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The Middle East's top 10 construction contracts of August 2018

From Arabtec's work with Dubai Municipality to Jacobs' and IHCC's contracts in Saudi Arabia, these were the biggest construction updates of August 2018

Al Hamra's Rove Manar Mall hotel will be developed in Ras Al Khaimah.
Al Hamra's Rove Manar Mall hotel will be developed in Ras Al Khaimah.
IHCC has won two contracts from the Saudi German Hospital group.
IHCC has won two contracts from the Saudi German Hospital group.
Nakheel is developing two marinas at Palm Jumeirah [image: Dubai Media Office].
Nakheel is developing two marinas at Palm Jumeirah [image: Dubai Media Office].
Two PPP contracts have been awarded in Abu Dhabi [representational image].
Two PPP contracts have been awarded in Abu Dhabi [representational image].
Hoehler + alSalmy has won a design contract from Muscat University [representational image].
Hoehler + alSalmy has won a design contract from Muscat University [representational image].
ONEIC has won a power contract from Oman's Mazoon [representational image].
ONEIC has won a power contract from Oman's Mazoon [representational image].
Arabtec extended its work with Dubai Municipality this August.
Arabtec extended its work with Dubai Municipality this August.
Jacobs has won oil and gas industry work with Saudi's SATORP [representational image].
Jacobs has won oil and gas industry work with Saudi's SATORP [representational image].
A JV of Orascom and BESIX has awarded a Grand Egyptian Museum contract to an Acciona unit.
A JV of Orascom and BESIX has awarded a Grand Egyptian Museum contract to an Acciona unit.
A Union Coop hypermarket will be developed in Dubai Silicon Oasis [image: ucs.ae].
A Union Coop hypermarket will be developed in Dubai Silicon Oasis [image: ucs.ae].

10. IHCC wins Saudi German Hospital contracts

IHCC won two contracts from the Middle East Healthcare Company (Saudi German Hospital) at the beginning of August.

One of the deals pertains to the design and construction of the outpatient tower, and expansion of the inpatient beds, at the Saudi German Hospital Riyadh. 

READ: 50-bed Saudi German Hospital opens in Sharjah

The second set of contracts covers the design and construction of Saudi German Hospital Makkah, as well as staff housing units in Makkah and Dammam.

In a filing to the Saudi bourse, Tadawul, the hospital developer said the duration of the contracts was 36 months from the date of awarding the contract, with completion set for 2021.

9. Nakheel reveals $4m marina contracts for Dubai's Palm Jumeirah

Dubai developer Nakheel this August that it was spending $4.1m (AED15m) to develop two marinas at its Palm Jumeirah development.

The marinas will bring the total number of berths on the island to 600.

Majestic Marine Engineering will build the new facilities, and Applied Technology and Management Inc is the project’s consultant.

READ: Six-month net profit dip for Dubai developer Nakheel

Upon completion this year, the marinas at Nakheel’s Azure Residences complex and The Pointe will accommodate 44 boats and yachts up to 30m long.

Away from Palm Jumeirah, Nakheel is building six marinas, worth $45m (AED165m), at its waterfront master planned development, Deira Islands.

“Between them, they will accommodate 614 boats and yachts up to 60m long,” Dubai Media Office reported.

8. Abu Dhabi signs PPP contracts worth $14m

Two public-private partnership (PPP) contracts worth $13.9m (51.3m) were awarded by Abu Dhabi Municipality (ADM) this August for the construction of a service station and a market in the UAE capital.

UAE firm Tristar Engineering and Construction Company won a $9.8m (AED30m) contract to build a 12.3ha community market in Mohammed bin Zayed City, while Florida Property Development Company will build a $4.1m (AED15.3m) service station in Al Shawamekh city.

READ: PPPs emerge as model-of-choice for Gulf water infra projects

The latter project will provide car repairs, carpentry, and a range of household maintenance services.

