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Surge in Qatar building materials costs likely

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The cost of construction materials in Qatar is likely to jump as the host nation intensifies infrastructure building ahead of the 2022 World Cup, industry experts say. Qatar is set to spend more than $200bn on the soccer tournament as part of a 2030 development plan, said Gulf Times.

“The pinch point will likely be in 2017-19 when the construction work peaks, but the government can take measures to mitigate that,” said Nick Smith, Partner at engineering consultants Arcadis in Qatar. He predicted materials inflation would be about 3% in 2015. “This will include early supply chain engagement, standardisation of products and direct procurement of certain items. Qatar is already pursuing some of these initiatives.” 

Materials inflation could surge to 15-20% from 2018, said Steven Humphrey, a director at infrastructure specialists AECOM. Qatar witnessed a similar phenomenon ahead of hosting the Asian Games in 2006. Also, construction inflation fluctuates more than general inflation and small markets such as Qatar are less able to absorb changes in workload, a report by Arcadis unit EC Harris states. “Qatar, like most other Gulf states, has suffered from projects being delivered late, sometimes over budget and usually because the scope has changed from what was originally set out,” said AECOM’s Humphrey. 

“With a fixed deadline like 2022 these attitudes will not be permitted. As prices get squeezed, contractors who bid at the incorrect prices will shy away from doing the projects and move their resources into more profitable projects.” Qatar will import many of the building materials it needs from neighbouring United Arab Emirates. Doha’s limited port facilities mean these goods must travel on small barges or via truck through Saudi Arabia, adding to supply chain pressures. 

“Contractors pick and choose what their priorities are, so there’s a real danger - looking at bids today where they seem very competitive - that these are projects that may not be able to be delivered on time,” added Humphrey. Commodity prices have dipped, helping to mollify materials inflation in the short term, with spot iron ore prices slumping to a near four-week low last week as slow Chinese steel demand kept steel futures near their weakest since their 2009 launch.


Making a splash: Qatar's Al Bandary Real Estate

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One thing that Qatar is not short of is real estate development. With population growth averaging 2 percent annually and visitor numbers rising by double digits, the construction industry has been run off its feet, said Arabian Business. But while heavyweights such as Qatari Diar, United Development Company, Msheireb and Barwa Real Estate take the headlines for their master-planned projects, Al Bandary Real Estate has been making a profit by filling in the gaps, building individual villa compounds and towers that are comparatively smaller but arguably equally essential.

The firm has completed standalone residential, commercial and retail developments in most of Doha’s key locations, including Lusail City, The Pearl-Qatar and Al Dafna in the heart of the capital. However, the subsidiary of Al Bandary International Group recently upped the ante, announcing the country’s first major water park — at the base of a landmark twin tower development. Plans for Amwaj Suites and Residences include two 29-storey towers on the shores of the Arabian Gulf, with the wave-shaped water park featuring several swimming pools, an artificial wave pool and water rides.

Al Bandary Real Estate general manager Maen Al Haj says the firm has already signed a management agreement with WhiteWater, the Canadian company that also runs The Atlantis on The Palm Jumeirah and Yas Waterpark in Abu Dhabi. The project, in which only “very selected people” would be allowed to live, will signal a new era for the private developer. “It will be the most luxurious tower in Doha,” Al Haj says. “Our [Al Bandary Real Estate’s] identity is going to be here.”

Construction is due to begin this year and take three years. At the same time, Al Bandary is building a unique project of 28 floors of duplexes called The Dream Tower. The project overlooks a marina within the $45bn Lusail City master-plan north of the central business district and would be Al Bandary’s second in the development. Lusail City, overseen by Qatari Diar Real Estate Investment Company, includes four man-made islands and 19 multi-purpose districts covering 38 sq km and will feature an 86,000-seat stadium that will host the final of the FIFA World Cup in 2022. It is expected to have a total population of 450,000 by the time it is completed in 2020, including 200,000 residents, 170,000 employees and 80,000 visitors.

Al Haj says his development will benefit from his prediction that Lusail City will become a satellite capital once completed. “Lusail City is the future — everyone knows that Lusail is going to be the future new capital of Qatar,” he says. “We have a different kind of vision there.” The Qatari government also plans to move its ministerial buildings to the new city, which Al Haj says will lead to a demand in nearby office space. Al Bandary also has taken advantage of the new city in building its 700-villa Al Kheesa Gate development opposite Lusail City, which the developer says is almost sold out.

Al Kheesa Gate is the firm’s largest project to date. But the young developer is gaining ground and Al Haj indicates there is a bright future. “Every day we are building a new area [of Qatar],” he says, referring to the industry as a whole. “It’s an ongoing process for 10-20 years, until the 2030 vision of the Emir. Most of the real estate development companies are getting the benefit of developing in the country.” It is true there is an apparent endless need for developers in the country. Doha will be 100,000 homes short of demand by 2017 based on current population and construction projections, Al Argan Investment Company chief information officer Ramy Echo said a year ago, while warning the city risked creating slums if it did not immediately address its affordable housing shortage.

Echo said about 250,000 homes needed to be built between 2014 and 2017 but only 150,000 were planned. Qatar’s population of nearly 2.4 million is expected to rise to as much as 3 million before the end of the decade, with the majority of new people set to be foreigners, who already make up about 85 percent of the population. Analysts have warned the key will be building affordable housing, particularly for the 1 million expats who will be living in their own accommodation rather than in labour camps.

However, like most of the real estate developers in Qatar, Al Haj argues there is still plenty of growth in the luxury segment and that is where he will remain focused. “We are looking always at luxury sectors, with very high and unique designs,” he says. “Because we are here in Qatar — it’s the market. Most of the Qatari clients are looking for luxury and unique designs and luxury items and materials. Also they need quality; most of them have their own home for their whole life so they need to do it in good quality to be there for 20-25 years. “We don’t mind doing business for mid-level or high level but what we understand, what we can see, is that most of the people are looking for high quality. It shows that most people are in good financial positions.”

