The NEOM Green Hydrogen Company (NGHC) has announced that following the signing of financial deals with 23 local, regional, and international banks and investment firms, it has achieved financial close on the world’s largest green hydrogen production facility, with a total investment value of US $8.4bn. The plant is currently being built at Oxagon, in NEOM, Saudi Arabia.

NGHC said it has also concluded the engineering, procurement, and construction (EPC) agreement with Air Products as the nominated contractor and system integrator for the entire facility.

Additionally, NGHC also announced that the non-recourse financing structured for the project has been certified by S&P Global (as the second party opinion provider) as adhering to green loan principles, and is one of the largest project financing deals put in place under the green loan framework.

Air Products has already awarded major contracts to various technology and construction partners, said a statement.

NEOM Green Hydrogen Company also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, which will unlock the economic potential of renewable energy across the entire value chain.

An equal joint venture between ACWA Power, Air Products and NEOM, NGHC’s plant will integrate up to 4GW of solar and wind energy to produce up to 600t per day of carbon-free hydrogen by the end of 2026, in the form of green ammonia. Carbon-free hydrogen is a cost-effective solution for the transportation and industrial sectors globally.

Nadhmi Al-Nasr, Chairman, NEOM Green Hydrogen Company, and Chief Executive Officer, NEOM stated, “This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project. With the financial close announced today, we are taking a massive leap towards opening the plant, in line with NEOM’s vision to accelerate renewable solutions. At scale, this project is the first-of-its-kind internationally, leading the world in the hydrogen revolution. Harnessing the energy of NEOM’s abundant natural resources, NGHC’s project will pave the way for the large-scale adoption of green hydrogen, while driving Saudi Vision 2030’s sustainable development goals.”

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A 62% increase in the number of high-net-worth individuals (HNWIs) living in Dubai from 2012 to 2022 has placed the city’s real estate market on a trajectory to achieve US $81.69bn in sales this year, according to Dubai real estate agent Unique Properties.

The emirate is said to house over 68,400 HNWIs and with individuals from this demographic increasingly flocking to the UAE, the country’s prime real estate segment is flourishing.

Dubai has become a preferred destination for the world’s highly affluent to settle down, as a result of the UAE’s convenient geographic location, its tax advantages and favourable commercial and ownership policies. Dubai’s real estate market is forecast to witness 46% growth in 2023, the statement from Union Properties noted.

Sitting at the top of the Middle East’s HNWI rankings, Dubai’s reputation is continuing to attract wealthy investors. Turmoil in different parts of the world has seen an influx of Europeans migrating to the UAE, and this trend is expected to continue, while a predicted uptick in Chinese investors is also set to further drive growth in the luxury property segment of Dubai.

Downtown Dubai, Palm Jumeirah and JBR are among the major districts spurring this growth. Increased demand for luxurious residences in these areas is seeing the price of high-end homes in Dubai spike from 6% to 7.9% in 2023 to represent the highest value increase worldwide. Transactions worth more than $270mn are being seen on a daily basis.

Arash Jalili, Founder and Chief Executive Officer of Unique Properties, commented, “Dubai’s real estate market has maintained its post-pandemic momentum and this has unlocked the potential to shatter last year’s historic growth with HNWIs consistently relocating to the UAE. Real estate transactions have already surpassed $3.3bn since the beginning of the year and with total property transactions in April increasing by more than 16% compared to the same period last year, the emirate remains on an upward trajectory.”

According to the most recent data, total property transactions in April stood at 7,615 and real estate prices increased by an annual average of 14.5% with the off-plan market spearheading this growth.

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The $260mn Centerm Expansion Project at DP World Vancouver has been completed according to DP World. The project aims to increase port throughput by 60% and position British Columbia as a leader in sustainable trade. The newly expanded terminal can now handle 1.5m TEUs a year, compared to 900,000 TEUs previously, while adding 15% to the terminal’s overall footprint.

As per DP World, the project reduces the terminal’s environmental impact by adding capacity for container ships to connect to electrical shore power and converting its diesel yard cranes to electric ones. It further reduces greenhouse gas emissions by eliminating wait times for vehicles at train crossings and building to LEED and Envision certification sustainability standards.

“This expansion represents a significant investment in the future of international trade, and we are honoured to continue to play a vital role in connecting Canadian businesses to markets around the world, while contributing to sustainable economic growth and prosperity for all,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.

