In order to overcome the challenge of limited development space, Dubai came up with the brainwave of creating a man-made island to create more beachfront. In 2001, this idea evolved in to The Palm Jumeriah, and the ‘The World’ collection of private islands followed soon after.
The island Kingdom of Bahrain (at 665-sq km is two thirds the size of County Louth) has been similarly affected by the scale of development that has taken place in the state over the past few decades. With a minimum of land available for development, property values have risen dramatically in recent years, and the island is now very much focused on diversifying the range of developments that take place in the coming years. It has also taken the opportunity to create its own version of the man-made island series.
Bahrain is considered to be the fastest growing economy in the Arab world, fastest growing financial centre in the world, and it is also considered to be the freest economy in the Middle East.
So, it should be no surprise that in recent years many multi nationals have chosen Bahrain as the location for their regional headquarters, bringing many experienced senior managers to the island. Foreign residents account for about 40 per cent of Bahrain’s 700,000 population.
Major projects currently on site in Bahrain include The Bahrain Financial Harbour (€900m), Durrat al Bahrain (A €2.1bn series of 15 man-made islands), Health Island Project (€700m)), Al Areen Resort (€750m) and Rifa Views (€300m).
One of the most exciting construction projects to be completed in the Gulf States this year is the 50-floor Bahrain-based World Trade Centre. This twin tower development, ironically for an oil rich state, has three giant wind turbines bridging the gap between the towers. It is the first skyscraper in the world to integrate wind turbines into its design.
Bahrain International Investment Park
Bahrain's jewel development mega project is the Bahrain International Investment Park (BIIP) . This is being developed in the Hidd Industrial Area, and covers over 250 hectares with 25.5km of readily equipped infrastructure such as roads, street lighting, sewage systems, landscaping and desalination systems. BIIP offers 100 per cent foreign ownership of companies, zero per cent tax with a ten-year guarantee, special customs services and no recruitment restrictions.
At the end of September Bahrain's government approved a monorail train network to ease traffic flow on the island. The three-stage development plan is expected to be completed by 2030.
Find the latest Construction Professional Jobs in the Middle East and Bahrain.
Monday, September 29, 2008
Saudi Arabia – The giant that still sleeps
The Kingdom of Saudi Arabia is located at the centre of the emerging Gulf States. It has a population of over 27 million people and, at approximately 2.15 sq km in area (some borders in dispute), it is the largest country in the Middle East.
With a per capita income of €20,700, Saudi Arabia is one of the fastest growing countries in the world. However, in terms of development activity Saudi Arabia has been one of the slower Gulf states to kick in to action. Sometimes referred to as a ‘sleeping giant’, it has to date been more conservative than some other Gulf states, and it has not exploited its development potential with the vigour of some of its neighbours to date. But should this change, it would be expected to outperform all other construction markets in the region.
Projects
At the centre of its development ambitions are six economic cities. King Abdullah Economic City is the largest of these mega projects, and it is planned for completion in 2020. The creation of these six industrialised cities will spearhead Saudi Arabia’s move away from dependency on oil and gas. Further infrastructure development will include a number of major port and railway projects, such as a 950km rail link between the capital Riyadh and the coastal city of Jeddah.
According to NCB Capital, in the coming years demand for residential units in Saudi Arabia will exceed 1.3million units. Recently amended Saudi investment laws now allow foreign investors to invest in a limited number of identified projects.
In the capital city Riyadh, there is a considerable shortage of housing, particularly amongst the lower and middle classes. Growing demand in these markets is expected to drive residential development activity in the capital for at least the next five years.
Outside of Riyadh, major residential projects include Al Khobar Lakes, the first phase of which covers 2.6million sq m, and says the developer, Emaar Middle East, ‘this has a development value of SR4.6bn (€830m). Al Khobar Lakes is one of the largest master-planned communities in the Eastern Province of Saudi Arabia and is located close to Al Khobar City, Dhahran and Dammam.
Another high profile residential scheme called Jeddah Gate is a €490m, 5,000 unit development which is currently on site at the old Jeddah Airport.
