technical review middle east 4 2015

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1984 2015Serving Middle East

Business

31 Years

SERVING THE REGIONS BUSINESS SINCE 19849 4

USA: $16.50, United Kingdom: 10 Vol 31/Issue Four 2015

Market News p6 Innovations p52 Saudi Build p74 Genset Buyers Guide p78 Arabic Section p96

The latest highperformance andlowcost concrete solutions

Stability in Egypt is leading togrowing investment from abroad

The Golden Nile

Concrete Technology

Waste ManagementMaterial HandlingFall ProtectionFlooring SolutionsData Storage

INSIDE

70

The Big 5 Kuwait is set to highlightgrowth opportunities within thecountrys construction industry

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4 Contents


34

WELCOME TO ANOTHER packededition of Technical Review Middle East.In this issue we explore developmentsand trends affecting the regional powerindustry in our annual industry review(p22). We take a detailed look at theimproving economic situation in Egypt(p14) and consider ways in whichcountries throughout the Middle Eastcould effectively tackle ever-growingwaste management problems (p28).Our annual Genset Buyers Guide (p78)offers a comprehensive list of industrysuppliers and manufacturers workingthroughout the GCC region, while wepresent the latest updates ondevelopments from across a range ofindustry sectors, including fallprotection (p36), glass (p42) and datastorage (p46). We also look ahead to Big5 Kuwait (p70), Saudi Build (p74) andPowerGen Middle East (p76).

At Technical Review we always welcome readers comments to

[email protected]

EDITORS NOTEBUSINESS & MANAGEMENT

Market News 6Medina rail project edges closer to completion; FEWAinaugurates UAE power station; Iran outlines ambitiousrenewable energy plan

Event News 12Upcoming event listings and news ahead of ElectricxEgypt and Saudi Mining & Minerals

ANALySISEgypts Economic Rise 14Ambitious infrastructure plans are steering Egyptseconomy forward as foreign investment returns

POwERRegional Power Showcase 22Robust construction industry growth and growingpower demands are paying dividends for gensetmanufacturers and rental companies

wASTE MANAGEMENTwaste woes 28GCC countries are finding themselves turning towardsinnovative programmes and schemes to overcometheir growing mountains of waste

CONSTRUCTIONConcrete Technology 32The latest advances in the production of long-life andlower-cost concrete for use on construction projects

Fall Protection 36Latchways Technical Manager Tim Bissett discusses fallprotection technology and industrial safety solutions

COMMUNICATIONSOnline Kingdom 46Saudi Arabia looks to the Internet of Things asbusinesses demand better online services

INNOvATIONSIndustry Developments 52Featuring AES Arabia, FG Wilson, LISEC and Inmesol

ANNUAL BUyERS GUIDEGensets 78Our comprehensive annual guide to gensetmanufacturers and suppliers across the Middle East

ARABICNews 4

Analysis 11

IN THIS ISSUE...

44 52

Technical Review Middle East - Issue Four 2015

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S02 TRME 4 2015 - News_Layout 1 03/09/2015 11:06 Page 5

Jindal Shadeed set to commission rolling millin Q4 2016 soHar-basED JinDal sHaDEEDiron and steel Companys rebarrolling mill project, with productioncapacity of 1.4mn tonnes perannum (MtPa), will becommissioned in Q4 2016.

Cold trial of the mill is expected inoctober this year, according toJindal steel and Power limited(JsPl), the indian company whichowns the oman plant.

in its financial results for thequarter ended 30 June 2015, JsPlsaid that its oman operationcontinued its robust performanceduring the first quarter. at theoman plant, billet and roundsproduction increased to 0.25 metrictonnes (Mt). similarly, sales andEbitDa on a year-on-year basisgrew by six per cent and nine percent respectively, JsPl said.

last november, indian media hadreported that JsPl was consideringlisting its oman-based wholly-owned subsidiary on the Muscatsecurities Market (MsM) to raisearound us$500mn.

Aluminium Bahrain seekscredit rating ahead offunding for line expansion aluMiniuM baHrain (alba) isseeking a credit rating before itapproaches banks to raiseus$3.5bn for its line 6 expansion,reuters reported. in June this year,the company had securedgovernment approval for theexpansion plan of its facility, whichwould boost its annual output by514,000 tonnes to 1.45mn tonnes.

the company was considering arange of options to fund theexpansion, including loans, exportcredit agency finance and a capitalmarkets transaction, said theReuters report.

We will be looking at the fundingmix in conversations with ourfinancial advisers, but no decisionshave yet been made on how thisimportant project for alba andbahrain will be financed, stated the report, quoting an unnamedalba official.

Construction of the project, whichwill make alba the largest single-site aluminium smelter in theworld, is expected to start in 2016,and production from the new linewill begin from 2019.

THE UAE FEDERAL ELECTRICITY and WaterAuthority (FEWA) has announced thecommissioning and inauguration of aUS$35.4mn power plant in Umm Al Quwain. The plant forms part of the federal

governments plans to expand the countrystransmission and dispatch network in order tomeet the Emirates energy demands which,fuelled by the growing economic activity, areconstantly increasing.Mohammed Saleh, director of FEWA , said

that the 270 MVA and 132/33/11 kV station ispart of the second phase of the plan to expandpower stations in the northern parts of UAE.Completed in 30 months, the new station

will cater for the present and futuredevelopmental and industrial demands in theEmirate of Umm Al Quwain through 2021,Saleh added.Saleh also revealed that FEWA will launch

the third phase of the electricity networkexpansion within the next two months. Thethird phase of the project will be undertakenat a total cost of about US$408mn.