It also makes far more financial sense to invest in the luxury market. The exponential price of land in Doha presently means it is effectively not worth building affordable housing because the profit margin is so slim. Land now typically makes up half of the overall cost of a development, with prices soaring by as much as three times in the past four years. Land sales made up about 50 percent of the $7bn worth of all property transactions in the country during the first quarter of 2015, according to Deloitte.

Values have reached a point that some owners — often citizens who have inherited it — are preferring to profit by flipping land rather than developing, according to several developers and investors who spoke during Qatar Cityscape last month. Al Haj agrees land is scarce but is careful to insist the government is releasing what land it has that is developable. “The amount of land ready in Doha for development is not much, so this is what gives value for any project we do,” he says. “You do have a lot of empty lands but it’s not ready for residential [construction]. “So that’s why the market is booming. We understand… most of the projects are fully occupied. Even for renting you can’t find [available leases] now because it’s occupied and whenever it’s not the price is very high because the demand is very high.”

But Al Haj argues there is still plenty to be developed within existing master plans. Al Bandary last month launched Jumana 2, a high-end residential tower in The Pearl-Qatar, a mixed-use development on a 4 million sq m artificial island off the coast of West Bay, in Doha’s north. The development is the first open to foreigners for freehold ownership and Al Bandary has been keen to target foreign investors for its projects there. Al Haj says interest immediately following the launch of Jumana 2 was higher than expected.

The developer also has brought to Doha the concept of buying and leasing hotel apartments through its Al Thuraya mixed-use hotel and residential tower in Al Dafna area and intends to offer the same at Amwaj. Meanwhile, it is putting its stamp on the Doha map with the Al Bandary Business Centre, with 300,000 sq m of office space, as well as retail, entertainment and services, at Al Waab in the city’s west. Its name also will feature in B Square Mall, a 25,000 sq m retail complex in Al Thumama, near the new Hamad International Airport. The ‘B’ stands for Bandary, while the square refers to a central area that features in the mall design.

The firm’s second retail development is Doha Souq, which Al Haj says despite replicating traditional architecture, it will be a luxury mall, similar to the concepts of Jumeirah Group’s Souq Madinat Jumeirah and Emaar Malls’ Souq Al Bahar in Dubai. Already under construction, the souq is due for completion in 2017 but Al Haj will not reveal its future retailers. He argues its location “in the heart of Qatar” will make it the most popular luxury shopping destination, even outdoing the renowned Villaggio Mall because of its closer proximity to residences and the business district.

A dozen new retail areas are under construction in the city, including the mammoth Mall of Qatar, which will be the largest mall in the country when it opens later this year, only to be overtaken by Doha Festival City, when it opens in 2017 with more than 200,000 sq m of retail space. But Al Haj is not deterred. “The market is there,” he says. Indeed, Al Haj argues shopping centres are crucial to Doha’s entertainment offering, referring to them as the answer to some expats’ complaints that there is not enough to do in the city.

“Always, people are asking about activities, meanwhile the number of new malls with a kids area compared to the market right now is more than enough and with the coming number of new malls and new activities it will… cover the people who live here and more. Most of the people during summer time look for enclosed entertainment,” he says, although he won’t yet reveal what entertainment products he is planning for Doha Souq or B Square Mall.

As a subsidiary of Al Bandary International Group, much of the real estate firm’s developments are constructed in conjunction with Al Bandary Engineering, the start of the now-expansive conglomerate. Engineer Ahmad Al Rayyan launched Al Bandary Engineering amid the construction boom of 2006. As the Qatari economy skyrocketed, so too did the company’s fortunes and interests, leading Al Rayyan to also branch into real estate, hotel management and food and beverage. Al Haj will not reveal the private company’s financials but is positive about its current and future position. With its finger in multiple segments of real estate — an industry with a seemingly endless need in Qatar — we may well be seeing even more of Al Bandary Real Estate in the future.

Ashghal: Completion of the new Family Consulting Centre with a cost of QR 76 million

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The Public Works Authority ‘Ashghal’ completed the new Family Consulting Centre building in Al Eqla area, with a total cost of QR 76 Mln and 147 thousand. The Family Consulting Centre offers a variety of free familial services for families. The project works started in April 2013, and included the construction of three storeys in addition to a basement over an area of 11 thousand and 400 square meters.

The project is surrounded on the eastern and southern sides by 24 meter wide roads and has a total built-up area of 19 thousand and 283 square meters. The centre consists of three entrances, a counselling and consultation department, a research and development department, an information technology department, a library, a board of directors’ room, human resources and financial department, a lecture hall, and a kindergarten.

The main architectural features include traditional elevations with arches, internal gardens and a central water fountain, a central cafeteria and panoramic area, in addition to a lecture hall with two main chandeliers. The new centre was designed by United Consultants, and the supervision consultant company for the project was James Cubitt & Partners, while the construction works were implemented by Boom General Contractors.Ashghal Completion of the new 2 [qatarisbooming.com].jpgAshghal Completion of the new 3 [qatarisbooming.com].jpg

Ashghal announcements for July 1st 2015

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Ashghal starts the implementation of roads and infrastructure projects in Al Sailiya Area north of Salwa Road

The Public Works Authority ‘Ashghal’ announced that it is carrying out road and infrastructure projects in Al Sailiya, North of Salwa Road. The project includes two packages with a total area of 1,460,000 square meters. The first package is located, north of Salwa road where the road leads to Barwa - Al Sailiya Compound locates west of the new industrial area intersection. This is in an existing populated area that lacks infrastructure.

The second package is located north of the first package and consists of an empty land plot that has been allocated for residential buildings of which some are already under construction. The project aims to develop the roads and infrastructure of this region which lacks an adequate sewage system and storm drainage network. This inadequacy presently results in the overflow of surface water in the region. The project also aims to build and improve internal roads and provide pedestrian pathways and cycle paths.

