of any movie filmed in Jordan ... is always a plus for our kingdom, for its economy, for its tourism as well as for its budding film industry."

"Foreign films are a valuable learning opportunity for budding filmmakers ... it's a learning experience for those who come from outside to film in Jordan and plays an important role in helping foreigners get to know our people, the Middle East and appreciate who we are," she said.

The RFC, which was established in 2003, aims to promote Jordan as a set location and bolster the country’s fledgling film industry.

A former CNN war correspondent who is married to Prince Ali, a half-brother of Jordan's King Abdullah, Princess Rym said: "It’s not only about leaving our mark internationally but also about establishing our stories, owning them and making sure we have a cultural legacy to pass onto our future generations through film."

Bigelow's movie was filmed in the capital Amman and other cities including Madaba which is known for its ancient mosaics, and impoverished Zarqa. Jordan has previously played host to Brian de Palma's 2007 Redacted and Nick Broomfield's Battle for Haditha.

The ancient city of Petra, found in southern Jordan, was famously portrayed in Steven Spielberg's 1989 Indiana Jones and the Last Crusade and the recent Transformers sequel.

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Timon Singh

Saudi Arabia's airport modernisation plans

Mon, 08 Mar 2010 14:35:00 +0000

With Saudi Arabia's airports receiving 30 million passengers annually, those numbers expected to double over the next decade, and air traffic in the Middle East the fastest growing in the world, it is not surprising to learn that the Kingdom is planning to spend more that $4.5 billion (SR17 billion) in modernising their two airports.

According to Alaa Samman, director of business development at the General Authority of Civil Aviation (GACA), Saudi Arabia wants to launch a series of projects, costing at least $14.6 billion (SR55 billion) in a bid to update the country's airports over the next 20 years.

Project lift-off

The Kingdom isn't wasting any time with their plans; GACA has stated they want to build a new airport in the holy Muslim city of Medina and a commercial center near Jeddah airport in this year alone.

Medina's new airport is estimated to have cost between $1-2 billion (SR7-8 billion) and will increase traffic to the holy city from three million to eight million passengers a year.

Meanwhile in Jeddah, Saudi Arabia have long planned an 'airport city', complete with hotels, office buildings, housing units, malls and even a flight academy.

Jeddah airport, which is a gateway for millions of Muslim pilgrims to the holy cities of Mecca and Medina, receives 18 million passengers a year and expects to see an increase of up to 30 million by 2013.

Speaking to Arabian Business, Alaa Samman said, "We have offered two large pieces of land, one is one square kilometre and the other is 1.4 square kilometres, to Saudi and foreign investors for the development of the airport city." He added that development would cost around SR10 billion ($2.6 billion).

The capital Riyadh is also going to get a 'airport city', with Dammam in the the eastern province, the source of most of Saudi oil wealth, will follow later.

Last year, Engineer Abdullah Noor Rahimi, GACA president said regarding Saudi Arabia' airport cities, "Each airport will be a separate city where people can live, shop, study, and attend international conferences, in addition to enjoying many other services. Accessibility is vital for these cities, and the size of the Kingdom means that surface transport is not a viable option for business travelers seeking to invest in new cities. Therefore, we are upgrading or contracting for the establishment of airports which will serve each of the economic cities."

Saudi Arabia has a total of 27 airports.

Relevant articles:

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Timon Singh

UAE to implement first 'water conservation law'

Fri, 05 Mar 2010 13:46:00 +0000

Water is crucial for a country's development; literally trillions of gallons of water per year are used for drinking, growing food, generating electricity and to run power stations and homes. However, this valuable resource is often wasted misused and wasted. In the UAE, it is of such a concern that the region's first water conservation law is under final review with the aiming of getting it passed in the next 12 months in full flow.

Currently, the UAE does have any form of water conservation regulation and such matters are handled on a local regional level. As such, water resource researchers are calling for more monitoring of environmental impacts on the UAE's main source of water, the Arabian Gulf.

Speaking at a seminar, Dr Rashid Ahmad Bin Fahd, UAE Minister of Environment and Water said he hoped that the new law would lay out a firm legal mechanism for the management and use of water in the country.

"The water law is under process, and has been seen by the ministerial committee and a technical committee. The draft should be sent to the Cabinet before the summer. It could be one more year before it is passed," he said.

"It is needed, there are a lot of local orders, but this will be the first legal document for an integrated management system."

All encompassing law

Once the law is passed, regional utility companies such as Dubai Electricity and Water Authority would fall under its authority and would have to regulate their production and distribution of water accordingly.