UAE utility inaugurates power plant in Umm Al Quwain

ConstruCtion of rail tracks between usfanand Medina, as a part of the Haramain High speedrail Project, has been completed, sources close tothe project have told a local newspaper. the 350km stretch of the railway track, which passesthrough King abdullah Economic City in rabigh,has 70 bridges that intersect major roads, thesources revealed.

sleepers have been laid down for the tracksbetween rabigh and Jeddah and the airportbridge will be linked to the new direct roadleading to Mecca, the sources said. Constructionof a bridge across the Haramain Expresswaylinking the Jeddah train station in sulaimaniyahDistrict is also progressing well, they added.

all bridges on Haramain road have beendemolished and new structures constructed intheir place. several bridges in Mecca, including a1,500 metres long and 70 metres wide bridge onthe third ring road, are under construction.

it has also been revealed that a test run wouldbe carried out on the entire stretch of the railnetwork before the end of the year. theHaramain Express train had already completed asuccessful test run on a 100 km stretch betweenrabigh and Medina. that 100 km stretch and the350 km of tracks that have been laid make up theentirety of the 450 km high speed rail link thatconnects the holy cities of Mecca and Medina viaJeddah and rabigh.

the Haramain trains will be equipped with thelatest signalling and communications system andprovide the safest mode of high-speed rails withthe latest techniques.

Pandrol CDM track has won a contract to supplyits CDM-Qtrack embedded track system forinstallation at the stations on the tracks. in this

track form, the rail is continuously supportedwithout fastenings, which avoids the need fordifficult tamping operations within the stations.the contract covers a total of 17 km of thenetwork, and installation is scheduled to begin inQ4 2015.

ana Pastor, spains minister for public worksand transport, expressed satisfaction withprogress on the project during her visit to Egyptfor the inauguration of the new suez Canal. shesaid that the project, being built by a spanish-saudi consortium of 14 companies, is goingaccording to schedule and that it would becompleted by the end of 2016.

the network is expected to become fullyoperational next year, reducing the travel timebetween Mecca and Medina to less than twohours. trains on the electrified double-track lineswill run at speeds of up to 300 kmph and thenetwork is expected to carry three millionpassengers per year.

The third phase of the project will start by October 2015.(Photo: Philip Lange/Shutterstock)

Talgo will supply the same trains to Haramain that are currentlyused by Spains Renfe. (Photo: Carlos Teixidor Cadenas/Wikimedia Commons)

Track laying on Saudi rail network edges closer to completion

6 Market News

Technical Review Middle East - Issue Four 2015 www.technicalreview.me

Briefly


Egypt seeks funding fortwo power projectsEGyPtian ElECtriCity HolDinGCompany (EEHC) is in talks withbanks to secure financing worthus$525mn. the money is requiredto resume work on two powerplants. one of them is in assiut,located about 320 km south ofCairo, and the other is in Damietta,about 200 km north of the capital.

state-run EEHC is seeking the loanfrom a banking consortium to alsopay off its dues to the contractorsworking on the two plants,orascom Construction and GeneralElectric, reported Amwal Al Ghad.

the report went on to say thatEEHC had recently receivedfinancing from banks to the tune ofus$521mn, which was dedicatedfor carrying out construction works.

three units out of a total eight atthe assiut plant are expected to beoperational in the first phase, andwill produce 375MW.

orascom Construction hasalready completed the first phase ofthe Damietta power plant with acapacity of 250MW.

Al Gharbia Pipe Companyto open new facilityabu DHabi Ports has signed anagreement with al Gharbia PipeCompany to open a new pipemanufacturing facility at Khalifaindustrial Zone abu Dhabi (KiZaD).

the agreement will see thecompany invest a projected total ofabout us$300mn for the newfacility, which will be spread over200,000 sqm.

al Gharbia Pipe Company expectsthe facility to be completed byMarch 2018. the plant will employmore than 370 workers andproduce up to 240,000 tonnes ofsteel pipes a year.

the company will utilise abuDhabis highway network to enablethe movement of large loads andstructures to the city andthroughout the rest of the emirate.

Jamal salem al Daheri, acting CEoat senaat, an industrial holdingcompany, expects the agreement toprovide a significant supply chain.

by housing our productionfacilities at a strategic location likeKiZaD, we will be able to utilise arange of world-class services andinfrastructure, allowing us toimprove delivery time and serviceto our customers, he said.

SAUDI ARABIAS SALINE Water ConversionCompany (SWCC) has awarded Pyry with a twoyear extension to the engineer servicesassignment for the Ras Al Khair power anddesalination plant in the Kingdom.The project started in November 2010 and is

scheduled to achieve full power and waterproduction by the end of 2015. Finland-basedPyry will continue to support SWCC to finalisethe project until the preliminary acceptance bythe client in May 2016 and will act as warrantyengineer until May 2017.The scope of work includes the design review,

project management and site supervision onbehalf of the client. Pyry currently has morethan 60 employees on site supporting theconstruction and commissioning of the plant.

