AECOM Middle East Property & Construction Handbook 2021

MIDDLE EAST
PROPERTY &
CONSTRUCTION
2021
HANDBOOK
Middle East Property & Construction Handbook 2021
AECOM
FOREWORD
Welcome to the Middle East Within the Global and MENA
Property & Construction Economic Review, we discuss
Handbook 2021. Over the the region’s current economic
last 12 months we have and construction performance
monitored new opportunities and present the challenges
and trends which have and opportunities we expect to
presented themselves during see in the future.
these unprecedented times,
including the significant impact The handbook concludes with
coronavirus has had on local our reference section, providing
markets. Our goal has been international and regional cost
to adapt our knowledge with data within the built environment.
these ever-changing trends As with previous years, we provide
and construction growth advice around procurement,
opportunities in order to as well as current building and
provide up-to-the minute compliance regulations across
solutions in our offerings. We the Middle East, which once
hope that you find our analysis, again we hope you keep as a
forecasts and construction point of reference.
market evaluation beneficial
and of much interest.
We have carefully selected

articles, written by AECOM
specialists, which include
prevailing themes currently
topical within the construction
and property market. The articles
include the growing opportunities
within the Middle East for the
data center sector and balancing
the issues associated with
their development to climate
change We also explore the
benefits of choosing to refurbish
buildings rather than new build
construction within the maturing
Middle Eastern property sector,
and finally we delve into the
exciting developments we expect
to see within the commercial We continue to seek feedback in everything
we do. Please contact the handbook
market as business operations editors, Marc Gibbons and Laura Morgan
return to the physical office post- via bi_middleeast@aecom.com for
further information.
lockdown and working from home.
Abdali Medical Center, Amman, Jordan

Image courtesy of Abdali Hospital
AECOM
Contents
01 ECONOMIC ROUND UP
08 17 25
Global Global MENA
economic review construction economic review
prospects
02 ARTICLES
40 44 50
Data centers - The case for The future of
balancing climate refurbishment the office in
change and the Middle East
digital growth
03 REFERENCE ARTICLES
60 64 68
Procurement Middle East Building regulations
routes forms of contract and compliance
04 REFERENCE DATA
78 86 88 90
International building Regional building MEP costs Major measured
cost comparison cost comparison unit rates
91 92 93 94
Major Labour costs UAE indices Typical building
material prices services standards
for offices
95 96
Exchange rates Weights and
measures
05 OFFICE DIRECTORY
100
Office directory
6
AECOM
01
ECONOMIC
ROUND UP
IN BRIEF
08 17 25
Global Global MENA
economic review construction markets economic review
7
GLOBAL
ECONOMIC
REVIEW
2019-2021 was anticipated to be a challenging
period globally with an increased expectation on
governments worldwide to grow economies at a
faster pace. There were challenges contributed by
oil demand and subsequent prices, political unrest,
climate change and natural disasters, including the
coronavirus pandemic at the forefront. 2021 will
have a poignant focus on economies recovering
from the effects of coronavirus, which significantly
contributed to many already fragile and volatile
markets. AECOM Middle East explores the
response across the world and tracks key data
as we look ahead to 2021.
8
AECOM
The real GDP growth for 2020- toll the coronavirus pandemic and cope better in the future.
2021 is inversely presented has had, as the virus slowed Advanced economies are
when compared to 2019 economic activity around the predicted to contract by -7 per
predictions. 2019-2020 looked globe, calls for policymakers cent in 2020 with a growth of 3.9
forward and expected tensions to limit the harm, recover and per cent for 2021. Vulnerable
to settle between major rebuild better and stronger than nations within EMDE’s will be
economies, international trade before. World GDP is expected under strain with inadequate
and investment. This was in to contract by -5.2 per cent in health care provisions that
order to pick up the pace and for 2020, whilst 2021 is forecasted are reliant on international
GDP growth to be restored after to see growth of 4.2 per cent. financing and lower per capita
increased demand in emerging The 2021 forecast is dependent incomes. EMDE’s GDP is
markets and developing on controlling the pandemic expected to contract -2.5 per
economies (EMDE’s). Forecasts with global health and policy cent in 2020, while regaining
from The World Bank Group – action, protecting vulnerable growth momentum of 3.9
Global Economic Prospects populations and refining per cent in 2021.
report (2020), described that the countries measures to prevent
Real GDP growth
8%
6%
4%
2%
0%
y-o-y change %
-2% 2017 2018 2019 2019f 2021f

-4%
-6%
-8%
-10%
-12%
-14%
-16%
World trade volume Advanced economies EMDEs World
Source: World Bank Economic Prospects, June, 2020
The value of exporting 2024 forecasts, suggest that disruptions causing repressed
goods from one country to growth will maintain and be demand. Although pre-crisis
another is a key component similar to 2020 levels. In the early business activity levels may not
of a country’s GDP, as well as 2000’s, developing economies be visible until beyond 2021,
measuring the development of recorded an increase in their the IMF forecasts are optimistic
their economies, employment share of world trade through that economies will see some
opportunities and increasing exports of goods and services, growth in 2021 and beyond. With
wages and raising the standard but this has plateaued in recent the potential of a coronavirus
of living. Slight growth is years. China, India and Singapore vaccine announced in Q4 of
forecasted globally in 2020 to all account for more than 40 2020, this may improve current
3.7 per cent, with advanced per cent of the developing global business conditions.
economies growing at a change economies’ services exports. Economists are not expecting an
of 3.1 per cent and emerging 2020 has seen a decline in overnight revival, but expect that
markets at 4.8 per cent. The exports of goods and services the vaccine will contribute to a
anticipated volumes for 2021, linked to the widespread hopeful recovery in the future.
and looking forward to the lockdowns and transportation
9
Growth in volume of exports of goods and services
8.0%
7.0%
6.0%
% y-o-y change
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2017 2018 2019 2020f 2021f 2022f 2023f 2024f
World Advanced economies EMDE's Source: IMF, World Economic Outlook, September 2020
The global composite Purchasing Managers Index (PMI) a drop in worldwide manufacturing and services
sunk to a record low of 26.5 in April 2020, gradually activity, correlating with the reduced global trade. The
recovering in Q3 2020 to an average of 51.7. This result fall during 2020 was the greatest recorded, including
is three points higher than the average seen 12 months comparisons to the start of the global financial crisis in
previous. The results witnessed during Q3 reflected 2008 and trade tensions in 2018-2019.
Global Composite PMI

60 50.8
52.1
50
40
30
20
26.5
10
0
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Jun-15
Sep-15
Jun-16
Sep-16
Jun-17
Sep-17
Jun-18
Sep-18
Jun-19
Sep-19
Jun-20
Sep-20
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Source: IHS Markit / JP Morgan
10
AECOM
COMMODITIES
Commodity prices were heavily impacted by the demand. Both oil prices and other commodities
reduced demand in Q2 2020. This saw the price are expected to increase in 2021 with non-energy
of oil fall sharply by 47.9 per cent before beginning commodities expected to grow at a faster pace.
its recovery. A major cause of this was due to the Prices and other commodities are expected to
imposed global travel restrictions, and in some increase in 2021 with non-energy commodities
instances a total cessation of air travel during expected to grow at a faster pace.
2020, extremely affecting transport industry
Growth in commodity prices
40.0%
30.0% -5.9% 18.8%
20.0%
10.0%
y-o-y change %
6.0%
0.0%
-10.0% 2017 2018 2019e 2020f 2021f
-20.0%
-30.0%
-40.0%
-50.0%
-60.0% - 47.9%
Oil price Non-energy commodity price index
Source: World Bank Economic Prospects, June 2020
Commodity indices
Index, 2005=100
180
160
140
Index, 2005=100
120
100
80
60
40
20
0
2017 2018 2019 2020 2021 2022 2023 2024
Commodity price Index includes both fuel and non-fuel price indices
Industrial inputs (includes agricultural raw materials and metals)
Commodity fuel (includes crude oil, natural gas, and coal)
Metals (includes Copper, Aluminum, Iron Ore, Tin, Nickel, Zinc, Lead, and Uranium)
Source: IMF, World Economic Outlook, September 2020
11
Oil
Oil prices fell to their lowest levels in Q2 2020 pandemic. Oil demand is forecasted to rebound
as countries world-wide entered enforced in 2021 and thereafter, but at a lower rate than the
lockdowns, leading to most economic activity to 2019 average. Future oil consumption and demand
a halt. As such, the oil demand plummeted and statistics will be in the balance, with compliance to
previously agreed production cuts were extended global production cuts being a significant factor
to try and encourage healthy oil prices during the alongside improved global economic activity.
Anticipated changes in crude oil supply
8%
6%
4%
1%
% y-o-y change
2%
0%
-2% -1%
-4%
-6%
-8%
2016 2017 2018e 2019f 2020f 2021f 2022f 2023f
Middle East Europe Africa Latin America US & Canada Asia-Pacific Russia & Caspian
Source: OPEC, World Oil Outlook 2040
Medium-term oil demand outlook, 2018-2024
120.0
102.0 104.8
100.0
80.0 57.5
54.0
mb/d
60.0
40.0
48.0 47.3
20.0
0.0
2018 2019 2020 2021 2022 2023 2024
World OECD Non-OECD
54.0
Source: OPEC, (2019) World Oil Outlook 2040
12
AECOM
OPEC basket Price

90.0
79.39 62.92 65.10 37.05
80.0
70.0
60.0
USD$ / barrel
50.0
40.0
30.0
20.0
10.0 26.5
17.66
0.0
15
De 6
M 6
De 7
M 7
De 8
M 8
De 9
M 9
20
Se 6
Se 7
Se 8
Se 9
Ju 6
Se 0
Ju 7
Ju 8
Ju 9
Ju 0
1
1
1
1
-1
2
-1
-1
-1
-2
c-
p-
c-
p-
c-
p-
c-
p-
c-
p-
n-
n-
n-
n-
n-
ar
ar
ar
ar
ar
De
OPEC, mid month basket price USD $
Metals
Metal prices fell in 2020 due to a reduced demand ongoing pandemic and is expected to start
during the pandemic striking into Q2. Copper, recovery during 2021. By Q3 2020 demand had
aluminium and iron ore prices recovered by Q3 increased due to construction infrastructure
2020, and we have witnessed higher levels for activity in China. China acquires 50 per cent of the
copper and iron ore compared to 2018/2019. metals produced across the globe, they are the
The demand is heavily impacted by global largest buyer of copper and remain the world’s
construction activity that was impacted by the largest producer and consumer of steel.
Changes in metal prices
25.0%
20.0%
15.0%
Annual % change y-o-y
10.0%
5.0%
0.0%
2018 2019 2020f 2021f 2022f 2023f 2024f
-5.0%
-10.0%
-15.0%
Copper, grade A cathode, LME spot price, CIF European ports

Aluminum, 99.5% minimum purity, LME spot price, CIF UK ports
Iron Ore, China import Iron Ore Fines 62% FE spot (CFR Tianjin port)
Source: IMF, World Economic Outlook, September 2020
13
GLOBAL ECONOMIC MARKET

As forecasted by the International Monetary on public investment. This includes digital
Fund (IMF), the global economy is estimated infrastructure and clean energy — with the aim
to contract by -5.2 per cent by 2020-year end. to aid the recovery from the crisis. Coronavirus
This is lower than predicted in Q2 2020. 2021 will remain a present risk with disruption to trade
looks to strengthen after global activity picks up and supply chains.
momentum with a forecast of 5.4 per cent growth.
There are reservations around the growth rate, Trade deals
with much emphasis on private consumption
demand and private investment due to general During Q4 2020, one of the biggest trade deals
economic uncertainly and the effect of social in history was signed and agreed between China,
distancing and lockdowns. Trade tension between Australia Japan, New Zealand, South Korea
China and the USA remains a risk for the global and ASEAN leaders. The deal comprises 14
economy despite the ‘Phase One’ trade deal countries, 2.2 billion people and a staggering 30
agreement between the countries during 2020, per cent (value as 2019) of the world’s economic
according to The World Economic Forum. output, with respect to terms of trade in goods
and services, investment and new rules within
The IMF’s usual purpose and message is to electronic trade and property. The countries’
discourage countries’ expenditure at the risk of leaders announced that the deal will support
increasing debt. However, Deloitte analyses that recovery from the 2020 pandemic; creating job
since post (peak) pandemic the message has opportunities, strengthening supply chains and
altered. There is encouragement for wealthier prospering from transparent and inclusive rule-
nations to increase the public spending focused based trade and investment arrangements.
Global EPU Index with PPP adjusted GDP weights
Coronavirus
450 pandemic
400
Brexit (UK)
350 Presidential election (US)
Global EPU Index
300
250
200
150
100
50
0
Jul-10
Jul-11
Jul-12
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Jul-18
Jul-19
Jul-20
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Oct-10
Oct-11
Oct-12
Oct-13
Oct-14
Oct-15
Oct-16
Oct-17
Oct-18
Oct-19
Oct-20
Apr-10
Apr-11
Apr-12
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
Apr-18
Apr-19
Apr-20
Global EPU with PPP adjusted GDP weights
Source: Economic Policy Uncertainty
14
AECOM
The following are major risks identified for 2021 and beyond.
Global risks
Coronavirus pandemic: During 2020, the pandemic caused a political and economic
impact worldwide and is a continual risk for 2021. The pandemic heightened vulnerability
for emerging markets and may continue to impact commodity markets and oil price. Latin-
America was one of the least prepared regions to deal with the virus and they struggled to
contain the outbreak across the region. The economies were already unsettled due to slow
economic growth, low-quality public services and vulnerable middle classes expecting
increased state spending on social services.
South Asia tensions: Tensions between India-China remain a risk across military, diplomatic
and technology fronts.
UK-EU Brexit: Brexit remains an ongoing risk for the UK economy following the transition
period from the beginning of January 2021. Results from the negotiations will outline and
detail how business procedures will operate.
US/China tension: Trade tension between the US and China will remain a risk even with
a new President-elect. Competition is expected to rise within the technology sector with
restrictions placed on tech exports to and from China and exposed supply chains.
Digital cyber attacks: As new technologies are set to reshape economies with a drive
towards autonomous vehicles and the use of drones, artificial intelligence alone is
expected to boost global growth by 14 per cent by 2030. The digital world will be vulnerable
to cyberattacks, as already seen with critical infrastructure (energy, healthcare and
transportation) and geopolitical and economic uncertainties due to a lack of governance.
Extreme weather/climate change
Extreme weather caused by climate change will urge Governments to make commitments in reducing
their countries emissions. An emphasis will be placed on oil, gas firms, airlines, car manufacturers and
the food industry as this will remain a prevailing risk in 2021 and beyond.
Biodiversity loss
Biodiversity loss is caused by climate change, pollution, deforestation and habitat loss. This risk
threatens global ecosystems, affects livelihoods, food supplies, income and disease.
Natural disaster
Natural disasters can be a preventable risk, and solutions such as reforestation, education,
technology governance and economic support could aid to mitigate and reduce the risks caused
from global warming, pollution and mining.
Source: World Economic Forum
15
16
AECOM
GLOBAL
CONSTRUCTION
PROSPECTS
The forecast review is from 2020-2024, analysing The pandemic caused great challenges,
anticipated construction growth during this period. including the shutting down of facilities, the lack
of available raw materials and impacted supply
The global construction market size is expected chains and logistics. Construction businesses
to contract from $11,217bn (2019) to $10,566bn and organizations are reacting across the
(2020) according to Business Wire. The industry globe to aid business continuity, with innovative
anticipates recovery across 2021 with a solutions in the new world which will help maintain
compound annual growth rate (CAGR) of future growth and opportunities.
1.2 per cent between 2019 and 2021.
CAGR
1.2%
2019-2021
17
North America
The construction industry in North America is expected to reach $1,819bn by
2024. Construction output reportedly decreased in 2020 due to the pandemic
by an estimated $122bn.
The USA is seeing a demand in construction Canada’s construction market is expected to

for mixed-use projects. This is increasing with grow to CAD $261bn by 2024. As reported by
development in downtown areas and suburbs the Royal Institution of Chartered Surveyors
across the States. It is expected that the residential (RICS), construction and infrastructure shortages
market will also start to pick up pace due to of skills remains a risk for the industry along
increased housing permit applications. In addition, with the downfall of oil prices. The Minister of
there is also a demand for public investment in Infrastructure and Communities announced
affordable housing which should also support the expenditure plans to upgrade hospitals,
growth of the residential construction market. school rehabilitation centers and community
improvement projects. Statistics Canada
During 2020, an infrastructure plan was announced reported that the industry is striving to recover
for the funding of 20 projects across 20 states. after the steepest decline in spending during
This would form part of a plan to improve and the second quarter of 2020. New stimulus
connect communities. The grant program would and recovery packages are in discussion
invest in the schemes to enhance safety, improve across the regions to support infrastructure
transport infrastructure, such as major highways, and construction.
and support economic growth.
North America GDP 2020f ($bn)
Canada, USD
105
Canada
1,590
United States,USD
665
USA
19,000
North America GDP
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 from construction ($bn)
USD (Bn)
Source: 1) IMF 2) Trading Economic / World Bank
18
AECOM
Latin and South America