Unsurprisingly, wasting water is frowned upon in the arid Middle East and is considered a major resource for the prosperity of the region.

"The Arab region is one of the scarcest regions in the world for water supply. No one has surplus water, which does not inspire a lot of confidence… [but] the UAE has achieved a lot in securing water and providing supply for the country," said Bin Fahd.

However increased prosperity in the UAE has brought with it increased demand. Rising demand and an ever increasing population has seen water needs rise from 1081 million cubic metres in 2000 to 2008 of 4878 million cubic metres in 2008.

To makes matters worse, the construction of dams built on the Tigris and Euphrates rivers has decreased the amount of fresh water in the Arabian Gulf from 85 billion cubic metres in the 1980s, to around 28 billion cubic metres today.

If the Gulf becomes more salted and polluted, desalination would have massive impacts on the environment producing 40 to 180 million tonnes of CO2 a year, while co-generation electricity and water plants would produce an additional 21 million tonnes equivalent of carbon emissions a year.

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Timon Singh

Saudi Arabia's $640bn housing investment

Wed, 03 Mar 2010 14:21:00 +0000

The oil-rich Saudi Arabia has said they are to invest USD$640 billion over the next 20 years in order to build five million new housing units, according to plans unveiled by Jeddah Municipality.

The new strategic plan states that the city of Jeddah will need almost a million housing units over the next two decades in order to cope with the ever-increasing flux of expatriates and nationals from the rural areas coming to the city for work.

Unlike other parts of the Middle East such as Dubai, Saudi Arabia's property and construction sectors have not been hit as hard by the economic recession and still pays a vital role in the country's economy. While its contribution may not be as great as the oil sector, it still contributed 6.8 percent to the Kingdom's GDP in 2004 and this is expected to rise to 7.2 percent this year.

Total investment is expected to exceed the USD$400 billion barrier according to projections for 2010.

Low-cost housing units

While money has never really been an issue for the oil-rich, opulent Kingdom of Saudi Arabia, Jeddah Municipality has said that the creation of some many units will be aided by the construction of 'low cost housing'.

In order to also help future homeowners, as well as the property sector, a new mortgage law has been implemented giving lenders more rights including the ability to foreclose on properties in default.

The mortgage law will increase the numbers of those who seek to own housing, spurring local developers to increase construction of housing units it is hoped.

The unveiling of the new plans was timed to coincide with the Jeddah International Real Estate, Finance and Housing Exhibition 2010 which opened on Monday at the Jeddah Centre for Forums and Events.

Relevant articles:

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Timon Singh

Middle East's earthquake concern

Tue, 02 Mar 2010 08:41:00 +0000

After the recent earthquakes in Chile and Haiti, it is not surprising to see countries updating their disaster contingency plans. However in the Middle East, where recent quakes in Turkey and Iran have killed hundreds, many states are working hard to improve their seismic monitoring systems to prevent future loss of life.

In the Middle East, the sultanate of Oman have stated that they are planning to build seven new seismographic stations to monitor possible quakes and tsunamis.

Speaking to the Oman Daily Observer newspaper, Dr Issa el Hussain, the head of Oman’s Earthquake Monitoring Centre at the Sultan Qaboos University said that the network of stations will increase from 13 to 20 with the new additions.

“We hope to bring the seven new stations into operation by mid-year. By the end of this year, we will have a total of 20 seismic stations, monitoring seismic activity in Oman and its surroundings, and also supporting the Tsunami Early Warning System under development at the Meteorology Department,” Hussain told the paper.

Fear of devastation

After the earthquake this weekend in Chile that killed over 700 people and sent a tsunami surging through the Pacific Ocean, Oman is determined to reestablish an effective Tsunami Early Warning System, linking it to the 28 country Indian Ocean Tsunami Warning and Mitigation System (IOTWAS). This system has been design to prevent a repeat of the devastation that was caused by the 2004 'Boxing Day' tsunami that killed over 230,000 people in 12 countries on the Asian subcontinent.

“The Earthquake Monitoring Centre is playing a key part in the implementation of a Tsunami Early Warning System for Oman. If the quake is detected under the sea, and generates vertical movement, it gives cause for issuing a tsunami warning. Consequently, our office will play a major role in the Tsunami Early Warning System,” Hussain said to the Daily Observer.

Other countries in the Middle East are developing their own individual ways to cope with future earthquakes. In Iran, the government believes that the capital, Tehran, has a high chance of being struck by a major earthquake in the near future. As such, there are plans to 'relocate the country's capital'. As the city is home to 12 million people, the government is keen to avoid a repeat of the 2003 earthquake in Bam that saw 40,000 people killed.

