Gulf Construction Online

UAE Focus

Update

01 September 2009

Rubber prices rise 15pc
The average price of rubber raw materials across the globe has risen by 15 per cent in 2009, says Rubber World Industries (RWI), a UAE-based leading manufacturer of closed-cell rubber insulation, and part of the Memon Group of Companies.

Amidst the upward movement of global prices, RWI, which claims to account for 86 per cent of the Middle East rubber insulation market share, has committed to maintain its prices and ensure sufficient supply of rubber insulation products across the region, including pipes, sheets and other rubber-derived products, says RWI managing director and Memon Group chairman Abu Baker Shaikhani.

Workers strike for higher wages
hundreds of workers in Dubai took to the streets for a day last month, demanding higher wages and overtime pay from their employer Al Habtoor Engineering Enterprises. The protest was the first public display of labour discontent since Dubai was hit by the economic crisis last year. The labourers, now working on building an extension of a shopping mall in Diera and a convention centre in the Jebel Ali industrial zone, said their pay wasn’t enough to survive on and support their families back home in Southeast Asia. One worker said he earns Dh700 ($190) a month and has not been paid overtime for a while.
However, a subsequent Ministry of Labour investigation into the strike cleared Al Habtoor of any wrongdoing.

645 bus shelters built across city
THE Roads & Transport Authority’s (RTA) Public Transport Agency said a total of 645 air-conditioned bus shelters are now in operation in 456 locations across the emirate of Dubai. Director of the Buses Department Abdulla Yousef Al Ali said, however, that the air-conditioning in some of the stations are not yet operational as construction works, including electrical cabling, have not been completed.
The bus shelters are modelled in the shape of the crescent, coated with a metallic paint, and fitted with advanced air-conditioning. They include advertising spaces offering pioneering technology for the first time in Gulf, while enabling cleaner environment through providing garbage recycling bins, among other facilities.

Major RTA projects make progress
THE Roads & Transport Authority (RTA) announced two of its major projects in Dubai are progressing well.
Work on the Parallel Roads improvement project in Dubai is 60 per cent complete in Phase III (B), 40 per cent in Phase III (A), and 50 per cent in Phase II (C), while 30 per cent of the Rashid Hospital Tunnels project is now complete, it said.

Arkan profits plunge 78pc
Arkan Building Materials Company’s second-quarter profit plunged 78 per cent to Dh24.38 million ($6.64 million) as the company sold less cement.
Arkan made a loss of Dh77.1 million ($20.96 million) for the first six months of the year, compared with a profit of Dh128.14 million ($34.88 million), it said in a statement on Abu Dhabi’s bourse website.
The construction sector in the UAE has been hit hard by the global financial slowdown, as projects are slowed or cancelled and prices fall. Over 400 projects worth more than $300 billion have been placed on hold or cancelled in the UAE, according to Dubai-based research firm Proleads Global (see page 28).

Al Fara’a makes steady progress
Al Fara'a Properties said that it is making steady construction progress on its projects despite the present market slump, which has resulted in massive delays in the delivery of other projects in the UAE. Amidst the ongoing handover process of its Le Grand Chateau project, the developer also announced that it is on track to hit its delivery targets for The Manhattan and Mulberry Mansions, which are both scheduled for the last quarter of next year.
The announcement underlines the developer’s commitment to deliver its projects according to the stipulated schedule, and to safeguard the interest of its clients and investors.
Meanwhile, Al Fara’a Group launched a facilities management division which is aimed at ensuring longevity of investment, through optimisation of the maintenance pool fund and sustainability of the investment’s value by leveraging the group’s expertise.

Smart way to cut cooling costs
Facilities management specialist Farnek Avireal says that a new green technology can help cut residential air-conditioning costs by up to 30 per cent.
The Smartcool software has already been installed in supermarkets, restaurants, hotels, schools and hospitals where it is saving energy on air-conditioning without affecting temperature or humidity, says Farnek Avireal, adding that latest model of the system is also suitable for residential units.
“Rather than replacing existing equipment, the Smartcool ECO3 software does the job by reducing the electricity consumption and maximum demand of air-conditioning and refrigeration compressors,” says operations director Raj Dhanjal.
The Smartcool ECO3 system works in conjunction with existing air-conditioning controls to ensure that compressors work at their maximum efficiency while maintaining preset temperatures. The system, which is fitted between the existing air-conditioning control device and the compressors, is now suitable for residential and businesses units, he says.

UK architect opens Qatar office
Leading international architectural practice Allies and Morrison is to open an office in Qatar in early autumn. It will represent its first overseas office.
In Qatar, Allies and Morrison is one of the major architectural firms working with Dohaland on its QR20 billion ($5.49 billion) The Heart of Doha project. The UK architect is designing a cluster of three civic buildings in Phase 1A of the 35-hectare site.
Allies and Morrison has been working on the Heart of Doha masterplan together with Edaw and Arup.