The expansion was completed by Centennial Expansion Partners (CXP). DP World and the Vancouver Fraser Port Authority also celebrated the 100th anniversary of the port’s marine terminal operations. These two events are said to highlight British Columbia’s (BC) ongoing leadership in sustainable trade, technological innovation and introducing Canadian goods to new markets supported by partners such as DP World in Canada, the statement added.

The 100-year anniversary marks an opportunity to celebrate the ongoing commitment of DP World employees, and the ILWU (International Longshore and Warehouse Union) handling over 20m loaded twenty-foot equivalent units (TEUs). Along with its partners, DP World said it is making the global supply chain more resilient, establishing Canada’s leadership in sustainable trade and exporting Canadian goods to global markets.

DP World continues to support and advance the long-term growth of Canada’s ports and terminals, including the Port of Vancouver, through new technologies and commitment to innovation and sustainable trade infrastructure. As the country’s gateway to over 170 trading economies around the world, Vancouver handles one in every $3 of Canada’s trade in goods outside of North America. This enables the trade of approximately $305bn in goods, while the port’s activities sustain 115,300 jobs, $7bn in wages, and $11.9bn in GDP across Canada, the statement pointed out.

Bin Sulayem remarked, “The 100th anniversary of terminal operations on the west coast is a wonderful opportunity to celebrate Canada’s rich maritime and port history and look ahead to a future that includes DP World’s industry-leading technology and innovation in supply chains. It’s also a chance for us, along with our employees and partners, to celebrate a responsible, sustainable, strategic approach to managing Canada’s network of ports and terminals.”

DP World said that it has committed to investing US $500mn globally over the next five years to help cut its carbon emissions by 700,000t to become a Net Zero carbon enterprise by 2050.

Vancouver Fraser Port Authority also completed the South Shore Access Project earlier this month in partnership with the Government of Canada and with funding from the National Trade Corridors Fund. The final part of the South Shore Access Project, including upgrades to Waterfront Road and the removal of road and rail conflicts in the area to connect terminals directly to the Trans-Canada Highway are now complete.

Robin Silvester, President and Chief Executive Officer, Vancouver Fraser Port Authority stated, “Expanding the footprint of the Centerm container terminal and improving road and rail links in the area will increase container trade capacity and resiliency at the Port of Vancouver in the near term.”

He concluded, “As recent years have shown, a robust container sector is critical for Canadian exports and for reliable access to the goods Canadians depend on every day from markets around the world-and these projects represent an important piece of the puzzle when it comes to enabling Canadian trade. We’d like to thank our project partners including DP World and the federal government for their support and collaboration, as well the local community and south shore tenants for their patience and understanding during construction.”

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A contract to develop, own and operate a large-scale seawater treatment and water transportation project in the UAE has been awarded to Orascom Construction and its consortium with Metito. The project is being jointly developed by Abu Dhabi-based Adnoc and Taqa, at a total investment of US $2.4bn.

Once complete, the project will provide sustainable water supply for Adnoc’s onshore operations, and will reinforce the duo’s position as responsible energy leaders and underscoring their efforts to drive sustainable initiatives that deliver long-term value.

According to a statement, the project will replace the current high-salinity, deep aquifer water systems at the fields, thereby reducing water injection-related energy consumption by up to 30%. The project will be connected to the grid and will receive 100% of its power from clean energy sources.

The mega project will comprise a greenfield seawater nanofiltration plant with a treatment capacity of more than 500,000cu/m per day, in addition to seawater intake and outfall facilities, pumping stations, a water transmission pipeline of 75km, and an in-field distribution network of more than 230km to support reservoir pressure maintenance in the Bab and Bu Hasa fields in Abu Dhabi.

“We are delighted to partner with Taqa and other industry leaders in this strategic project that will reduce our environmental footprint and unlock significant value as we continue to decarbonise and future proof our operations. The project will enhance our onshore energy efficiency by replacing less-efficient, high-salinity, deep aquifer water systems with a centralised seawater treatment facility and transportation network. More than 60% of the project value during the development and operation phases will flow back into the UAE’s economy under Adnoc’s highly successful In-Country Value (ICV) programme,” said Adnoc Upstream Executive Director Abdulmunim Al Kindy.