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Timon Singh

Oasis Tower: Dubai's vertical farm

Mon, 01 Mar 2010 15:02:00 +0000

There are many problems with living in the desert; lack of fertile soil for farming, arid temperatures and sand getting into food when eating outside. However according to EcoFriend, Rahul Surin of Synthesis Design Studio has come up with a solution for the first two problems - a high-tech, vertical farm in the heart of Dubai.

Situated in Zabeel Park, the Oasis Tower would be a solution to the lack of farming land and a bold step in the embracing of inner-city, multi-storey farming. Currently, the food industry is one of the largest polluters on the planet, with the Earth's ever-growing population demanding more food than we can provided.

By importing food from all over the world, certain products can be transported so far that they generate their own weight in CO2 during their journey. That is where multi-farming comes in, especially in areas where large-scale farming isn't an option, such as the Middle East.

Farms of the future

Multi-storey farms, such as the Oasis Tower, have been devised as a way to minimise land use, reduce emissions from transport and make regions self-sustainable. In recent years, floods, droughts, wildfires and pollution have devastated traditional harvests and in many cases, it is expected to get worse. India's agricultural output for example, is predicted to diminished by 30 percent by the end of the century due to changing rain patterns. Not just that, but mankind is rapidly running out of land to grow crops due to a rapidly growing population. According to the United Nations, the amount of arable land per person decreased from about an acre in 1970 to roughly half an acre in 2000 and is projected to decline to about a third of an acre by 2050.

For these reasons, inner-city farming makes sense. It would see possibly-uninhabited high storey buildings turned into high-rise meadows using the latest hydroponic and aeroponic technologies to cultivate crops. It is also hoped that by using water-and-nutrient solutions or nutrient-laced mist, the entire production would be soil free, therefore enabling the projects to use 90 percent less water than conventional farming.

A vertical farm would also behave like a functional ecosystem, in which waste was recycled and the water used in hydroponics and aeroponics was recaptured by de-humidification and used over and over again. This in turn would lead to less pollution as the CO2 of major cities were absorbed by the abundance of plant-life being grown.

In Dubai's case, it is hoped that the Oasis Tower would be able to grow enough food to feed up to 40,000 people whilst also providing sustainable housing for residents.

The Oasis Tower's design

In keeping with the farm's purpose, the Oasis Tower has been designed to be as sustainable as possible. The tower would also be powered by vertical axis wind turbines placed in between the floors of the central tower, while the outside of the building would be layered with a solar coating as a secondary means of power.

Meanwhile, any waste water would be treated and reused, whilst a methane digester utilizes the waste created on-site to generate even more power for the building.

It is a fantastic design and with the constant need for food and energy, it is hoped that the Dubai government will see the benefit.

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Timon Singh

Dubai Mall evacuated due to Aquarium leak

Fri, 26 Feb 2010 14:06:00 +0000

It's not exactly the kind of news the emirates needs if they're to keep attracting tourists during their credit crisis, but on top of stories of lifts breaking down and observation decks being closed in the Burj Khalifa, comes news that the Dubai Mall came perilously close to becoming shark infested.

The Mall features on of the world's largest aquariums which is the centre piece of the shopping complex. It houses 33,000 fish including 400 sharks and stingrays swimming in 10 million litres of water, but the sea-life almost got lose yesterday when the attraction sprung a leak.

Although the Mall's safety officials described the crack as 'small', when one has a leak in an attraction dubbed an "indoor ocean", alarm bells start to ring. Suitably the Mall was evacuated and engineers called into fix the leak. It was viewed as an indicator of the potential disaster, the engineers were spotted wearing life-jackets.

A worker in one of the Mall's outlets was quoted as saying, "The crack was pretty big. They stopped the water getting out quickly but a lot of the nearby shops on the ground floor got water damage. I don’t think any of the fish got out. We didn’t have sharks in the mall, luckily.”

About 100 shops are in the mall which lies adjacent to the aquarium. They were all evacuated while engineers worked on repairing the 75 centimetre thick glass.

Another headache for Emaar

The Dubai Mall is owned by Emaar Properties, who also own the Burj Khalifa and this latest incident is no doubt unwelcome news considering the bad publicity they have had recently with the Burj Khalifa.

The properties development are still pressing ahead with projects in Dubai, such as a luxury hotel and apartments designed by Italian fashion giant Giorgio Armani, despite property values halving over the past twelve months due to the collapse of the emirate's real estate market and Dubai World's credit crisis.