Ashghal announcements for July 1 [qatarisbooming.com].jpg

Major infrastructure improvements are being implemented as part of the project including the development of the road network in the region, the installation intelligent transport systems and street lights. The project will also include pedestrian and cyclist paths, sidewalks and parking lots, the installation of signage in addition to the installation of a storm water drainage network to collect the water, transport and dispose of it. Additionally, improvements include the installation of new drainage pipes and linking those to a larger sewage treatment network as well as creating a new system to distribute the treated water.

The development works of the project will benefit about 720 housing units and improve the safety level of the roads and local streets surrounding the residential and school area allowing residents easy access. The development of roads and infrastructure in Al Sailiya North of Salwa Road is part of the Local Roads and Drainage program projects implemented by Ashghal, which is a nationwide programme that includes the development of roads, drainage and new infrastructure in all areas of Qatar. The total cost of the project is QR 573,482,000 and has been awarded to “Qatar Building Company”.  The project is expected to be completed in Q4 of 2017.

 

Ashghal announces diversion on Al-Rayyan Road

The Public Works Authority, 'Ashghal' will put in place a temporary traffic diversion on Al Rayyan Road westbound from the direction of the Olympic Roundabout (Sports Roundabout) toward 22 February Intersection at the intersection of Jassim Bin Hamad with Al Rayyan Road. Traffic traveling westbound from the direction of the Sports Roundabout, will be diverted onto a parallel and adjacent three-lane road that reconnects with Al Rayyan Road just before the 22 February Intersection(As shown in attached map). As such, no significant delays are expected there during the works, which will begin on Thursday 2 July 2015, and will Last 18 months.

This diversion will be in place to allow for the construction of an underpass beneath Al Rayyan Road as part of the upgrade and construction of Al Rayyan Road Project. The underpass will allow commuters coming from Al Rayyan Road and driving eastbound to access the Jassim Bin Hamad Street without having to drive to the Sports roundabout and allows traffic from Jassim Bin Hamad street to head east without the need to go through 22nd February intersection.

Ashghal announcements for July 2 [qatarisbooming.com].JPG

The current diversion which is around 800 metres in length will not affect commuter traffic in any way as it maintains the same number of lanes as the existing road. Ashghal will install road signs to advise motorists of the diversion. The authority requests all road users to abide by the speed limits, and follow the road signs to ensure their safety.

 

Al Busat Al Akhdar Park closed for renovation

As part of the ongoing works on Al Rayyan Project - Contract 2, which consists of the construction and upgrade of Al Rayyan Road, the Public Works Authority 'Ashghal' announced that Al Rayyan Park (Al Busat Al Akhdar) adjacent to Al Rayyan Road will be closed to the public as of Friday 3 July for reconstruction work in the area, as shown in the attached map. During the closure, the park will also be undergoing renovation works. 

A section of the park was closed on 30 December 2014 to carry out phase one of a significant upgrade implemented by Ashghal in coordination with the Ministry of Municipality and Urban Planning (MMUP). The renovation works are expected to be completed in Q4, 2015. The works will include renovating the various facilities of the park, including the fence, the walkways and the lighting system. A jogging track will also be introduced to the park so visitors can have a wider choice of sports to exercise.​

Ashghal announcements for July 3 [qatarisbooming.com].jpg

The Pearl-Qatar celebrates Garangao with Hamad Medical Corporation’s young patients

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As part of its cultural activities, and in line with the spirit of solidarity and humanity of the Holy Month of Ramadan, United Development Company (UDC), one of Qatar's leading public shareholding companies and an establishment recognized for its socially responsible practices and initiatives, yesterday held Garangao celebrations, a mid-Ramadan festival for children, with Hamad Medical Corporation’s (HMC) pediatrics’ young outpatients.

The event, which took place at Burj Al Hamam Lebanese Restaurant in the bustling Porto Arabia waterfront precinct in The Pearl-Qatar, was preceded by Ramadan Iftar at the same restaurant for more than 250 young HMC patients and their families. The Iftar was sponsored and organized by Hospitality Development Company (HDC), a wholly owned subsidiary of UDC. This year’s Garangao initiative comes as part of UDC’s efforts to revive local traditions encouraging the younger generation to preserve this form of folk heritage, while considering HMC’s sick children most worthy of enjoying this happy occasion.

The Pearl-Qatar celebrates Garangao 2 [qatarisbooming.com].jpgChildren patients came adorned in colorful traditional costumes, chanting traditional songs, amid gifts and candy pouches distributed to them. The celebration also included a variety of activities such as face painting and henna drawings. Commenting on the humanitarian dimension given to this year’s Garangao celebration, UDC Director of Corporate Communications Roger Dagher stated, “United Development Company commends the considerable efforts undertaken by HMC to offer quality healthcare services for children and is delighted to be involved in events aimed at serving all segments of society and fostering a spirit of solidarity within the community.”

The Pearl-Qatar celebrates Garangao 3 [qatarisbooming.com].jpgAli Al Khater, Executive Director of HMC’s Corporate Communications Department, thanked UDC for its efforts to put a smile on the faces of young patients at HMC. “We really appreciate UDC’s celebrating Garangao with our young patients this Ramadan. The gesture is very much in keeping with the spirit of the holy month when we strive to carry out more good acts and make people happy. Being the leading public healthcare provider in the state of Qatar, we at HMC will always support an event that seeks to reinforce our vision of providing the safest, most effective and most compassionate care to each and every one of our patients.”

Garangao is a mid-Ramadan tradition widely celebrated across GCC countries. On this night, children roam around their neighborhoods singing traditional songs that mark the occasion and receive a variety of gifts and bags of sweets from elders. During the holy month of Ramadan, The Pearl-Qatar serves as a hub of activities for all ages. Porto Arabia and Medina Central’s unique retail of shops and restaurants continue to attract large numbers of residents and visitors during this period while religious lecture series are offered daily at the Qatar Charity tents erected few meters past the Island’s main entrance, adjacent to The Pearl-Qatar’s mosque where prayers are duly held.

