MANAMA: Bahrain Bay, the Kingdom of Bahrain’s highest-profile, master-planned $2.5 billion waterfront community, has awarded the main contract for the construction of the iconic Four Seasons Hotel to Belgian-based Six Construct. This selection signals the beginning of Phase Two of the project, which includes the podium and tower construction. Work will begin on 30 November, 2011 with a target construction completion date of April 2014.

Commending the launch of the new phase, Bob Vincent, Bahrain Bay CEO said, “This project takes on much more significance than a stand-alone development. The commencement of the main contract for the Four Seasons Bahrain Bay is seen as an important commitment to re-invigorating construction in Bahrain and bringing a fresh focus to real estate lending by local banks” Vincent commented. “In addition, the flow-on effects of more than 2,000 jobs during construction; participation by local Bahrain sub-contractors and suppliers during the development and more than 700 permanent jobs; will all serve to demonstrate a turnaround in the Bahrain economy”.

The competitive tender adhered to international tendering procedures with bids from international, regional and local companies. From an original list of 21 firms, it was awarded to Six Construct who bring an exemplary track record of construction projects across the globe, including the world’s tallest tower, the Burj Khalifa Tower in Dubai, Ferrari World in Abu Dhabi, Emirates Palace Hotel, The Armani Hotel, Dubai, and many more industry-leading projects. Their bid displayed the characteristics that exemplify Bahrain Bay’s commitment to best practices, namely realistic cost benchmarking, efficient programme planning, and maximum quality assurance.

The Four Seasons Hotel at Bahrain Bay will be the latest in the five-star chain’s prestigious portfolio of international properties. At 201 meters tall, 50-storeys, and 263 guest rooms, the hotel complex is set to bolster Bahrain’s hospitality credentials, and set a new standard in luxury accommodation. Complete with five-star spa and leisure facilities, suspended ‘Sky Pod’ restaurant, first-class banqueting and conferencing capabilities, four fine dining outlets, and panoramic views for guestrooms and suites, the project has been designed to lead Bahrain’s hotel offerings into a new era. The project implementation will be co-ordinated by the Bahrain Bay management team, and as such the hotel’s construction will exhibit the same leading-edge contemporary design and project management efficiency that has positioned Bahrain Bay as the country’s highest profile waterfront community.

“As Four Seasons is one of the world’s foremost hospitality brands, this project demands leading construction expertise. Six Construct’s bid demonstrated this expertise, and initiating this new phase with them is another clear indicator of Bahrain Bay’s ongoing progress and its status as one of the region’s leading real-estate investments” commented the Bahrain Bay CEO.

Also commenting on the announcement, Philippe Dessoy, General Manager, Six Construct, said “We are excited to begin work on the Four Seasons Hotel project, and also to be given a chance to further demonstrate our construction excellence by contributing to a high-profile project such as Bahrain Bay. As with all our projects, we anticipate a timely completion on schedule and on-budget.”

Commenting on the project, Scott Woroch, Executive VP Worldwide Development at Four Seasons Hotels and Resorts has said, “Bahrain has firmly established itself as a leading financial hub for the Gulf region. We look forward to catering to the needs of the business and leisure traveller as well as the corporate and group segments. We are confident that Bahrain Bay provides Four Seasons with a prestige location through which to serve tomorrow’s guests.”

The transition of the Four Seasons Hotel to its next phase is the latest step in Bahrain Bay’s uninterrupted progress, as confirmed by Abdulla Al Doseri, Bahrain Bay Deputy CEO, “Four Seasons Hotel is the second anchor development to push ahead, after the completion of the Arcapita Bank Headquarters. We now have four developments on site, and this latest addition is a strong reflection of Bahrain Bay’s objective to combine business and leisure in our vibrant offering, ensuring it is a truly mixed-use development.”

Phase One – the enabling works – of the Four Seasons Hotel project was completed in Summer 2011, and included the moving of over 40,000m3 of earthworks, and over 7,000m3 of concrete poured into over 800 separate piles. These enabling works enable Six Construct to immediately start work on concrete slab construction at grade, and site mobilisation is to commence immediately.

Bahrain saw its real GDP fall by 1.4 percent in the first three months of 2011

Bahrain’s economy grew by 1 percent quarter-on-quarter in April-June after shrinking in previous three months, but annual growth decelerated to its slowest pace since 2008 as the impact of unrest continued to stifle activity, data showed on Sunday.