Forecasted by the United Nations Economic Commission for Latin American &
the Caribbean (ECLAC), the Latin American GDP is expected to contract by -5.3
per cent, with the South American GDP by -5.2 per cent for 2020.
The reduction reflects the impact of the 2020 stimulus packages specifically focusing on the
pandemic on Latin America and how the infrastructure and construction sector in a bid
construction economy may only grow at a slow to get the economy back to an improved pre-
recovery rate over the remaining review period pandemic state. Mexico and Brazil are reported
to 2024. Local construction economies were to have the strongest economies forecasted
hit hard during 2020, and reports are promoting by the World Bank and Trading Economics for
improved technological infrastructure and 2020, generating the greatest GDP’s and GDP
investment in developing ports, roads, railways and from construction compared to other South
transportation facilities. Governments across American countries.
Latin and South America have responded with
Latin America GDP 2020f ($bn)
Peru 199
Chile 255
Colombia 300
Argentina 409
Mexico 1,075
Brazil 1,690
0 500 1,000 1,500 2,000

USD (Bn)
Brazil, USD Bolivia, USD

2 Peru 199 0.03
Argentina, USD Chile, USD
0.1 2
Chile 255
Colombia, USD
Colombia 300
2
Peru, USD
Argentina 409 1
Latin America GDP
from construction
Mexico 1,075
2020f ($bn)
Brazil 1,690
Mexico, USD
36 0 500 1,000 1,500 2,000
USD (Bn)
Source: 1) IMF 2) Trading Economic / World Bank
19
Europe
Western Europe was heavily impacted by the 2020 pandemic. This caused a ‘domino
effect’ on construction investment and expenditure. Initial estimates during 2020
suggested that the EU construction industry fell by 11.7 per cent in April that year.
Euroconstruct revised its spending forecasts which reports that there is no consensus of construction
allowed for a contraction of 11.5 per cent for 2020, industries rebounding across Europe, as activity
and potentially will not witness a rebound to pre- during the lockdown varied between countries.
pandemic levels until 2022 (S&P Global). Current As construction sites return to activity, the wait
predictions say the recovery will be quicker than the will be to determine the output between 2021
last economic crisis, with stimulus aimed to support and beyond - this will be reliant on demand and
civil engineering projects. The recovery is also Government funding. Some supporters believe that
likely to see a focus on renovation construction, the funding of infrastructure and capital projects
opposed to new construction across the residential should not be affected, and deem it acceptable to
industry until confidence in consumer spending is live with increasing debt whilst benefiting from low
visible. The Royal Institution of Chartered Surveyors interest rates.
Europe GDP 2020f ($bn)
Ukraine 115
Turkey 650
Netherlands 805
Spain 1,200
Russia 1,250
Italy 1,800
United Kingdom 2,280
France 2,400
Germany 3,400
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
USD (Bn)
Turkey, USD Germany, USD

38 52
Netherlands, USD
9
Europe GDP
from construction
Spain, USD
($bn)
16.6
Russia, USD France, USD
14 23
Italy, USD United Kingdom, USD
15 37
Source: 1) IMF 2) Trading Economics / World Bank
20
AECOM
Africa
The economic growth in Africa is expected to contract between -2.1 per cent and
-5.1 per cent in 2020 (compared to 2.4 per cent in 2019). In Q2 2020, the World Bank
approved $11.5bn in lending to the Africa region for various operations and projects.
This responded to emergency operations network expansions, new innovative electrification

during the pandemic in 2020, whilst focusing on solutions and renewable energy generation.
accelerating Africa’s digital economy, enhancing
human capital and empowering women, increasing During Q3 2020, the South African government
access to affordable renewable energy and announced 50 Strategic Infrastructure Projects
building resilience against climate change. (SIP’s) and 12 special projects in a bid to provide
The results of these initiatives should see a investment within the construction industry.
demand for construction prospects within the The plan forms part of the Government’s wider
education, healthcare and science and technology infrastructure stimulus package worth R2.3 trillion
markets. The development of renewable energy across the next ten years. There is demand for
sources and digital infrastructure appears infrastructure enhancements across South Africa,
to be a common theme globally and a clear and the 2020 pandemic highlighted this (ESI
opportunity post-pandemic. Africa). Enhancing the region’s infrastructure will
provide an opportunity for green technologies
Across Africa currently, there is a drive to provide whilst enabling social and economic growth. The
access to information and communications investment and upgrades will see communities
technology for every individual, business and integrated and aid easier access for employment
Government by 2030. The World Bank is also opportunities. The economy is forecasted to
supporting the initiative for clean and reliable contract by -7 per cent in 2020 (Q2 2020 estimate)
energy through electrical grid and transmission against a 2019 growth forecast of 1 per cent.
Africa GDP 2020f ($bn)
Zambia 20
Tanzania 50
Ghana 50
Angola 70
Kenya 70
Nigeria 250
South Africa 295
0 100 200 300 400 500

USD (Bn)
Zambia, USD 0
Tanzania, USD 2
Africa GDP from

construction South Africa, USD 4
South Africa, USD 4 2020f ($bn)
Angola, USD 0.1

Source:
Kenya, USD 1 Nigeria, USD 1 1) IMF 2) Trading Economic / World Bank
21
Asia
ASEAN countries (including Indonesia, Malaysia, Philippines, Thailand and
Vietnam), who were already less-developed than their neighboring Asia
countries pre-pandemic, will identify key economic opportunities to enable both
their recovery and future growth beyond 2020. McKinsey researched trends
and determined five key recovery opportunities; manufacturing hubs, green
infrastructure, digital investments, talent re-skilling and high-value food industries.
Thailand announced their aspiration to establish the country as an electric vehicle

hub in five years (2025). This could lead to manufacturing and transport (road)
infrastructure construction prospects.
Malaysia has new future investment opportunities, after building 4.3 gigawatts of
solar-cell-module manufacturing capacity.
Google and LG have located their smartphone manufacturing in Vietnam, transpiring

as a new popular destination for electronics manufacturing.
Focusing on infrastructure, Green infrastructure, such high-speed rail network over

Indonesia is identified as as renewable technology, the next 15 years, developing
having a significant gap in basic has a huge potential across public medical facilities and the
infrastructure — specifically ASEAN countries looking to roll out of the 5G phone network.
clean water and internet access. fast-track economic growth. Overall China’s GDP is set to
This requires investment and Countries such as Thailand, grow 1.8 per cent for 2020-year
construction demand that Malaysia and Indonesia, lack end and official data shows
supports economic growth and adequate power provisions, growth in utilities, road and
green infrastructure — all reliant meaning the demand is not rail construction. The pipeline
on policy makers and investors. being met. This shortfall could projects had a momentous effect
In this regard, Indonesia is be mitigated with Government on the price of metals during Q2
currently planning 50 years into support for investment and and Q3 of 2020.
the future, with plans for a new the expansion of power
capital city underway. Looking supply. Green infrastructure Current construction sector
to the future includes; future investment would have a forecasts for Singapore are
planning flexibility, focusing positive impact on planning suggesting a $10 billion shortfall
on lessons learned from other against climate change, with in 2020. Singapore’s Building and
cities, and embracing innovation financial incentives for consumer Construction Authority (BCA) is
within the masterplan. A focal and business investment, as expecting construction demand
point will be on transportation well as complex but critical to recover from early 2021,
infrastructure, and being resilient infrastructure models across despite public sector projects
based on climate and weather Government-owned assets. being postponed and demand
patterns. There are considerable falls for private sector projects.
investment prospects and China announced a fiscal Looking ahead to recovery,
the development is set to stimulus aimed at transport and public residential schemes,
cost around $33bn. IT infrastructure which should new healthcare facilities
assist their economic recovery and transport infrastructure
caused by the pandemic. China’s should help support
plans include expanding their construction demand.
22
AECOM
Asia GDP2020f ($bn)
Cambodia 27
Kazakhstan 164
Indonesia 970
Malayasia 333
South Korea 1,450
India 2,610
Japan 4,750
China 14,400
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

USD (Bn)
Source: IMF 2
Kazakhstan, USD 9
Indonesia, USD 17
Malaysia, USD 2 Cambobia, USD 1
South Korea, USD 20
India, USD 18
Asia GDP from

Japan, USD 278 Construction 2020f ($bn) China, USD 428
Source: Trading Economics/World Bank
23
Australasia
The Australian Government released a budget in Q4 2020, in an attempt to
conclude the economic decline for the remainder of 2020.
Real GDP is expected to contract investment of AUD $250 million Overall, the Australian
by -1.5 per cent between 2020- over four years, revolutionizing construction industry is
21, with minor growth forecasted recycling infrastructure within expected to record a CAGR
from 2021-22 (Lexology). Australia. The Government also of 5.4 per cent, AUD $253.1bn
The budget details various plans to support the residential by 2024. The New Zealand
construction and development sector through affordable social construction industry is
stimulus plans aimed around housing schemes, constructing forecasted to contract by -3.5
environmental investments; new homes in regional areas. per cent for 2020, with a rebound
funding technology that aims A budget of AUD $14bn is rate of 4.4 per cent in 2021
to reduce CO2 emissions, assigned for infrastructure (Department of Commerce GDP
expanding the Australian gas projects, such as; road and rail Data). The economy started
industry, renewable energy projects and providing funding in to recover during Q3 2020, as
initiatives and an estimated the roll out of the 5G network. the effects of the pandemic
were under control.
Australasia GDP 2020f ($bn)
New Zealand 196
Australia 1,320
0 250 500 750 1,000 1,250 1,500

USD (Bn)
New Zealand, USD

3
Australasia GDP
from construction
2020f ($bn)
Australia, USD
30 Source: 1) IMF 2) Trading Economics/World Bank
24
AECOM
MENA
ECONOMIC
REVIEW
As of Q3 2020, the IMF forecasted that the Middle
East and North Africa GDP would be at -4.7 per
cent for 2020. This is a result of the coronavirus
outbreak, accompanied by the all-time low oil
prices as reported by The World Bank. Oil prices
are expected to regain momentum in 2021,
supported by continued OPEC+ production cuts,
but it is not expected to be at the same rate as 2019,
pre-pandemic levels. The current expected cost of
the 2020 crisis for the MENA region was estimated
at 3.7 per cent of 2019 GDP ($116bn) according to
The World Bank.
ICD Brookfield Place, Dubai, UAE
Image courtesy ICD Brookfield Place
25
MENA CONSTRUCTION MARKET

Construction across the MENA 2020 includes the lowest recovery in 2021, as countries
region is expected to contract recorded value of awarded seek construction growth in a
by -4.5 per cent for 2020, projects (Q1-Q3) since 2013. time of low oil prices and the
with slow growth in 2021, as The MENA region will face ongoing uncertainty caused
forecasted by GlobalData. challenges during the region’s by the pandemic.
MENA projects awarded yearly

MENA Contracts Awarded (Yearly)
250,000
200,000
USD $ m
150,000
100,000
50,000
0
2013 2014 2015 2016 2017 2018 2019 2020
Year
Source: Meed 2020 Q1-Q3

FIG XX MENA PROJECTS AWARDED 2020
MENA projects awarded 2020
13,416
11,938
11,717
7,266
USD $ m
4,682
3,869
2,200
1,346
800
104
80
Saudi Egypt Bahrain UAE Qatar Iraq Jordan Oman Iran Kuwait Lebanon
Arabia
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MENA EMERGING
MARKETS
Despite challenges imposed
on major emerging markets
such as Egypt, growth remains
consistent with an anticipated
rate of 3.5 per cent for 2020 (5.5
per cent 2019), despite a hard-
hit tourism sector. Emirates NBD
expects the economy to recover
at a rate of 6.2 per cent in 2021.
Morocco, like many other

economies, has been
susceptible to the flagging
tourism industry during 2020,
which has impacted the GDP
growth rate in parallel with
limited domestic demand.
Overall growth for 2020 is
expected to fall -5.8 per
cent according to Emirates
NBD with a growth of 4.3 per
cent in 2021. This follows an
optimistic year in 2019, which
positively contributed to MENA’s
overall GDP growth.
With a delicate economy at the

start of 2020, Lebanon met
further pressure following the
pandemic and the explosion in
the port of Beirut. The Lebanese
economy already anticipated
a contraction in 2020, but
Emirates NBD now forecast
a decline of -25.0 per cent,
with a minor growth rate of 1.9
per cent in 2021.
27
MENA TRENDS AND OPPORTUNITIES
Green environment and Living materials: There is a new Remote technology: As a rising
technology: In parallel to other trend around the development trend from 2020, assisted by the
regions, carbon footprints and of living materials being issue of remote working, remote
fighting climate change will applied to construction, such technologies help to mitigate
present new opportunities on as when biological materials problems with administrative and
the horizon. Especially as the are used to support concrete building construction works. An
overall construction industry is construction, insulation and example of this is how the use of
a key benefactor in the matter of flooring such as ‘bacteria’ and drones within the construction
environment conservation. ‘fungi’ in replacement for far less industry is on the rise, assisting
sustainable materials. in the quantification process
and identifying and mitigating
safety hazards.
Safety: Safety is a focal point on
all projects for both construction
workers and the public. Revised
safety regulations will soon
be applied to construction Supply chain diversification:
equipment and machinery on KEY As a lesson learned from 2020,
future construction projects by TRENDS AND contractors had little choice
OPPORTUNITIES but to pay premium prices for
contractors and developers alike.
,With the focus on reducing the materials and alternative suppliers
spread of the coronavirus still due to the disruption caused
present as we head into 2021, by the pandemic. 2021 will see
maintaining newly adopted stakeholders in the construction
safety protocols are essential industry reevaluating and
in ensuring construction sites streamlining current procurement
remain operational. relationships. This may come with
a risk in coordination, however,
the industry envisages cost
efficiencies through diversification.
Infrastructure: This will remain
Innovation and modernisation: in the spotlight across MENA,
This is a rising trend focusing on with countries highlighting the
the manufacturing of construction service market through stimulus
3D printing: This has already
building equipment and materials, packages, which will also aid the
construction recovery in 2021. taken off within the construction
with a drive for greater quality
industry and looks to grow at a
of work and cost-effective
record pace in 2021.
solutions. New innovative IT
delivery will look at evolving the
construction industry; improving
general service delivery and
modernizing buildings, with a
fresh safety viewpoint.
Source: Zawya and Levelset
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MENA STRENGTHS, WEAKNESSES,

OPPORTUNITIES AND THREATS
The growth of the construction (particularly the Middle East) on commercial considerations
market will depend on MENA it is common to see standard during contract renegotiation.
Governments implementing contracts terms and conditions The aim of this approach is
stimulus packages for 2021 adapted and amended; this will to improve transparency,
and beyond. A report by be an important consideration encourage healthier agreements
MEED and Mashreq outlined with certain provisions like Force between client and contractor
that the current opportunity Majeure (though unamended will in the future and enhance the
to drive new efficiencies will not explicitly list epidemics) to procurement stance of projects
help rebuild broken supply be amended to ensure a balance in the region. However, the RICS
chains and look for a more of risk between the parties. emphasise during negotiations
collaborative approach on certain considerations should
construction projects. There may be a revised mindset be made, such as reviewing
across construction markets as project value drivers, assessing
An important lesson learned they expect to see falling prices capacity within the construction
from 2020, which saw reduced which some MENA countries market and allocating risk.
construction activity, advises have already experienced over The allocation of risk and
contractual parties to diligently the past two years. This may overall security should be key
review and understand the encourage certain developers considerations during the review
relief provisions within the to renegotiate existing prices and decision making process.
construction contracts. In MENA (as contracts allow) and focus
Project Reconsider the project from the perspective of the outcomes.

value
drivers Have these changed? What drives the project value?
Commercial
capacity in Is there unaccounted-for slack in the market pricing environment?
the market
Use of Is the level of bonding necessary?