The Ras Al Khair facility, a combined powerand desalination plant, is the largest facility ofits kind in the world. It converts more than onebillion litres of seawater into potable waterevery day. It also produces 2,400 MW of powerfor Saudi Arabias Eastern Province.

Saudi Arabia extends Pyrys desalination project contract

in a MovE to diversify its energymix and to increase its renewableenergy capacity, iran plans togenerate 5 GW of renewableenergy by 2021. the plan wasrevealed by aarash Kordi,managing director of iran PowerGeneration, transmission andDistribution ManagementCompany (tavanir).

speaking at a conference ongenerating electricity and cleanenergy from city wastes, Kordisaid that the country needs to paymore attention to producing newand renewable energies, whichcurrently provides power for just one per cent of the countrys total energy consumption.

Cities with the capacity to produce 200 tons of garbage a day have the ability to commission a garbageincinerator power plant. Kordi said that tavanir will offer special support for the construction of suchpower plants. He added that a new directive from the countrys Energy Ministry guaranteed purchasingof generated electricity, which would assure investors of a return on their capital.

in anticipation of the finalisation of irans nuclear deal with world powers, many countries are lookingto enhance cooperation with the country. in early august, spain signed an agreement with iran to boostcooperation in irans renewable energy industry, and will extend technical cooperation in the design andmanufacture of renewable energy equipment.

the agreement was signed between sunir, an iranian exporter of electrical equipment and spainsbester, a renewable energy project developer. bester will work as a consultant to sunir on varioustechnical aspects of renewable energy generation for 18 months. after that, the two companies areexpected to jointly develop renewable energy projects in iran. the contract is aimed at transferring thetechnology of producing renewable energy equipment to iran.

iran expects German companies to invest in a wind energy project being developed by DevelopmentEnvironment arvand, a German-iranian renewable energy developer, which is planning to set up a 46MW wind energy project in the Khuzestan province, in southwest iran. the project is expected to requirean investment of us$48mn, and iran expects German companies to meet most of that requirement.turbines for the project would be supplied by vestas Wind systems of Denmark and China-basedGoldwind. the project is expected to be commissioned by the middle of next year.

Due to its geographical position, iran enjoys enormous potential for the production of different kindsof renewable energies, including geothermal, solar and wind power. the country is also planning togenerate 700 MW from biopower plants by 2020.

The Ras Al Khair plant is crucial toRiyadhs water supply. (Photo: shaoweiwei/Shutterstock)

Iran wants to reduce its reliance onenergy generated by hydrocarbons.(Photo: Phattana Stock/Shutterstock)

Iran to increase renewable energy capacity

8 Market News

Technical Review Middle East - Issue Four 2015 www.technicalreview.me

Briefly


S03 TRME 4 2015 - On the Web_Calendar_News_Layout 1 03/09/2015 11:11 Page 9

the uae has agreed to enhance itsinvestments in India to us$75bn,including the establishment of adedicated infrastructure fund, while thetwo nations will also aim to raise bilateraltrade by 60 per cent in the next five years.

While deciding to elevate the India-uaerelationship to a comprehensive strategicpartnership, India Prime Ministernarendra Modi and crown Prince of abuDhabi, hh sheikh Mohamed Bin Zayed alnahyan, have also agreed to facilitateparticipation of Indian companies ininfrastructure development in the uae.www.technicalreview.me/construction

ON THE WEBA round up of the leading developments and innovations recently featured on Technical Review Middle Easts online portal.To read more or to stay up to date with the latest industry news, visit www.technicalreviewmiddleeast.com

10 Developments

www.technicalreview.meTechnical Review Middle East - Issue Four 2015

IFc, a MeMBer of the WorldBank group, has increased itsinvestments in large-scaleinfrastructure projects in northafrica and across the Middle east.

IFc sealed a deal on aus$208mn debt package tofinance the construction of sevensolar photovoltaic plants in Jordan.

With demand forinfrastructure, especially power,rising rapidly every year in theregion, these projects demonstrate the importance of the privatesector in increasing capacity and boosting renewable energygeneration, said Wiebke schloemer, regional industry head ofinfrastructure in europe, the Middle east and north africa for IFc.www.technicalreview.me/power-a-water

The deal will lead to financing of majorsolar and wind power project acrossthe region. (Photo: Vaclav Volrab)

IFC power deal for North Africa

eutelsat coMMunIcatIons hasconfirmed its eutelsat 8 West B satellite hassuccessfully been put into orbit.

to be used to broaden the range of tVchannels available to 52 million homesacross the Middle east and north africa, the5.8 tonne satellite was launched by anariane 5 rocket from its base in kourou,French guyana.

eutelsat 8 West B partially deployed itssolar panels four hours after separation fromthe rocket a manoeuvre followed by threefirings of the satellites apogee motor tocomplete its climb into geostationary orbit.www.technicalreview.me/it

The satellite was launchedon an Ariane 5 rocket.(Photo: Eutelsat_SA)

Narendra Modi, who recentlymade the first visit to the UAEby a sitting Indian PrimeMinister in 34 years.(Photo: arindambanerjee)

Successful launch for satellite

WIth WorkPlace health and safety becoming a key priority forgcc governments, organisations across all sectors need to have theright strategies in place and ensure best practice.

the new chair of the Institution of safety & health (Iosh) uae,ahmed el hadidi, said, Despite the variations, we can say that thereis progress on awareness and implementation. the maturity leveldepends on each country, but in general there is a positive trendtowards a conscious attitude in considering employees andworkers health and safety.