Find the latest Construction Professional Jobs in Saudi Arabia and the Middle East
Qatar's mega growth ambition
According to The New York Times the Arabic emirate of Qatar will be the next Dubai. Its capital, Doha, has a population of 400,000 people and, according to the Qatar Tourism Authority, more than 100 buildings, including hotel towers, business centres and holiday resorts will cover the cities skyline in the coming years.
With a population of less than a million people Qatar has a construction market with a value of €70 billion. And when you include construction activity in the oil and gas sectors you can add a further €38.5 billion to the figure, bringing the overall market value to €108.5 billion.
Qatar’s Gross Domestic Product (GDP) per capita is the largest of all the Arabic States (IMF). And with no income tax, Qatar is also one of the two least-taxed sovereign states in the world, Bahrain being the other.
In terms of getting projects to site, Qatar's government and construction industry are no slouches. The state has the best record of the GCC (Gulf Cooperation Council) in getting developments to site, with over one third of the currently planned €70billion worth of construction projects started construction, and the balance at design or construction stage.
Spearheading Qatar’s plans to divert away from a reliance on fossil fuels in the coming years will be its financial and leisure industries. Qatar will need to raise the capacity of its financial services to meet the requirements for more than $130billion worth of projects in the coming years, if it is meet its lofty ambitions. The Qatar Financial Centre (QFC) is in fact expected to provide financial services providers with access to nearly $1trillion of investment across the GCC as a whole over the next decade.
When compared to other Arab states, Qatar has relatively liberal laws. However, it still has some way to go to match its neighbouring states, UAE or Bahrain.
Mega Project
The largest project ever undertaken in Qatar is the new City of Lusail. It is currently under construction and is expected to be completed by 2011. A coastal development, in the northern part of the municipality of Umm Salal, Lusail is 15km north of Doha City centre and is located on over 35-sq km of land. When completed, it will have accommodation for 200,000 people. The development will include residential areas, commercial districts, island resorts, marinas, leisure facilities (including two golf courses and an entertainment district) and luxury shopping.
Lusail is being built in phases with the whole project due for completion in 2011. It is being developed by the state controlled developer Qatari Diar Real Estate Investment.
Another Qatar mega projects is The Pearl, a $2.5billion, 985-acre artificial island comprising five-star hotels and two-million square feet of high-end shopping. Work will begin on the first phase of The Pearl in 2009, Other projects include the Sharq Village & Spa, along the beachfront and the IM Pei designed modernist Museum of Islamic Arts.
Find the latest construction jobs in Qatar and the Gulf States
With a population of less than a million people Qatar has a construction market with a value of €70 billion. And when you include construction activity in the oil and gas sectors you can add a further €38.5 billion to the figure, bringing the overall market value to €108.5 billion.
Qatar’s Gross Domestic Product (GDP) per capita is the largest of all the Arabic States (IMF). And with no income tax, Qatar is also one of the two least-taxed sovereign states in the world, Bahrain being the other.
In terms of getting projects to site, Qatar's government and construction industry are no slouches. The state has the best record of the GCC (Gulf Cooperation Council) in getting developments to site, with over one third of the currently planned €70billion worth of construction projects started construction, and the balance at design or construction stage.
Spearheading Qatar’s plans to divert away from a reliance on fossil fuels in the coming years will be its financial and leisure industries. Qatar will need to raise the capacity of its financial services to meet the requirements for more than $130billion worth of projects in the coming years, if it is meet its lofty ambitions. The Qatar Financial Centre (QFC) is in fact expected to provide financial services providers with access to nearly $1trillion of investment across the GCC as a whole over the next decade.
When compared to other Arab states, Qatar has relatively liberal laws. However, it still has some way to go to match its neighbouring states, UAE or Bahrain.
Mega Project
The largest project ever undertaken in Qatar is the new City of Lusail. It is currently under construction and is expected to be completed by 2011. A coastal development, in the northern part of the municipality of Umm Salal, Lusail is 15km north of Doha City centre and is located on over 35-sq km of land. When completed, it will have accommodation for 200,000 people. The development will include residential areas, commercial districts, island resorts, marinas, leisure facilities (including two golf courses and an entertainment district) and luxury shopping.
Lusail is being built in phases with the whole project due for completion in 2011. It is being developed by the state controlled developer Qatari Diar Real Estate Investment.