Those wishing to visit the Dubai Mall will be relieved to hear that repairs have been completed and the attraction is now open again. The Dubai Aquarium boasts the world’s largest acrylic viewing panel at 272 square metres and attracts huge crowds since it opened last year. Those with the money to do it, can pay to scuba dive in the indoor ocean as well.

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Timon Singh

Work begins on Qatar's epic rail project

Thu, 25 Feb 2010 16:07:00 +0000

Rumoured to be costing over USD$36.6 billion (QR133.5 billion) and estimated to take six years, preliminary work has begun on Qatar's ambitious metro and rail project that could see high-speed rail transport transform the emirate into a major contender for the 2022 football World Cup.

The rail project is expected to be finished in phases over the next six years with three major sections being the focus of the scheme - the metro network within Greater Doha, the over-ground railways covering the whole of Qatar and then, linking it to the rest of the GCC region and cargo trains.

The metro rail section of the project is expected to cover a total distance of 354km with the trains running at speeds of 80 to 160km per hour. The ground rail network will, on the other hand, cover a total distance of 345km and traverse the entire country with passenger electric trains running at between 220 and 350km per hour.

This network will be linked to the GCC railways by 2017. Cargo trains covering major economic centres in Qatar will be running at 120km per hour.

There are also plans to build a connection from Bahrain to Saudi Arabia via a 40-kilometer causeway, set to be one of the world's longest.

German aid

At the end of 2009, Qatar and Bahrain signed a USD$25 billion contract with German rail operator Deutsche Bahn to build the region's rail and underground lines.

It is said to be one of the biggest-ever foreign deals for German industry with the Qatar project would open up "great opportunities" to do business across the region, as "over the next two decades hundreds of billions of euros would be invested in infrastructure."

For the first four years of the project, Deutsche Bahn will provide the main leadership, with the assistance of 50 engineers and managers from Germany who will relocate to Qatar to aid in the development.

The Qatar network project was inspired by the success of the Dubai Metro that was built by a consortium of Japanese companies including Mitsubishi Heavy Industries, Obayashi Corporation and the Kajima Corporation.

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Timon Singh

'Germany Island' work starts on The World

Wed, 24 Feb 2010 16:15:00 +0000

Another week, another story about how Nakheel's much troubled 'World' project. This time however, it appears something positive is happening on the massive archipelago with news that German construction firm Kleindienst Group has broken groun on the German Island, making them the first developers to start construction on the project.

Since the artificial islands were finished, the 'Heart of Europe' island group has lain untouched and undeveloped but now, specialist engineering contractor Foundation Construction Group Limited have begun work on what is hoped to be a series of villas and luxury accommodation.

“Exactly two months ago we launched Germany Island with a clear promise to start construction in Q1 of 2010. I am very proud to say we are delivering on that promise,” Josef Kleindienst, chief executive, said in a statement on Wednesday, the day after work began.

“By the end of this year you will start to see the first villas on The World, one of which will be my own home,” he said.

“While we are the first developer to begin construction, we are aware of several more that are not far behind us. The World project is very real, it is taking shape as we speak and I firmly believe that when complete it will become the most expensive property in the emirate of Dubai,” he added.

The developer has already sold 11 villas despite the fact that they haven't been made yet.

Plagued with problems?

In recent months, The World has been accused of sinking which Nakheel has strenuously denied, calling any such rumours 'inaccurate'.

In a statement last month, "Speculative reports suggesting that The World islands are sinking are wholly inaccurate,"

"The islands were finished some years ago and there has been no subsidence since. A system known as vibro-compaction was used to increase the load-bearing capacity of the reclaimed land mass," it said.

"This process causes the soil to vibrate vigorously, minimising the tiny air gaps between the sand particles and locking the particle corners and edges together, which in turn lead to very deliberate and calculated compaction and settlement. The load-bearing capacity of The World islands is about twice that of mainland Dubai."

The statement also said, "A suggestion also that some of the islands have slipped and spread into each other is also completely incorrect. The islands at the centre of The World were merged purposely to create land for specific developments.

"We have currently sold around 70 per cent of the islands and development has begun [as reported earlier by Emirates Business] by a number of the owners - further testament to the fact that the islands are as solid as the rock they are built upon," it added.

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Construction recommences at The World | The cancelled Dubai mega-projects | Work to recommence on The World

Timon Singh

Abu Dhabi's 'sustained growth' plans

Tue, 23 Feb 2010 16:44:00 +0000

What do you do if you are trying to wean your country off a oil-reliant economy? If you're the emirate of Abu Dhabi, you give priority to infrastructure construction from government spending over the next few years to achieve sustained growth.

