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UK & GCC: From strength to strength

Ever since Dubai signed the Exclusive Agreement in 1892, close ties have existed between the United Kingdom and the UAE. These have been strengthened further over the years by a strong commercial link, which saw Dubai act as an important trading post en route to India and the Far East.

The context of the relationship may have changed but Dubai is playing an increasingly important role in the international machinations of the UK, clearly illustrated by the arrival of Tony Blair in January. Little surprise since, according to Nick Dutt, chairman and CEO of the British Business Group (BBG), it is clear that the UK government recognises the potential for investment and political capital that can be gleaned from immersing itself deeper within the region.
In an interview with Construction Week, Dutt highlights the importance Dubai and the wider region holds for the UK with exports to the UAE totalling US $10.7 million (£5.5 billion), making it the 9th biggest export market for the UK. More revealingly, says Dutt, if you take Dubai alone, exports would still be $9.9 million (£4.8 million) making the emirate itself the UK's 10th biggest export market.

And despite the historical ties between the two countries, the nature of UK involvement is experiencing a subtle but distinct shift over the last few years, which are alluded to in this supplement. Dutt in his interview discusses the changing business landscape in the region and how geographically and commercially, UK companies must stay at the front of the pack. Put simply there has been a trend over the last few years of smaller companies complementing the traditional behemoths of the construction industry, bringing with them expertise in more niche, but expanding areas.

This is exemplified by the extended feature on sustainability - an issue that continues to rise up the agenda, forcing developers to acknowledge its importance in future builds. We take a look at what two of the UK's more pioneering companies - Atkins Middle East and Hyder Consulting are doing in the face of growing concern for the environment, specifically how they are attempting to correct entrenched ideas about green-buildings and environmental methodology.

Fire safety, and the need for certifying standards is also looked at in greater detail, especially in light of news that Intersec, the Middle East's leading exhibition on fire, security, safety and health had grown by 54% on the previous year and next years event will double in size again. Industry figures are also voicing concerns that companies, faced with a growing market lack the resources to effectively ‘police' companies that are applying for trade licenses.

The spotlight also falls on a few of the major UK construction players who have for years been established within the UAE and have developed a reciprocal approach through joint ventures which has had a significant influence on the infrastructure of the company. With a vast number of projects between them, it is fair to say that Carillion, Balfour Beatty and Laing O'Rourke have played a major role in developing the infrastructure of the Arabian Gulf.

Pointedly, the UK is well-positioned to capitalise on the region's spiralling growth, containing, as it does the fifth largest construction industry in the world, which provides exports of over $13 billion, contributing around 10% of GDP and employs 1.4 million people in Britain. Globally, UK contractors and consultants enjoy a high reputation and, with the adherence to British Standards (BS) and codes across the world, British firms are in high demand.

This high regard for British firms has seen a number of key contracts be awarded to UK firms over the past 12 months. The $30 million contract for water treatment to serve Atlantis, The Palm, was awarded to Septech Simon-Hartley, a joint venture between Septech Emirates and Ashbrook Simon-Hartley in the UK. The contract, which is scheduled for completion by mid-2008 requires Septech Simon-Hartley to supply, install and commission all 11 of the water treatment plants that will combine thermal stabilisation, sand filtration, ozone disinfection, protein stripping and bio-removal to maintain Atlantis' Aquatic environments.

Currie & Brown was appointed to provide project management services on the $180 million first phase of La Hoya Residence development in Ras Al Khaimah. The project involves the construction of 725 residential units, leisure and commercial facilities. It was also one of a number of UK companies that have secured contracts for the Lagoon Club project, a major mixed-use resort on Abu Dhabi Island. Broadway Malayan is the concept architect while Company Mac International is the project manager with the Conrad hotel chain responsible for the hotel operation.

Aside from real-estate contracts, UK firms are also working on a number of infrastructure projects throughout the city. In July, Dutco Balfour Beatty was awarded the contract for interchange 5.5 which will serve Dubai Marina and Jumeirah Lake Towers.

Not that local UAE companies are missing out: the RTA, for example, has awarded Wade Adams Contracting the $60 million second package on the Al-Sufouh roads scheme in a contract aimed at improving access to Dubai Marina.

Dubai Properties is considering plans for a monorail system linking its culture village development with Dubai International Airport. The project, known as Arabian Bay, includes residential buildings, hotels, an exhibition centre and a Wharf. UK company Halcrow is the infrastructure consultant for the project.

Away from the UAE, other GCC countries are attempting to raise the bar even further.

Bahrain is slowly reasserting itself as a financial centre following the $1.3 billion Financial Harbour project, which features the Atkins designed Bahrain World Trade Centre and Durrat Al Bahrain. Kuwait, which has long been an important trading partner for the UK, announced a 20-year tourism masterplan which has led to major construction projects such as Failaka Island, The Dome and Kuwait World Trade Centre, which is certain to benefit UK companies, and Qatar, regarded as being the greatest threat to Dubai's construction crown is earmarking the next few years to heavily invest in its infrastructure and development projects. From the Pearl Qatar, the $2.5 billion offshore development, to the West Bay complex, which Halcrow has been appointed to project manage and supervise, Qatar offers a host of riches for UK firms.

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