Another Qatar mega projects is The Pearl, a $2.5billion, 985-acre artificial island comprising five-star hotels and two-million square feet of high-end shopping. Work will begin on the first phase of The Pearl in 2009, Other projects include the Sharq Village & Spa, along the beachfront and the IM Pei designed modernist Museum of Islamic Arts.
Find the latest construction jobs in Qatar and the Gulf States
Friday, September 12, 2008
Sharjah – Industrial and cultural hub of the UAE
Sharjah is the third largest emirate of the United Arab Emirates. With an area of 2,600 sq km, it is similar in size to Ireland’s County Limerick, and it has a population of 800,000 people. It also has land on the Persian Gulf and the Gulf of Oman.
The cultural capital of the UAE, Sharjah accounts for approximately 7.5 per cent of the UAE's GDP. Although it may be lagging behind Abu Dhabi and Dubai in terms of development activity, Sharjah does have development ambitions.
During the 90’s and early 2000’s Sharjah’s main focus was on industrial development: It now accounts for 48 per cent of the UAE's entire industrial output. It has 11 industrial zones across 26 sq km, linking the UAE's main transport arteries: the north-south Emirates Road, and the east-west highway to Khorfakkan and Fujairah. Sharjah International Airport is also the region's largest airfreight cargo handler.
Further development of Sharjah as an industrial and logistics hub can be expected in the coming years with a recent $130m investment in its road network resulting in the expansion of the important regional artery, the King Abdulaziz Road.
Sharjah's most ambitious development scheme will see the creation of a $5bn retreat for those working in the nearby Dubai City.
The Nujoom Islands, when completed, will comprise a number of tall, mixed-use towers as well as villas, hotels and retail, all linked by a network of ‘swimming canals’ and bridges. Expected to accommodate 80,000 residents and tourists, work on the Nujoom Islands resort started last year.
But before you start thinking of an Amsterdam in the emirates, Sharjah is the most conservative emirate in the UAE. The sale, possession and consumption of alcohol are banned, and there is a conservative dress code for men and women.
Find the latest construction professional jobs in Sharjah, UAE and the Middle East
The cultural capital of the UAE, Sharjah accounts for approximately 7.5 per cent of the UAE's GDP. Although it may be lagging behind Abu Dhabi and Dubai in terms of development activity, Sharjah does have development ambitions.
During the 90’s and early 2000’s Sharjah’s main focus was on industrial development: It now accounts for 48 per cent of the UAE's entire industrial output. It has 11 industrial zones across 26 sq km, linking the UAE's main transport arteries: the north-south Emirates Road, and the east-west highway to Khorfakkan and Fujairah. Sharjah International Airport is also the region's largest airfreight cargo handler.
Further development of Sharjah as an industrial and logistics hub can be expected in the coming years with a recent $130m investment in its road network resulting in the expansion of the important regional artery, the King Abdulaziz Road.
Sharjah's most ambitious development scheme will see the creation of a $5bn retreat for those working in the nearby Dubai City.
The Nujoom Islands, when completed, will comprise a number of tall, mixed-use towers as well as villas, hotels and retail, all linked by a network of ‘swimming canals’ and bridges. Expected to accommodate 80,000 residents and tourists, work on the Nujoom Islands resort started last year.
But before you start thinking of an Amsterdam in the emirates, Sharjah is the most conservative emirate in the UAE. The sale, possession and consumption of alcohol are banned, and there is a conservative dress code for men and women.
Find the latest construction professional jobs in Sharjah, UAE and the Middle East
Thursday, September 11, 2008
Dubai – Making pie in the sky a reality
With an area of 4,114-sq km, Dubai is slightly smaller than County Tipperary, and has a population of just under 1.5m people. Dubai's gross domestic product (GDP) surged to a record US$38.7 billion in 2007, is predicted to sustain an average growth rate of 11 per cent for the next eight years.
Much of the emirate of Dubai’s success has been attributed to its political stability when compared to emerging ambitious countries such as Iran and Syria.
The Dubai residential development market is dominated by high end residential development, with the majority of current and future residential supply targeted at high income earners.
The office market in Dubai is seriously undersupplied, with a resulting double digit inflation in rental rates in the past few years. Free zones such as Dubai Media and Internet City and the Media Production Zone are very popular with Blue Chip Clients.