With its neighbour's, Dubai, credit crisis fresh in its memory, not to mention the financial crisis, Abu Dhabi has set out to rearrange its priorities to make sure that it is not similarly caught short, not to mention achieving a seven percent growth over the next two decades.

Speaking at the Abu Dhabi Economic Forum yesterday, Mohammed Omar Abdullah, Undersecretary of the Abu Dhabi Department of Economic Development said that the emirate would go ahead with its Vision 2030 infrastructure stimulus plans maintaining that public spending would not be dictated by oil price fluctuations.

"I can tell you that government expenditure would continue unabated but I don't think there will be 30 per cent growth in spending this year as some reports say. It will grow this year but not as much as 30 per cent," he said.

"Regarding priorities, of course, they change by time... Our priority in public spending now is the infrastructure which we need to continuously develop and update because it is the main driver of economic sectors. Other priority sectors will be health and education, which are vital for a strong economy."

Vision 2030

Abu Dhabi has implemented a host of projects in the city and outlying region for its 2030 Vision project. The emirate has invested over US$1 trillion into works, with US$5 billion being spent on projects in the city itself and another $6 billion on major roadworks.

Currently, Abu Dhabi's biggest projects include Saadiyat Island, another major offshore development costing US$28 billion, the US$22 billion Masdar City project, billed as the first zero-carbon, zero-waste city and the Khalifa City project. This is the single biggest project in the capital and has a budget of US$40 billion.

All of these projects were designed to give the emirate viable growth rather than continue to be reliant on oil sales.

"When we talk about our economic vision, we are talking about a long journey stretching for 20 years from now," Abdullah said.

"It is normal that this period will see some unexpected developments, which we should handle seriously to correct the path... now we have set a growth target of 6-7 per cent but that does not mean this level will continue through the next 20 years," he said.

"This march towards 2030 could face some unexpected developments and, therefore, we have to be prepared to deal with them. I think the ultimate goal is to maintain growth in the economy and ensure that this growth remains stable, effective and sustained based on a stronger private sector and expansion in the non-oil sector's contribution to gross domestic product."

He did however stress that while growth is desirable and weaning the country off its oil sales is important, it is not the main aim of the investment.

"The main aim is to create a stable and viable economy in the emirate of Abu Dhabi. Growth could be below five or six per cent but it has to be stable and sustainable... As I said, we are dealing with a long-term economic vision not a short term plan."

Abu Dhabi has the largest economy in the UAE, accounting for around 52.7 per cent of the country's GDP in 2008.

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Timon Singh

Kuwait's $108 billion infrastructure boost

Mon, 22 Feb 2010 16:44:00 +0000

It seems everyone in the Middle East region is investing heavily in their infrastructure, be it Abu Dhabi or Qatar. Now, Kuwait have announced that they will spend the next four years investing $108 billion into new cities and ports.

Speaking at the 15th joint meeting of Japan-Kuwait Businessmen Committee in Kuwait, Wael Jassem Al-Sagar, Co-chairman of the Kuwaiti side stated that public-private sector partnerships will increase the role played by private sectors changing the local economic landscape providing a host of projects for outside investment.

These projects that no doubt Japanese investors would actively contribute to, include the construction of railway system, seaports, new industrial cities and investments in power, water, oil, health and education sectors.

Co-operation

"Our ties are growing rapidly and Japan is number five in terms of our commercial relations with other countries," he said. "Japan has the superior capability, knowledge and experience to carry out projects. There are lots of opportunities and Kuwait is ready to cooperate with Japanese companies," he added.

Meanwhile, Kuwait's state-run Petrochemical Industries Co's have announced a planned petrochemical plant that will cost about $5 billion.

Once completed, the plant will produce over 1 million tonnes per year of ethylene and is expected to be operational by 2015.

It is an interesting change of pace for Kuwait who, up until recently, was content to survive on petrodollars and cheap credit. However, investment in infrastructure and aggressively purchasing assets such as property and stocks has seen its financial markets become more stable.

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Timon Singh

Hotels still MENA priority?

Fri, 19 Feb 2010 16:47:00 +0000

It would seem that the UAE and other Middle East and Africa regions are still ploughing ahead with plans to turn the region into a tourism hub, with the announcement that 14 new hotels have been added to the development pipeline since December.

This now takes the number of active hotel projects in the MENA region to 456, equalling 123,764 hotel rooms - despite the recent credit crisis and the state of the Middle Eastern construction industry.