The greenfield project will be funded through a special purpose vehicle (SPV) in which Adnoc and Taqa will jointly hold a 51% stake, while the rest 49% stake will be with Orascom Construction and Metito (who will each have a 24.5% stake). The project will also enhance energy efficiency by up to 30% and reduce Adnoc’s environmental footprint compared to the current injection system, the statement noted.

As per the deal, the Orascom consortium will arrange the project financing for the construction phase and develop the project under a build, own, operate and transfer (BOOT) model, with the full project being returned to Adnoc after 30 years of operation.

Taqa’s Group CEO and Managing Director Jasim Husain Thabet remarked, “As a champion for low carbon power and water, Taqa is pleased to partner again with Adnoc, this time to advance the UAE’s sustainability goals by providing treated seawater for Adnoc’s onshore operations. As a major utility, Taqa is especially committed to partnerships like this that use our expertise to help drive environmental stewardship while maintaining water security and supporting economic growth.”

Commenting on the partnership, Orascom Construction CEO Osama Bishai remarked, “We are proud to partner with Adnoc and Taqa to deliver a project that is key to the sustainable development of the UAE’s oil and gas sector. We started our focus on important water projects over a decade ago and have since played a major role in undertaking some of the most complex projects in this sector. We are also pleased to strengthen our presence in the UAE as we continue to target strategic projects in the region across sectors in which we have developed strong expertise.”

He added, “The project also plays a key role in our growth strategy to pursue infrastructure investments that provide both construction opportunities and long-term recurring income.”

Metito Managing Director Rami Ghandour concluded, “With UAE as a global hub for innovations and sustainable practices, this mega project is testament of how capitalizing on technology can revolutionize industry norms and practices to best preserve valuable water resources and the environment. Over the years Metito has built a strategic project portfolio of mega concession projects and iconic world and industry firsts and we are confident this will be a landmark project and a global milestone. We are honoured to be part of this.”

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DMCC has tasked Brewer Smith Brewer Group (BSBG) that will see the global architecture, design, and engineering firm with delivering the second phase of its flagship Uptown Dubai district.

Engaged for lead consultancy, design and executive architecture, interior design, and structural engineering for the project, BSBG will deliver the next two commercial towers within Uptown Dubai, said DMCC.

The mid-rise towers will be 28 and 21 storeys, featuring a total of approximately 67,500 square metres of commercial space and 5,000 square metres for retail and F&B.

A strategic partnership agreement was signed at a ceremony at DMCC headquarters by Ahmed Bin Sulayem, CEO, with BSBG represented by managing partner Alistair McMillan, alongside senior partners Andrew Bereza and Scott Orwin, and group design director Michael Lewis.

“Spanning a total of 5.8 million square feet, Uptown Dubai will redefine premium mixed-use communities,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.

“Through this partnership with BSBG – a global leader in delivering projects of this scale – we are one sizeable step closer to this vision. These two towers will be a strong addition to our ever-growing district, helping us meet the high levels of FDI we continue to attract with a premium commercial offering.”

DMCC’s Uptown Dubai is one of the most anticipated new masterplan developments in the UAE, with its flagship 81-storey skyscraper, Uptown Tower, becoming one of the most sought-after commercial addresses in the emirate; all office units within the tower were fully pre-leased in Q3 of 2022, reflecting the development’s significant draw for international investments. The 22 floors of office units at Uptown Tower are expected to be delivered in June 2023.

Alistair McMillan expressed his delight at the new partnership with DMCC and the opportunity to design and deliver the second phase of the Uptown Dubai masterplan.

“We are very pleased to have partnered with DMCC on this exciting commercial project, which is of huge importance as the Uptown Dubai masterplan comes to life,” he said.

“DMCC’s Uptown Dubai District has become one of Dubai’s most dynamic mixed-use developments, and with our combined design and technical expertise, BSBG is well-positioned to support DMCC in realising its vision for a benchmark mixed-use development of the future.”

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UAE-based facilities management (FM) services provider, Emrill, has appointed Dean Harnden as its new business development director.

In his new role, Harnden will focus on developing and implementing strategies to further develop and grow Emrill’s services in key sectors in the UAE. He will be responsible for building and maintaining key stakeholder relationships while increasing efforts to deliver service excellence in current and future contracts.