While great strides have been made in recent years to ensurebetter hse conditions for workers and the public, it is essential thatmodern health, safety and environmental management be fullyincorporated and integrated into businesses.www.technicalreview.me/hse

Increasing the focus on health and safety

InternatIonal engIneerIng consultancy firms have beenconsidering bids for a contract to study and design the Phase 3expansion of Port of salalah on behalf of omans Ministry oftransport and communications.

three new container berths, new government berths, adedicated cruise terminal, expanded breakwater arms and a newapproach channel have been planned for implementation as partof the expansion.

touted to be the largest upgrade since the port came intooperation in 1998, the Phase 3 expansion is expected to costseveral hundred million dollars to implement.www.technicalreview.me/logistics

HOCHTIEF VICON WILL implement, manage and execute BIMon the central section of Ashghals Inner Doha Re-sewerageImplementation Strategy IDRIS MTS02 in Qatar.The contract was signed with a joint venture consisting of AlSraiya Strabag for Roads and Infrastructure, HOCHTIEF SolutionsME and Petroserv.The construction of the 14.7 km-long central tunnel section withrelated access and workshafts forms part of AshghalsUS$2.75bn key programme to provide a long-term wastewatertreatment solution and vital drainage infrastructure for southernparts of Doha. The scheme will include a major deep tunnelsewer network and advanced sewage treatment works, and willprovide a long-term wastewater treatment solution to serve theneeds of Doha, Al Wakra and Messaieed.www.technicalreview.me/power-a-water

Firms to bid for port expansion

UAE and India sign trade deal

HOCHTIEF ViCon awarded BIM contract


&(/(%5$7,1*

12 Calendar


EXECUTIVES CALENDAR 2015SEPTEMBER 2015

6-7 Middle East Health & Safety Forum DuBaI www.hse-forum.com

14-16 Big 5 Kuwait kuWaIt www.big5kuwait.com

14-16 Materials Handling Middle East DuBaI www.materialshandlingme.com

OCTOBER 20154-6 Power-Gen Middle East aBuDhaBI www.power-gen-middleeast.com

5-8 Project Iraq erBIl www.project-iraq.com

6-7 The MENA Mining Show DuBaI www.terrapinn.com

25-27 HR Forum: Oil & Gas DuBaI www.hrforumoilandgas.com

26-27 Power Qatar Summit Doha www.powerqatar.com

27-29 Saudi Mining & Minerals DuBaI www.saudi-mining.com

NOVEMBER 201515-17 ARABAL DaMMaM www.arabal.com

23-26 The Big 5 Dubai DuBaI www.thebig5.ae

23-26 PMV Live DuBaI www.pmvlive.com

23-26 Middle East Concrete DuBaI www.middleeastconcrete.com

Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change.

MINING MACHINERY ANDequipment firms will headto Saudi Arabia in lateOctober for Saudi Mining &Minerals 2015, which willtake place at Riyadhs AlFaisaliah Exhibition &Convention Centre.The event will bring

together exploration andextraction companies, aswell as financing andindustrial development firms, all looking to make the most ofopportunities in the kingdom's burgeoning mining and mineralsindustry, which has been declared by the government as thecountry's third economic pillar.Formerly known as Mining Arabia, the show will be held under

the Patronage of H.E. Ali bin Ibrahim Al-Naimi, Minister ofPetroleum and Mineral Resources, and will be supported byMaaden, whose showpiece stand will be surrounded by its keystakeholders and procurement partners.Alongside the exhibition, the Saudi Mining & Minerals

Conference will take place in partnership with Maaden, thedriving force behind Saudi Arabias status as a global miningbusiness and marketplace.

Mining has been declared as Saudi Arabiasthird economic pillar by the countrysgovernment. (Photo: kaband)

Extracting Saudi opportunitiesegyPt, as those who have read our country analysis piece earlierin the magazine will know, is enjoying something of an economicrenaissance at present. one show hoping to take full advantage ofthat fact is electrix, which is this year celebrating its 25thanniversary.

set to take place at cairo International convention centre from 6-8 December 2015, the event will bring together representativesfrom across the country's power industry, as well as play host to thesolar energy Investment and Development conference (seIDc) thefirst conference dedicated to the solar energy industry in egypt.

Jointly organised by egytec and Informa exhibitions, exhibitors willconsist of a broad range of manufacturers, suppliers andcertification bodies from across the nuclear, renewables, generalpower and water sectors.

the event, egypts largest power industry event and a partnerevent of Dubais international power trade show Middle eastelectricity, will look to provide visitors with access to a large numberof local, regional and international energy and environmentaltechnology material suppliers and distributors.

the event will be co-located with MeFsec, where a host oftechnologies and products from across the fire, safety and securityindustries will be on display from leading suppliers andmanufacturers. Meanwhile, elsewhere in the exhibition centre,solar-tec will be giving visitors the opportunity to find the latestopportunities within egypt's growing solar power market.