investment Can an improvement in cash flow provide required advantages?
Allocation
of risk Is the risk model out of balance with regards to reward?
29
ALLOCATION OF RISK
Is the risk model out of balance with regards to reward?
A new normal is expected in the region, with an opportunity for transparency, trust and a
collaborative approach within the supply chain and other stakeholders. The change will see greater
cashflow management and improvement with contractual terms and conditions. This in turn, will
identify new strengths within the construction industry, promoting opportunities and reducing
weaknesses and threats.
Strengths and opportunities
− Capability of delivering complex and − Sustainable construction processes

bespoke structures − New business markets
− Creating and providing − Collaboration among industry stakeholders
employment opportunities − Digital transformation
− Supporting local talent and industries − New materials/construction techniques
− Economic value creation − Encouraging career opportunities for
− Government incentive to invest young graduates
Threats and weaknesses
− Delay of adopting new − Payment delays − Carbon emission and

technology and missed − Procurement timescales environmental impact
innovation opportunities and awarding − Missed opportunities
− Communication contracts before for lessons learnt from
− Precedence of contract design completion project to project
awards to lowest price − Transient population
− Misuse of value − Safety issues
engineering with a risk − Cyber security
to quality − Talent gap
Mitigating threats and reducing risk
− Incentivizing sustainability benchmarks − Alternative procurement approach:

− Investment in research and development public-private partnerships
− Establish long term relationship with − Differentiated product offerings through
suppliers/supply chain consolidation and partnerships
− Value and risk management − Health and safety laws/procedures
− Improved payment cycles through open − Attracting young talent
and transparent transaction platforms − Balanced risk allocation
− Considerations of construction and
operations phase in project planning
Source: MEED / Masreq
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AECOM
MENA CHALLENGES AND RISKS

The MENA region faces specific challenges in in conflict-affected countries and improved
2021, including; extreme levels of unemployment resilience to climate change and refugee shocks.
amongst youth and females, economic The Gulf Cooperation Council continually
uncertainty and ongoing conflicts in countries supports The World Bank with the financial efforts
such as Syria and Yemen. The World Bank across the region. The MENA region is vulnerable
promotes stability across the MENA region, to certain risks which will have a significant impact
focusing on economic and social inclusion, on the growth rate past 2020. These include:
with the hope of recovery and reconstruction
Coronavirus Policy rates Tourism

cases
Firm resilience Health security Violence in

from foreign index fragile zones
input suppliers
31
MENA COUNTRY STATISTICS 2020

Key data for MENA countries, presenting statistical growth and forecasts for 2020 and through some
instances to the end of review period to 2025. The table identifies the country’s GDP value, import and
exports against GDP, population growth and where possible construction market data.
Saudi
Algeria Bahrain Egypt Iran Iraq Jordan Kuwait Oman Qatar UAE
Arabia
Land area,
2,381.7 0.8 995.5 1,628.8 434.1 88.8 17.8 309.5 11.6 2,149.7 71.0
‘000 km2 (1)
Abu
Capital city Algiers Manama Cairo Tehran Baghdad Amman Kuwait Muscat Doha Riyadh
Dhabi
Population,
44.2 1.5 101.6 84.1 40.1 10.2 4.9 4.3 2.8 34.8 11.1
million, 2020f (2)
Population growth,
CAGR 2020- 1.6 2.0 2.3 1.0 2.6 0.8 2.8 3.1 0.2 2.0 3.1
2025 (CAGR %) (2)
GDP, USD, billion,

147.3 34.6 361.9 610.7 178.1 42.6 108.7 62.3 147.8 680.9 353.9
current, 2020f (2)
Real GDP growth

-5.5 -4.9 3.5 -5.0 -12.1 -5.0 -8.1 -10.0 -4.5 -5.4 -6.6
(2019-2020), % (2)
Real GDP growth,

2020-2025 0.2 0.2 0.5 0.2 0.3 0.2 0.2 0.3 0.2 0.2 0.2
pa forecast (2)
GDP/ Capita (PPP),

3,331 22,878 3,561 7,257 4,438 4,174 22,252 14,423 52,751 19,587 31,948
USD, 2020f (2)
Net lending/
-11.9 -8.2 1.4 -8.6 -16.3 -5.0 -22.4 -16.5 5.1 -12.2 -9.3
borrowing, % (2)
Volume of
imports of goods
-2.7 -23.7 -6.2 10.9 - -10.0 -11.3 -16.2 -15.5 -16.0 -13.1
& services,
% of GDP (2)
Volume of
exports of goods
2.0 -11.2 -1.6 15.8 - -17.8 -10.6 -11.2 -4.5 -10.8 -11.9
& services,
% of GDP (2)
Account balance,
USD, billion, -15.9 -2.8 -11.6 -3.1 -22.5 -2.9 -7.4 -9.1 -0.9 -17.1 12.6
current (2)
Unemployment
rate, % of total 14.1 4.9 8.3 12.2 - - - - - - -
labor force (2)
Construction
Output, -3.4 7.7 -9.5 -4.5 -2.8 -4.8
2020f, % (3)
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AECOM
The graph below presents the MENA GDP growth rate in comparison to emerging markets and
developing economies, tracked against the overall world economy from 2012 and forecasted to 2024.
According to the IMF the MENA region GDP is expected to sustain growth levels between 2021 and 2024.
World, EMDEs and MENA, GDP growth at constant prices
6.0
4.8
5.0
% change y-o-y
4.0 3.2
3.0
2.0
3.6
1.0
0.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
World EMDEs MENA

Source: IMF World Economic Outlook, September 2020
GDP growth at constant prices
Selected MENA countries, GDP growth at constant prices
7.0
6.0
5.0
% change y-o-y
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MENA Bahrain Egypt Qatar Saudi Arabia UAE
Source: IMF World Economic Outlook, September 2020

Budget balance for selected MENA countries
4.0%
2.0%
0.0%
-2.0%
-4.0%
% of GDP
-6.0%
-8.0%
-10.0%
-12.0%
-14.0%
-16.0%
2017 2018 2019 2020f 2021f
Qatar Saudi Arabia UAE Bahrain Egypt

Source: Haver Analytics, Emirates NBAD Research
33
MENA AWARDED CONTRACTS

The United Arab Emirates had the highest value of that of 2020, and each individual Emirate across the
awarded projects in 2020. With an approximate total country have their own budget in addition to this.
of $13.4 million (tracked to Q3 end). This equates
to a 23 per cent market share (recorded by MEED Egypt awarded several significant contracts in 2020.
Business Intelligence). This was followed by Egypt One of the largest awards was the Crude Oil Refining
with $11.9 million, a 21 per cent market share, and and Petrochemical Complex in Suez, valued at $5.3
Saudi Arabia with $11.7 million, equating to a 20 per million. The Egypt Ministry of Transport awarded
cent market share. $1.2 million against the Alexandria Metro transport
project and $2 million was awarded for Assuit Oil
The busiest sector for awarded projects was Refinery Upgrade: Hydrocracking Complex.
construction infrastructure with a 26 per cent share,
followed by a 19 per cent share in transport, and A further 691 ‘green projects’ were approved by
lastly, water projects with 6 per cent. Egypt for the fiscal year 2020/2021. The Minister
of Planning and Economic Development plans that
The UAE announced that their country-wide federal 30 per cent of the country’s investment projects
budget at the end of 2020, was a confirmed planned will be implemented according to environmental,
expenditure of over $15bn for 2021. This budget sustainability and green economy concepts. The
will be split across various initiatives including; projects will input efforts to meet sustainable
enhancing the education sector, improvements to developments and preserving the country’s
the healthcare service and supporting residential resources for future generations.
housing programs. The federal budget is lower than
Gulf projects awarded % 2020 Growth rate in regional construction market

Based on 2020f construction output forecast %
Gas Construction
7% 25%
Oil UAE
17% - 4.8 Egypt
Industrial 7.7
2%
Power
13% Transport
19%
Chemical Water Qatar Saudi Arabia
10% 6% - 4.5 - 2.8
Construction output annual growth 2018-2020f (%)
20
15
Annual Change (%)
10
0
2018 2019 2020f
-5
-10 KSA UAE Qatar MENA
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Saudi Arabia
Saudi Arabia’s 2021 spending budget was Some of the highest value awarded projects were
announced during Q3 2020 at $264bn; the the Ministry of Defence King Faisal Air Academy
ministry stated that the budget would include for construction project with a value of $2bn, and the
economic and financial reforms in accordance $705 million contract for Saline Water Conversion
with KSA’s Vision 2030. Opportunities will be Corporation, $2bn by Public Investment Fund for
presented in the private sector, with allocated the Neom Residential Development and Mall of
funds to infrastructure development projects. Saudi (phase 1) at $1bn (Meed Projects).
At the start of 2020 the Kingdom had over 5,300
active construction projects with a value of $3.4bn Some key projects that are paving the way for
of which infrastructure was the leading sector. KSA’s future and Vision 2030 are:
The Red Sea Project: AMAALA: A luxury tourism SPARK (King Salman Energy
The development of the project, spanning over Park): Currently scheduled for
28,000km2 giga-project is 4,100km2 and will include completion by 2021, this project
underway and construction is 2,500 hotel rooms, estate consists of infrastructure,
progressing for the overall final homes and 800 villas. The roads, utilities and real estate
masterplan, consisting of 8,000 target is for an operational assets, creating thousands of
hotel rooms, a new airport, zero-carbon footprint with the job opportunities. It is expected
yacht marina and other leisure project tracking more than 15 to contribute $5.8bn annually
and lifestyle facilities served by sustainability criteria. to the country’s GDP by 2035.
75km of new roads. The project has been awarded
Riyadh Metro: This is an LEED (Leadership in Energy and
NEOM: At the center of Saudi ongoing construction project, Environmental Design) Silver,
Arabia’s Vision 2030 program, costing approximately $23bn and is the first industrial city in
NEOM is a new futuristic city and is set to provide further the world to achieve such rating.
with a total value of $500bn. mobility and transportation.
NEOM
Amaala
The Red Sea Project Riyadh Metro

SPARK
(King Salman Energy Park)
35
Saudi Arabia key economic forecasts
40.0%
35.0%
30.0%
25.0%
20.0%
% of GDP
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0% 2018 2019 2020f 2021f
Revenue % GDP Private Sector Credit Expenditure Real GDP Growth Hydrocarbon
Source: Haver Analytics, Emirates NBD Research Q3 2020
Saudi Arabia budget expenditure 2020
Public Administration
3%
General Items Military
13% 17%
Infrastrucure and
Transportation
9% Security and Regional
Economic Administration
Resources 10%
9%
Municipal
Services
5%
Health and Social Education
Development 18%
16%
Source: Emirates NBAD Research
Data Centers
Knight Frank reports on a business and the evolution of units, and even build to lease
future trend in Data Center smart technologies in residential Data Center real estate modules.
development within the GCC and commercial settings. This a step away from the typical
region. As technological real estate assets seen within
advances are developed, the It is expected that the Middle the region, and although the
requirement for data storage East will exploit the presented initial investment is greater, the
increases. Middle East, Africa opportunity and the Data Center financial return outweighs the
and South ASIA (MEASA) market will grow at a fast pace risks. IT/digital infrastructure
countries are under served when in this region over the next 10 is growing in demand and
compared across the globe. years. The landscape of real unlike the alternative types of
The drive for data storage estate will see new prospects led real estate assets, the Data
comes from sources such as by specific demand, including; Center market is not prone to
artificial intelligence, automation, build to suit industrial units, economic contractions during
cloud-based services for re-purposed industrial or office market downturns.
36
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37
38
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02
ARTICLES
IN BRIEF
40 44 50
Data centers - The case for The future of
balancing climate refurbishment the office in
change and digital the Middle East
growth
39
DATA CENTERS
BALANCING CLIMATE
CHANGE AND DIGITAL
GROWTH
Processing and storing ever-greater amounts of data while
using fewer natural resources is the key challenge in data
center design and construction.
Data centers are where the demands of In this article, we examine the four elements
digitalization and climate change collide. we believe are key to improving data center
Organizations need new digital infrastructure to sustainability, all of which will be in much sharper
process and store the increasing amount of data focus now that coronavirus has accelerated the
they are generating — and they need it fast. But it shift to remote working and living, namely:
is also necessary for that infrastructure to have as
little impact as possible on the environment, and Efficient use
to run for decades despite a changing climate. of power
Technology company Cisco forecasts that annual

data traffic will double to 4.8 zettabytes (4.8 trillion Renewable
energy sources
gigabytes) by 2022 — during which time more data
will be crossing global networks than in the Resilience to
30-plus years since the creation of the internet. extreme weather
But as demand for data centers and the cloud events
computing services they support increases, so
does the pressure — environmental, financial and Water and
regulatory — to develop them in a sustainable way. waste management
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AECOM
Data center cost model
Other development/project costs 1% Substructure 3%

Super structure-frame 2%
Super structure-upper floors 2%
Super structure - roof 2%
Preliminaries and
Super structure-walls and partitions 2%
facilitating works 18%
Super structure - Other 1%
External works - Other 1%
Internal finishes 4%
External works - Services 3%
Testing and commissioning 2%
BWIC 1%
Other internal services 2%
Communication, security
and control systems 3% Electrical installations 30%
Specialist installations 5%
Space heating and

air conditioning 12%
Fire and lightning protection 5%
TIME TO ADAPT
Handling, transferring and requires huge volumes of water. who dominate the cloud
storing the growing volumes of The technology giants who rely services market, as well as data-
data produced by digitalization most heavily on data centers center investors and co-location
is very power intensive. In have set themselves ambitious companies (COLOS) — who
2017, data centers in the US renewable energy targets. rent server space to third-
alone used more than 90 billion For example, Facebook first party companies — making
kilowatt-hours of electricity, committed to 100 percent data centers more sustainable
equal to the output of 34 power renewable energy in 2011, will cut their costs and enable
plants of 500 megawatts (MW) followed by Apple and Google them to meet their own carbon
each. Furthermore, keeping in 2012, and Microsoft and emissions targets, as well as
servers cool so that they Amazon Web Services (AWS) in government-imposed ones.
operate as efficiently as possible 2014. For these hyperscalers
41
EFFICIENCY — SAVING MONEY,

CUTTING CARBON
Minimizing the power needed load would require only 27.5MW chilled air do not mix) as well
to run a data center is the best total power. Assuming a price as immersive liquid cooling,
way to reduce its environmental for power of $0.05/kWh, that where servers are immersed
impact and running costs. difference in PUE would result in a rack filled with coolant that
in annual savings of more than can have more than a thousand
Energy losses through the $6million — or a total $94million times the heat capacity of air.
data center’s cooling system over a 15-year lease. The coolant absorbs the heat
can account for a significant from the servers and is then
percentage of the total power This also has implications removed from the rack.
demand. A data center’s power for emissions. If the two data
usage efficiency (PUE) metric is centers in the example were However, recent research
calculated by dividing the total using coal-fired power from suggests that more than a
power consumed by the power the grid, the more efficient data quarter of servers in US data
used solely for computing. center would save the equivalent centers are ‘zombies’ — drawing
The closer that ratio is to 1.0, of 90,000 tons of CO2 emissions power, but no longer being
the more efficient the system. a year. Careful attention to used for computing. New
For example, a data center temperature, unnecessary software solutions can locate
that needs 25MW to run its IT server usage and power storage them and make it easier to shut
equipment and has a PUE of 1.67 dynamics are relatively low-cost them down without affecting
(the industry average in 2019) ways to make data centers more active operations.
would need nearly 42MW of total energy efficient. Data centers
power to operate. use about 40 per cent of their In addition, further power
energy to keep servers cool. savings can be made with
By comparison, Google’s Solutions to improve efficiency the latest uninterruptible
most efficient data centers include passive cooling (a power supply (UPS) systems
are running at PUEs closer to system that ensures hot and that data centers can use to
1.1 – at which level, a 25MW IT maximize reliability.
RENEWABLE ENERGY
Data center users and COLOS to build their own renewable for many companies if their
have led the way on renewable capacity, either right at their locations are viable.
energy commitments, and tech data center sites or within
companies are increasingly their utility service areas. Whereas both wind and
supporting the construction of AWS is investing directly in solar are reliant on the weather,
new renewable energy within new wind farms in the US tidal power is emerging as
their own utility districts. and Europe, including a new more reliable alternative.
91.2MW facility off the coast The predictability of tidal power
The inevitable next step of Donegal, Ireland, to serve means that the necessary
in this process is for tech data centers around Dublin. energy storage systems
companies and corporate Solar is also a consideration can be sized effectively
data-center users and economically.
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WATER MANAGEMENT
The volume of water required on local infrastructure and and stored for use in evaporative
to cool servers has made water is an increasingly scarce cooling systems.
management and recycling global commodity.
a top priority for data-center Furthermore, wastewater can
operators. For example, a As a result, data-center be a useful output — in the city
15MW data center can soak designers are being creative. of Umatilla, Oregon, there are
up more than 360,000 gallons In Finland, Google’s Hamina data plans to send wastewater from
of water a day. Water is not center draws seawater from Amazon’s local data centers to
only a direct cost but used at the Gulf of Finland for cooling. irrigate nearby agricultural land.
such a scale can be a burden Rainwater can also be captured
RESILIENCE — FLOODS, FIRE AND DROUGHT