With 23 years’ experience in the FM industry, Harnden has worked in the UAE, Australia and the UK, managing numerous high-profile clients and contracts. Before joining Emrill, he led a team of over 20,000 employees and was integral in increasing revenue across the business and creating and maintaining value partnerships with key stakeholders and clients. His extensive experience includes contract negotiations, growth and operations, soft FM services, as well as developing and implementing specialised marketing and communications strategies to increase brand awareness in the industry.

Commenting on his recent appointment, Harnden said: “It is a pleasure to be working with Emrill, an organisation that has such a stellar reputation in the region’s FM industry. Their award-winning team has consistently delivered quality FM services while constantly evolving as a business with continuous improvement as a key strategy across every level of the business.”

With his expertise across aspects of FM and support services, Harnden aims to maximise profitability while upholding Emrill’s core values and expanding business operations in critical sectors. He will deliver industry-leading services and exceed client requirements across sectors including residential, commercial, industrial, master communities, aviation, logistics, healthcare, retail, hospitality, education, and leisure.

Emrill’s CEO, Stuart Harrison commented on Harnden’s recent appointment: “Having worked on both the operational and commercial side of FM, Dean has experience across several facets of the industry, including major events, security, maintenance, and customer service. This unique industry perspective will undoubtedly prove advantageous to Emrill and contribute to new projects and retaining current contracts. We are delighted to have him on the team and look forward to working with him on developing and growing our business further.”

Harnden concluded: “My goal for 2023 is to exceed Emrill’s growth targets. While FM is a competitive industry, I am confident that with Emrill’s extensive resources and dedicated team of experts, we will exceed our targets for the year and maintain our reputation as one of the region’s preferred FM service providers.”

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Al Hamra awarded of the main works package for its mega waterfront residential project of Falcon Island to Construction and Reconstruction Engineering Company (CRC) earlier today.

Part of DORRA, CRC has more than 80 years of construction heritage in the MENA region and will be responsible for construction of the 502 villas and townhouses ranging from two-to-seven-bedroom on Falcon Island.

The twin island project, once ready will offer affordable exclusivity to the residents with stunning views of the Arabian Gulf, lush green Al Hamra Golf Club and all the possible amenities.

“Since its launch in March 2022, the project has consistently exceeded milestones in terms of sell-out and progress related to groundwork and construction. Both the twin north and south islands have sold-out all of the two and three-bedroom townhouse inventory as investors and consumers alike clamber to gain a slice of the exclusive island living in the heart of Al Hamra Village, the only award winning fully integrated residential community in Ras Al Khaimah and the region,” commented Benoy Kurien, the Group CEO at Al Hamra.

“We have no doubt that CRC is the right construction partner to bring our vision to life through our exclusive island living project. We look forward to hitting more construction milestones as per the schedule in order to deliver the Al Hamra experience that we are known for,” he added.

Whilst the larger portion of the islands will be devoted to open spaces, the villas themselves offer spacious living, ranging from two to seven bedrooms, said the lifestyle developer.

Falcon Island is located in the heart of Al Hamra Village and within Ras Al Khaimah’s three-mile growth corridor panning from Al Hamra Village to Al Marjan Island where Wynn Resort, the upcoming first of its kind gaming and integrated resort in the Middle East and North Africa region is slated to open in 2026.

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The global construction machinery market will grow from $308.97 billion in 2022 to $336.72 billion in 2023 at a compound annual growth rate (CAGR) of 9.0%.

The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, causing inflation across goods and services effecting many markets across the globe. The construction machinery market is expected to grow from $458.34 billion in 2027 at a CAGR of 8.0%.

The construction machinery market consists of sales of construction machinery, including backhoes, bulldozers, construction and surface mining-type rock drill bits, construction-type tractors, off-highway trucks, pile-driving equipment, portable crushing, pulverizing and screening machinery, powered post hole diggers, road graders and surface mining machinery. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Construction machinery refers to heavy machines designed for performing construction operations. Construction machinery is used in construction projects to load and unload materials, drive tools and materials into and out of a construction site, feed or retrieve material into a processing machine, handle raw materials by transporting them, cut trees and other vegetation, and many other applications.

Asia Pacific was the largest region in the construction machinery market in 2022. Western Europe was the second-largest region in the construction machinery market. The regions covered in the construction machinery report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

Major players in the construction machinery market are Caterpillar Inc, Komatsu Ltd, Deere & Company, Volvo AB, Hitachi Ltd, Zoomlion Heavy Industry Science, and Technology Co. Ltd, Liebherr Group, EXOR Group, Doosan Infracore Co Ltd, and Oshkosh Corp.