Egypt in focus at power industry event


More than 300 exhibitors and5,000 trade visitors were on site forusetec, the world trade fair forused technology and equipment.

the event was supported byresale and took place at Messekarlsruhe, germany, in april 2015,attracting buyers from 92 countries.

Fuelled by positive economicconditions, the three-day industryplatform saw a large number ofsales completed or in the pipeline,according to the event's organisers.More than two-thirds of buyers atthe event travelled from abroad, ofwhom some 20 per cent hailed from theMiddle east, all looking to take advantage ofopportunities in the global market for usedequipment and machinery.

With close to 90 per cent of visitors tousetec 2015 involved in making purchasingdecisions within their companies, exhibitorand visitor feedback was overwhelminglypositive with many participants noting thequality of the event.

our member companies commented onthe high quality of the visitors coming totheir stands, remarked ton Matena,president of the european association ofMachine tool Merchants (eaMtM).

they were all customers genuinelylooking for machines. I sold three processingcentres to an Indian dealer colleague andanother processing centre to a german end-user, he added.

ahead of recent breakthroughnuclear negotiations, Iran was thebest represented country at usetec2015, ahead of turkey, India, egyptand nigeria.

Iranian companies andinfrastructure are in need ofmodernisation, said BDexs gregorWolf. Iran is an exciting market, notjust because of its size, but alsobecause it has a diversified economy.

thomas nessel, used machinerysales manager for Joseph Vgele ag,noted, We received a lot ofenquiries from Iran even on the first

day of the trade fair, and one of theinterested parties bought one of the largestroad pavers.

For the first time, the organisers haveoffered exhibitors the chance to rebookstand areas for usetec 2016, with severalalready taking advantage of the service.

usetec will return next year, supportedonce again by resale, and taking place atMesse karlsruhe from 25-27 april 2016.

USETEC, the world trade fair forused technology and equipment,drew hundreds of visitors from theMiddle East. (Photo: NooScapes)

Used equipment and technology comes to life at Karlsruhe exhibition

13Event News

www.technicalreview.me Technical Review Middle East - Issue Four 2015


THE ARAB WORLDs most populousnation is once again attractingmega investment projects, helpedby a return to stable government andbusiness-friendly policies.

Egypt is a very exciting economy andonce the completion of the politicalroadmap and the necessary economicreforms are in place, we will witnesssustainable growth in the economy. Egyptcontinues to feature strongly as one of theHSBC Groups 19 global priority markets,said HSBC earlier this year.

Over the past year, companies from theGulf Cooperation Council (GCC) along withtheir respective governments have playeda pivotal role in the re-emergence of Egyptas a leading foreign direct investment (FDI)destination. Saudi Arabia, Kuwait and the

UAE are major foreign investors the latteralone investing US$14bn in Egypt. Real GDPgrowth in fiscal year (FY) 2015 is projectedto reach 4.3 per cent and should increasefurther thereafter (see table 1), driven byupturns in services and manufacturing andfiscal stimulus thanks largely to colossalGulf inflows, totalling some US$20bnthrough a mixture of central bank deposits,cash and in-kind grants, and project aid.

Egypt was ranked the No.1 destinationcountry in the Middle East and Africa bycapital investment, with US$18bn worth ofFDI projects announced in 2014, while thenumber of greenfield projects rose 42 percent to 51, according to London-based fDiMarkets in June 2015. UAE-based investorslaunched about twice as many projects asin 2013.

As Egypt starts attracting huge amounts of foreign direct investment, Moin Siddiqi examines how the market couldprovide lucrative openings for all types of service providers.

New beginningsin Egypt

14 Analysis


Urbanisation, a growing workforce and a burgeoningmiddle-class are all contributing towards growth inthe Egyptian economy. (Photo: kainsaw)

Its a big market,with a growingpopulation; thelocal market islarge and the

location isexcellent for

reaching further.


S04 TRME 4 2015 - Analysis_Layout 1 03/09/2015 05:58 Page 14

One observer remarked, Its a big

market, with a growing population; thelocal market is large and the location isexcellent for reaching further. Theeconomic situation is improving all thetime, and there are duty advantages forGCC and COMESA (the Common Market forEastern and Southern Africa) countrieswanting to do business here.

With strong demographics, chieflyurbanisation, a growing workforce, aburgeoning middle-class, natural wealthendowment, as well as infrastructure needsand geographical location being situated inthe centre of a triangle formed by Europe,Africa and the Middle East, Egypt remains astrategic choice for transnationalcorporations. Preferred sectors for Gulfinvestors include construction, hospitalityand real estate.

Global community goodwill During this years Egypt EconomicDevelopment Conference (EEDC) on 13-15March in Sharm el-Sheikh, the governmentoutlined its medium-term strategy to theinvestor community, pillared on threeobjectives: curbing the swelling fiscal deficitand public debt; improving the businessclimate and facilitating private investment,both domestic and foreign; and encouraginggrowth-enhancing infrastructure projects inenergy, utilities, transportation and housing.

The International Monetary Fund (IMF)stated, Following four years of politicaluncertainty and economic slowdown,Egypt has chosen a path of adjustment andreform, which, if followed resolutely, willlead to economic stability and growth.

