Fibrex Contracting and Ginco General Contracting have been appointed as contractors by master developer Nakheel for the construction of District One West. The gated community will feature 467 residential units comprising four, five, six and seven bedroom villas and mansions, and is taking shape within Mohammed Bin Rashid Al Maktoum City.
District One West is close to The Meydan Hotel, Meydan Golf Course and Meydan Grandstand and Racecourse, with direct access to Al Khail Road, Meydan Road and Latifa Bint Hamdan Road, the statement explained.
With vast green outdoor spaces, a crystal lagoon and stylish amenities for recreation and leisure, the residential project offers a convenient and effortless lifestyle, the developer added.
“We are excited to welcome onboard Fibrex and Ginco to commence work on our prestigious District One West residences. Both these construction companies come with a wealth of experience in the region, and we are confident their deep-rooted commitment to developing Dubai’s skyline and sharp focus on quality will be an asset to the MBR City development,” stated Mohammed Rashed, Chief Projects Officer at Nakheel.
Established in the UAE in 1972, Abu Dhabi-based Fibrex Group has an international track record for delivering prestigious projects, while Ginco is an engineering contracting firm specialising in construction, maintenance and rehabilitation of commercial, industrial, residential and institutional establishments.
On the contract win, Sufyan S. Saleh, Managing Director, Fibrex Contracting remarked, “Our extensive expertise in the local construction industry along with our commitment to high-end quality, performance, our innovative solutions and construction methodologies supported by our specialised divisions will enhance our deliverables on the luxurious villas and mansions.”
Engineer Masood Gheyath, Managing Director, Ginco General Contracting added, “We pride ourselves on being an integral part of Dubai’s skyline with our core commitment to quality, innovation and sustainability. We bring over 45 years of experience in the city’s construction sector and we are excited to partner with Nakheel on the prestigious District One West.”
Binaa Al Bahrain, a new real estate joint venture from Eagle Hills International, has been set up to focus on creating expansive mixed-use projects across the Kingdom of Bahrain, offering diverse residential, commercial, and entertainment opportunities.
Abu Dhabi-based private real estate investment and development company, Eagle Hills International has launched the US $4bn real estate venture with a strategic cluster of Bahraini partners.
Mohamed Alabbar, Chairman of Eagle Hills International commented, “The decision to invest in Bahrain through the establishment of Binaa Al Bahrain is a direct result of the remarkable success achieved with the Marassi Al Bahrain partnership. It represents a milestone in our collaborative efforts and underlines our commitment to further strengthen ties between the two countries while propelling transformative real estate projects in the Kingdom.”
“And in addition to the increased investment, the joint venture aspires to create extensive job opportunities for young Bahrainis not only within the real estate sector but also in hospitality and healthcare,” he added.
Binaa Al Bahrain is now set to become one of the foremost developers in the Kingdom, boasting an expanded portfolio of prominent real estate projects strategically situated across various areas within Bahrain in the Muharraq, Southern and Capital governorates.
Some of its key projects include Southern City project, Al Furdah project, the next phase of Marassi Al Bahrain and further developments in Diyar Al Muharraq. Meanwhile, the strategic plan for the new entity is that it will continue to build innovative, sustainable developments that retain the Bahraini identity and foster long-term growth and economic progress in the Kingdom.
Saudi Aramco has selected contractors to execute engineering, procurement and construction (EPC) works through 17 packages on the third expansion phase of its Master Gas System network (MGS-3), being developed in the kingdom at an investment of US $10bn.
While the first two packages involve upgradation of existing gas compression systems and installation of new gas compressors, the remaining 15 packages are related to laying gas transport pipelines across various locations in the Kingdom.
The letters of intent (LoIs) have been issued to the following contractors for 16 EPC packages of the MGS-3 project:
Package 1 – China Petroleum Engineering & Construction Company (China)
The original Master Gas System (MGS) was built in the 1970s and commissioned in 1982. Since then, Aramco has been supplying natural gas to its customers across Saudi Arabia via the network, mainly channelling associated gas from Ghawar and other oil fields.
Over the past decade, amid rising gas demand from Saudi Arabia’s industrial and household sectors, Aramco has undertaken projects to increase its non-associated gas production. For example, it launched the second expansion phase of the MGS (MGS-2) in 2015.
Aramco completed the solicitation of interest (SoL) process with contractors for the two gas compression packages of the MGS-3 project in December, while SoLs for the pipeline packages were issued in March last year. It is notable that for all of these tenders, contractors expressed interest within a matter of only a few days.