ARE THE REALITY OF CLIMATE CHANGE
In order to ensure reliability, catastrophic. The choice of site needs to adapt. Data centers
data-center designers and must therefore consider the should lead the way in the
operators need to take climate likelihood of increased flooding adoption of clean, sustainable
change and its effects into or droughts that could put technology, driving advances
account right from the start essential water supplies at risk. that directly benefit societies
of the asset creation process. by limiting the use of finite
Extreme weather events such The digital revolution, climate resources and driving down
as flooding, droughts and change and coronavirus have the cost of data storage
lightning strikes caused by changed the way we live and and processing.
more frequent storms could be work, and digital infrastructure
43
THE CASE FOR

REFURBISHMENT
ASSET MATURITY AND THE CASE
FOR REFURBISHMENT
In a race to meet the demands of a developing, diversified economy, has the UAE
reached the stage where refurbishment is becoming a more viable alternative to
building new? As in any developed country, the demand for space and the way
in which the built environment serves the needs of the population continues to
evolve. The coronavirus pandemic has brought the way we use space into the
forefront of our thinking, but this is not the only factor driving this evolution.
A maturing property market, asset management decisions switches to an increasingly

cost awareness, appreciation are made. The pace at which demand-based model and an
for sustainable practices, construction activity has been appreciation of established
new legislation and increased undertaken in the UAE has buildings and communities, we
understanding of operational seemed relentless, driven by examine the key considerations
requirements have all a “build it and they will come” for deciding to refurbish rather
contributed to the present model that is beginning to reach than build new.
conditions in which strategic saturation point. As the sector
Money talks
The business case for The most tangible financial As many buildings reach the
refurbishment is easy to impact arises from reduced 20-year point within their
make. Refurbishment requires operating costs, in which the lifecycle, many of the air
less capital investment than most significant opportunity conditioning assets along with
building new and can provide comes from reducing energy other high value mechanical and
the desired outcome in far less demands of a building by electrical assets will become
time, with average large-scale introducing more efficient due for replacement. The cost
refurbishments taking a year equipment and components. of replacing these assets should
from inception to completion, In the UAE, with its hot climate, have been accounted for within
while new builds can take this often means retrofitting air a planned asset replacement
around three times longer. conditioning systems, which schedule and sinking fund,
The benefits from the completed consume disproportionately however, even where the most
project can therefore be more electrical energy than any diligent of asset planning
realised sooner, creating a more other system (approximately exists there will still likely be a
immediate return on the capital 80 per cent for typical office commercial impact associated
investment from savings in buildings according to a study with replacing these assets.
energy reduction, or increased by the College of Engineering,
capacity to provide the desired UAE University).
building function.
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AECOM
Typical building lifecycle cost profile
70%
22%
3% 5%
Design Capital cost Operations and Disposal

maintenance
The sinking fund will likely long term cost benefits. It has the building and the extent of
not have been designed to become much more important the refurbishment required,
provide the cost to upgrade in the UAE for building owners possibly due to the building’s
systems where technology and occupiers to understand age, build quality and current
has advanced, so, if such the current condition of their condition, demolishing and
technology is to be installed, assets, where they fall within starting a new build can be
additional capital investment their expected lifecycle and more cost effective. This is
will be required. This cost, have effective sinking funds perhaps more appropriate to
however, will be significantly in operation to make fully lower rise and lower density
less than constructing a new informed and well-timed developments, rather than
building. Just like a decision capital investment decisions. medium to high density projects
within the design stages of Of course, there will always that have many more electrical
a new building, a short-term be exceptions to the rule. and mechanical assets.
capital investment can have Depending on the nature of
Sustainability
It has been widely recognised that designed and built to increase there is a strong argument that
buildings and construction are efficiency by lowering demand the process of constructing
responsible for around 38 per cent for energy, and therefore buildings is as important as their
of all carbon emissions globally. associated operational impact, operational life when considering
As a country that has seen a major but these benefits will only be environmental impact. Efforts
construction boom over the last realised incrementally in future to decarbonize construction
30 years, with new towers and years. An immediate impact has been discussed as a major
infrastructure appearing every of the construction activity is contributor in the fight against
year as a visible sign of economic felt through embodied carbon climate change, and ultimately to
progress, the UAE cannot ignore associated with extraction or raw achieve a sustainable reduction
the environmental impact — and materials, transportation and in total carbon emissions.
therefore the potential to reduce construction activity. According Accordingly, a methodology for
such impact — it has within to the Building and Infrastructure calculating the embodied carbon
this sector. As the built-up area Consumption Emissions paper of materials has been published by
increases, as does the demand for published by C40 Cities, Arup the Royal Institution of Chartered
energy and therefore the level of and University of Leeds in August Surveyors (RICS) in 2012 in
operational emissions. 2019, embodied emissions can support of the whole life analysis
account for up to 50 per cent of the construction lifecycle
Perhaps less widely recognised of building and construction (Methodology to Calculate
is the differentiation between emissions, which would equate Embodied Carbon of Materials
embodied and operational to up to 19 per cent of all carbon Information Paper IP 32/2012,
emissions. New buildings can be emissions globally. Therefore, first edition).
45
Buildings and construction carbon footprint
EMBODIED OPERATIONAL EMBODIED

CARBON CARBON CARBON
13% 1% 20% 1% 5% 50% 3% 3% 4%
Extract raw Manufacture Construction Operational use Demolish

materials products disposals
landfill
Transport to Transport
factory to site
However, the research by C40 Decisions to refurbish rather using cement, which has a high
Cities, Arup and University than demolish and build new embodied carbon level due
of Leeds goes further are therefore a key part of this to the high temperatures that
suggesting six key ways in thinking, as the assessment limestone needs to be heated
which a reduction in buildings of whether existing buildings to as part of production), the
and construction emissions can be adapted must be decision to refurbish and
can be achieved. Examples a consideration before therefore re-use these building
include; using materials more new construction takes elements, has an immediate
efficiently, using existing place, if these savings are impact on reducing carbon
buildings better, switching to be achieved. emissions. Therefore, simply
to lower emission materials, encouraging refurbishment
using low carbon cement, As approximately 60 per and reducing demand for
recycling building materials cent of embodied carbon new build could have the
and the use of low emission emissions are associated with greatest environmental impact
construction machinery. the structural elements of a within the buildings and
building (particularly those construction industry.
Environmental legislation
The UAE has successfully According to the Emirates activity within initiatives such
implemented a range of such Green Building Council, a non- as; the Dubai Retrofit Program
measures, such as the Estidama governmental organization that and the Sharjah SEWA Retrofit
Pearl Rating System in Abu promotes sustainability in the Program. These programs
Dhabi (2010), Dubai’s Green built environment, retrofitting mirror established international
Building Regulations, the Al to improve energy efficiency programs, such as the Royal
Safat Rating System (2011), and reduce operational cost Institute of British Architects
and more recently, the Barjeel has been widely adopted with (RIBA) Retrofit First campaign in
Green Building Regulations almost 8,000 buildings in the the United Kingdom, which also
in Ras Al Khaimah (2019). UAE. This is subject to such benefited from tax incentives.
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AECOM
Masdar Central Park

Image courtesy of Masdar
47
Functionality, lifecycles and location

The decision to retrofit as Hotel refurbishments in The full impact of the
part of wider refurbishment particular can be as much about coronavirus pandemic on future
is largely driven by the the need for a ‘brand refresh’ working behaviours and the use
positioning of buildings and than any other consideration. of both office and residential
their operational assets within There are also other instances space will not be seen for years
their respective lifecycles. where refurbishment is to come, but it will no doubt
As stock approaches a 20-year considered separately from provide further influence on
life, many high value/high energy the asset lifecycle, such as the decisions to refurbish buildings
consumption mechanical and changing needs of the building to provide the type of space
electrical assets become due user, change of regulations or demanded by occupiers.
for replacement. This presents other very specific measures
an opportunity to introduce that depend on the type of The location of the building can
more efficient equipment, building. Examples could be an have a significant impact on the
either through upgrading, office building that conducts decision to refurbish. Access
redesigning, or simply the refurbishment of air conditioning within developed sites in high
removal of obsolete assets. systems as part of a renewed density locations may increase
In terms of asset obsolescence focus on employee occupational the costs of demolition and new
and life expectancy, typically health, or an airport having build further, particularly when
the building structure and frame to conduct periodic terminal proximity to other buildings and
will outlast the fittings, fixtures refurbishment to adapt to their current use is considered.
and equipment many times over. changing aircraft designs and Although not common in the
Structural elements will often security requirements. Most UAE, terraced buildings have
have a design life of 100 years, major airports in the world are been a good example of such
whereas major equipment will currently in the process of a restrictions where it is difficult
require replacing every 10- significant refurbishment project to take one building or unit out
30 years. It will therefore be or have just completed one, with of its situational context, making
possible to refurbish a building Dubai and Abu Dhabi airports demolition complicated.
numerous times before the being no exception.
Likewise, low density locations
structure deteriorates to a point
Changing technology can also that are far from urban centers
when it is no longer functional,
influence both the timing and can also have complications for
forcing the need to rebuild.
nature of a refurbishment, as new build projects due to the
As the stock in the UAE matures,
the changing expectations of distances involved in material
the potential for refurbishment
building users are met by the transportation and access to
increases. There have already
introduction of various smart labour supply. Refurbishments
been many high-profile
technology solutions that make are an effective way to renew
refurbishments, such as the
otherwise functional systems existing infrastructure with
Jumeirah Beach Hotel and the
seem obsolete before the end of minimal disruption.
Atlantis Hotel in Dubai.
their operational life expectancy.
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AECOM
The part-completion exception

A decision to refurbish or construction program, however, requirements. Depending on
rebuild is not limited to projects sometimes there is a decision to the extent of these adaptations,
that have been in use. It is also make due to the time elapsed, it could be more cost effective
undertaken for projects that market conditions and viability to demolish and start again
have been in existence for some of the original concept. For the as we have seen recently at
time, but not actually completed. same reasons as a completed Mina Plaza in Abu Dhabi, which
Many projects in various stages building that reaches a certain found itself in the middle of
of completion that have stalled, point in its lifecycle, a partly a larger masterplan design
usually for financial reasons, completed building will face for which the buildings were
exist in the UAE. Sometimes examination of the costs to no longer needed.
these are completed after complete, either with the original
a considerable pause in the design or adapted to meet new
Conclusion
Refurbishment remains cost of the building means that Less widely known is the
an attractive alternative to more must be done to engage additional associated impact
building new from a cost and developers in sustainable of reducing embodied carbon
sustainability perspective, building practices, such as through choosing to refurbish
but for refurbishment to compliance with legislation and rather than build new. Embodied
be effective it must be incentives to implement green emissions can be further
undertaken by an informed building initiatives. As public reduced through adopting
property owner or occupier, awareness of the climate change sustainable practices during
with consideration given to emergency and perceptions the construction stage,
current asset condition, costs of how we consume energy from sourcing low carbon
of disposal and lifecycle costs. change, there is pressure from materials to using low emission
In a maturing property market, expectations at the point of use construction vehicles.
the UAE has the potential for a that developers and owners
significant rise in the number of cannot ignore. The impact of building new from
refurbishment projects. a financial and environmental
Refurbishment is already perspective is considerable.
Construction activity accounts recognised as a significant way As the property market
for up to 50 per cent of building to reduce carbon operational matures, refurbishment offers
and construction emissions, emissions in the UAE. The Dubai a viable alternative that can
and up to 25 per cent of total Supreme Council of Energy has help significantly reduce
building lifecycle costs. The a target to cut energy demand both operational costs and
relatively high environmental by 30 per cent by 2030, and carbon emissions.
impact at the construction stage sees refurbishment as a key
compared to the overall lifecycle contributor to achieving this.
49
THE FUTURE OF
THE OFFICE IN
THE MIDDLE EAST
Remote working
In the height of the pandemic Overnight, the working pattern were able to implement safety
during Q2 of 2020, the majority shifted from leaving home in the measures in offices, but people
of businesses and professionals morning, commuting to work, quickly got used to collaborating
were forced to leave the comfort conversing with colleagues, digitally online. AECOM explores
of their offices and attempt to and collaborative team working, whether professionals were
create the same environment in a familiar fit for purpose keen to return to the office or
from their homes, with little or no environment, to largely working happy to continue with the new
notice to prepare for such event. remotely. As countries began normal routine.
to overcome the pandemic and
Returning to the office

It is a question that we, as people back to normal, and when it is Ultimately the question is, will
managers and business owners, so, what new practices we will businesses be pushing for
are not yet able to answer, maintain, what lessons we have their professionals to return
whatever the consensus is in learned throughout this period to their offices or happy for
terms of impact to operations and what are the guidelines that them to continue working from
and the ability to meet month businesses will set to regulate home? What will employees’
end bottom line plans. The the working from home approach preferences be, having
impact will likely depend on how within their organizations. experienced the working from
long the situation takes to be home environment?
Clients and employees needs

Here at AECOM, we have successful delivery of ongoing indicators measured in
adopted new technology services and key presentations comparison to pre-pandemic
platforms and digital initiatives to to our clients and stakeholders levels, in order to help us assess
enable remote working; whether during the remote working quantitatively the direct impact
this be from home, from client period. Due to the agility of our of working from home on our
offices, from co-sharing spaces business environment and the results and performance in
or from project construction enabling factors provided by general. From our preliminary
sites. The aim is to be one step AECOM, our day to day activities gathered data, we were able to
ahead, monitoring new working continued, and remote working conclude that our pre-pandemic
trends and ensuring employees has been, and still continues targets were met, and that we
are connected and able to utilise to be, largely a success were successful in maintaining
internal business software and during the pandemic. close contact with our clients
information from wherever the to ensure that services were
‘office’ is. The interactive digital Having said this, we are yet to not interrupted. Indeed, during
platforms have been key for the have our internal performance this time maintaining the close
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AECOM
relationships with our clients people’s wellbeing and wellness, younger or lower pay scale
helped us also expand our not only within the spaces we employees, challenged with
revenue streams through occupy and the communities navigating peace and quiet in
securing variations to existing we live in, but also in cities as a heavily shared accommodation
contracts as well as the award whole. The quest for the office to complete work tasks, whilst
of new contracts. This would of the future is not isolated those with children had to
likely not have happened without from city-wide wellness and create an isolated area within a
a quick adoption of the new wellbeing strategies. Studies living environment to be able to
working practices, an increased are now being prioritised in work, communicate and deliver.
level of awareness by our staff various cities and regions Accordingly, working from
members on the importance around the Middle East, in an home required people to adapt
of diligently and professionally attempt to enhance the quality living environments to consider
attending to business needs, of life offered to its citizens a new purpose. The physical
and the importance of increased through the development and office not only negates the
communications across implementation of new urban issues surrounding the feeling
all team members. planning policies, guiding of disconnect when working
the development of a more remotely, but also provides a
As we continue to navigate sustainable future. professional work environment
through this phase and out of for those who do not have an
the pandemic, it will be important Coming back to the direct ideal equivalent at home.
that businesses generate impact to our office and living
a pandemic direct impact environment, it is clear to all These considerations will in
assessment that can somehow office space occupants and future be of critical importance
help shape the future of our facility managers that returning when attempting to measure
work environment considering to the office should be met our readiness to implement long
the new trends introduced. with an increased focus on the term flexible working habits.
Coupled with the assessment wellbeing of employees. This By implementing new safety
of our employee needs and increased focus on wellbeing will measures across our offices
health conditions, this impact require us to rethink the physical globally, by making our office
assessment will enable us to office environment and the spaces and work practices
better advise our clients as to infrastructure associated (digital more digitally connected, by
how we intend to perform our and hard), in order to ensure providing flexible co-creation
services without jeopardizing that the office space does not spaces and by offering flexibility
quality and programme. This is become obsolete as digital to work from a home that has the
something AECOM is seriously meetings over video conference necessary spatial and physical
analysing when considering become a frequent and more infrastructure. We can perhaps
the future of our working common occurrence. For most aspire that business habits will
environment, and ultimately the of us, digital meetings were the return to a near pre-pandemic
shape of our offices of the future. only face to face interaction we state whilst including the
had whilst working remotely. The benefits that have emerged as
The current situation has also remote working was not without a result of adapting to working
further raised the issue of issues, especially amongst during the pandemic.
51
Office infrastructure opportunities