The authorities objectives areambitious, but are broadly within reachwith steady policy implementation.

The conference in which 121 capitalprojects across key sub-sectors wereshowcased (see chart 1) culminated withthe signing of sizeable FDI deals worthUS$36bn, securing bilateral fundingpledges of US$24bn, plus a furtherUS$12.5bn in investment from GCC statesas well as other foreign inflows (projectfinancing, credit facilities and officialdevelopment assistance).

The World Bank announced doubling itsannual fresh lending to reach US$4bn-US$5bn over the medium term, and theIslamic Development Bank signed sixagreements worth US$3.9bn with the

16 Analysis

The Egyptian government has earmarked major infrastructure investments for the country's most populous cities.(Photo: Baloncici / Shutterstock.com)


Table 1: Egypts Macroeconomic Indicators (2012-2017)Forecast

2012 2013 2014 2015 2016 2017Gross Domestic Product (GDP) US$bn 257.3 271.8 286.5 310.8 344.2 382.2Real GDP Growth Rate % (year-on-year) 2.2 2.1 2.2 4.3 4.7 5.0National Investment Ratio % of GDP 16.4 14.2 14.0 15.3 15.8 16.5Annual Inflation Rate (period average) 8.6 6.9 10.1 11.0 10.5 10.0Overall Budget Deficit % of GDP 10.6 13.7 12.8 11.3 10.5 10.1Gross Domestic Debt % of GDP 75.0 82.4 87.0 87.8 87.7 87.2Fuel Subsidies % of GDP 6.1 6.8 6.3 3.4 3.1 2.7Merchandise Trade Balance US$bn -34.5 -31.5 -33.8 -35.4 -37.5 -40.1Overall Balance of Payments % of GDP -4.4 0.1 0.5 0.3 1.0 0.6Official Forex Reserves US$bn 15.2 14.5 16.3 18.7 21.2 23.8Import Cover (in months of total imports) 2.7 2.5 2.8 3.1 3.2 3.3Foreign Direct Investment (net) US$mn 6,031 4,192 4,783 6,900 7,917 9,555External Debt % of GDP 13.4 16.0 16.1 16.3 17.0 15.3

Sources: World Bank, International Monetary Fund and World Investment Report 2015 (UNCTAD).

FACT FILE: Population: 83.3mn (2014); GDP per capita: US$6,579 (2014); GDP (PPP):US$553.6bn;FDI stock: US$87.88bn (2014); Mobile penetration (% of populationwith mobile access): 101.8 per cent;Sovereign credit rating:Moody'sInvestors Service (B3); Fitch Ratings (B),with a stable outlook.Proved hydrocarbons reserves (end-2014): Oil 3.6bn barrels; Naturalgas 65.2 trillion cubic feet.

Table 2: Egypt's Top 10 Investors (2007-12) (By most capital invested)

FDI Jobs New (US$mn) created projectsUAE 23,811 28,715 63UK 5,302 4,648 26Italy 3,876 3,773 14US 3,008 9,484 60China 2,980 2,792 14India 2,875 5,443 20Saudi Arabia 2,679 11,624 26France 2,454 5,098 51Spain 1,540 4,851 21Germany 1,410 1,259 15TOTAL 49,935 77,687 310Middle East investors (mostly from the GCC) provided two-thirdsand one-third, respectively, of all capital invested and projects.

Source: Ernst & Young, Africa By Numbers 2013-14.


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Egyptian authorities. In total, US$130bn offunding was pledged by the internationalcommunity to the North African country.

Structural reformsAccelerated public infrastructure spendingand an ambitious plan to pursue megaprojects would underpin the ongoingeconomic revival, whilst supportingpotential growth and job creation in acountry where some 600,000 new entrantsare projected to join the labour market eachyear over the medium term, according tothe IMF. The main risk and priority are tosustain and enhance the economic recovery,which requires improved security conditionsand steadfast reform implementation,advised the World Bank.

Ashraf Salman, Egypts minister ofinvestment, said, It is widely felt that aftertwo years of revolution, the Egyptian peopledeserve better. We are making long-termstructural changes to the economy that will,in some cases, be painful. But the Egyptianpeople recognise the necessity of thischange and the longer-term benefits thatwill be reaped. We dont have the luxury tofail again.

In mid-2014, Egypt announced boldreforms, slashing costly energy subsidiesand increasing selected taxes, with value-added tax (VAT) due later in 2015.

In relation to the business environment,where Egypt ranks low on severalcompetitiveness indicators, a new unifiedinvestment law was ratified last March withthree key features: (1) the GeneralAuthority for Investments (GAFI) affiliatedto the Ministry of Investments is acting as aone-stop shop in certain sectors andactivities, obtaining all necessary licencesfrom other government entities on behalfof the investor; (2) official procedures andtimescale for issuing FDI licences, procuringland and obtaining utilities services weresimplified; and (3) a new legal frameworkfor resolving disputes was introduced,setting out clear procedures to addressfuture investments disputes.

The 2015 FDI target is reportedlyUS$8bn-US$10bn, mainly concentrated onthe energy and industrial sectors, thoughdown from a peak US$13bn in 2008.Rebuilding confidence in the market, as wellas clarity on current fiscal and structuralreforms are prerequisites for attractinghigher FDI inflows.