Moro Hub has awarded a Green Certificate to the Dubai International Financial Centre (DIFC) Courts in recognition of their commitment to sustainability for leveraging Moro Hub’s Green Cloud for their IT workloads.
The firm is a subsidiary of Digital DEWA, the digital arm of Dubai Electricity and Water Authority. It said the Green Certificate was presented to Justice Omar Al Mheiri, the Director of the DIFC Courts by Engineer Marwan Bin Haidar, Vice Chairman and Group CEO of Digital DEWA.
Moro Hub says that its Green Cloud is designed and developed to offer private and public enterprises energy-efficient solutions. This initiative actively contributes to diminishing carbon footprints and supports sustainable practices within the dynamic digital realm.
“We commend the DIFC Courts commitment to sustainability. By opting for Moro Hub’s Green Cloud, the DIFC Courts is optimising its IT operations and actively contributing to the broader goal of constructing a more sustainable future,” stated Engineer Marwan Bin Haidar, Vice Chairman and Group CEO of Digital DEWA.
Bin Haidar added, “This collaborative effort solidifies our shared values of promoting innovation, upholding excellence, and embracing environmental responsibility. As part of this collaboration, we, at Moro Hub, look forward to supporting the DIFC Courts in achieving its sustainability goals while providing cutting-edge technology solutions that exceed the international standards.”
The Green Certificate presented to the DIFC Courts signifies Moro Hub’s efforts to support organisations in adopting sustainable practices for their digital infrastructure needs. The certification highlights the DIFC Courts’ contribution to minimising energy consumption and nurturing a green IT environment, he added.
Justice Omar Al Mheiri, Director of the DIFC Courts, expressed delight at receiving the Green Certificate from Moro Hub. He noted, “This acknowledgment strengthens our commitment to adopting environmentally friendly practices in our operations. This is a validation of our strategic decision to embrace technology that meets high standards and also integrates with our commitment to the environmental responsibility.”
“By leveraging Moro Hub’s Green Cloud, we are confident in its ability to enable us to streamline IT operations and make meaningful strides in reducing our environmental impact. Moro Hub remains at the forefront of technological innovation, providing businesses and government entities with dynamic solutions for their digital transformation journey. The Green Certificate initiative reflects Moro Hub’s dedication to implementing a sustainable and resilient digital ecosystem,” concluded Al Mheiri.
The financial close of the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, which is being spearheaded by the Dubai Electricity and Water Authority (DEWA), has been achieved according to Abu Dhabi Future Energy Company (Masdar).
DEWA is implementing the 1,800MW sixth phase of the solar park in co-operation with Masdar based on the Independent Power Producer (IPP) model, using the latest solar photovoltaic bifacial technologies with single-axis tracking. The phase is expected to cost as much as US $1.49bn.
On completion, the solar park’s capacity will exceed 5,000MW by 2030, with investments totaling approximately $13.2bn. This is a new milestone in promoting the use of clean and renewable energy in the UAE.
“The MBR Solar Park supports the UAE’s position as a leading global hub for clean energy. It is aligned with the UAE Net Zero by 2050 strategic initiative, the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power capacity from clean energy sources by 2050,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA.
The current production capacity at the solar park is 2,627MW and the total capacity under construction is 2033MW. The sixth phase of the solar park will see the total production capacity increase to 4,660MW by 2026. By 2030, Dewa will have around 27% of the generation mix sourced from clean energy sources by 2030, said a statement.
This phase will provide clean energy for approximately 540,000 residences and will cut around 2.36 million tonnes of carbon emissions annually. The project will cover an area of 20sqkm. In addition, the 6th phase has achieved the lowest Levelized Cost Of Energy (LCOE) of $1.6215 cents per kilowatt hour (kWh) in the Solar Park, the statement added.
For the sixth phase, DEWA is said to have established Shuaa Energy 4 in partnership with Masdar. DEWA owns 60% of the company, whereas Masdar owns the remaining 40%.
Masdar CEO Mohamed Jameel Al Ramahi added, “Today’s announcement builds on our long-standing partnership with DEWA, advancing the UAE’s energy leadership in the construction of the world’s largest multi-phase solar plant. The UAE continues to demonstrate leadership in delivering cutting edge clean energy solutions which have attracted the interest and confidence of the investment community, locally and internationally.”
He continued, “Accessing capital is fundamental to accelerating the global energy transition and this expansion of MBR Solar Park is an important milestone for the UAE in its own clean energy journey. Masdar looks forward to further deepening our partnership with DEWA as we work collectively to support the country’s National Energy Strategy 2050 and the UAE Consensus.”
The lending group to the project includes Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered, Abu Dhabi Islamic Bank and Warba Bank.