A musataha (build-operate-transfer) agreement was signed to cover a 30-year period for the community market, with the deal due to take effect two years after construction starts. While a construction timeline is yet to be revealed, ADM said it hoped to open the market in Q4 2020.

The service station in Abu Dhabi's Al Shawamekh suburb also has a 30-year Musataha agreement. Once built in 2023, it will become a local hub for plumbing, electricity, and air conditioning services, plus mechanical work. Construction is expected to take no more than 36 months.

7. Oman's Hoehler + alSalmy wins Muscat Uni design contract

Homegrown architectural practice, Hoehler + alSalmy, was awarded a design contract to develop Muscat University's permanent campus this August.

The architectural and engineering firm beat out numerous other architectural consultancies for the design competition that was put out to tender by the university.

READ: Million-dirham products picked for Hilton's new Garden Inn Muscat hotel

According to a statement, the firm’s “innovative designs” stood the firm apart to the judging panel, which was said to be “amazed with the company’s pioneering design capabilities whilst catering to the Muscat University’s vision of coping with competitiveness, globalisation, and sustainable development principles for its new campus”.

The design will be in line with the university’s intended masterplan for the purpose of “a modern, high quality, forward-looking university campus located in close proximity to the new airport”.

The firm already has experience designing for universities, having accomplished the masterplan for two other universities in Oman – German University of Technology and Buraimi University.

6. VX Studio wins design contract for Rove Manar Mall hotel in RAK

This August, it was revealed that Dubai's VX Studio had won a contract of undisclosed value to work on Al Hamra Group's planned Rove Manar Mall in Ras Al Khaimah.

The architecture and design firm VX Studio has been appointed lead consultant for Rove Manar Mall, a 250-room mid-scale property in the UAE's Northern Emirate.

Current plans include constructing an eight-storey hotel next to Al Hamra's Manar Mall, based on which the property is named. However, the developer told Construction Week that the number of floors may be subject to design change

CONSTRUCTION UPDATE: Expansion of Ras Al Khaimah's Manar Mall

Construction work is slated to get under way later this year, and Rove Manar Mall is expected to be operational in 2020. Its amenities will include an outdoor pool, a gym, and an all-day restaurant called The Daily.

The Rove Hotel brand was developed as a joint venture between developers Meraas Holdings and Emaar Properties.

Al Hamra's Rove property will compliment the expansion of Manar Mall, which is being carried out by its subsidiary, Al Hamra Real Estate Development.

5. Oman's ONEIC wins $5m Mazoon contract

Oman National Engineering and Investment Company (ONEIC) was this August awarded a $2.8m (OMR1.1m) construction contract to build power feeders for Mazoon Electricty Company.

The contractor will set up a 33kV and a 11kV electricity transmission line for primary power substations in Al Dakhiliyah, a governorate in central Oman.

READ: ONEIC wins $5m contract to build Omani power feeders

Work on its one-year contract with national power distributor Mazoon was due to begin on 16 August

Mazoon awarded ONEIC a $5.1m (OMR1.9m) contract to construct electricity power feeders in June. This came a month after ONEIC won a contract worth $70,469 (OMR295, 861) to build an unknown number of transmission lines for Mazoon in May.

4. Arabtec unit wins $42m Dubai Municipality contract

Arabtec Engineering Services, a part of Arabtec Holding, last month won a $42.2m (AED155m) contract variation for its work on a sewerage and drainage infrastructure project in Dubai.

The construction powerhouse's subsidiary was awarded Dubai Municipality's deal for existing social infrastructure work in the Al Khawaneej area.

LEADER PROFILE: Hamish Tyrwhitt, Arabtec Holding

Commenting on the development, Hamish Tyrwhitt, group chief executive officer of Arabtec Holding, said: "Consistent with our objective to diversify our business, this award builds on our infrastructure backlog and longstanding relationship with Dubai Municipality.