Upgrading infrastructureAs the country moves forward, social andtransportation infrastructure are the

priorities for development. The governmenthas allocated EGP401bn (US$51.2bn) forcapital expenditure in the coming years.Planned major projects include: The Suez Canal Corridor, which comprises

digging a parallel canal and widening ofthe current one (now completed) and inphase two, creating an industrial zone inthe surrounding area

The building of one million new housingunits around greater Cairo and thereclamation of one million acres of land.

The construction and rehabilitation of3,600 km of new roads

Boosting the capacity/reach of Cairosmetro system and modernising/expanding the rail network and buildingnew port facilities

Developing renewable energies (mainlysolar and wind)

The Golden Triangle aimed atexploitation of natural resources in theregion between Qena, Quseir and Safaga,as well as developing the region foragricultural, commercial, industrial andtourism activities.

Egypt is host to a number of mega dealsreported in the past year involvinggreenfield investments. Such multi-dollarprojects in the pipeline include: Arabtec Construction (UAE) is working on

a huge US$40bn scheme to build onemillion new middle-income housing unitsacross 13 locations over six years

BP reportedly has signed the biggest dealin Egyptian history worth US$12bn overfive years to produce three billion barrelsof oil equivalent. Egypt also signed acontract with British Gas worth US$4bnover two years and with UAEs Dana Gasfor US$400mn

18 Analysis

Egyptian President Abdel Fattah el-Sisi has overseena period of stability since taking power in 2014. (Photo: 360b)


Following fouryears of politicaluncertainty and

economic slowdown,Egypt has chosen apath of adjustment

and reform.


0

5

10

15

20

25 26% 26%

16%

11%9%

6%4%

2%

30

Energy &Mining

Housing &U!li!es

Transport &Logis!cs

Trade &Industry

Tourism ICT Agriculture Public Sector

Chart 1: Showcase Projects at March 2015 Conference(Percentage of Total Number)

Source: EEDC, 13-15 March 2015.


Greece-based Mac Optic, apetrochemicals specialist, plans to invest US$10bn, of which US$5.2bn willgo towards building a chemicals facilityand US$4.8bn for a 250,000 barrels perday oil refinery. Both projects will besituated in Suez Governorate

International Petroleum Investment (Abu Dhabi) and local OrascomConstruction Industries signed amemorandum of understanding for thedevelopment of a 3,000 MW power plantnear El-Hamrawein port on the Red Sea.Al-Nowais (UAE) is also planning a 3,600 MW power plant in south Sinai

Saudi Beyti pledged additionalinvestments worth US$4bn in Egypt'sagro-sector, including building a new juice factory in Beheira Governorate

UAE retailer Majid Al Futtaim plansto invest US$2.3bn over the next four to five years. While Coca-Cola and Pepsi each announced US$500mn of new investments in the coming 12 to 18 months.

Power supplyEnergy is a catalyst for robust growth andthe transformation of Egypt into theworlds top 30 nations as envisaged in its2030 Sustainable Development Strategy,which focuses on infrastructuredevelopment and energy efficiencyinitiatives. Egypt boasts extensive energyresources: fossil fuel (including coal),hydro, wind and solar power, all far fromcompletely exploited. As of May 2015,installed capacity had reached 31.45 GW,with electricity consumption rising muchfaster than capacity expansion.

The Electricity and Energy Ministryestimates that 54 GW of new capacity isneeded by 2022 to tackle current shortagesat peak periods. The total programme,including transmission/distributionupgrades, would cost US$71bn, of which 65per cent is expected to come from theprivate sector. The ministry aims to developnew fossil fuel sources by awardingcontracts for 2,300 MW and 2,000 MW ofphotovoltaic (PV) solar and wind projects,respectively, by the end of 2016. Thegovernment has adopted a feed-in-tariffprogramme US$0.14 for solar plants

(capacity: 20-50 MW) and US$0.12 for windfarms and will also guarantee the bankloans of private investors.

Egypt recently signed deals for theconstruction of giant coal-fired powerstations, which, if built, would boost thenations installed capacity, notably theUS$10.6bn (6,000 MW plant) with Al-Tharwa Investments; US$7bn (4,000 MWplant) with Acwa Power Saudi Arabia;US$6.4bn (4,640 MW plant) with Shanghai

Electric China; and US$3bn (1,980 MWplant) with Dongfang Electric China.

In conclusion, Egypt could develop into aproject-driven market with lucrativeopenings for project financiers, engineering,procurement and construction companies,as well as general services providers.Multiplier effects of megaprojects wouldlead to a larger and more diversifiedindustrial base. The country needs someUS$200bn-US$300bn of investment to putthe economy onto a much higher growthtrajectory, according to Egypts PresidentAbdel Fattah el-Sisi. A new period of stabilitypromises more opportunities, growth andexpansion for existing and new businessesin Egypt the gateway to the Middle Eastand sub-Sahara Africa.

20 Analysis


Energy is a catalyst for robust growth and the transformation of Egypt into

the worlds top 30 nations.


Chart 2: Investment into sub-sectors (2007-12)(Percentage of total: US$85.23bn)

*Includes Financial-Business Services & Texles. Sources: Fdi Markets and Ernst & Young (E&Y).