The Roads and Transport Authority have announced that construction work on the Dubai Metro Blue Line will begin in 2024. The US $4.9bn project aims to transform the north-east section of Dubai and is to feature 14 stations, extending the Dubai Metro network by 30km.
Once complete, the Blue Line will connect five principal urban regions of Dubai – Bur Dubai and Deira, Downtown and Business Bay, Dubai Silicon Oasis, Dubai Marina and JBR and Expo City Dubai. On completion of this line, the Dubai Metro will span 131km and boast 78 stations and 168 trains.
“This year will witness the start of implementation of the Dubai Metro Blue Line project. It serves vital areas whose population is expected to reach about one million, according to the Dubai Urban Plan 2040, and achieves connectivity and integration with the Red and Green Lines,” explained Mattar Al Tayer, Director General of the RTA.
Al Tayer also noted that the Dubai Metro accounted for the largest proportion of users of mass transit, shared transport and taxis in 2023, at 37%. The RTA stated that the combined ridership of public transport and shared mobility, including Dubai Metro, tram, buses, marine transport and taxis reached about 702m, an increase of 13% from the 621.4 million recorded in 2022.
The average daily ridership of these modes of transport last year was 1.92m, compared to 1.7m in 2022.
The project is scheduled for completion in 2029, coinciding with the 20th anniversary of the Dubai Metro, the RTA stated.
Saudi conglomerate Kingdom Holding Company has sold its residential complex – Kingdom City – to a real estate fund affiliated with Alawwal Investment for US $240mn.
Located in the Al Rabie neighbourhood of Riyadh, Kingdom City is one of the most prominent luxury residential complexes in the Saudi capital and is situated at the intersection of Al Thumama Road and King Abdulaziz Road.
The complex features 384 residential units along with other key facilities, distinguished by its proximity to current and future quality projects in Riyadh, such as the King Abdullah Financial Center, the Sports Boulevard Project, King Salman Airport, and Roshan Front.
The conglomerate stated that there will be no change in the name and the complex will be known as ‘Kingdom City’.
Announcing its next move, Kingdom Holding Company said it will now participate in a new fund that owns ‘Kingdom City’ and will announce the percentage of its participation on a later date.
Meanwhile, the fund’s strategy now is to grow the revenues of the residential complex and improve the quality of life by raising operational efficiency and improving overall service levels.
Spanning six continents, Kingdom Holding Company has assets worth over $13.2bn covering 18 sectors, ranging from hotel management, real estate and hotel properties, to digital media and entertainment, financial and investment services, e-commerce, petrochemicals, education, health care and aviation and transportation.
The designs for two new towers as part of Phase Two of the Uptown project being developed in collaboration with Dubai Multi Commodities Centre (DMCC) have been unveiled by Brewer Smith Brewer Group (BSBG).
As per the contract awarded by DMCC, BSBG will be responsible for provision of design and executive architecture, interior design, lead consultancy and construction supervision services for the project.
According to a statement, the design of Uptown Phase 2 features two mid-rise commercial towers – of 23 and 17 storeys – providing approximately 70,000sqm of Grade A commercial office space, as well as 8,000sqm of F&B and retail.
The project has been designed to interact with the wider masterplan, as the towers open out to an activated central plaza, which will become the focal point of the wider Uptown Dubai district. The plaza will host a dynamic and diverse offering of activities from immersive art installations to music, film and fashion performances, said BSBG.
“The process of design involved analysing the masterplan beyond the plot boundary, to understand how to extract the most value for the client. We had the opportunity to look at the wider context of Uptown as a destination, and interpret the way in which that translates into our project. Complex mixed-use schemes such as this are hugely challenging, from the wider masterplanning to destination development – but it’s a process we really embrace within the studio, and we’re incredibly proud of the final outcome,” said BSBG Group Design Director Michael Lewis.
Philip Beckett, a Senior Design Architect on the project added, “Creating a connection between the upper level drop-off and the urban plaza was a key decision we made early in the design process. The introduction of the central spine enhances wayfinding and creates a multi-level F&B activation strategy with elevated terraces overlooking the plaza. This arrangement not only enhances the visual experience but helps to create a vibrant and energetic lifestyle destination. As we were working on a large urban masterplan, the immediate and wider context had to be considered with every design decision we made.”
BSBG is also the designer of Mercer House, the first residential project to be announced at Uptown Dubai, he concluded.
Soudah Development has signed a contract with Parsons Corporation to provide project management consultancy services for the development of Soudah Peaks. The year-round luxury mountain tourism destination is set 3,015m above sea level, on KSA’s highest peak.