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According to global property consultancy, Knight Frank, Saudi Arabia’s multi-faceted real estate market is currently experiencing a dynamic expansion across all sectors, a positive trend backed by compelling recent data and expert insights. The office sector, notably in the commercial hub, Riyadh, is witnessing an unprecedented surge in demand with occupancy levels soaring to a record 97% for Grade A office spaces.

The residential sector on the other hand appears to be facing growing affordability pressures, according to Knight Frank’s analysis.

Rising Star: Spotlight on Saudi Arabia’s Office Sector

Saudi Arabia’s office sector sees a consistent strengthening of demand across its 3 primary cities – Riyadh, Jeddah, and Dammam Metropolitan Area (DMA). With Riyadh, the commercial hub, witnessing unprecedented demand and occupancy levels for Grade A and B office spaces reaching 97% and 85% respectively, the office sector is the real star of the market.

Faisal Durrani, Partner – Head of Middle East Research explained: “The real star of the market remains the office sector. With business continuing to flock to the Kingdom from the world over – the number of business licenses issued increased by 54% during 2022 – prime rents remain under upward pressure and have climbed by 19% in Riyadh over the last year and by about 9% in Jeddah. Vacancy rates also remain marginal at 6% in Jeddah and just 3% in Riyadh.

The strong economic growth last year of around 9% – the highest level for any major economy – is driving job creating rates in key centres such as Riyadh, which is resulting in rapidly diminishing stock. What’s more, the pipeline of supply remains slim, with around 800,000 square metres of new offices planned in Riyadh by 2025, for instance. We expect demand to far outstrip this, particularly as businesses remain focused on best-in-class space, which is likely to drive a bigger delta in the performance of Grade A and Grade B rents.

“For now however, the shortage of space means some businesses are left with no option but to consider Grade B options, which has driven rents for more secondary offices up by 15% in Riyadh and 6% in Jeddah over the last 12-months.”

Retail Sector R(e)volution

The retail sector in Saudi Arabia is undergoing an exciting transformation as it pivots towards a more experiential model, with a particular focus on Food & Beverage (F&B) and lifestyle retail developments. These changes are reflected in the growing footfall and increased dwell times, which are the highest within the F&B focused lifestyle retail establishments. This transformation is not signalling the end of traditional brick-and-mortar retail; rather, it indicates an adaptation to evolving consumer preferences and market dynamics.

According to Knight Frank’s Saudi Report, younger respondents (aged below 35 years) are more likely to favour lifestyle retail centres (33%) and online shopping (22% compared to 5% for those aged 45+). This generational shift in retail attitudes is indicative of the need for traditional retail centres to reinvent themselves and enhance the in-store experience, thereby blending the lines between physical and digital retail landscapes.

Jonathan Pagett – Head of Retail Advisory (KSA) commented: “Saudi Arabia’s retail sector is witnessing a clear evolution towards an experiential model. As the younger demographic grows, the demand for retail centres offering a diverse blend of shopping, entertainment, and culinary experiences will skyrocket. While the future is very much digital, our data suggests there is still a significant place for physical retail, given it can adapt and offer consumers an enhanced, multi-faceted shopping experience.”

Driving Transformation: The Hospitality Sector

The recent unveiling of the year-round Saudi Calendar marks a significant milestone for the hospitality sector in Saudi Arabia. This comprehensive calendar, teeming with an array of diverse cultural, musical, and entertainment events, caters to an expansive audience, from local residents to international tourists. The intent is not merely to entertain, but to foster a rich cultural exchange that illuminates the vibrancy of the Saudi cultural landscape.

The Saudi Vision 2030 plan’s innovative initiative is a game-changer for our hospitality sector. Over 400 events, from concerts to entertainment pop-ups held across the nation on one of the occasions such as Eid al Fitr, appeal to a broad demographic, driving significant domestic tourism growth. This increase in activity isn’t just a temporary boost; it ensures a continuous influx of tourists throughout the year. We anticipate a positive impact on hotel performance, particularly with the projected supply increase by 2025: 27% in Riyadh, 7% in Jeddah, and 21% in DMA.

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