The small non-OPEC oil exporter saw its real gross domestic product falling by 1.4 percent in the first three months of 2011 compared with the previous quarter, its first quarterly contraction since the global financial crisis in late 2008.

On an annual basis, GDP growth in the Arab island kingdom - the smallest economy in the Gulf at some $14 billion - decelerated to 0.8 percent in the second quarter from 1.8 percent in January-March 2011, the sixth slowdown in a row, the data from the Central Informatics Organisation showed.

“The quarter-on-quarter rebound seems reasonable. In terms of year-on-year it could have been worse but it still shows that 2011 is going to be a pretty tough year for the economy,” said Paul Gamble, head of research at Jadwa Investment in Riyadh.
 
“The issue is still the legacy of the unresolved political tensions that we had earlier in the year have made the private sector very cautious.” he said.

Quarterly annual growth rates for Bahrain’s GDP before 2008 are not available.

The island kingdom, a financial hub where nearly $9bn in mutual funds is parked, had been rocked in February and March by its worst public unrest since the 1990s.

Around 30 people died in a month of unrest which brought in Saudi troops, closed banks and shops and triggered capital flight. At the time, NCB Capital estimated economic losses at $1 billion, which made up 17 percent of the first quarter GDP.

“What seems to happen obviously is further slowdown,” said Giyas Gokkent, head of research at National Bank of Abu Dhabi. “We will have to see the third quarter for hopefully a bounce because of establishment of some stability.”

In July, Central Bank Governor Rasheed al-Maraj expected the economy to expand by 3 percent this year, less than 4.5 percent seen by the finance ministry in March.

Bahrain’s financial sector, which accounts for around a quarter of the GDP, has been only slowly picking up from the global financial crisis and a regional property crash.

It grew 1.7 percent year-on-year in real terms in April-June, up from a 1.3 percent rise in the previous quarter.

Hotels, the most heavily hit by the uprising against the Sunni-led government, booked a 29.3 percent drop in the second quarter after a 30.3 percent output slump in January-March.

The real estate sector, which has yet to return to levels seen before the global crisis, was down 5.0 percent in the second quarter, the data showed.

Transport and communication and government services remained the main GDP drivers, analysts said, growing at an 8.6 percent and 4.9 percent annual clip, respectively.

Output of the hydrocarbon sector, which accounts for around one third of the economy, was up 1.9 percent in real terms compared with the same period a year ago. It jumped 43.5 percent in nominal terms as crude prices soared to $115 per barrel in May, due in part to the unrest across the Arab world.

Bahrain, which pegs its dinar to the U.S. dollar, does not release quarterly GDP data by expenditure.

The country’s nominal GDP increased by 19.8 percent year-on-year to BD2.4bn ($6.3bn) in the second quarter, the data also showed.

Shaikhani Contracting looking to establish presence in Qatar’s booming construction industry

May 03, 2011

Qatar is considered to be the world’s fastest growing economy according to a recent report from the International Monetary Fund (IMF) with an expected 20 per cent growth in 2011. The IMF report revealed that the announcement of Qatar hosting the 2022 FIFA World Cup has positioned the country as the largest construction site in dollars per square meter, with almost USD 100 billion in planned investments over the next 12 years. Further, the Qatari government has also announced its move to intensify investments in heavy and costly construction projects, which includes a USD 4 billion project covering the construction and renovation of 12 stadiums. Looking to position itself as a key player in the country’s construction boom, Shaikhani Contracting, a part of the Shaikhani Group, a multibillion dollar business conglomerate with interest in real estate development, trading, manufacturing and IT, has announced its plans to open its offices in Qatar. The announcement was made today (May 03, 2011) on the sidelines of Project Qatar.

At present, Shaikhani Contracting is reportedly looking into ongoing projects in Qatar such as the proposal to develop 33,000 housing units in 2011, which is expected to balance housing units demand in the second half of the year as the expatriate demand for housing finance is also likely to increase. Other large and long-term infrastructure projects being planned include the renovation of the country’s key seaports, airports, and a railway connecting Qatar to the Kingdom of Saudi Arabia. Shaikhani is expected to leverage its experience and expertise in construction and sub-contracting in order to win strategic contracts in Qatar.