If we look at office space spaces will become more are followed and completed
density, we expect that less dominant in office environments, prior to any meeting, as well as
dense offices will now be more yet working will be more flexible supporting in coordinating our
appealing in the future, including and manageable remotely and collaborative activities.
anticipating that previously locally through digital tools. For example, an employee
applied minimum standards for Digital tools will be adapted at an enters a new meeting into her
staff per sqm of office space will individual level and connected AI calendar and invites three of
be adjusted to ensure sufficient to the office space. The office her colleagues, she clicks on the
social distancing within the space will be accessible virtually button labelled as ‘Collaboration’
working environment. Social by a portion of the employees, which automatically triggers
distancing, while an immediate in order to manage space the booking of a collaboration
response to the pandemic, will and crowd density, hygiene, space, whether physical location
likely become best practise social distancing verifications or digital, and where physical
and a necessity which will be and air quality, to name a few the required digital tools and
monitored by local authorities to considerations. adequate size of space based on
ensure compliance and reduced the number of attending people
health and safety risks. One of the important changes are arranged. Additionally,
that we foresee in the future the AI has the capability to
In achieving this, offices may will be in elevating the role of generate notes and minutes
replace individual desks and outlook calendars into a digital of such meetings based on
introduce more collaboration Personal Assistant (PA) role. minimal data entry and through
and physical or digital meeting Through Artificial Intelligence voice recognition.
spaces, to increase efficiency (AI), outlook calendars will
in the workplace. Additionally, provide direction and support in In addition to AI Calendars,
offices will require to be further our day to day activities when it automatic sanitization of air
auto-connected digitally across comes to collaboration between and surfaces through light and
workspaces and regions, with employees. The AI calendar will natural air ventilation will become
means of communication and be able to help with the process features of our offices of the
technologies associated with it of collaborating, whether virtually future, which could impact the
should be flawless. Collaboration or physically, ensuring workflows traditional design of closed glass
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AECOM
façade, windowless tall towers. general departure of business working hours. These places
These towers became features from office buildings into more offer potential for a collaborative
of modernity, yet enclosed flexible co-sharing spaces, with serviced environment with
bubbles of largely recirculated these being more cost effective appealing decoration, carefully lit
and potentially polluted air and fit for purpose in the new places and on demand catering.
will start facing new standard working environment. In addition to these hotel spaces;
guideline requirements applied coffee shops and fitness centers
by municipalities, ensuring that In another dimension, city have also embarked on an effort
the wellness of staff occupying policy makers will likely be to provide or increase the space
these spaces is a priority. As a forced to regulate income allocated to coworking, with no
potential significant knock-on generated from residential extra cost to their end users.
effect, this ultimately will reduce zoned areas. Per previous Their intent is to increase their
the overall cost of healthcare on practises, planning authorities number of users by offering
governments, in turn reducing categorized residential land use more than what they typically
the investment in healthcare as non-income generating land. provide, in order to help offset
physical infrastructure, whilst Meanwhile all businesses were the losses incurred from the
allowing for more potential required to obtain licenses, with decreased number of tourists
research and development a prerequisite of office space and leisure seekers.
budgets to be allocated. These and an address to be supplied by
new guidelines and building those businesses before being Hotel chains, such as the
typologies may have direct provided a tax reference number. W hotel in Dubai, have adopted
and indirect impact on our Generating income from home the ‘Alive’ hotel lobbies
cities growth in general and our may have been accepted during approach, calling them
city centers urban fabric and the coronavirus restrictions, ‘The Living Room’. The concept
densities more specifically. however, when restrictions are has become widespread,
removed, regulatory authorities including brands building smaller
The impact on our cities will also will be looking at potential ways functional boutique hotels
be felt through the potential and means to regulate income spread across the city, with
decrease in demand for office generation from home. We may consideration to local population
space in general and large see two solutions for this issue: catchment rather than just
office spaces specifically. Some proximity to the usual visitors or
interdependent industries 1. a new category of land use tourist attraction, furnishing their
and companies will focus on that allows the commercial use spaces with modern furniture
sharing spaces, which will of residential space; and/or and artwork to transform them
come with stringent health and 2. regulating income from into comfortable and inspiring
safety standards. Industrial residential land uses through spaces to work. We are possibly
zones in Europe and the USA a tax (or similar), of some moving to a trend where these
were transformed over time to nature, that helps cover same hotels will be transforming
office spaces and it is forecast the increased cost on such spaces into serviced ‘work
that the same will evolve again infrastructure and reduced and play’ types of environments,
into new sharing workplace use of commercial zones with all required soft, hard and
environments. Warehouses will infrastructure. digital infrastructure; as well
thrive as ideal flexible spaces as the collaboration or sound
for businesses to co-share. In addition to the use of our isolation rooms for smaller
This is an existing trend, which homes as working spaces, individual teleconferences or
the pandemic and its impact on hotel lobbies, their business meetings, making them the next
our work practices is likely to facilities or even unoccupied generation of high tech hubs.
reinforce. We would therefore serviced hotel demand is on
expect to see a potential the rise as office space during
53
Central Business Districts

Central Business Districts (CBD’s), represent the
beating heart of a city. They have always been the
commercial, retail, and cultural center of cities
and usually are the center point for transportation
networks. The CBD is a place where synergy
between the public and private sectors happen.
They create a symbol of the strength of a city,
contributing to its brand and identity and helping
define its core economic drivers. The new working
trends presented here will impact our CBD’s.
The impact of making the physical office more
obsolete, the decrease in demand for office
space, the shift of population outside cities to
larger and cheaper homes, could have significant
effects on cities globally and economies already in
recession caused by coronavirus. These cities will
struggle to recover without their CBD’s, meaning
their existence is paramount for cities economies
now more than ever, and their future purpose
and development should be considered and
encouraged now more than ever. Without doubt,
we will again see the pre-pandemic levels of buzz
of activity in the likes of Canary Wharf in London,
Manhattan in New York, Marunouchi in Tokyo
and DIFC in Dubai, as they provide the hub and
ecosystem that allows people, communities and
businesses to strive and flourish.
On a broader note, it may be key for populations

to monitor and pursue a shift from the way trends
are moving, where it will be interesting to witness
the evolution of technology and whether this
potentially leads to future generations working
largely in isolation from home, connecting only
digitally, playing with friends remotely, having
virtual gatherings and parties, no longer going
to restaurants and instead having chefs come
over to their homes, shopping online and no
longer interacting and occupy high streets and
retail centers. These practices are critical for our
communities and our cities, and it will be imperative
that we implement policies that help reverse
the evolution to maintain the human factor that
helps cities thrive.
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AECOM
55
CBD trends
The future objective is to 10.67 million m2 by 2022, registration. They believe this
maintain business operations however, current estimates are is due to business restructures
across the Middle East, with that 21 per cent of supply sits and new business start-ups.
an aim to improving remote vacant, an issue that will need For these reasons commercial
working possibilities whilst to be addressed. market prices remained
maintaining thriving CBDs. robust throughout the year,
As organizations return to the At the later part of 2020, Air only reporting a slight decline
physical office, they will seek France KLM announced that in rental price.
new working opportunities. it had relocated to a more
‘flexible and relaxed’ office In Dubai, commercial
The Middle East, and setting within the Dubai hotspots like Business Bay, a
specifically the United Arab Airport Freezone, benefitting contemporary financial district,
Emirates, remains commercially from adapted office settings afford rental prices of between
appealing for international as a result of the pandemic. AED 60 – AED 100 per sqft.
business operations. The UAE This is likely to be one of the Likewise, Dubai’s International
itself is a regional and central first of many prospective Financial Center (DIFC) has
hub for businesses within the relocations, as businesses look maintained rental levels of
MENA region and wider afield, to consolidate multiple offices between AED 150 – AED 350
benefitting from the UAE’s and optimise workspace, driven per sqft. The Downtown area
logistic and transport location by workforces splitting their of Dubai has seen a marginal
and trade through its ports and time between office based and decline with rental prices
international airports. remote working rotations. reducing to an average AED
130 per sqft from 2019 levels
By 2020 year end the total Allsopp&Allsopp (UAE) reported of AED 150 per sqft. This has
supply of commercial office an increase in real estate also motivated rental traffic, with
space in Dubai alone will be activity since the Q2 2020 businesses upgrading to more
10.56 million m2 (Knight Frank). lockdown, as new commercial advantageous prime real estate
This is expected to grow by a properties entered the market locations and adapting new
further 110,000 m2 to and there was a rise in buyer office structures.
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AECOM
Future message
During Q3 and Q4 of 2020, improvements. Face-to-face adapting new collaboration
operations generally returned meetings and hours within the workspaces, filling the void
to the physical office setting working day normally taken which was created during the
whilst maintaining a degree of up by commute journeys are 2020 lockdown.
remote working, adopting new replaced with efficient virtual
health and safety practices in meetings, which are even These adaptions will ensure
offices and utilising technology taking place from within the employees can work safely from
opportunities. Businesses will physical office. the latest modified office space,
likely continue to embrace new working environments or
digital, handsfree or ‘smart’ Landlords and businesses their homes, whilst maintaining
technologies, ensuring may have to play catch up, a sense of community within
offices continue to develop implementing fast-pace organizations and supporting
with up-to-the-minute trends developments established thriving central business
and technologies. during and from lessons learned districts; these continuing to
in 2020, inspiring ‘cleaner’ office be the heartbeat of our cities.
New office sign-in procedures spaces and replacing current If these future developments
are proving a success, boosting outdated heating, ventilation and are managed well, commercial
employee (and visitor) health air conditioning systems which space will not become obsolete,
and wellbeing through health go hand-in-hand with improving with exciting opportunities
declarations via QR code and employee’s wellbeing. The within the Middle East for future
touchless lift buttons, with future is the office and working offices, and the potential for a
this seen as an example of just practices which will be cleaner more efficient and safe working
the beginning of anticipated and more efficient, embracing environment and practice to
technological changes and those of pre-pandemic levels.
57
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AECOM
03
REFERENCE
ARTICLES
IN BRIEF
60 64 68
Procurement Middle East Building regulations
routes forms of contract and compliance
59
PROCUREMENT
ROUTES
All clients expect projects to be delivered on time and
within budget, with an agreed level of quality and with the
risk professionally managed by their management and
consultant teams.
However, most clients and construction professionals have experience of at
least one project that was not delivered to the budget, time or quality levels
expected. This is why the right procurement strategy, one that is considered
robust, efficient, value-based and balances risk and control against the
competing project objectives of cost, time and quality, is key to a successful
project outcome.
AECOM has developed that increases the likelihood of So what is the right procurement
strategies for the delivery their projects being successfully approach for your projects?
of projects that we know procured by the team involved.
work, successfully delivering Which funding strategy,
hundreds of projects over our Studies conducted with our key funding partner, team
long history. New and existing clients who regularly undertake behaviours, attitudes,
developers have the opportunity development work have shown communication channels,
to learn from this knowledge that projects can be delivered budget and program delivers
and maximise the value from for 5-10 per cent less cost when the best approach, and how can
their time, cost and quality mix, procured correctly with no we best combine these to lead
whilst adhering to a process impact on quality or time. our clients to ultimate success?
“
The right procurement strategy, one that
balances risk and control against the
competing project objectives of cost, time and
quality, is key to a successful project outcome.
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AECOM
Warner Bros. World Abu Dhabi, UAE

Image courtesy of Warner Bros. World Abu Dhabi
61
AECOM MANAGEMENT OF THE

PROCUREMENT PROCESS
AECOM offers important early advice to help determine the right procurement
approach, adding value throughout the building process. This understanding of
our clients’ time, cost and quality requirements maximizes the value we can offer.
Some of the procurement strategies followed in the industry are listed below, but
the real challenge is selecting the right approach considering an individual client
and project needs:
Traditional lump sum designed), and leaving more Design and build
simple elements of the building
The design by the client’s to be procured once the Detailed design and construction
consultants is completed contractor has been appointed. are both undertaken by a single
before contractors tender It is important to understand how contractor in return for a lump
for and then carry out the a client procures the remaining sum price. There are variants
construction. The contractor elements of work with a on this option depending on
commits to a lump sum price contractor under this approach, the degree to which initial
and a completion date prior to and to design out those areas design is included in the client’s
appointment The contractor that carry inherent risk early in requirements. Where a concept
assumes responsibility for the the process. It may also involve design is prepared by a design
financial and program risks for the procurement of an early team employed directly by the
the carrying out of the building works package for enabling and/ client before the contractor is
works, whilst the client takes or piling works. appointed (as is normally the
responsibility and accepts case), the strategy is called
the risk for the quality of the Two stage develop and construct. The
design and the design team’s contractor commits to a lump
performance. The client’s A contractor is invited to sum price, for completion of the
consultant administers the become part of the project design and the construction and
contract and advises on aspects team in stage one, usually by to a completion date, prior to
associated with design, progress way of a pre-construction fee their appointment. The
and stage payments, which must or commitment to preliminaries contractor can either use
be paid by the client. A variant on and mark-up percentage. They the client’s concept design
this is a traditional re-measured jointly procure the project with to complete the design or
contract, where the tendered the client, until such time that a use their own scheme to
BOQ quantities are re-measured second stage lump sum offer finalize it within the employers
(either periodically or at the end can be agreed, which should requirements set. With design
of construction) and the contract be before construction begins and build it is important to
price is adjusted accordingly on site. An understanding of design out or specify in detail
based on the contractual rates the original appointment and those parts of the building the
for the revised quantities. the subsequent framework, client wants to see perform a
under which the second stage particular function or provide a
Accelerated traditional is agreed, are the important particular visual impact.
aspects of this approach, as well
As per traditional lump sum, but as working with transparency
procured in the market place and trust preventing an early
before being fully designed commitment to a full scheme
(normally 80-85 per cent that a client cannot afford.
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AECOM
Management contract The client is normally not involved

in any of the decisions throughout
Design by the client’s the building process. There are
consultants generally several variations of ‘turnkey’
overlaps with the construction. contracts, including Engineer-
A management contractor is Procure-Construct (EPC), Build-
appointed early to tender and let Own-Lease-Transfer (BOLR),
elements of work progressively Design-Build-Operate-Transfer
to subcontractors and (DBOT), or PFI.
specialists work packages.
The contracts are between Engineer, Procure and
the management contractor Construct (EPC)
and the trade contractors,
rather than between the client EPC is a form of “turnkey”
and sub-contractors. contract. This form of
The management contractor procurement places risk in
will not carry out construction the right hands and offers
work, but is employed to solutions to clients’ engineering
manage the process. requirements from those
The management contractor, specialized to meet the
in theory, assumes responsibility performance requirements set
for the financial (and program) by a client team. Many of the
risks for the works, but in reality large utility companies procure
this is normally diluted by the work in this way, bringing high
terms of the contract so their levels of certainty from the
liability is similar to that of a supply chain which helps to
construction manager. achieve business critical benefits
over the long-term.
Design, manage
and construct Public Private
Partnerships (PPP)
Similar to the management
contract, with the contractor A detailed and complicated
also being responsible for the form of procurement used
production of the detailed design predominantly for public services
or for managing the detailed when the private sector feels
design process. it is advantageous to design,
build, finance and operate a
Turnkey contract particular service or building
type. It is becoming more popular
A form of a design and build in the Middle East as a way to
contract in which a single limit public sector spending,
contractor or developer is whilst meeting the demands of
responsible for all services, a growing population. AECOM
possibly also including finance. has been involved with PPPs
Under a turnkey project, the client for over 20 years. We have
enters into a contract with one successfully completed many
party to deliver the entire project. projects worldwide and use this
The project is handed over once it global knowledge to benefit
is complete and fully operational. clients locally.
63
MIDDLE EAST
FORMS OF CONTRACT
This section
considers the
different forms of
contract used in
Bahrain
construction across
the region.
United
Arab
Emirates
Kingdom of
Saudi Arabia Qatar
64
AECOM
Kingdom of
Bahrain Saudi Arabia
Government work in the Kingdom of Construction contracts in the private