Ashghal announces temporary closure of one lane in each direction on Najma Street

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The Public Works Authority ‘Ashghal’ announced that one lane in each direction will be temporarily closed on Najma Street (Approximately 700 meters), as shown in the attached map. The remaining two lanes will stay open on either side of the road throughout the construction period. Traffic safety measures will also be in place on Al Hadara and Al Thumama Streets to allow construction of the new intersection on Najma Street. 

The closure will start from Tuesday 7 July 2015 for a period of 4 months. This traffic diversion aims to facilitate the construction of a new signal-controlled junction at the intersection of Al Hadara Street with Najma Street and Al Thumama Street which will enhance traffic flow in the area. The works form part of the interim upgrade project on E-Ring Road and Najma Street that will also include infrastructure works associated with utilities, landscaping, street lighting, footpaths and cycle paths.

Ashghal will install road signs to advise motorists of the diversion. The authority requests all road users to abide by the speed limits, and follow the road signs to ensure their safety.Ashghal announces temporary closure 2 [qatarisbooming.com].jpg

Ashghal and QPMC sign a framework agreement

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As part of its ongoing efforts to ensure the availability of construction materials for its upcoming planned infrastructure development projects, H.E. Eng. Nasser bin Ali Al Mawlawi, President of the Public Works Authority and Engineer Abdulaziz Bin Abdullah Al Ansari, chairman of QPMC have signed a strategic framework agreement between the two parties to import raw materials (Gabbro and lime stone).

The signing was attended by Hamad Ali Al Mannai, Vice Chairman of the QPMC board and head of stockpile inventory management and primary materials cost control committee at Qatar's Ministry of Economy and Trade, Eng. Eisa Al Hammadi CEO of QPMC, Eng. Mohamed Ali Darwish, Director of Technical Support Affairs in Ashghal, and Abdel Samad Al Mekki, Manager of the Engineering Business Department in Ashghal. The agreement aims to provide Ashghal with gabbro and limestone in order to achieve its building and constructions programmes and projects in Qatar through contractors. As QPMC guarantees that the prices of the raw materials are fixed in the local market, and enough quantities are available for the first few years, which will achieve stability in prices.

H.E. Eng. Nasser bin Ali Al Mawlawi, President of Ashghal, said that he is pleased to be signing an agreement with QPMC, and considers it a joint success that will achieve the development objectives and implementation of infrastructure. Al Mawlawi also mentioned that as per the agreement, QPMC will provide 41 million tons of limestone and 51 million tons of gabbro aggregates for a period of 5 years, which provides sustainability in raw materials needed by Ashghal. 

Ashghal and QPMC sign a 2 [qatarisbooming.com].jpgEng. Abdulaziz Al Ansari, chairman of QPMC, said: “The agreement confirms that QPMC has become the trusted arm in Qatar and the region. It can be relied on to provide primary materials of gabbro and limestone, fine sand and washed sand, and within the required quantities for the implementation of major projects in Qatar. He added: “This framework agreement comes in line with the QPMC's vision, which is based on transforming from forming strategic stock of primary materials for infrastructure projects in Qatar, to meeting Qatar’s National Vision 2030, and encouraging all workers in this field whether they are enterprises, private sector or public sector to build major projects in the country and develop national economy.

“The purpose of signing this agreement with Ashghal is to provide it with construction materials needed for its upcoming projects for the next five years. Ashghal is considered a strategic partner for QPMC, and this cooperation will surely enhance projects in the pipeline,” he said. In doing so, QPMC hopes to achieve stability in domestic prices for the benefit of employees and beneficiaries of the construction sector in Qatar. 

QPMC CEO Eng. Eisa Al Hammadi, said: “Since its establishment in 2006, QPMC is seeking to ensure the supply of primary materials in the Qatari market, to keep up with the thriving construction industry in the country, especially with Qatar being the next host of the 2022 World Cup and beyond.” Eng. Eisa Al Hammadi said that this agreement would promote the company’s position as the trusted supplier of primary material in Qatar as it owns and operates strategic reserves of primary materials. It also offers integrated solutions in several areas including port management, logistics and supply, storage and distribution to meet the country’s needs in the fields of infrastructure and construction.

Ashghal and QPMC sign a 3 [qatarisbooming.com].jpgAl Hammadi confirmed that the agreement signed with Ashghal will continue for the next five years, and aims to encourage Ashghal and its representatives, contractors, and suppliers to work together with transparency, openness, and collaboration to achieve the desired common goals. Eng. Eissa Al Hammadi said: “It is within the company's vision to provide as much transparency and reliability of its dealings with suppliers and construction contractors to work with each other in an open cooperative and collaborative manner in the spirit of mutual trust to meet their needs for the quality control, maintaining environmental integrity, and to overcome obstacles and achieve the objectives.”

It is worth mentioning that QPMC recently signed a memorandum of understanding with the Belgian engineering consultant, port and logistical operator Rent-A-Port to set up mining operations in the Khatmat Malaha area in the Sultanate of Oman and initiate works on limestone and gabbro quarries in addition to a one kilometre long jetty to quarry and transport over 3 million tons of gabbro and marketable primary materials every year by barges to Qatar.

This comes as part of QPMC's pledge to create a strategic stockpile of aggregates for the country and operates for that matter, a jetty in Lusail area, a Gabbro Berth Terminal in Mesaieed Port, which will have an unloading capacity of 34 million tons a year by 2016, and a floating jetty and stockpile in Ras Laffan which as above-mentioned to import 7.5 million tons of gabbro per annum. In addition to developing gabbro quarries outside of Qatar, mainly in Fujairah and Ras Al Khaimah in the UAE and Khatmat Malaha in Oman, and the sea logistic supply chain; QPMC also produces washed sand and is constructing a cement silo at the gabbro berths to store and discharge over 2 million tons of imported cement annually to meet any increased demand.