The figures from the January 2010 STR Global Construction Pipeline region also stated that the region currently boasted more than 770,000 hotel rooms with a further 73,567 rooms under construction.

A possible oversupply?

Unsurprisingly, it was Dubai who led the report with the largest number of rooms currently active or under construction totalling 30,222 rooms and 15,563 rooms respectively. However, with Dubai's construction industry seemingly stalled, there is a concern that the emirate could face an surplus of hotels.

Behind Dubai is Abu Dhabi, who is putting a lot of resources into the redevelopment of its infrastructure. As such, the emirate has 13,596 rooms in the total active pipeline and 7,200 rooms in the In Construction phase.

Overall, it was the UAE in the MENA region that had the most hotel rooms in both the active and in construction phases, ending the month with 51,515 rooms and 27,763 rooms respectively.

Last month, STR Global said that a total of 442 hotels and 120,440 rooms were currently in the Middle East/Africa hotel development pipeline.

Relevant articles:

Is Dubai's construction sector recovering? | World's tallest hotel to be overtaken by end of year | The cancelled Dubai mega-projects

Timon Singh

Maintaining the world's tallest building

Thu, 18 Feb 2010 16:47:00 +0000

Designing and building the world's tallest building may have been a monumental engineering feat and a source of national pride for Dubai, but ensuring that it is probably maintained and protected in the UAE's harsh environment is another concern altogether.

Of course, the fact that the Burj Khalifa cost $1.5 billion (AED5.5 billion) is another factor and ensuring that the project wasn't an extraordinary waste of money is of prime concern to the investors, UAE government, not to mention the tourist industry who have been pushing the 'Burj' as a prime reason to visit the emirate.

Luckily those that designed the building were prepared for the harsh conditions of the emirate.

"The combination of a 100 year design-life and the aggressive exposure conditions of Dubai's environment were the reasons the designer had to carefully consider the durability of the tower's sub-structure," said Dr. James Aldred, of GHD Consulting Engineers, Manager of the Independent Verification and Testing Agency (IVTA) for the Burj Khalifa project.

Construction in The Gulf

A problem for construction in Dubai, and the Gulf region in general, is that substructures are exposed to are exposed to a shallow water table with high levels of salinity, which threatens the embedded steel reinforcement with corrosion.

In order to prevent corrosion of the metal structure, a high quality ternary blend concrete was used in the substructure of the tower, along with other durability enhancing measures to enable and ensure the desired lifespan.

Among them was a migrating corrosion inhibitor (MCI) supplied by United Corrosion Technologies that was added into the concrete mix. The purpose of this MCI was to provide corrosion protection to steel reinforcement using bio-based renewable resources.

"In our region's harsh environment, steel reinforcement can corrode rapidly, threatening structural strength and necessitating costly repair. Good engineering practice in designing for durability goes a long way in preserving structures and saving operating costs." said Usama Jacir, managing director of United Corrosion Technologies.

However, 100 years is the bare minimum that the tower should stand for, like the Eiffel Tower and Empire State Building before it, the Burj Dubai is expected to be one of the great architectural triumphs that will stand for centuries to come.

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Abu Dhabi - top GCC infrastructure spender

Thu, 11 Feb 2010 16:47:00 +0000

In what will come as no surprise to those following Abu Dhabi's extensive infrastructure program, the emirate has been revealed has spending the most on infrastructure development than any other capital in the six-nation Gulf Co-operation Council (GCC).

According to Abdulla Al Shamsi, Acting Executive Director of the Municipal Infrastructure and Assets Sector, "Abu Dhabi is seeing major growth in infrastructure projects such as roads and bridges.

"This year we are executing projects valued at US$5 billion. Plans for the infrastructure sector over the next three years include huge projects and a budget that is bigger than the budget of projects currently being executed," he said.

"I firmly believe Abu Dhabi is the biggest spender on infrastructure among capital cities in the GCC, we work with massive financial support. This underlines that Abu Dhabi should enjoy the best infrastructure in the Arab region, which will help to attract foreign investment and prevent any problems that Abu Dhabi could otherwise face in future, whether involving roads, maintenance or facilities."

Abu Dhabi 2030

Abu Dhabi has implemented a host of projects in the city and outlying region for its 2030 Vision project. The emirate has invested over US$1 trillion into works, with US$5 billion being spent on projects in the city itself and another $6 billion on major roadworks.

Currently, Abu Dhabi's biggest projects include Saadiyat Island, another major offshore development costing US$28 billion, the US$22 billion Masdar City project, billed as the first zero-carbon, zero-waste city and the Khalifa City project. This is the single biggest project in the capital and has a budget of US$40 billion.