Fit-out works on way at Mirdif
Mirdif City Centre has handed over its massive entertainment space to Majid Al Futtaim Leisure, the owner and operator of Ski Dubai, for fit-out and equipment installation work. At 25,000 sq m, the space accounts for around 12 per cent of the mall’s 196,000-sq-m gross leasable area.
The project’s attractions include iFLY Dubai, an indoor sky diving centre, Cite Des Enfants, a children’s edutainment centre, Soccer Circus, a fully interactive football attraction, and Magic Planet.
Yousif Al Ali, vice president of Mirdif City Centre, says the handover was a milestone in the run-up to the mall’s opening in the first quarter of 2010.

Dubai to have housing surplus
Dubai is set to have a surplus of up to 31,000 residential units mainly due to the decline in the expat population by the end of the year, according to a report by J P Morgan. The bank's study into real estate in the Middle East and North Africa (Mena) region said despite a recent small pickup in transaction volumes, supply overhang in the Dubai would reach 28,500 units by end-2009 due to the modest economic forecast and negative population growth estimates.

Hi-tech security system installed
DP WORLD, UAE Region has completed installation of one of the world’s most advanced integrated security systems (ISS) at its home base in Jebel Ali, the largest marine terminal in the Middle East.
A command centre located at Jebel Ali Terminal 2 oversees operation of the system, which includes an extensive network of security cameras covering all port operations. An access control system (ACS) ensures enhanced security at terminal entry and exit points. ISS features an identity management system (IDMS), providing key information on persons at work inside the terminal. In addition to identity and location, IDMS tracks aspects of employee performance over time. Successful completion of the project ensures the widest possible security cover at the port, and exceeds standards mandated by national and international agencies. The IDMS will help to increase operational safety and reduce cost.

Dolphin secure major refinancing
dolphin Energy, the owner of a 226-mile natural gas pipeline in the UAE, landed a massive refinancing last month, including an upsized $1.25 billion bond issue. The robust bond market allowed banks to scale back their loan commitments to $1.42 billion.
The $4.11 billion package refinances a $3.45 billion bridge loan that was due to expire last month and was put in place ahead of securing project financing. The 2-billion-cu-ft-per-day natural gas pipeline extends from Qatar’s North Field to Abu Dhabi.

Remraam work on schedule
construction work on the prestigious 22.6-million-sq-ft Remraam residential community in Dubailand is on schedule with notable progress achieved on all four phases of the development.
Contractors, working simultaneously on all aspects of the community, have completed the superstructure on a substantial number of buildings to their full heights. In addition, 90 per cent of the excavation work has been completed, while the foundation for over 70 per cent of the buildings has been poured.
Infrastructure work throughout the development is progressing as planned. Interior design has been finalized and interior finishes for apartments have also commenced.
The Arabian-themed development features low-rise architecture, high quality standards and an outstanding location within Dubailand. When fully completed, Remraam will be a self-contained community, offering lush landscaping covering over 85 per cent of the development and a range of facilities including swimming pools, a gym and health club, tennis and basketball courts, a full-fledged community mall with restaurants and entertainment outlets, in addition to retail outlets, nursery, parks and walkways.

Tekla and Acrid in joint venture
TEKLA Middle East has entered into a partnership with UAE-based IT solutions provider Acrid International, which is part of the Abu Dhabi-based project management and consulting firm known as the CAP Group.
With Tekla’s building information modelling (BIM) solutions, CAP PMC, the project management arm of CAP Group, will leverage the benefits of BIM on all construction projects managed by the conglomerate.
Acrid plans to introduce BIM technology to a raft of government development projects including infrastructure, housing, school and hospital builds, which are part of Abu Dhabi’s Vision 2030 plan.

Aloft to add 408 rooms to capital
ABU DHABI National Exhibitions Company (Adnec) has revealed that upon full completion, the Aloft Hotel (above), the first of its on-site hotels to open, will provide the UAE capital with 408 additional hotel rooms, making it the second-largest hotel in Abu Dhabi, in terms of capacity.
The Aloft Hotel will be operated by Starwood Hotels and Resorts Worldwide and will be linked directly to the Abu Dhabi National Exhibition Centre, next to the Capital Centre district. It will bring a brand new lifestyle concept in hotels to the capital, targeting the niche market of today’s forward-thinking business travellers by offering a quality, designer product which is affordable with a focus on accessible technology, comfort and convenience.

Damac projects make good progress
Luxury lifestyle provider Damac Properties has announced progress on several of its Dubai developments. Structural works of all three towers of its Lago Vista development at the International Media and Production Zone (IMPZ) have been completed, while work on its flagship Ocean Heights skyscraper – which will finally stand 84 storeys tall at the entrance to Dubai Marina on Al Sufouh Road – is now approaching 70 floors.
Damac also issued eight tenders last month. The projects for which the main works tenders were issued are Capital Bay, Executive Bay, The Corner, Park Central, Burjside Boulevard, Amber Residence, Lake side and Al Jawhara.