2016 report on Qatar to put changing legal landscape under the microscope

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A report by the global publishing firm Oxford Business Group (OBG) will shine a spotlight on the raft of new legislation which is being introduced in Qatar, with a view to enabling the State’s National Vision 2030.

The new Commercial Companies Law and the highly-anticipated Arbitration Law, which will have a bearing both on businesses already operating in the country and others looking to invest, are just two of the topics analysed in The Report: Qatar 2016. Long-awaited updates to the kafala (sponsorship) system, which are expected to be finalised by the end of the year, will also be given in-depth coverage. The system, which governs the monitoring of migrant labourers, has been subject to scrutiny by the world’s media as Qatar’s many megaprojects gain pace.

OBG’s analysis of Qatar’s legislation will be provided once again by law firm Pinsent Masons Qatar. The company has signed a second Memorandum of Understanding (MOU) with OBG to produce the Legal Framework Chapter of The Report: Qatar 2016. James Elwen, Head of the Qatar Office and a Partner at Pinsent Masons, said he was delighted to be contributing to OBG’s forthcoming report which, he added, came at a time when keeping up to date on the country’s legal framework was essential.

“Qatar’s far-reaching plans, led by its huge infrastructure drive and efforts to galvanise small and medium-sized enterprises, have necessitated significant legislative updates to accommodate the government’s vision for the country,” he said. “It will be a pleasure to work with Oxford Business Group’s team to map out these changes for business leaders eyeing Qatar’s many exciting opportunities.” OBG’s Managing Director for the Middle East Jana Treeck agreed that the Legal Framework Chapter of The Report: Qatar 2016 would be a valuable tool for readers looking to keep informed on what the changes to the country’s legal and regulatory environment mean for their investment plans.

“The new legislation already in place reflects Qatar’s evolving economy, while other draft amendments, such as planned changes to the rules covering expatriates’ contracts, merit in-depth discussion,” she said. “Pinsent Masons’ team brought an added dimension to our 2015 report with their local knowledge and expertise. I’m delighted that we will benefit from their insight once again.” The Report: Qatar 2016 will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. The publication will be available in the first quarter of 2016, in print or online.  


Traffic diversion on Al Kassarat Street in the Industrial Area to complete road works

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The Public Works Authority ‘Ashghal’ announced that a traffic diversion will be in place on part of Al Kassarat Street in the direction from Roundabout 10 towards Roundabout 2. The diversion will be implemented starting Thursday 9th of July, 2015 and will last six months. The other direction of the street has been widened to a two-way street as shown in the attached map. It is worth mentioning that this diversion is part of the construction works to develop Doha’s industrial area. The project aims to increase the capacity of roads and support the traffic flow, in addition to providing the area with integral infrastructure. Ashghalapologises for any inconvenience, and urges all road users to abide by speed limits and traffic signs to ensure their safety.Traffic diversion on Al Kassarat 2 [qatarisbooming.com].jpg

Temporary closure to and from Rawdat al Debdeba and Al Erbayyat Streets

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The public Works Authority 'Ashghal' announced that access and egress to and from Rawdat al Debdeba Street and Al Erbayyat Street will be temporarily closed for about 350 metres.

The remaining sections of Rawdat al Debdeba and Al Erbayyat Streets will remain open in both directions and vehicles will be able to make a detour U-turn that will be in place at the end of both streets (as shown in the attached map). The temporary closure will start on Saturday, 11 July 2015 for a period of two months. The closure is needed to allow for the construction of the road that will in the future connect Al Jazeera Flyover, which is currently under construction, to the Abou Hamour existing road as part of the construction and upgrade of the infrastructure of Al Muntazah Street Extension, including all necessary utilities.

Vehicles wishing to access Rawdat al Debdeba and Al Erbayyat Streets from Mesaimeer road can use the adjacent local streets in the area, namely the Wadi al Ghadeeriyat, Al Slemiya, and Saad Bin Majid streets to get to their destinations as shown in the attached map. Ashghal urges all commuters to abide by the speed limits to help ensure their safety and to follow the new instructions displayed in the area to guide them.Temporary closure of access and 2 [qatarisbooming.com].jpg

Msheireb Properties announces first tenant for Msheireb Downtown Doha’s Commercial District

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Msheireb Properties, a subsidiary of Qatar Foundation, announced the International Centre for Sport Security (ICSS) as its first official tenant in the commercial district of the company’s prestigious Msheireb Downtown Doha (MDD). MDD is the world’s first sustainable regeneration project, and will be a brand new commercial hub for the city of Doha.
 
The ICSS’s new headquarters will be situated in the Al Baraha area of MDD, which is at the very heart of the commercial district and consists of mid-rise and low-rise buildings, as opposed to stand alone towers. Unlike many other commercial developments, tenants such as ICSS will be fully supported by a range of hospitality, retail, residential and civic offerings on their doorstep. They will also have easy access to a state-of-the-art transport system, providing connections with the rest of Doha.
 
The building that will house ICSS’s new international headquarters consists of 3,939 sqm of open, energy-efficient, modern office space spread across five floors. As such, it is ideally located and designed to serve as a standalone corporate headquarters. Its distinctive architecture, based on design deeply rooted in Qatari heritage, is complemented with state of the art building systems and smart city technology and connectivity. All buildings in MDD earn points to achieve and have LEED platinum or Gold Certification, supporting local and international business’ environmental and CSR objectives as well.
 
Msheireb Properties announces first [qatarisbooming.com].JPG
 
Eng. Abdulla Hassan Al-Mehshadi, Chief Executive Officer at Msheireb Properties said: “We are delighted to welcome the ICSS as our first office tenant in MDD. Appropriately, we share a common vision that is to create a sense of integrity and sustainability among the communities we serve and thus contribute to their overall development. I am pleased that they have recognized the advantages of being based in a commercial hub within a broader development with all the amenities they could need and I am confident other organizations will reach the same conclusion. MDD strives to ensure its business partners receive full support and assistance required to achieve their objectives and goals. This will certainly enable their success and, ultimately, ensure that this translates to the growth of Qatar’s economy and further development of our nation.”
 