Bahrain is undertaken using a bespoke sector are generally based on FIDIC
suite of contract forms that were forms of contract, and are amended
issued in 2009. to suit the particular conditions for
each project.
Private developers Design and build
predominantly use and two-stage Employers prefer those given in the
the FIDIC Conditions procurement are in use lump sum versus 4th edition of the
of Contract for across the Kingdom remeasured contracts FIDIC Conditions of
Construction, the but are not considered and normally exercise Contract for Works
1999 edition of the to be the industry norm. great control in the of Civil Engineering
‘red book’, which is As more international administration of the Construction, the
well understood in the private developers construction process FIDIC 4 ‘red book’, but
local market, but often have started working by imposing various with greater control
heavily amended for in Bahrain with time restrictions on the given to the employer
specific use. constraints as their engineer’s (consultant) for the administration
main driver, the authorities under of the contract.
Most of the work market has adjusted the contract. All All public work
completed in Bahrain is to accommodate contracts are subject contracts are let on
under a traditional lump this demand. Design to Saudi laws where remeasured basis and
sum form of contract, and build contracts, Islamic Sharia law is subject to the Saudi
where the design is however, are not the prime source of Government Tendering
completed upfront and routine. This is largely legislation. Litigation and Procurement
price agreed with a due to the Council and arbitration are both Regulations, as issued
contractor before work for Regulating the available for resolution by Royal Decree. It
begins on site. Practice of Engineering of disputes in the is also noted that a
Professions private sector. number of the large
(CRPEP) restrictions scale developments
on contractors Within the public planned have
undertaking in- sector, however, aggressive schedule
house design which construction contracts targets, and as such
necessitates the are based on the there is also a growing
novation of the Standard Conditions appetite for the Design
client’s architect or for Public Works, which and Build form of
a sub-consultant are amended to suit contract, with these
appointment. particular projects. developments also
These conditions are often.
generally based on
65
Qatar
In Qatar the most common forms for building works are those used by the Public
Works Authority (PWA) departments through the Ministry of Municipality and
Environment (MME) and the Qatar Petroleum Company (QP) forms, or FIDIC
based amended bespoke forms.
The contracts are generally on a fixed price The Public Works Authority (Ashghal) utilize an
lump sum basis, utilising bills of quantities or in-house bespoke contract which was updated
specifications and drawings, however, the Design in 2018 to become more contractor-friendly with
and Build route is becoming more prevalent in a greater share of risk. The updated suite is now
the market. The contracts are often more biased tailored to a particular procurement route more
towards clients, wherein the contractor buys all the suitable to the individual project needs.
project risks for an increased initial price, however, This approach should reduce the volume of
such contracts are generally administered in a project specific amendments included in tenders.
reasonable manner.
Major international projects frequently use a more
A high proportion of private sector projects utilise traditional FIDIC forms (typically the 1999 version)
a bespoke form based on the FIDIC forms of with amendments to dispute resolution clauses
contract, such contracts are generally fixed price and removal of DAB provisions.
lump sum which follows the general theme of most
contracts in the state. Before any contract is awarded, there are
commonly several rounds of negotiation, during
which the price and other contractual terms
can be modified to respond to a reduction in
contract price.
“
Before any contract is awarded, there are
commonly several rounds of negotiation,
during which the price and other contractual
terms can be modified to respond to a
reduction in contract price.
66
AECOM
United
Arab
Emirates
Construction contracts in the UAE are predominantly based upon the FIDIC
forms of contract.
Large-scale developers and major repeat clients Civil works contracts within the UAE are mostly
in the region have generally now developed, and procured on a remeasurable basis, whereas
utilize, bespoke forms of contract, tailored to each building works will generally be based on a fixed
individual client. price lump sum.
Such contracts generally use the FIDIC 4 ‘red However, there are exceptions. More and more
book’ form as a basis, amended to a greater or clients are procuring projects using a fast-
lesser degree depending upon the risk profile of track approach and will therefore incorporate a
each client. This also applies to works procured remeasurable element, reflecting those parts of
by Dubai Municipality. Abu Dhabi Municipality, the design that are incomplete at tender stage.
however, bases contracts on a modified FIDIC
There is also a significant growth in appetite for
3 form, taken from the 3rd edition of the FIDIC
the use of Design & Build forms of contract, with
conditions of Contract for Works of Civil
clients intending and to transfer a large share of
Engineering Construction.
the risk on to the contractors, as well as seeking
Contracts based on the 1999 ‘red book’ are often overall project schedule savings, due to earlier
used in the UAE, but in general the market remains procurement being enabled.
firmly rooted in the FIDIC 4 form.
“
Civil works contracts within the UAE are
mostly procured on a remeasurable basis,
whereas building works will generally be
based on a fixed price lump sum.
67
BUILDING
REGULATIONS
AND COMPLIANCE
This section outlines the procedures for
obtaining building permission across the
region. AECOM’s project management
team is experienced in the procedures for
obtaining building permits across the region
and is able to oversee this process.
Ahlia University, Bahrain

Image courtesy of Ahlia University
68
AECOM
BAHRAIN
Procuring a Municipal Building Permit in Bahrain is now completed through the
online portal, Benayat, over a seven-stage process:
Stage 1 confirm compliance with the Stage 6

Prepare drawings building code and application Fee payment
criteria. The reviewing firm
The client must engage a must be of a similar grade to Once the submission has been
consultant to prepare the the submitting firm and must reviewed and there are no
necessary architectural and be registered with the Council objections/non-conformities,
engineering drawings and for Regulating the Practice the municipal charges must be
documents for the next stages of Engineering Professions paid for the following elements:
of submission. It is generally (CRPEP). A full list of firms is
sufficient to include simple provided on the Benayat portal. 1. Building Permit Fees.
outline plans, cross-sections to 2. Building Permit Insurance
indicate overall heights and an Stage 4 Deposit.
area statement. Building permit application 3. Infrastructure Fees
and third party declaration (if applicable).
Stage 2 4. Civil Aviation Fees
Obtain pre-approval Upon agreement with the third (if applicable).
party, the documents are to be
Certain projects will require a uploaded to the online network. Stage 7
pre-approval from the Urban The third party must, within 7 Issue of building permit
Planning Development Affairs, days, validate the application
Road, Planning and Design online to allow the process to Upon payment of the fees
Directorate (RPDD), Civil Aviation move to the Government the building permit along with
Authority and other authorities. entity review. any conditions, will be issued
Specific criteria is listed out electronically via the Benayat
within the online portal and Stage 5 system for works to proceed.
should the project fall under Government entities review
any of the requirements then
the pre-planning approval Once the submission is made
is required. and the third party validates,
the respective Government
entities will review and provide
Stage 3 any conditions. The main
Third party checker
authorities involved at this stage
are the Municipality, Sanitary
Before the building permit
Engineering Planning and
submission and after the
Projects Directorate (SEPPD)
pre-approval, if required, the
and the Electrical Distribution
building permit package is to
Directorate (EDD).
be submitted to a third party
engineering firm to review and
69
KINGDOM OF SAUDI ARABIA

Obtaining a building permit in the Kingdom of Saudi Arabia varies from region
to region, however, they tend to follow the same basic principles. The various
procedures and approvals from the main municipality, the branch municipality
and the fire department need to be obtained. Obtaining these approvals typically
takes between three to four months depending on the nature and size of the
building/project.
The following is a general outline of the steps needed to obtain a building permit:
Stage 1 Stage 2 Stage 3 Stage 4

Obtaining a letter from Obtaining a preliminary Obtaining approval Obtaining a final
the main municipality location/permit from from the fire building permit
branch municipality department
A letter from the owner The branch municipality
is submitted to the main The owner submits The branch municipality issues a building
regional municipality, a copy of the letter writes to the fire permit and sends it to
along with a copy of obtained previously from department, or civil the main municipality
the land deed. The the main municipality to defence, to obtain its for approval, which is
municipality checks the branch municipality, approval of the plan given dependent on the
the masterplan of the requesting an inspection submitted by the owner nature of the building.
area to ensure the of the plot to ensure that for the fire-alarm and The owner can collect
suitability of the plot for the plot length, width fire-fighting systems. the permit from the
the construction of a and total area are as The fire department main municipality after
building. The municipality indicated on the deed. approves these plans one to three months.
then writes a letter to the The branch municipality and sends them back The cost of this permit
branch municipality of then issues an approval to the municipality. is SAR 1,200.
the area where the plot to use the land. This process takes
is located. This process This process takes five ten days and does
takes five days and does days and does not incur not incur a charge.
not incur a charge. a charge.
70
AECOM
QATAR
Compared with many other countries, the planning and building approval
process in Qatar is relatively clear and structured. Land ownership, other than
by Qatari nationals and the state, is still extremely limited. The key process
in securing development rights is obtaining a land title or ‘PIN’, since without
it all other permits and applications cannot be commenced. Once the land
is secured, the project masterplan is submitted for approval to the Planning
Department and local municipality offices.
Stage 1 Stage 3 There are some parts of Qatar

DC1 approval Final stage/building permit that are exempt from the building
permit approval process. These
General overviews and strategies Once the DC2 approval is are generally related to oil and
for the utilities and primary secured a further set of standard gas production facilities.
infrastructure are submitted forms are circulated with a
Recently a number of revisions
to the relevant utility service consolidated set of documents
have been made to the design
providers for comment. During for final signing and approval.
standards of buildings, in
this process each department These documents constitute the
particular, high-rise structures.
generally issues a series of building permit.
These address issues such as
reference numbers that are
As a general guide the whole fire safety, refuge areas, the use
then used as the file number
process usually takes at least 80 of lifts in the event of fire, and
for all future submissions.
days (duration for private sector the nature and extent of
The culmination of this round of
is stated in the KPI document façade glazing.
submissions is the DC1 approval.
As the design develops, a second issued by MME in relation to the
Fit out and refurbishment
round of submissions are made corresponding size and type of
projects now follow a similar
to the same utility departments the project), depending upon
DC1 and DC2 process, a change
for final approval. In addition, a the quality of the submission,
from the requirement to obtain
submission is made to the Qatar although in practice it often takes
a maintenance permit before
Civil Defence (QCD) department much longer due to comments
work commenced. The approval
who review the fire and life safety from different departments and
process is now under the control
aspects of the project. progressive design revisions.
of the Ministry of Municipality
During the whole of this and Approvals.
Stage 2 process, it is generally not
DC2 approval This submission must be made
advisable to revise or modify
by a registered local consultant
any submission as it may delay
Depending upon the scale and and failure to do this can
the approval process.
nature of the project, separate significantly delay the approval
traffic studies may be required All submissions have to be and permitting process.
and these would be submitted either in Arabic or bilingual The statutory approval process
to the Road Affairs Department and endorsed by locally- comprises of multiple stages
for approval. Qatar Civil Defence registered and approved design that in turn, dictate the
may request modifications to companies. International program parameters.
ACMV, FF/FA at this stage. companies cannot make these
submissions by themselves.
71
The stages are as follows:
Opening of the file

Submission of MME documents/forms
and architectural preliminary drawings.
DC1
Fire/life safety (consists of egress paths, occupancy
load, emergency lighting, fire ratings, etc.) and
Kharamaa drawings.
DC2
Fire fighting, fire alarm, ACMV (upon request),
emergency lighting and Kharamaa loads
confirmation (if requested by MME).
Building permit
MME forms for construction.
Following approvals from all of the required stages,

and receipt of the municipality building permit, it is
only then that officially marks the time works may
then commence on site. However, at the landlord’s
discretion, mobilisation and demolition works
may commence.
The main risks associated with civil defense

approvals and municipality building permits are
as follows:
− Submission of incorrect information, resulting

in rejection of the application.
− Administrative delays within the Civil

Defense Department.
− Public holidays and governmental shutdowns.
72
AECOM
Al-Janoub Stadium, Qatar

Image courtesy of Hufton+Crow
73
UNITED ARAB EMIRATES

The following is a general outline of the procedure for obtaining a building
permit in the UAE, but there are many further obligations and procedures to be
completed within each of the stages. For example, stage three of the building
permit application requires no less than 15 different forms, documents and
separate approvals to be submitted as part of the application.
It is the responsibility of the construction contractor or lead consultant to obtain the building permit,
although all applications must be signed by locally registered consultants.
Stage 1 Stage 3 Stage 5

Submitting the Submitting the building Obtaining the building
preliminary application permit application completion certificate
The applicant submits a The full building permit NOC’s are be obtained from
preliminary application to the application, including all various governmental and
relevant municipality or statutory NOCs, is submitted to the municipal departments in
authority and pays a deposit. relevant municipality or order to submit to the relevant
statutory authority. municipality or statutory
authority for the final building
Stage 2
No Objection Certificates Stage 4 completion certificate
Obtaining the building permit application, along with all
(NOC)
supporting documents.
These are obtained from various On approval, the applicant
governmental and municipal collects the building permit
departments including; civil and applies for a demarcation
defense, the fire department, certificate.
drainage, communication, water
and electricity, civil aviation, oil
and gas, coastal and military.
74
AECOM
CLYMB Abu Dhabi, UAE

Image courtesy of Miral
75
76
AECOM
04
REFERENCE
DATA
IN BRIEF
78 86 88 90
International building Regional building MEP costs Major measured
cost comparison cost comparison unit rates
91 92 93 94
Major Labour costs UAE indices Typical building
material prices services standards
for offices
95 96
Exchange rates Weight and
measures
77
INTERNATIONAL
BUILDING COST
COMPARISON
The international cost data shown
is a comparison of local construction
costs converted to US Dollars to
enable comparison.
The building costs for the respective asset types are averages
based on local specifications and the actual cost of a building
will depend on among other things unique site conditions,
design attributes and applicable tariffs. In addition, the
standard for each building varies from region to region, which
may have a significant impact on costs.
Costs are subject to considerable variations due

to factors such as:
- Local market conditions

- Complexity of project
- Commodity price movements
- Building specifications
- Exchange rates
78
AECOM
EXCHANGE RATE TRENDS

In recent years, exchange rate movements Currency depreciation against the US Dollar
have been significant, as diverging economic translates into a relative drop in building costs
performance has led to many major currencies when expressed in US Dollars, making these
experiencing significant shifts against the US locations / regions relatively cheaper in
Dollar. The ForEx rate illustrates a country’s US Dollar terms.
economic stability with leading factors that can
influence fluctuations and which are constantly
analysed, including:
− Interest rates
− Country’s current account balance
− Government debt
− Political stability (Brexit, trade uncertainty and
shifts, elections)
− Recessions
− Commodity markets
− International trade
Exchange rate trends

Currency movements of the US Dollar against major currencies
Q3 2020 compared to Q3 2019
Euro (EUR)
UK (GBP)
Australia (A$)
New Zealand (NZD)
China (CNY)
Japan (JPY)
Hong Kong (HKD)
Singapore (SGD)
Canada (CND)
Malaysia (MYR)
India (INR)
South Africa (ZAR)
Russia (RUB)
Turkey (TRL)
Brazil (BRL)
-20% -10% 0% 10% 20% 30% 40% 50%
Source: Bank of England, www.xe.com
79
International construction
cost inflation
Quarter y-o-y change Q1 2012 – Q3 2020
30%
20%
10%
0%
-10%
2012 2013 2014 2015 2016 2017 2018 2019 2020
UAE UK Euro Area 19 Australia Singapore

USA Hong Kong India
Source: Based on AECOM Indices for UK, UAE; ENR USA Construction Cost Index; Singapore Building Construction Authority,
Hong Kong Architectural Services Dept (Public Sector), EuroaArea Eurostat Construction Output Index, India CIDC Construction
Cost Index, AIQS Building Cost Index
80
AECOM
Average building cost for standard

residential high-rise
USA, New York
Australia, Sydney
UK, London
USA, San Francisco
USA, Los Angeles
China, Hong Kong
Singapore
UAE, Dubai
KSA, Riyadh
Thailand, Bangkok
South Africa, Johannesburg
China, Shanghai
China, Beijing
Malaysia, Kuala Lumpur
0 1,000 2,000 3,000 4,000 5,000

USD/sqm
Average building costs (USD/sqm)

Johannesburg
San Francisco
Kuala Lumpur
Los Angeles
South Africa
Hong Kong
Singapore
Singapore
Shanghai
New York
Bangkok
Australia
Malaysia
Thailand
London
Sydney
Beijing
Riyadh
Dubai
China
China
China
USA
USA
USA
KSA
UAE
UK
Building type
Average multi unit
4,760 3,100 870 844 485 2,000 880 1,000 1,850 4,200 4,200 4,950 4,290 1,725
high-rise
Luxury unit
6,528 4,300 1,624 1,561 930 3,450 1,085 1,500 2,200 5,390 5,300 6,300 6,015 2,100
high-rise
Individual prestige
6,800 6,000 922 924 1,108 3,250 1,144 1,600 NA 5,100 5,400 5,850 5,968 NA
houses
(As September 2020) AUD HKD CNY CNY MYR SGD ZAR THB AED USD USD USD GBP SAR
US $1 = 1.40 7.75 6.79 6.79 4.16 1.37 16.70 30.40 3.67 1.00 1.00 1.00 0.77 3.75
Note: Prices exclude land, site works, professional fees, tenant fitout and equipment. Rates exclude GST/VAT.
Costs based on Q3 2020. Exchange rates to USD as of Q3 2020. Source: AECOM
81
Average building cost for

standard high-rise offices
USA, New York
UK, London
USA, San Francisco
USA, Los Angeles
Australia, Sydney
China, Hong Kong
Singapore
UAE, Dubai
KSA, Riyadh
China, Beijing
China, Shanghai
Thailand, Bangkok
0 2,000 4,000 6,000