An ambitious project for Soudah, the resort is geared towards building sustainable tourism infrastructure with a focus on nature, wellness, adventure, sports, culture and heritage.
Parsons’ scope of work includes all project management and site supervision services for the development of Soudah Peaks which is home to six unique development zones: Tahlal, Sahab, Sabrah, Jareen, Rijal, and Red Rock.
On the strategic project, Soudah Development CEO, Eng. Saleh Aloraini said, “We are delighted to partner with Parsons on this project, marking a giant leap forward in bringing our vision of luxury tourism experiences to life. The detailed design of the Soudah Peaks masterplan outlines our total commitment and dedication to upholding a sustainable environmental framework, offering high-end hospitality services, and developing ultra luxury facilities and assets to provide Soudah Peaks’ visitors with an unparalleled living experience.”
“Parsons brings extensive consulting experience in project management to support the completion of the construction phases of Soudah Peaks; and will contribute to achieving the goals of the Public Investment Fund in developing tourism and entertainment sectors in Saudi Arabia.”
Pierre Santoni, President, Infrastructure EMEA, Parsons added, “We’re thrilled to be working on yet another one of the key projects under the Saudi leadership’s national transformation blueprint, Vision 2030. Working on a project of this nature, which will preserve and enhance the surrounding area and prioritise environmental integrity, directly aligns with Parsons’ core values, and allows us to bring our expertise in managing projects with the utmost precision to another important project in the Kingdom.”
Construction costs in the UAE and Saudi Arabia are predicted to increase by 2-3% and 5-7% respectively in 2024, intensifying the financial pressure on the construction industry, according to a new report by Currie & Brown, a global leader in cost management, project management, and advisory services. This follows a year of significant increases, with costs rising by 3% in the UAE and 7% in Saudi Arabia in 2023.
The report, titled “How to navigate 2024: Balancing challenge with opportunity,” outlines key strategies for construction firms to mitigate these cost escalations. It emphasizes the adoption of innovative working methods, such as modular construction, to alleviate the effects of local skills and materials shortages. It also highlights the importance of integrating sustainability at every project stage to meet evolving standards and recommends the embrace of digital technologies, including artificial intelligence and advanced data analytics, to enhance project return on investment (ROI) and manage future challenges effectively.
Doug McGillivray, Managing Director, Southern Gulf for Currie & Brown, commented on the findings, stating, ““2024 will bring fresh challenges for the construction industry, but these also present opportunities for firms and their clients.
“By considering sustainability, embracing digital technologies, and developing new ways of working, both will benefit from operational efficiencies. This will help mitigate the impact of construction cost increases now and in the future, while creating better, sustainable built environments for all.”
The report draws attention to the broader context of construction cost increases, noting similar trends across Currie & Brown’s operating regions. The primary driver of these increases is identified as inflation, which, despite showing signs of stabilisation towards the end of 2023, continues to pose challenges due to its variability across the Gulf region. Other factors contributing to the rise in construction costs include tightening sustainability regulations, particularly in the wake of COP 28 hosted in Dubai, skills and materials shortages exacerbated by strained supply chains, and geopolitical uncertainties impacting trade routes and material prices.
To help organisations navigate uncertainty and be more cost effective, the report advises project teams to act in the following areas:
Adopt new ways of working, such as modularconstruction. This will help reduce the impact of local skills and materials shortages, giving greater certainty on construction costs. Close collaboration between developers, consultants and contractors will also lead to greater clarity on schedules so that skilled labour can be secured early.
Incorporate sustainability at every stage. Firms need to consider the carbon impact of projects at every stage of development to make sure these will meet current and future standards. Doing so will reduce the need for organisations to make further investments down the line. They will also benefit from operational efficiencies sooner, reducing the cost and whole life carbon impact of their estates.
Embrace digitisation. From AI to advanced data analytics, digital technologies are offering new ways to enhance project ROI and predict and manage future challenges. Organisations must be open-minded to the potential of new technologies and work together to apply them where they will add the most value to projects.
McGillivray concluded, ““Cost escalation continues to be a significant challenge for the construction industry, but it is nothing new. Since June 2023, the price of raw materials, including steel, cement and concrete have, increased in both the UAE and Saudi Arabian markets. As an industry we need to work with our clients to develop solutions to deal with this long-term trend. What can we do now to address cost drivers and give them greater certainty in the future? This is where focusing on long-term trends makes all the difference.”
The insights provided by Currie & Brown’s report are based on data extrapolated from regional sources as of February 2024, aiming to equip construction firms with the knowledge and strategies to navigate the upcoming year’s economic challenges successfully.
Regional cost escalation statistics – How does the Middle East stack up?