The plan for the large-scale development is part of the UAE's main plan to wean its economy off oil. Once reserves run dry, the UAE is hoping to become a business, economical and tourism hub. Not just that, but in the aftermath of the global recession, reviving growth is a way to create jobs, lower the costs of running businesses and attract more foreign investment.

All of the major works are going to put pressure on another part of Abu Dhabi's infrastructure though - the power system. With the rapid growth, water and electricity demand is expected to rise seven to eight percent a year over the next five years, however The Abu Dhabi Water and Electricity Authority have initiated plans to invite proposals to build a 1600MW power plant worth about US$2 billion to meet the demand.

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Burj Khalifa observation deck is closed

Tue, 09 Feb 2010 14:27:00 +0000

Barely a month after it's opened and the Burj Khalifa, the world's tallest building, has been forced to shut its observation deck for repairs due to "unexpectedly high number of visitors and problems with the power supply."

Emaar Properties, the builder of the tower, did not state when the platform would reopen, but it has become a major attraction in Dubai with visitors paying US $100 to see the view from the 124th floor.

A spokesman said, "Due to unexpected high traffic, the observation deck experience at the Burj Khalifa. At the top, has been temporarily closed for maintenance and upgrade.

"Technical issues with the power supply are being worked on by the main and sub-contractors and the public will be informed upon completion.

"Guests who hold valid tickets to the experience will be offered the option to re-book or receive an immediate refund. All ticket holders who wish to re-book shall be given top priority. We maintain and remain committed to the highest quality standards at Burj Khalifa."

Quite the view

Opened on the 4 January, the Burj Khalifa (formerly the Burj Dubai) is the world's tallest building standing at a height of 828m (2,716ft). It's spire can be seen from over 95km away.

It also features the world's tallest performing fountain out front, that is 900ft in length.

The building features 1,044 residential apartments as well as 49 floors for office space.

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Abu Dhabi's $2bn power need

Mon, 08 Feb 2010 15:48:00 +0000

What do you do if you're an emirate that has pumped US$1 trillion into improving your country's infrastructure, energy demand is set to triple over the next five years and you want to diversify away from your dependence on oil-funds? Well, if you're Abu Dhabi, you invite firms to proposals to build a 1600 megawatt power plant worth about US$2 billion.

Abdulla Saif al Nuaimi, director of privatisation at the Abu Dhabi Water & Electricity Authority (Adwea) was quoted by Reuters as saying, "We have started the process of prequalification and we are targeting sending the request for proposals (RFPs) early next month."

We expect to finalise selection of the developer by November this year, (make the) financial close by April 2011 and commissioning in summer 2013."

Shuweihat 3

The power project, named Shuweihat 3, is to be the emirate's ninth power project under a privatisation plan launched in 1998, which sees international developers take a stake in independent power schemes. Under the independent power project (IPP) model, foreign investors also get to operate the plant.

The selected international developer would take a 40 percent stake in the plant, with Adwea taking the remaining 60 percent, Nuaimi said. Shuweihat 3 will be Abu Dhabi's first IPP. The previous eight projects are all independent water and power projects (IWPPs). Water desalination was decided not to be included at Shuweihat 3 to save on investment in water pipelines and for technological reasons

Nuaimi said: "Financial close is next year and there is already commitment from some banks that are confident in Abu Dhabi's successful power privatisation programme."

He added, "Last year we secured financing for Shuweihat 2 despite the difficult financial market conditions."

Adwea sealed a US$2.15 billion long term financing deal for its Shuweihat 2 project in October 2009, one of the largest financing deals in the region.

Abu Dhabi's eight IWPPs produce over 12,000 MW of power and 800 million gallons per day of water.

Nuaimi said, "We have attracted about 60 billion dirhams in foreign investments in the power and water sector so far and Shuweihat 3 will raise that amount."

The new power plant is one of several programmes implemented by the UAE to meet an ever increasing electricity demand. In December, the UAE announced it would be implementing a nuclear program when it awarded a deal worth up to US$40 billion, to a South Korean consortium to build and operate four nuclear reactors in the Gulf Arab country.

Abu Dhabi holds most of the UAE's crude reserves and oil revenues have helped it avoid the worst of the global economic slowdown, as well as the debt crisis that has hit neighbouring emirate Dubai.

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Is Dubai's construction sector recovering?

Fri, 05 Feb 2010 10:59:00 +0000

While everyone agrees that Dubai will be able to drag itself out of the financial hole it has found itself in, they are divided on how long it will take the emirate to get back on its feet.