Al-Mehshadi added, “We look forward to welcoming more commercial tenants to Msheireb Downtown Doha in the near future - the destination of choice for both local and international businesses.” Mohammed Hajaj Al Shahwani, Vice President, ICSS, said: “As we look to expand our team of international sport safety, security and integrity experts over the next few years, it was crucial to find a location that was not only safe and secure, but also met our growing technical and operational requirements.
 
“Conveniently located in the heart of Doha, with a full range of services for our staff and high-level guests the ICSS welcomes, as well as excellent communication and transport links, Msheireb Downtown Doha was the ideal choice to become the new home of the ICSS. “We believe the commercial district in Msheireb Downtown Doha also has huge potential to become a thriving international business hub which can cater to a variety of sectors, including sport. As an international organisation headquartered in Qatar, it is a real privilege for the ICSS to become the first tenant of this exciting new project.”

Inauguration of Al Ghuwairiya and Al Karaana Health Centres

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With the opening of Al Ghuwairiya and Al Karaana Health Centres this past week; new health centres have entered the operational phase opening their doors to citizens and residents. The two centres are the first advanced health centres to open in Qatar as part of a plan to build new and improved health centres aiming to provide advanced primary healthcare services in the State of Qatar. This plan is being implemented by Ashghal in cooperation with the Supreme Council of Health and the Primary Healthcare Corporation.

Inauguration of Al Ghuwairiya 1 [qatarisbooming.com].jpg

The new health centres, including both Al Ghuwairiya and Al Karaana Health Centres are larger in size when compared to older healthcare centres. This will increase the centres' capacity in terms of building more multi-specialty internal clinics, hence receiving a larger number of patients and providing a greater number of parking spaces. Al Ghuwairiya Health Centre spreads over 20,000 sqm, with a built-up area of 2,404 sqm while Al Karaana Health Centre spreads over 24,000 sqm with a built-up area of 2,329 sqm.

Inauguration of Al Ghuwairiya 2 [qatarisbooming.com].JPG

Both centres are similar in that they include clinics for men and women, as well as dental clinics, outpatient clinics, radiology centres, a pharmacy, a laboratory, and other specialised clinics. The centres have several main entrances some of which are dedicated for emergency use while the remaining are for staff, visitors and patients who have also been allocated shaded parking spaces. The centres are also characterised by the advanced medical services, clinics, and the many other sections that provide the visitors and staff with a healthy and comfortable environment. The reception and waiting areas are designed to have an abundance of natural daylight while the centres' façades have a distinctive artistic design that includes glass engravings and hanging canopies.

Ashghal announces the opening of the link road between Hamad Port and Route 55

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The Public Works Authority ‘Ashghal’ has opened the link road between Hamad Port and the Temporary Truck Route (TTR) also known as Route 55 to ease the flow of heavy goods vehicles from the new Hamad Port to Route 55 ahead of full port operations commencing( as shown in the attached map.)

The newly opened road, known as Mesaieed Road 1 is approximately 4 km in length and consists of 2 lanes in each direction, one of which will be dedicated for the use of Heavy Goods Vehicles (HGVs) similar to the existing Route 55. The new road is considered a vital addition to the road network of Qatar as it will form a free flowing traffic route without the need to travel through Doha city, helping to alleviate congestion, and better manage heavy vehicle movement.

Ashghal announces the opening 2 [qatarisbooming.com].jpgMesaieed Road 1 will also relieve traffic congestion within Doha and offer the people of Qatar an alternate route with faster journey times when travelling between Al Khor in the north, and Mesaieed in the south. It will be a safe, swift, efficient, and high quality highway that will provide better connectivity for Mesaieed Industrial City, and Ras Laffan Industrial City. Additionally, Mesaieed Road 1, falls within the scope of works of the New Orbital Highway and Truck Route "Orbital" and with the ongoing progress in the construction of Hamad Port and its impending transition to operational status, Ashghal opened this new link road, Mesaieed 1, to connect Hamad Port to Route 55.

Mesaieed Road 1 starts from the southern entrance to Hamad Port through a temporary roundabout and crosses Mesaieed Road through the newly constructed Mesaieed Road 1. Westbound traffic from Hamad Port will be able to reach Salwa Road via Route 55, significantly reducing journey times. Southbound traffic from Salwa Road heading towards Mesaieed will now be able to turn east at a new junction on the existing Route 55 onto the newly constructed section of Mesaieed Road 1.

Ashghal announces the opening 3 [qatarisbooming.com].jpgThe temporary roundabout and Mesaieed Road 1 are located approximately 1 km from Woqod petrol station on Mesaieed Road, and 1.8 km from the first Mesaieed Industrial City (MIC) roundabout. The road opened to traffic in July, and will serve as an operational connection with Hamad Port, facilitating the domestic and international transportation from the port. The New Orbital forms a fundamental part of Ashghal's Expressway Programme to construct an international standard highway network that will significantly transform road travel within Qatar.

The New Orbital Highway and Truck Route Project is divided into four sub-contracts carried out simultaneously and encompassing the design and construction of approximately 190km of dual carriageway; typically four to five lanes in each direction with the provision for two future lanes. Additionally, two separated truck lanes will be provided along either side of the mainline between Mesaieed and Al Khor.

Ashghal announces closure on Najma Street

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The Public Works Authority ‘Ashghal’ announces that a temporary traffic closure will be put in place on Najma Street as of Monday, 20 July 2015 and until 11 September 2015. The closure is needed to complete the rehabilitation works of the existing underground sewerage network in the Najma area.

The closure is two parts:

This first part of the closure which is 113 metres in length in both directions stretches from the intersection of Najma Street with Ibn Shuaib Street to the intersection of Najma Street with Hamza bin Malik Street. The closure also includes the Sikkat Al Ibreez Street & Maslama bin Ahmed Street off the Ibin Shuaib Street. Motorists coming from Mansoura Street can use the Hamza bin Malik two-way street to access Nawfal Bin Al Harith Street, also a two-way street and then continue onto to Ibin Shuaib one-way Street (as shown on the attached map).