Arabtec Engineering Services' sewerage and drainage contract is a 15-month deal, and a variation of its DS189 contract. 

3. Jacobs extends Saudi oil and gas portfolio with SATORP contract

Jacobs Zate, a subsidiary of US giant Jacobs Engineering, was awarded a two-year contract renewal for work on a petrochemical plant in Jubail Industrial City 2, Saudi Arabia.

Saudi Aramco Total Refining and Petrochemical Company (SATORP) awarded the renewal to Jacobs Zate, which will provide a range of engineering services for the refinery.

READ: Jacobs wins contract to work on UAE's Etihad Rail

Jacobs will deliver basic engineering, front-end engineering design (FEED), detailed design, procurement, construction management, commissioning support, and handover of small- to medium-sized capital investments. Its work will help to sustain the operations of the refinery, owned by SATORP – a joint venture between Saudi Aramco and France's Total Oil Company.

Remarking on the contract, David Zelinski, energy, chemicals, and resources senior vice president and general manager of Jacobs' Europe, Middle East, and Africa operation, said: "SATORP's continued trust in our proven capabilities as a world-class engineering and construction management company is a testament of our commitment as a valued partner in the region."

2.  BESIX-Orascom JV awards $13m Grand Egyptian Museum contract

Acciona Producciones y Diseño (APD) has been chosen to develop four of the Grand Egyptian Museum’s exhibition halls in a contract worth $12.8m (EUR 11m).

The Egyptian Ministry of Culture and a joint venture (JV) of BESIX and Orascom have picked APD to work on the project 

APD will be responsible for the technical and museographic development of 1.2ha of exhibition space at the Cairo-based institution, with APD incorporating a variety of exhibition elements, such as graphics, models, life-sized reproductions, and exhibition and staging lighting.

The move will turn the Grand Egyptian Museum into the largest archaeological museum in the world with 45,000 pieces, of which 25,000 have never been exhibited before.

READ: Spain's Acciona and Saudi's Swicorp start work on $180m Egypt solar project

APD said the museum is expected to receive five million visitors a year, equating to around 15,000 day. Some of the rooms will be open to visitors by 2019, with the grand opening set for late-2020.

Part of the deal will also see APD conduct a three-dimensional scan of Tutankhamun’s outer burial chamber to provide an “exact digital model of the original that can be turned into a physical reproduction for future display at the museum”.

APD's other projects include the National Museum of Oman, the House of European History in Brussels, Abu Dhabi’s The Founder’s Memorial, and the Al-Shaheed Park Museums in Kuwait.

1. Construction contract signed to set up $26m Union Coop at Dubai Silicon Oasis

Dubai Silicon Oasis is set to receive a $25.6m (AED94m) Union Coop facility following a recently signed development contract.

The 1.32ha commercial centre will be developed under a 30-year investment contract signed between Dubai Silicon Oasis Authority (DSOA) and Union Coop. 

Land worth $1.3m (AED5m) has been purchased by Union Coop for the project.

Among the facility's major features include a partial basement reserved for a carpark, in addition to shops and 250 parking spaces on the ground floor. 

READ: Meydan, Union Coop ink deal to build mall in MBR City

A 5,620m2 Union Coop hypermarket will be developed on the first floor. 

Commenting on the project, Khalid Humaid bin Diban Al Falasi, chief executive officer (CEO) of Union Coop, said: "In a bid to achieve our expansion goals, we are always looking for investment opportunities in the form of both purchase and lease of land that will allow us to supply the community with a wide range of products at competitive prices and maximise shareholder returns in the long run."

Dr Juma Al Matrooshi, deputy CEO for operations and client affairs at DSOA, added: "In line with its efforts to develop an integrated community, DSOA is keen on attracting investment opportunities that contribute to the diversification of services available to its residents.

"The new Union Coop commercial centre will be a quality addition to the retail offering at the DSO," Matrooshi added, according to WAM.

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