This week, however, industry experts predicted that the sector would start to pick up by the end of the year with the main obstacle being the lack of liquidity in the emirate.

Speaking at a conference, Ali Bu Rahima, deputy director general of the Dubai Technology and Media Free Zone Authority said, "Dubai has the technical expertise as many international companies have based themselves in Dubai.

It's the economy that will be the industry's main challenge in the coming months in Dubai and I don't think this will get better until the end of 2010."

However, like many others Bu Rahima stated that instead of green-lighting new and expensive projects, the emirate should focus on those already underway and building up infrastructure around them.

No alternative

One thing that all developers can agree on is that Dubai can't simply be abandoned as a lost cause.

Sanzio Vaienti, global sales director at Soilmec, an Italian based company which manufactures drilling and piling machinery, is one of the many companies that has experienced losses in the last year.

"Dubai is a very important market to us. However recently due to the downturn it has not done so well and it probably won't pick up until the later end of this year We made a 70 percent loss in 2009 in the UAE. Globally we made a 50 percent loss."

Others that have made a loss such as the Tanmiyat Group, the Saudi-based master developer who is involved in projects in Dubailand, Business Bay and Dubai Marina, has said it is still committed to investment and growth in Dubai.

"We believe in Dubai. There is no alternative to Dubai in the region," Dr Rasim Kaan Aytogu, group executive director at Tanmiyat, told Arabian Business in an interview.

"It is just a correction in the market," he said of the current downturn in the market in the emirates.

"Dubai [has] very important potential for further investment," he said referencing the plans to turn the country into a major business and tourism hub.

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Is The World sinking?

Wed, 03 Feb 2010 14:24:00 +0000

As if Dubai World and Nakheel didn't have enough problems already, rumours are circulating that their much-delayed, high-profile man made archipelago The World is now sinking into the sea...

The 300 island development has only just had work recommence on it, but aerial photos taken from the International Space Station seem to show the outlines of the islands submerging and merging together. It is believed that the disrepair the project has fallen into over 2009 as well as delayed works has started to affect the outlines of the islands as the water starts to erode them.

The island foundations required 11 billion cubic feet of sand and 47 million tonnes of rock when construction began in 2003, but since production halted in 2008 barely any progress has been made on the site.

While Dubai World have countered allegations that site will never be finished, the company is still in heavy debt despite a $11 billion bail out by Abu Dhabi.

Wholly inaccurate allegations?

It is unsurprising then that Nakheel have strenuously denied that the islands are sinking and have called any such rumours "wholly inaccurate".

In a statement, the developer said "Speculative reports suggesting that The World islands are sinking are wholly inaccurate,"

Despite this, a number of media outlets have run with the NASA image, further tarnishing The World's already bruised reputation.

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Qatar's $1bn 'subsea' tunnel

Tue, 02 Feb 2010 16:27:00 +0000

Qatar once again proves it's serious about bolstering its infrastructure by announcing it will go ahead with plans for a US$1 billion, 12-kilometer subsea tunnel that will link the capital's new airport with the financial center.

One of the regions, let alone the country's, most ambitious road projects to date, the tunnel will run under Doha Bay in the capital and link to the city's new US$11 billion airport that is due for completion in 2011.

With the city expanding at a rapid rate, it is hoped that the tunnel will reduce commuting time and help ease traffic congestion. Initial designs for the tunnel indicate that it will cater for three traffic lanes in each direction.

A typical project?

While no decision has been made over who will headline the project, it is believed that Public Works Authority (Ashghal) will become involved at a later stage to oversee the detailed design and construction.

Ali al-Abdullah, Director of Planning at the Ministry of Municipality and Urban Planning, said a consultancy was looking into ways to revamp the entire Corniche area.

"We have assigned an international consultancy to assess the situation and look into how they can redevelop the area."

A Qatar ministry official was quoted as saying, "It's not clear how the government will choose to implement this project. I'm not sure it will be treated as a typical project.

While the project has been discussed since 2008, the undersea tunnel is believed to have been more feasible than a bridge across Doha Bay and a tunnel running under the Corniche.

Qatar, which is one of the world's third-largest natural gas reserves after Russia and Iran, is budgeting US$20 billion for road projects over the next five years. As a massive exporter of LNG, it is putting its multi-billion profits into a string of major infrastructure projects including a large hospital complex and the Musheireb project in Doha.

The country's exports have been doing so well, the central bank announced last month that the economy was expected to grow by an astounding 16 percent.

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