USD/sqm

Johannesburg
San Francisco
Kuala Lumpur
Los Angeles
South Africa
Hong Kong
Singapore
Singapore
Shanghai
New York
Bangkok
Australia
Malaysia
Thailand
London
Sydney
Beijing
Riyadh
Dubai
China
China
China
USA
USA
USA
KSA
UAE
UK
Building type
Average standard
4,488 3,000 1,115 1,035 802 2,500 833 900 1,850 4,600 4,700 6,000 4,798 1,625
offices high-rise
Prestige offices
6,528 3,700 1,527 1,672 1,200 3,100 1,073 1,100 2,200 5,060 5,000 6,450 5,930 1,900
high-rise
Major shopping
4,556 4,300 1,386 NA 836 3,400 821 900 1,700 3,800 4,000 4,400 5,230 1,425
center (CBD)
US $1 = 1.40 7.75 6.79 6.79 4.16 1.37 16.70 30.40 3.67 1.00 1.00 1.00 0.77 3.75
82
AECOM

light duty factory
USA, New York
China, Hong Kong
UK, London
USA, San Francisco
USA, Los Angeles
UAE, Dubai
KSA, Riyadh
Australia, Sydney
Singapore
Thailand, Bangkok
China, Shanghai
0 1,000 2,000 3,000 4,000 5,000

USD/sqm

Johannesburg
San Francisco
Kuala Lumpur
Los Angeles
South Africa
Hong Kong
Singapore
Singapore
Shanghai
New York
Bangkok
Australia
Malaysia
Thailand
London
Sydney
Beijing
Riyadh
Dubai
China
China
China
USA
USA
USA
KSA
UAE
UK
Building type
Light duty
748 2,300 NA 557 374 750 302 550 925 1,660 1,600 2,950 1,967 800
factory
Heavy duty
NA NA NA NA 527 950 343 850 1,450 2,080 2,100 3,870 3,375 1,200
factory
Multi-storey
1,088 1,650 NA 446 288 NA 252 550 675 1,680 1,600 1,550 964 NA
car park
District
7,208 5,500 NA 1,513 858 NA 1,672 NA 2,950 7,800 7,450 9,100 4,846 2,350
hospital
Primary and
2,788 2,600 NA 1,035 306 NA 460 NA 1,710 4,800 4,700 4,850 3,105 NA
secondary schools
US $1 = 1.40 7.75 6.79 6.79 4.16 1.37 16.70 30.40 3.67 1.00 1.00 1.00 0.77 3.75
83

five-star luxury hotel
Australia, Sydney
UK, London
USA, New York
USA, Los Angeles
USA, San Francisco
China, Hong Kong
UAE, Dubai
Singapore
China, Shanghai
KSA, Riyadh
China, Beijing
Thailand, Bangkok
0 200 400 600 800 1000

USD thousands/key
Average building costs (US$/key)

Johannesburg
San Francisco
Kuala Lumpur
Los Angeles
South Africa
Hong Kong
Singapore
Singapore
Shanghai
New York
Bangkok
Australia
Malaysia
Thailand
London
Sydney
Beijing
Riyadh
Dubai
China
China
China
USA
USA
USA
KSA
UAE
UK
Building type
Three-star budget 374,000 210,000 NA NA 152,328 59,500 77,713 62,500 90,000 84,000 84,000 87,000 101,249 80,000
Five-star luxury 782,000 450,000 292,330 304,500 276,348 335,500 158,651 240,000 350,000 490,000 480,000 528,000 613,957 300,000
Resort style NA NA 483,115 NA 215,686 223,500 NA 290,000 650,000 305,000 300,000 300,000 376,991 NA
US $1 = 1.40 7.75 6.79 6.79 4.16 1.37 16.70 30.40 3.67 1.00 1.00 1.00 0.77 3.75
Hotel rates include FF&E. Costs based on Q3 2020. Exchange rates to USD as of Q3 2020. Source: AECOM
84
AECOM
Middle East relative

cost of construction
Relative cost of construction is based on typical build costs in USD. Influence of foreign exchange
fluctuations, unique site conditions, design attributes and applicable tariffs must be considered when
comparing actual projects. Relative costs are based on an average across all sectors.
Qatar (Doha)
UAE (Dubai)
Bahrain (Manama)
KSA (Riyadh)
60 70 80 90 100 110 120 130 140
Note: Relative cost of construction are based on typical build costs in USD. High and low cost factors for each building type have been
calculated relative to the UAE (Dubai), where average costs equal 100. The relative cost bars plotted in the chart represent the average
high and low cost factor for each country, based on the costs of the buildings included in the sample (excluding commercial fit-outs).
85
REGIONAL BUILDING
COST COMPARISON
UAE KSA Qatar Bahrain
Building cost (US$/sqm)
(Dubai) (Riyadh) (Doha) (Manama)
Typology Low High Low High Low High Low High
Residential
Low-rise 950 1,450 600 1,100 1,090 1,570 800 1,350
Medium-rise 1,000 1,550 950 1,300 1,200 1,815 1,050 1,600
High-rise 1,500 2,200 1,350 2,100 1,750 2,530 1,450 2,000
Villas 1,100 2,200 N/A N/A 1,300 2,500 650 1,350
Commercial
Low-rise office (shell & core) 1,100 1,400 800 1,200 1,275 1,570 1,050 1,450
Mid-rise office (shell & core) 1,250 1,800 1,050 1,450 1,550 1,915 1,200 1,600
High-rise office (shell & core) 1,500 2,200 1,250 2,000 1,740 2,455 1,450 2,050
Fit out-basic 950 1,500 700 950 1,150 1,765 650 950
Fit out-medium 1,500 1,900 1,250 1,850 1,670 2,160 950 1,200
Fit out-high 1,950 2,500 1,850 2,400 2,300 2,900 1,200 1,600
Retail
Community 1,300 1,580 800 1,100 1,495 1,820 1,050 1,350
Regional mall 1,350 1,650 1,100 1,400 1,455 1,865 1,200 1,600
Super regional mall 1,500 1,900 1,400 1,700 1,725 2,145 1,450 1,850
Industrial
Light duty factory 750 1,100 650 950 885 1,030 800 1,050
Heavy duty factory 1,100 1,800 900 1,500 1,305 1,880 950 1,200
Light industrial unit 600 800 500 750 735 885 650 950
Data center — Tier 3 (based on AED/kW(IT)) 10,000 15,500 9,000 13,950 11,000 17,050 NA NA
Hotel
Budget 1,700 1,900 1,350 1,650 1,900 2,200 1,550 1,800
Mid-market 2,000 2,600 1,650 2,250 2,400 3,150 1,650 2,250
Up-market 2,700 3,500 2,300 3,200 3,300 4,315 2,100 2,650
Resort 3,200 3,700 2,650 4,000 3,855 4,555 2,500 3,350
Car parks
Multi-storey 550 800 550 650 660 930 450 650
Basement 815 1,090 800 950 970 1,250 650 1,000
Other
Schools — primary, secondary, academy 1,370 2,050 800 1,350 1,585 2,160 1,400 1,800
Healthcare — district hospital 2,200 3,700 1,950 2,750 2,605 4,100 2,500 3,050
Exchange rate to 1 US$ AED 3.67 SAR 3.75 QAR 3.64 BHD 0.37
Note:
1. All costs are based on Q3 2020.
2. Relative cost of construction are based on typical build costs in USD. Influence of exchange fluctuations,
unique site conditions, design attributes and applicable tariffs must be considered when comparing actual projects.
3. Relative costs are based on an average across all sectors.
4. For typology definitions, inclusions and exclusions see page 85.
5. No investment or other business decision should incorporate the rates in the above table without first contacting
AECOM for further information/clarification.
6. The KSA – Riyadh building costs are not representative of current or future assets associated with ‘gigaprojects’
under development. Source: AECOM
86
AECOM
Inclusions and exclusions by asset typology

and basis of construction costs
Asset class Cost inclusions Cost exclusions

Residential – Fit out works
– MEP services installations
– Lift services installations
Commercial offices – Internal finishes — lobby and core areas only – Internal finishes to offices
– Fit out works — lobby and core areas only – MEP services installations to offices
– MEP services installations — lobby and core – Active IT and phone equipment
areas only
– Lift services installations
Fit out (commercial offices) – Works to fit out area only – Active IT and phone equipment
– Fit out works — architectural
– Fit out works — MEP services
– Specialist installations (AV, IT, security)
– FF&E
Retail – Front of house fit out – Tenant fit out
– Kitchen and laundry equipment – Strip retail developments
– Active IT equipment
Industrial (light duty factory) – Warehouse/distribution type factory – Storage/racking systems
– Internal services – IT and CCTV active equipment
– FF&E – OS&E
– Production, process and laboratory equipment
– Waste water treatment plant, compressed
air plant
– Process water and drainage systems
– N+1/2 redundancy
– Humidity/environmental control/conditioning
other than standard air conditioning
– Ultra flat slabs
Data centers – Active equipment
– FF&E
– Utilities outside the building outline
– Modular construction (based on one complete
data center)
Hotel – Fit out – Pre-operating expenses
– Kitchen and laundry equipment – Client soft costs
– Active IT equipment – OSE
Healthcare, education – Fixed fit out works only – All loose fit out and ICT
– All medical equipment
Note: All costs are based on Q3 2020
General notes General cost inclusions General cost exclusions

– The building costs for the respective asset types are averages based on – Construction works – External works and landscaping
competitive tenders analysed by AECOM. It must be understood that the – Main contractor – Site infrastructure
actual cost of a building will depend on the design and many other factors preliminaries and – Enabling works
and may vary from the figures shown. OH&P – Basements podiums
– Due to the volatile nature of the current market, it is possible that tenders and car parks
will be received outside these ranges. Professional advice should be – Contingencies
sought for specific projects. – Undefined provisional sums
– The standard for each building varies from region to region. – Utility connection charges
– General and specific cost inclusions and exclusions – Statutory fees and charges
are listed below. – Professional fees
– Relative costs of construction are based on typical build costs in USD. – Client direct costs
Influence of foreign exchange fluctuations, unique site conditions, design – Land acquisition
attributes and applicable tariffs must be considered when comparing – Finance charges
actual projects. – LEED silver or above
– Staff accommodation
– Pre-opening expenses
– Mock ups
– VAT
87
MEP COSTS
MEP cost (US$ / sqm)
(Dubai) (Riyadh) (Doha) (Manama)
Typology Low High Low High Low High Low High
Residential
Low-rise 230 350 140 260 260 380 230 360
Medium-rise 240 390 230 330 290 450 360 500
High-rise 380 590 340 570 440 680 540 700
Villas 310 700 NA NA 360 800 195 405
Commercial
Low-rise office (shell & core) 310 420 220 360 360 470 370 510
Mid-rise office (shell & core) 380 590 320 480 470 630 470 560
High-rise office (shell & core) 470 770 390 700 540 860 660 900
Fit out - basic 290 480 210 300 350 560 240 330
Fit out - medium 480 650 400 630 530 730 300 420
Fit out - high 660 880 630 840 780 1,020 390 600
Retail
Community 360 550 220 390 420 640 360 450
Regional mall 380 580 310 490 410 650 410 500
Super regional mall 420 670 390 600 480 750 450 590
Industrial
Light duty factory 240 390 210 330 280 360 540 740
Heavy duty factory 390 720 320 600 460 750 670 940
Light industrial unit 180 240 150 230 220 270 330 470
Data center - Tier 3 (based on AED/kW(IT) 6,000 9,300 5,400 8,370 6,600 10,230 N/A N/A
Hotel
Budget 480 570 380 500 530 660 470 560
Mid-market 600 810 500 700 720 980 510 680
Up-market 810 1,120 690 1,020 990 1,380 680 860
Resort 960 1,220 800 1,320 1,160 1,500 750 1,090
Car parks
Multi-storey 120 190 120 160 150 220 80 130
Basement 220 300 220 260 260 340 180 280
Other
Schools - primary, secondary, academy 440 660 260 430 510 690 370 490
Healthcare — district hospital 900 1,550 800 1,160 1,070 1,720 1,160 1,410
Exchange rate to 1 US$ AED 3.67 SAR 3.75 QAR 3.64 BHD 0.37
Note: All costs are based on Q3 2020.
88
AECOM
Basic specification of assets
Asset type Residential Asset type Industrial

Typology Low-rise Mid-rise High-rise Typology Light duty Heavy Light Data
Specification Basic, medium Basic, medium Basic, medium factory duty industrial center —
and high and high and high factory unit Tier 3
Key design characteristics Specification Basic Basic Basic Basic
Building height G+1 to G+3 G+4/5 to G+20 G+20 Key design characteristics
and above
Building 8 10 6 6
GIA 80,000 - 50,000 - 90.000 - height (m)
140,000 80,000 120,000
GIA 10,000 20,000 6,000 4,000
BUA 85,000 - 55,000 - 105,000 -
155,000 90,000 135,000
Wall : floor 0.33 0.30 0.38 0.35
Efficiency (%) 85 - 100% 80 - 85% 70 - 80% ratio
Units per core 1-2 10 - 20 4-6
Wall: floor ratio 0.50 - 0.80 0.45 - 0.65 0.45 - 0.55
Net to gross 80 - 100% 75 - 85% 65 - 75% Asset type Hotel
GIA per unit 200 - 450m² 90 - 200m² 145 - 165m² Typology Budget Mid- Up- Resort
market market
Specification Basic Mid range Luxury High end
Asset type Offices
Key design characteristics
Typology Low-rise Mid-rise High-rise
Building G+10 G+10 G+15 G+6
(shell and core) (shell and core) (shell and core)
height
Specification Basic, medium Basic, medium Basic, medium
and high and high and high GIA 16,000 - 13,500 - 56,000 - 39,000 -
18,000 15,500 60,000 41,000
Key design characteristics
Wall: floor 70% 75% 75% 55%
Building height G+1 to G+5 G+5 to G+20 G+20
ratio
and above
Functional 350 200 350 200
GIA 10,000 - 25,000 - 100,000 -
units
25,000 75,000 250,000
BUA 13,000 - 30,000 - 130,000 -
30,000 100,000 280,000
Efficiency (%) 70 - 85% 70 - 85% 70 - 85% Asset type School Healthcare
Wall: floor ratio 0.40 - 0.70 0.40 - 0.60 0.40 - 0.50 Typology Primary/secondary District hospital
Net to gross 50 - 60% 50 - 60% 50 - 70% academy
Slab to 4.0 - 5.0m 4.0 - 4.5m 4.0 - 4.5m Specification Mid range Mid range
slab height Key design characteristics
Grid spans 7 - 12m 9 - 12m 9 - 12m Building height 10 24
(m)
GIA (m²) 21,000 - 22,000 50,000
Asset type Retail No. of lift core 1 4
Typology Community Regional Super regional No. of 9 6
Key design characteristics stair core
Finishes Mid range High High

GFA (m²) Not 30,000 - > 100,000
exceeding 100,000
30,000
89
MAJOR MEASURED
UNIT RATES
Item UAE KSA Qatar Bahrain
Unit Description
(Unit rates in US$) (Dubai) (Riyadh) (Doha) (Manama)
"Standard/Minimum Specification
Excavation for trench foundation;
Excavation m3 7 8 7 11
depth not excessive, i.e. no greater
than 1-2 m"
Disposal of excavated "Standard / Minimum Specification

m3 6 6 5 4
material Disposal away from site"
Filling m3 Imported fill 13 17 16 19
"Standard / Minimum Specification

Poured concrete,
m3 Grade 20 or 30; superstructure, walls 113 132 142 159
reinforced
or slabs; reinforced"

Reinforcement tn 1,013 1,374 1,049 979
20mm bars"

Formwork/shuttering m2 Superstructure standard; fair face 44 39 36 19
finish to walls"

Blockwork m2 200mm solid blockwork, usually 36 36 36 24
internal walls"

Single leaf door, fire rated, timber,
Doors no. 978 1,135 1,396 847
basic finish, usually 900mm wide,
generally excluding ironmongery"

Tiling to floors m2 34 55 49 27
300 x 300mm ceramic tiles"
Plaster to internal walls

m2 12.5mm thickness 17 11 12 10
and ceilings
Painting to internal "Standard / Minimum Specification

m2 7 8 6 4
walls and ceilings Emulsion"
AED SAR QAR BHD

Exchange rate to 1 US$ 3.67 3.75 3.64 0.37
90
AECOM
MAJOR MATERIAL
PRICES
Item (Dubai) (Riyadh) (Doha) (Manama)
Description Unit
(Unit rates in US$)
USD USD USD USD
Cement Ordinary Portland Cement Tonne 77 81 94 85
Sand Sand for concreting m³ 10 13 17 22
Aggregate 19mm aggregate m³ 15 15 34 38
Grade 50 (OPC) m³ 76 79 130 101
RMC Grade 40 (OPC) m³ 64 73 121 95
Grade 20 (OPC) m³ 65 63 114 90
High tensile Tonne 700 543 999 688

Reinforcing steel
Mild steel Tonne 670 543 829 661
Hollow concrete 100mm thick m² 12 9 10 9

blockwork 200mm thick m² 14 12 16 11
Structural steelwork Mild steel grade 50 to BS 4360 Tonne 1,035 1,601 1,269 1,058
Hardwood m³ 792 800 911 934