“All eyes are on Qatar right now, which has ably transformed itself as a key business and investment hub for the Middle East region. Being named as host for the FIFA World Cup in 2022 has made Qatar a magnet for companies wanting to invest and put up world-class infrastructure and facilities,” said Rizwan Shaikhani, Managing Director, Shaikhani Contracting. “The country’s emergence as one of the world’s fastest developing economies has allowed us to look into reinforcing our presence in Qatar’s construction segment. Shaikhani Contracting brings its experience and technical expertise to these projects, along with our reputation of working closely with our clients.”

The announcement follows the company’s plans to fast track its strategic expansion efforts across the Middle East in 2011. The move to expand highlights Shaikhani’s aim to maintain its leadership and strong market presence in the Middle East region. Aside from Qatar, Shaikhani is also exploring opportunities in Africa, which is expected to enjoy annual growth over the next 20 to 25 years. The company is also preparing to expand its brand portfolio and increase its footprint into newer markets - diversifying extensively in regional and local infrastructure activities. This also signals the continuation of the company’s efforts to recruit fresh new staff and further strengthen the company’s current workforce.

“The Middle East region is vibrant with development, which is evident in the amount of projects spread out across countries such as the UAE, Qatar and even stretching out to Africa. We are looking at developing key partnerships across these areas in an attempt to become a major part of the ongoing development. We remain deeply committed in meeting the demands and requirements of the region’s developing construction industry and to continue being at the forefront of world class projects,” concluded Rizwan Shaikhani.

55% increase in new investments & 38% rise in number of companies expansions.

“We aim to support Dubai’s economy through increasing our contributions in the GDP” - Dr. Al Zarouni

Dubai (April 3, 2010) - Dubai Airport Freezone registered a robust growth of 55% in new investments in the first quarter of this year compared to same period in 2009.

Sheikh Ahmed bin Saeed Al Maktoum,Chairman of Dubai Airport Freezone, said “This strong 55% growth in investments is a natural result of the increase in the number of new companies registered in the first quarter. In addition, existing companies at the Freezone expanded by 38 per cent in their premises space.

Sheikh Ahmed added that expansions were led by 16 European and American companies who have stepped up their activities in the region in search of new markets. “The expansion of operations required an increase in office space and warehousing facilities to accommodate equipment and staff.

The Chairman said the “Freezone’s contribution to Dubai’s GDP was 2.2 per cent last year. And is expected to grow with the increase in number of companies and additional investments by major international companies seeking a foothold in the Middle East, central Asia and Africa.”

He added that the Freezone performance during the first quarter of 2010 gives an indication on the positive trend that is expected to continue for the rest of the year. “This is also an indication of the keenness of foreign companies to explore alternative investment opportunities and search for new markets for its products and services in the region in general and Dubai in particular.”

He said the free zones, and Dubai Airport Freezone in particular, have launched incentives for investors that sparked an interest among many multinational companies seeking to diversify their markets offering attractive terms.

Dubai Airport Freezone offers many advantages and incentives that meet the needs of foreign companies such as telecommunications services, facilitation of visas and fast tracked approval of trade licenses which is released on average within three working days.”

“We have achieved what we sought in the past 14 years attracting the biggest foreign investments in different fields and sectors. Over 1450 international companies currently work from the Freezone.

Sheikh Ahmed added, the business investment sector represented 62% of total activities of the Freezone, followed by the services sector which accounted for 36%, followed by the industrial sector. The industrial and aviation services, electronics and electrical appliances sectors were the top sectors in terms of number of companies and rates ranged from 10 to12 %. Building materials, cargo & freight came second with 10%. The pharmaceutical and jewellery sector make up 8% of the companies operating in the Freezone.

European and American companies represent the largest number of companies in the Freezone with 42% share counts for 609 companies in various sectors. The Gulf and Middle East companies came second with 32% share.  The Japanese companies also registered a larger presence in the first quarter of 2010 to continue what they started in 2009.

Speaking on future expansion plans, Shaikh Ahmed said: “We are implementing the expansion plans as scheduled taking into consideration the current economic circumstances and the indicators of demand by foreign investors.

The ongoing new buildings with an area of up to 32,000 sqm are expected to complete by 2012.

He added that “We are doing our best to achieve our goals attracting more investments by providing various facilities and incentives for global companies according to a scheduled strategy.”

“The support that Dubai Airport Freezone receives from the government is the driving force behind our stated achievements.

Sheikh Ahmed referred to the Freezone’s future strategy which aims at creating dynamic partnerships with major international companies and the creation of common institutions that benefits both parties.

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