With Grade A office accommodation in poor supply Dubai’s construction industry has had to climb a steep learning curve, with much new office property expected to hit the market over the next 12 to 18 months.
As for commercial development, 75 per cent new retail units in shopping malls to be completed between now and 2010 is already prelet.
The total number of tourists to visit Dubai in 2007 is estimated at about 7million, with hotel occupancy across the year sitting at a comfortable average of about 85 – 88 per cent.
Five Dubai developments to inspire
Much of the emirate of Dubai’s success has been attributed to its political stability when compared to emerging ambitious countries such as Iran and Syria.
The Dubai residential development market is dominated by high end residential development, with the majority of current and future residential supply targeted at high income earners.
The office market in Dubai is seriously undersupplied, with a resulting double digit inflation in rental rates in the past few years. Free zones such as Dubai Media and Internet City and the Media Production Zone are very popular with Blue Chip Clients.
With Grade A office accommodation in poor supply Dubai’s construction industry has had to climb a steep learning curve, with much new office property expected to hit the market over the next 12 to 18 months.
As for commercial development, 75 per cent new retail units in shopping malls to be completed between now and 2010 is already prelet.
The total number of tourists to visit Dubai in 2007 is estimated at about 7million, with hotel occupancy across the year sitting at a comfortable average of about 85 – 88 per cent.
Five Dubai developments to inspire
- Dubailand: When completed, Dubailand will be the largest theme park in the world. Spread over seven ‘Worlds’ (Attractions & Experience; Retail & Entertainment; Themed Leisure & Vacation; Eco-Tourism; Sports & Outdoor; Downtown; and Science & Planetarium), Dubailand is being built in four phases. The first phase is due for completion by early 2010, with overall completion expected some time between 2015 and 2018. It is seen a strategic tool to move the UAE economy move away from its reliance on oil. Cost of development is being estimated at approximately US$70bn.
- Dubai Sports City: Set within Dubailand, the US$4bn Dubai Sports City will comprise over 50m sq ft of sporting venues, academies, homes, cultural centres and retail developments. It is due for completion in 2010 and may be a future Olympic venue.
- Business Bay: “A business city within a city”, Business Bay is being hailed locally as “the Wall Street of the Middle East" – One of Dubai’s ambitions is to become a world business hub. With an area of over 64million sq ft Business Bay will feature office and residential towers in landscaped gardens, interspersed with a network for roads, pathways and the 13-lane Business Bay Crossing Bridge. Phase One of the ambitious project comprising over 200 towers is due for completion in 2010.
- Burj Dubai: The Burj Dubai is already the world’s tallest skyscraper, and it is still growing. Due for completion in September 2009, the budget for the project is €1.4bn. As of 01 September, 2008, the Burj Dubai had reached 160 floors and a height of 688m to become the world’s tallest man-made structure.
- Dubai Towers at The Lagoons: The twisting Dubai Towers at The Lagoons are due for completion in 2010, and are somewhat evocative of Gaudi’s La Sagrada Familia cathedral in Barcelona. Towers 4 will be one of the tallest towers in the world, coming in at 550m.
Tuesday, September 9, 2008
Abu Dhabi – Where big is just too small
In 2007, the construction sector of Abu Dhabi was valued at €4.7bn. An aggressive marketing campaign carried out by the emirate in the past year suggests that growing confidence in the state will bring its share of the overall UAE mortgage market from five per cent in 2007 to 22 per cent by the end 2008. That is a growth rate of over 400 per cent in just over a year.
The sales price growth of property in Abu Dhabi is reported to have by 53 percent to date between 2007 and 2008 (Colliers International). It is predicted the under-supply of residential property in the emirate will continues for the next three years to at least beyond 2010.
In the commercial market, office supply is currently mostly concentrated in the Abu Dhabi City area. However, key areas for commercial development in the next two to five years will be Al Raha Beach, Al Reem Island, the Between Bridges Project and the ADNEC Capital Centre.
A strategic plan for the future development of the Abu Dhabi City up to 2030 foresees the creation of two new Central Business Districts (Al Suwa Island Financial Centre and the Capital District), at opposite ends of the city, where office spaces will be consolidated.