Timber
Softwood m³ 303 467 348 331
Diesel Litre 0.56 0.14 0.30 0.42

Fuel
Petrol Premium 95 Litre 0.49 0.42 0.34 0.53
AED SAR QAR BHD

Exchange rate to 1 US$ 3.67 3.75 3.64 0.37

Cost rates are indicative and represent supply only costs of the materials listed.
Location factors should be applied to address geographic variations in each country.
The rates are exclusive of VAT or similar, where applicable.
91
LABOUR COSTS
Description Unit (Dubai) (Riyadh) (Doha) (Manama)
USD USD USD USD
Skilled operatives
Concreter Hour 5.9 6.8 6.0 6.6
Steel Fixer Hour 5.9 7.3 6.0 6.1
Bricklayer Hour 6.5 7.3 7.5 6.6
Carpenter Hour 6.5 7.3 7.5 6.1
Mechanical Installer Hour 8.4 9.5 6.9 7.2
Electrician Hour 9.0 9.0 9.0 6.6
Laborer (skilled) Hour 5.7 5.4 6.1 4.5
Foreman Hour 11.2 12.2 12.5 9.3
MEP Foreman Hour 12.6 15.0 12.5 9.3
Site Engineer Month 7,013 4,898 5,480 5,514
Construction Manager Month 11,221 14,150 12,329 11,690

These rates (US$) are indicative and represent an all-in unit cost for each of the disciplines listed; and are
- Inclusive of: wages, salaries and other remunerations prescribed by local labour legislation; average allowances
for costs of employment; recruitment; visas/permits; paid leave; travel; accommodation; health and welfare
- Exclusive of: overtime working; contractor mark-up for overheads and profit; VAT (Value Added Tax) or similar where applicable.
These rates should not be misinterpreted as contractors’ day work rates.
92
AECOM
UAE INDICES
The UAE Tender Price Index is AECOM’s assessment The Index is therefore a measure of average price
of construction tender prices in the UAE. It is increases across differing project types and
compiled by AECOM’s Middle East Business locations. It should be regarded as a guide only
Intelligence team and is based on actual returns of when looking at any specific project, as the pricing
projects. It is based on new build and refurbishment of individual projects will vary depending on factors
projects across a variety of construction sectors such as their complexity, location, timescale, etc.
and covers all emirates of the UAE.
AECOM
160 UAE tender price inflation index and forecast
150
140
Index: Q4 2009 = 100
130
120
110
100
90
80
70
Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q4 2019 Q4 2020
Commodities and Materials Index (unweighed) Construction Unit Rates Index

Forecast TPI: Upper Limit of Range Forecast TPI: Lower Limit of Range
UAE tender price indices
Annual percentage change (average)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
-17.08 2.37 -3.54 -5.30 1.12 2.74 2.11 0.62 4.02 0.56 0.04 -0.39
Source: AECOM, IMF
93
TYPICAL BUILDING
SERVICES STANDARDS
FOR OFFICES
Subject BCO (UK) specification Bahrain UAE Qatar Oman
2014 specification specification specification specification
Net : Gross ratio

(Typical) 80 - 85% 70 - 80% 75 - 80% 70 - 80% 70 - 80%
Occupancy
standards — typical 1:8 - 1:13/m² 1:10 - 1:14/m² 1:10 - 1:15/m² 1:10 - 1:14/m² 1:10 - 1:15/m²
Occupancy Single sex one person to Single sex Single sex Single sex Single sex
standards — toilets 10m² using 60/60 male/ one person one person one person one person
female ratio based on to 12m² to 12m² to 12m² to 12m²
120% ratio. using 50/50 using 50/50 using 50/50 using 50/50
male/female male/female male/female male/female
ratio based ratio based ratio based ratio based
on 100% on 100% on 100% on 100%
population. population. population. population.
Heating and
air conditioning 24oC, +/- 2oC (Summer)
24oC, +/- 2oC 24oC, +/- 2oC 24oC, +/- 2oC 24oC, +/- 2oC
internal criteria 20oC, +/- 2oC (Winter)
Fresh air supplies 8.5 - 10 L/s 8.5 - 10 L/s 8.5 - 10 L/s 8.5 - 10 L/s
12 - 15 L/s per person
per person per person per person per person
Ventilation - WCs 10 Air 10 Air 10 Air 10 Air
(extract) none stated changes changes changes changes
per hour per hour per hour per hour
Lighting load
allowance 10 W/m² 10 W/m² 10 W/m² 10 W/m² 10 W/m²
Small power load

allowance (based
upon 1 workspace 20-25 W/m² 12 - 25 W/m² 12 - 25 W/m² 12 - 25 W/m² 12 - 25 W/m²
every 10m2)
Acoustics -
open plan NR 40 NR 40 NR 40 NR 40 NR 40
Acoustics -
cellular offices NR 35 NR 35 NR 35 NR 35 NR 35
Lighting -
VDU use 300 - 500 lux 400 - 500 lux 400 - 500 lux 400 - 500 lux 400 - 500 lux
Passenger lifts -
capacity 0.8 0.8 0.8 0.8 0.8
Passenger lifts -
waiting time < 25 seconds < 30 seconds < 30 seconds < 30 seconds < 30 seconds
(up-peak)
94
AECOM
EXCHANGE RATES
Euro
UK India China Japan UAE KSA Qatar Oman Bahrain Kuwait Egypt Lebanon Jordan
zone
1 USD = EUR GBP INR RMB JPY AED SAR QAR OMR BHD KWD EGP LBP JOD
H1 2012 0.77 0.63 52.1 6.3 79.7 3.67 3.75 3.64 0.38 0.376 0.278 6.0 1,490 0.707
H2 2012 0.79 0.63 54.6 6.3 79.8 3.67 3.75 3.64 0.38 0.376 0.281 6.1 1,483 0.707
H1 2013 0.76 0.65 55.0 6.2 95.5 3.67 3.75 3.64 0.38 0.376 0.284 6.9 1,486 0.707
H2 2013 0.75 0.63 62.0 6.1 99.6 3.67 3.75 3.64 0.38 0.376 0.283 6.9 1,489 0.707
H1 2014 0.73 0.60 60.8 6.2 102.4 3.67 3.75 3.64 0.38 0.376 0.282 7.0 1,489 0.707
H2 2014 0.78 0.62 61.2 6.2 109.2 3.67 3.75 3.64 0.38 0.376 0.287 7.2 1,492 0.707
H1 2015 0.90 0.66 62.8 6.2 120.3 3.67 3.75 3.64 0.38 0.376 0.299 7.5 1,491 0.707
H2 2015 0.91 0.65 65.4 6.3 121.8 3.67 3.75 3.64 0.38 0.376 0.302 7.8 1,488 0.707
H1 2016 0.90 0.70 67.2 6.5 112.8 3.67 3.75 3.64 0.38 0.376 0.302 8.4 1,508 0.709
H2 2016 0.91 0.78 67.2 6.7 105.9 3.67 3.75 3.64 0.38 0.376 0.303 11.6 1,508 0.709
H1 2017 0.92 0.79 65.7 6.9 112.4 3.67 3.75 3.64 0.38 0.376 0.305 18.0 1,508 0.709
H2 2017 0.85 0.76 64.5 6.6 111.9 3.67 3.75 3.64 0.38 0.376 0.302 17.8 1,508 0.709
H1 2018 0.83 0.73 65.7 6.4 108.7 3.67 3.75 3.64 0.38 0.376 0.301 17.7 1,508 0.709
H2 2018 0.87 0.77 70.7 6.8 111.9 3.67 3.75 3.64 0.38 0.376 0.303 17.9 1,508 0.709
H1 2019 0.88 0.77 70.1 6.8 110.4 3.67 3.75 3.64 0.38 0.376 0.304 17.4 1,508 0.709
H2 2019 0.89 0.79 70.6 7.0 108.0 3.67 3.75 3.64 0.38 0.376 0.304 16.4 1,508 0.709
H1 2020 0.91 0.79 74.1 7.1 108.2 3.67 3.75 3.64 0.38 0.376 0.308 15.8 1,508 0.709
Bank of England, www.fxtop.com
95
WEIGHTS
AND MEASURES
Metric measures Imperial measures
and equivalents and equivalents
Length Length
1 millimetre (mm) = 1 mm = 0.0394 in 1 inch (in) = 2.54 cm
1 centimetre (cm) = 10 mm = 0.3937 in 1 foot (ft) = 12 in = 0.3048 m
1 metre (m) = 100 cm = 1.0936 yd 1 yard (yd) = 3 ft = 0.9144 m
1 kilometre (km) = 1000 m = 0.6214 mile 1 mile = 1760 yd = 1.6093 km
1 int. nautical mile = 2025.4 yd = 1.853 km
Area
1 square centimetre (cm2) = 100 mm2 = 0.1550 in2 Area
1 square metre (m2) = 10 000 cm2 = 1.1960 yd2 1 square inch (in2) = 6.4516 cm2
1 hectare (ha) = 10 000 m2 = 2.4711 acres 1 square foot (ft2) = 144 in2 = 0.0929 m2
1 square kilometre (km2) = 100 ha = 0.3861 mile2 1 square yard (yd2) = 9 ft 2 = 0.8361 m2
1 acre = 4840 yd2 = 4046.9 m2
Capacity/volume 1 sq mile (mile2) = 640 acres = 2.59 km2
1 cubic centimetre (cm3) = 1 cm3 = 0.0610 in3
1 cubic decimetre (dm3) = 1000 cm3 = 0.0353 ft3 Capacity/volume
1 cubic metre (m3) = 1000 dm3 = 1.3080 yd3 1 cubic centimetre (cm3) = 1 cm3 = 0.0610 in3
1 litre (l) = 1 dm3 = 1.76 pt 1 cubic decimetre (dm3) = 1000 cm3 = 0.0353 ft3
1 hectolitre (hl) = 100 litre = 21.997 gal 1 cubic metre (m3) = 1000 dm3 = 1.3080 yd3
1 litre (l) = 1 dm3 = 1.76 pt
Mass (weight) 1 hectolitre (hl) = 100 litre = 21.997 gal
1 milligram (mg) = 0.0154 grain
1 gram (g) = 1000 mg = 0.0353 oz Mass (weight)
1 kilogram (kg) = 1000 g = 2.2046 lb 1 ounce (oz) = 437.5 grains = 28.35 g
1 tonne (t) = 1000 kg = 0.9842 ton 1 pound (lb) = 16 oz = 0.4536 kg
1 stone = 14 lb = 6.3503 kg
1 hundredweight (cwt) = 112 lb = 50.802 kg
USA measures 1 ton = 20 cwt = 1.016 tonne
and equivalents Temperature conversion

C = 5/9 (F – 32) F = (9/5 C) + 32
U.S. dry measure equivalents
1 pint = 0.9689 UK pint = 0.5506 litre
U.S. liquid measure equivalents

1 fluid ounce = 1.0408 UK fl oz = 29.574 ml
1 pint (16 fl oz) = 0.8327 UK pt = 0.4723 litre
1 gallon = 0.8327 UK gal = 3.7854 litre
96
AECOM
97
98
AECOM
05
OFFICE
DIRECTORY
99
OFFICE
DIRECTORY
United Arab Emirates Kingdom of Saudi Arabia Kingdom of Bahrain
Abu Dhabi Al Khobar Manama
(Regional Head Office) (Saudi Arabia Head Office) United Tower, 32nd Floor
International Tower AECOM Arabia Ltd Building 316, Road 4609
Capital Center 2nd Floor, Zamil House Block 346, Manama / Sea front
PO Box 53 Prince Turki Street PO Box 640, Manama
Abu Dhabi PO Box 1272,
Saudi Arabia T: 973 17 588 796
T: 971 2 613 4000 Al Khobar 31952 F: 973 17 581 288
F: 971 2 613 4001 bahrain@aecom.com
abudhabi@aecom.com T: 966 12 849 4400
F: 966 13 849 4411
alkhobar@aecom.com Qatar
Al Ain
Liwa Center Building Jaidah Square
Level 1 Riyadh 4th Floor, Jaidah Square
PO Box 1419 Tawuniya Towers, Umm Ghuwalina
Al Ain South Tower, Mezzanine Floor, Al Matar Street
King Fahad Road PO Box 6650
T: 971 3 702 6600 PO Box 58729 Doha
F: 971 3 755 4727 Riyadh 11414,
alain@aecom.com Saudi Arabia T: 974 4 407 9000
F: 974 4 437 6782
T: 966 11 218 0099 qatardc.middleeast@aecom.com
Dubai
F: 966 11 218 0098
UBora Tower
Levels 43 and 44
PO Box 51028
Business Bay, Dubai
T: 971 4 439 1000

F: 971 4 439 1001
dubai@aecom.com
100
LEARN HOW
WE ARE
HELPING
TO DELIVER
A BETTER
WORLD
If you enjoyed the insights that we have
shared within this handbook, and would like
to know more about AECOM’s thoughts on
the big issues facing the global construction
industry and major infrastructure projects,
please visit our dedicated thought
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#FasterSmarterBetter
Disclaimer
This report has been prepared solely

for information purposes. Whilst every
endeavor has been made to obtain the best
available data from appropriate sources,
AECOM can give no guarantee of accuracy
or completeness. Any views expressed
in this report reflect our judgment at this
date, which are subject to change without
notice. Current forecasts involve risks and
uncertainties that may cause future events
to be different to those suggested by
forward-looking statements. No investment
or other business decision should be
made solely on the views expressed
in this report, and no responsibility is
taken for any consequential loss or other
effects from these data. Advice given to
clients in particular situations may differ
from the views expressed in this report.
Reproduction of this report in whole or in
part is allowed subject to proper reference
to AECOM.
Every effort has been made to ensure

accuracy, give credits and trace copyright
holders where appropriate. If any have been
inadvertently overlooked, the necessary
arrangements will be made at the first
opportunity to amend the publication.
About AECOM
AECOM is the world’s premier infrastructure

consulting firm, delivering professional
services throughout the project lifecycle –
from planning, design and engineering to
program and construction management.
On projects spanning transportation,
buildings, water, energy and the
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sector clients trust us to solve their most
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MIDDLE EAST

We have carefully selected

Abdali Medical Center, Amman, Jordan

Real GDP growth

-2% 2017 2018 2019 2019f 2021f

World trade volume Advanced economies EMDEs World

Source: World Bank Economic Prospects, June, 2020

Growth in volume of exports of goods and services

Global Composite PMI

Source: IHS Markit / JP Morgan

Growth in commodity prices

Oil price Non-energy commodity price index

Source: World Bank Economic Prospects, June 2020

Source: IMF, World Economic Outlook, September 2020

Anticipated changes in crude oil supply

Source: OPEC, World Oil Outlook 2040

Medium-term oil demand outlook, 2018-2024

World OECD Non-OECD

OPEC basket Price

OPEC, mid month basket price USD $

Changes in metal prices

Copper, grade A cathode, LME spot price, CIF European ports

Source: IMF, World Economic Outlook, September 2020

GLOBAL ECONOMIC MARKET

Global EPU Index with PPP adjusted GDP weights

Global EPU with PPP adjusted GDP weights

Source: Economic Policy Uncertainty

Extreme weather/climate change

Source: World Economic Forum

The USA is seeing a demand in construction Canada’s construction market is expected to

North America GDP 2020f ($bn)

Source: 1) IMF 2) Trading Economic / World Bank

Latin and South America

Latin America GDP 2020f ($bn)

0 500 1,000 1,500 2,000

Brazil, USD Bolivia, USD

Source: 1) IMF 2) Trading Economic / World Bank

Europe GDP 2020f ($bn)

United Kingdom 2,280

Turkey, USD Germany, USD

Source: 1) IMF 2) Trading Economics / World Bank

This responded to emergency operations network expansions, new innovative electrification

Africa GDP 2020f ($bn)

0 100 200 300 400 500

Africa GDP from

Angola, USD 0.1

Thailand announced their aspiration to establish the country as an electric vehicle

Google and LG have located their smartphone manufacturing in Vietnam, transpiring

Focusing on infrastructure, Green infrastructure, such high-speed rail network over

Asia GDP2020f ($bn)

South Korea 1,450

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Asia GDP from

Source: Trading Economics/World Bank

Australasia GDP 2020f ($bn)

New Zealand 196

0 250 500 750 1,000 1,250 1,500

New Zealand, USD

MENA CONSTRUCTION MARKET

MENA projects awarded yearly

Source: Meed 2020 Q1-Q3

Source: Meed 2020 Q1-Q3

Morocco, like many other

With a delicate economy at the

AECOM Middle East Property & Construction Handbook 2021

AECOM Middle East Property & Construction Handbook 2021