Ashghal announces closure 2 [qatarisbooming.com].jpgThe second part of the closure is 110 metres in length and runs from the intersection of Najma Street with Hamza bin Malik Street to the intersection of Najma Street with Al Mansoura Street.  One lane will remain open to traffic coming from Al Mansoura Street. As an alternative road, motorists can use Hamza Bin Malik Street to reach Nawfal Bin Al Harith Street, where both directions will remain open to traffic (As shown on the attached map).

Ashghal urges all commuters to abide by the speed limits to help ensure their safety and to follow the new instructions displayed in the area to guide them.

UDC H1 net profit up 24.05% to QR 449 Million


PM unveils mega industrial project in southern Qatar

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HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani has announced the launch of  the largest logistics and industrial project in southern Qatar, said Gulf Times. The project, launched on the directives of HH the Emir Sheikh Tamim bin Hamad al-Thani, seeks to  diversify the base of the Qatari economy and support competitiveness of the private sector in order to increase commercial activity, reinforce the local product and diversify non-hydrocarbon investment methods.

The Prime Minister and Minister of Interior stressed the government’s keenness on translating the directives of the Emir and crystallise his vision to make Qatar a regional hub for investment and logistics, increasing competitiveness of the commercial sector as well as encouraging the private sector to participate and contribute effectively to the development plan of the State in accordance with the Qatar National Vision 2030.

Stressing that the southern regions will lead the economic diversification strategy and will change the map of investments in Qatar, he praised the concerted efforts of government agencies and teamwork in this regard. The announcement comes as a commitment from the government to the Emir’s annual speech before the Advisory Council’s 43rd opening session calling for the development of plans, which include a realistic timetable to resolve the stores issues and logistical regions and a plan to promote the economic and trade sectors. The Prime Minister and Interior Minister explained that the government is committed at this stage to implement a number of major and important projects for the development and diversification of the Qatari economy through private and public sector. 

The Prime Minister assigned the government to establish a number of ministerial groups and committees that helped to identify the priorities of the government including the management of major projects, the provision of lands for all activities and promoting and encouraging private sector investment in all areas of the economy, in order to achieve the boom in the economy and reduce dependence on State resources of gas and oil sector. The work of those groups contributed in improving the capacity of the various ministries in co-ordinating their work, raising their capacity as well as accelerating the implementation of projects including this outstanding project.

For his part, HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohamed al-Thani and Chairman of the Ministerial Group to stimulate private sector participation in economic development projects explained that the small investors were involved at the heart of the project strategy representing the majority share of the allocation of quotas and have been allocated 951 plots of land ranging in sizes between 1000 and 2000 square meters for investment. He said that to ensure the success of the development process of lands by small investors, the logistics Committee has set up typical maps and building permits so as to ensure the acceleration of the development of those lands and ease procedures for small investors.

This project is one of the largest offered by the government in these economic sectors in three zones, namely South Wakra, Birkat Al Awamer and Aba Saleel including 1,583 plots of land over an area of (6.330.907 m2), which will be reflected positively on the market and the prices of logistics services and storage in the near future. The project site adds a strategic dimension as it is located within walking distance of Hamad Port, the Mesaieed Industrial City and the Orbital Highway, which will serve the quality investments in this project.

The Logistics Committee set the general policies to offer the projects of logistics areas south of the country so as to ensure participation of all categories of investors, and encourage small investors to participate in this project, which contains investment products that meet the needs of all segments by subtracting relatively small lands (1,000 to 2,000 sq m) for small investors, lands of medium and large sizes (above 2000 to 67.557 sq m) for medium and large investments, at a fixed price per square meter paid every six months in all regions, with a price of 40 riyals per square meter per year, and will be contracted through the rent based on the system of long-term contracts (for 30 years).

The logistics areas project in south of the country will include: assembly and processing services, open storage spaces in addition to various storage applications (refrigerated warehouses, frozen stores and dry stores), showrooms, shops, commercial offices, labour camps and workshops for the maintenance and storage of cars as well as assembly and processing workshops for light industry, service centres, supplies and warehouses.

This project is characterised by a typical environment for business and the employees’ lifestyle and includes integrated infrastructure with international standards. The reception of requests from investors by the Logistics Committee according to customisation policy is scheduled on the 2nd of August 2015 ending on the 9th of November 2015, in order to provide sufficient time for all investors to submit their applications to enter the rehabilitation phase.

QIA JV's unit works to raise construction industry standards

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Canary Wharf Contractors Ltd (CWCL), a subsidiary of Canary Wharf Group plc, a wholly owned joint venture between Brookfield Property Partners and Qatar Investment Authority, is working to raise standards across the construction industry, said Gulf Times. CWCL has collaborated with the Considerate Constructors Scheme to launch Ultra Sites, a new level of attainment to raise industry standards and collaboration amongst clients, contractors, subcontractors and suppliers.

CWCL manages and delivers all of Canary Wharf Group's construction projects in an integrated Project Manager/Main Contractor basis. Current projects include 20 Fenchurch Street, the thirty-seven-storey landmark office building in the City of London, Canary Wharf Crossrail Station, New Phase, formerly known as Wood Wharf, and the Shell Centre Development on London's South Bank. The Considerate Constructors Scheme is a non-profit-making, independent organisation founded in 1997 by the construction industry to improve its image.

Construction sites, companies and suppliers voluntarily register with the Scheme and agree to abide by the Code of Considerate Practice. The Code commits those registered with the Scheme to care about appearance, respect the community, protect the environment, secure everyone's safety and value their workforce. The Scheme is concerned about any area of construction activity that may have a direct or indirect impact on the image of the industry as a whole. The main areas of concern fall into three categories: the general public, the workforce and the environment.