The prestige tourist market continues to grow in Abu Dhabi. 10,000 new hotel rooms are due for completion between now and 2010, with a further 7,000 rooms by 2015.
Five Abu Dhabi Developments to Watch
Find the latest construction professional jobs in Abu Dhabi, UAE and the Middle East
The sales price growth of property in Abu Dhabi is reported to have by 53 percent to date between 2007 and 2008 (Colliers International). It is predicted the under-supply of residential property in the emirate will continues for the next three years to at least beyond 2010.
In the commercial market, office supply is currently mostly concentrated in the Abu Dhabi City area. However, key areas for commercial development in the next two to five years will be Al Raha Beach, Al Reem Island, the Between Bridges Project and the ADNEC Capital Centre.
A strategic plan for the future development of the Abu Dhabi City up to 2030 foresees the creation of two new Central Business Districts (Al Suwa Island Financial Centre and the Capital District), at opposite ends of the city, where office spaces will be consolidated.
The prestige tourist market continues to grow in Abu Dhabi. 10,000 new hotel rooms are due for completion between now and 2010, with a further 7,000 rooms by 2015.
Five Abu Dhabi Developments to Watch
- Yas Island Formula 1 Racetrack: (Phase 1 due for completion late 2008). This €28.5Bn Entertainment Island will be home to the world's first Ferrari Theme Park.
- Masdar City: Ironically for the oil rich UAE, the 6-sq km Masdar City is to be 100 per cent environmentally friendly and carbon neutral and will house 50,000 residents when completed in 2015. Phase 0ne of the €22bn city is due for completion by the end of 2009, with phase six planned for completion 2015.
- Saadiyat Island: A new €280m Guggenheim Museum, due for completion in 2011, will be the centre piece of this cultural island which will also include a Louvre Gallery, a Maritime Museum and the Sheikh Zayed National Museum. The island will be completed with luxury villas, condos and apartments, golf courses and 29 hotels.
- Khalifa City: The future capital of the UAE, Khalifa City will be a totally new master-planned metropolis which will take another 20 years to complete.
- Reem Island: This gargantuan new Island Project that will be the centrepiece and jewel in the crown of Abu Dhabi. Eventually it will become home to over 250,000 residents as well as a large number of businesses.
Find the latest construction professional jobs in Abu Dhabi, UAE and the Middle East
United Arab Emirates – Where construction professionals dare
The United Arab Emirates (UAE) comprises seven oil-rich federations in the Persian Gulf region of the Middle East. Incidentally, an emirate is a State nation ruled by a hereditary emir. The two other independent emirates in the Persian Gulf region are Kuwait and Qatar.
The emirate states – particularly Abu Dhabi and Dubai – have set themselves up as a global fulcrum linking East and West, in which the most ambitious, somewhat madcap, and certainly “gargantuan ”construction ambitions will be realised over the coming years.
For anyone with ambitions as a construction professional or building contractor, this is the place to be.
The largest of the UAE states is Abu Dhabi, which also contains the UAE’s capital, Abu Dhabi City.
The seven UAE states in order of size are:
Over the following blogs we will assess the ambitions of these individual emirates as well as look at the ambitions of other emirates and kingdoms in the region.
Find the latest construction professional jobs in the United Arab Emirates and the Middle East
The emirate states – particularly Abu Dhabi and Dubai – have set themselves up as a global fulcrum linking East and West, in which the most ambitious, somewhat madcap, and certainly “gargantuan ”construction ambitions will be realised over the coming years.
For anyone with ambitions as a construction professional or building contractor, this is the place to be.
The largest of the UAE states is Abu Dhabi, which also contains the UAE’s capital, Abu Dhabi City.
The seven UAE states in order of size are:
- Abu Dhabi (67,340-sq km)
- Dubai (4,114-sq km)
- Sharjah (2,600-sq km)
- Ras al-Khaimah (1,700-sq km)
- Fujairah (1,150-sq km)
- Umm al-Quwain (750-sq km)
- Ajman (260-sq km).
Over the following blogs we will assess the ambitions of these individual emirates as well as look at the ambitions of other emirates and kingdoms in the region.
Find the latest construction professional jobs in the United Arab Emirates and the Middle East
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