The prestigious status of being an Ultra Site is awarded to those sites that take considerate construction to the highest level. This is achieved by stipulating that a number of suppliers and subcontractors engaged with a site are also to be registered with the Scheme -- helping to further extend the benefits of membership for many suppliers that may not typically register with the Scheme. They are the sites which represent the pinnacle of achievement in exceeding the Scheme's Code of Considerate Practice. Ultra Sites will receive regular monitoring and must commit to operating at the very highest standards across the Scheme's Code of Considerate Practice. 

Considerate Constructors Scheme chief executive Edward Hardy says: "We're delighted to be an organisation spearheading greater collaboration across the industry. The construction industry is acutely aware of its need to work more closely together, and is increasingly realising the commercial, social and environmental benefits of greater integration. Canary Wharf Contractors have championed Ultra Sites from the outset and we're thrilled to have their expertise as part of the consortium. Ultra Sites are the next level of achieving even greater standards and collaboration across the entire industry. 

"It means that we can extend our positive influence to organisations not typically registered with the Scheme. To date, over 85,000 sites have been monitored by the Scheme, and because the very nature of monitoring sites is on-the-ground, in real-time -- we're ideally placed to encourage and evaluate collaborative activities." 

Dr Diana Montgomery, chief executive at the Construction Products Association (CPA), a co-owner of the Scheme, adds: "The CPA commends the Scheme on the introduction of Ultra Sites. Improving collaboration across the construction supply chain is a central component of CPA's role in promoting and campaigning for construction product manufacturers and distributors. Ultra Sites will help greatly in improving and promoting the positive benefits of the supply chain working together more effectively".

Tenders invited for new cancer centre building

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The Public Works Authority (Ashghal) has announced a bidding process for a new building for National Centre for Cancer Care and Research, said The Peninsula. The QR8,750,000 bid is open until October 5, according to the official website of Ashghal. It has invited bids from only Qatari companies, but non-Qatari firms can join in as joint ventures. The National Cancer Strategy: The Path to Excellence was launched in 2011, with an investment of over QR2,204m.

It includes plans to refurbish Al Amal Hospital, set up National Centre for Cancer Care and Research and a new cancer hospital. The strategy has implemented refurbishment of Al Amal Hospital, a facility for cancer patients, to have a comprehensive cancer care centre under one roof without space constraints. The refurbished hospital was renamed National Centre for Cancer Care and Research and acts as more than a service provider. Since refurbishment, the centre has been functioning as a medium-term solution. The new cancer hospital on the HMC site will treat patients and conduct research. 

Residents urged to get their home number plates fixed

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In a fresh call on social media, the Ministry of Municipality and Urban Planning has urged people to get their house number plates fixed as part of the ministry’s ‘My Address’ system, said The Peninsula. The new plates will have the building, zone and street numbers. Presently, majority of homes have only the building number displayed. The plates are installed by Centre for Geographic Information Systems (CGIS) under the ministry, which is planning to cover all buildings by this year-end.

As part of the first phase last March, an estimated 125,000 building number plates were been installed across Qatar, according to the ministry. On average between 1,500 and 2,000 plates are being installed monthly. CGIS welcomes applications to install plates. Applications should mention the nearest address plate on the same street to the applicant or the plot of land, PIN and the new plate will be installed within a week to 10 days. Applications can be made by contacting 44266948, or 44265279, or 44266279 or 44262296 for English speakers.

CGIS has a specified mechanism to update data and installation of plates on buildings. Information is obtained in co-ordination with General Directorate of Civil Defence, Internal Security Force, National Command Centre of the Ministry of Interior, Qatar Statistics Authority, Q-Post, Kahramaa and all municipalities. Also in the first phase, a decision was taken to fix plates on the right side of each building and assign odd numbers to buildings on the left side of the road and even numbers to those on the right.

The second phase will have a system to develop the database which also included Qatar General Electricity and water Corporation (Kahramaa) number, types of building, old numbers, survey numbers, zones and streets. The ministry has ordered all municipalities to submit a monthly report on details of new buildings in their jurisdiction to include them in the database ahead of providing plates. In a separate awareness campaign, the ministry urged the public to follow a convenient way to receive emergency and other services fast. 

The new system will help residents get easier access to services, including Ambulance Services and Civil Defence.

Qatar checks real estate brokering

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The Qatari government approved a draft law that specifies requirements to practice real estate brokering in the country. Previously outside of any specific law until now, the new law will set obligations and disciplinary accountabilities of the real estate brokers, said The Saudi Gazette.

Industry experts feel the new law will bring increased transparency and accountability to the real estate industry and lead to a higher level of standardization and consistency being adopted in the Qatar real estate market. According to the Qatar Statistics Authority (QSA), the population stood at 2.34 million in March, fuelling property demand, creating numerous business opportunities for real estate agents and brokers, many of whom are not necessarily well trained. The cabinet meeting also approved two separate sets of draft laws to streamline the real estate registration, and the documentation and notary processes.

"The preparation of the mentioned draft laws came within the framework of the development of real estate registration and documentation systems aimed at protecting real estate wealth of the state and individuals, and to keep up with the requirements of the comprehensive development in Qatar," said Deputy Prime Minister and Minister of State for Cabinet Affairs Ahmed bin Abdullah Al Mahmoud in a statement issued after the cabinet meeting.

Qatar Airways HQ 300x250

Proudley pointed out: "In Dubai, the regulation of brokers along with registration requirements has enhanced the market and increased transparency. These are factors that have played a key part in the recent softening of the Dubai market and the prevention of what looked like another bubble followed by a bust." Mark Proudley, associate director of DTZ Qatar Consultancy, said: "We would welcome legislation that regulates real estate brokers and their activities and we consider it long overdue in Qatar," according to The Edge.

"We anticipate that it will take time to both finalize the legislation and then implement, but it should provide investors, landlords and tenants with greater comfort that they are dealing with a qualified professional," he said.

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