0

5

10

15

20

25

30

35

40

45

50

Real Estate Coal, Oil & Natural gas

Chemicals Food & Tobacco

Communica!ons Others*

47%

27%

4%3% 2%

17%

Chart 3: Egypt's acve* Infrastructure Projects up to July 2013(Percentage contribuon by number of projects)

*Acve projects are categorized into three phases: 1. Conceptual to feasibility; 2. Financial closure to early implementaon; 3. In progress and near compleon.

Sources: Africa Project Access and EY analysis.

0

5

10

15

20

25

30

35

40

45

LogiscsSectors

Construcon Sectors

Power Generaon &Transmission Grids

Social &Welfare

Oil-GasPipelines

40%

27%

18%

9%

1%


S05 TRME 4 2015 - Regional Power Showcase_Layout 1 03/09/2015 05:55 Page 21

THE MIDDLE EAST power rental market is one of the fastestgrowing in the world as well as one of the largest. Increaseddemand, driven by ever growing construction activity, is themain reason for this growth, which is compounded by the inability ofpermanent producers to meet the demand, especially during hotmonths, when the demand peaks. Alternating power spikes create atemporary demand, where rental is much more feasible thanbuilding power plants.

These factors, coupled with competitive oil prices, have also madediesel generator sets a cost-effective option for the rental market,says Simon Gray, electric power marketing manager at Perkins.

According to genset manufacturer Inmesol, sectors such asconstruction as well as commercial fairs and other professional

events, where the application of gensets is temporary, are growingexponentially. In these cases, the renting of gensets is the mostviable option as the investment will be only for the actual time ofuse of the genset and with the additional advantage of service andmaintenance offered by the rental company.

At Perkins, our continued investment in the durability andreliability of our engines, such as the 4000 Series, ensure our enginesmeet the requirements of the rental power market, Gray adds.

Julian Ford, chief commercial officer (CCO) at Altaaqa Global,opines that the buoyancy of the rental power market in the MENAregion is spurred by several factors including utility shortages,particularly in Saudi Arabia, Kuwait, Oman and Iraq, especially duringpeak summer months; the gradual recovery of the constructionindustry in the UAE and Saudi Arabia, as well as the sustainedproduction of oil and gas and repair and maintenance of refineriesand associated infrastructure. He adds that unreliable electricity gridconnection in many areas in the region has also led to the rise in thedependency on gensets in the region.

Large industrial customers companies are turning to rentalpower to maintain the effectiveness and productivity of theiroperations in times of power interruptions or peak shaving,remarks Ford.

The UAE host nation of World Expo 2020 will further fuel thepower rental business in the country, according to industry experts,and the growth of the UAE power rental market is primarily drivenfrom cities such as Dubai and Abu Dhabi.

Robust construction activity in the GCC, coupled with rising public and private infrastructuredevelopment and a growing population, has led to electricity demand surging exponentiallyin the last decade. A significant share of power is generated from temporary power sourcessuch as diesel and gas gensets that have a high demand on rent.

Power drive leads to genset growth

22 Regional Power Showcase


Altaaqa Global provides large-scale temporary power plants focused on utilitymarkets, extractive industries such as mining and oil and gas, large process industriesand major construction infrastructure projects. (Photo: Altaaqa Global)

The demand for diesel gensets will thrive on publicinfrastructures, industrial,

retail and hospitality sectorsand supplying power

in remote areas.



23Regional Power Showcase


According to 6Wresearch,the UAE power rental marketis projected to grow at a CAGRof 16.8 per cent during 2015-2021. The diesel genset rentalmarket has generated themajority of the marketrevenues and is expected tomaintain its dominancethrough the forecast period.However, on account of theincreasing market for powergeneration from cleaner fuels,penetration of gas andalternative fuel gensets isexpected to surge in the country. In2014, the UAE imported a total of 99,325 gensets with top exportersbeing China, UK and USA.

According to one of the leading genset suppliers in the MiddleEast, Jubaili Bros, diesel generating sets are still the top choice foremergency power, areas with power network failure/shortage andalso for the construction and telecom industries.

HIMOINSA has also been witnessing strong growth and believesthat the industry will grow further, supported by the continuingproject base and the robust rental market here. Keith Webb,general manager at HIMOINSA Middle East, reveals that its sales inthe region are mainly driven by construction activities in Saudi

Arabia, the UAE and Qatar.Lack of extensive gridinfrastructure in some areasin the region has led to highdemand of diesel generatorsets, Webb notes.

Saudi Arabia tops the listAmong all GCC countries,

Saudi Arabia is the leadingcountry in the construction

segment. To build these infrastructures and supply power at theconstruction sites, diesel gensets are primarily used in the Kingdom.Energy and utilities is another contributing application in SaudiArabias diesel genset market, where they are required to provideauxiliary or back-up power.

Pradeep Kurunakaran, Cummins director - Power GenerationBusiness Unit, says, Saudi Arabia is the biggest market for powerrental in the Middle East region. The primary drivers areconstruction activity as well as oil and gas activities. Thetransmission of power in the Kingdom is also a big challenge giventhe age of the grid and geographic spread.

In the rental market, HIMOINSA seesa strong demand from 35 kVA to 640kVA and for standby applicationsfrom 1,250 kVA to 1,500 kVA. (Photo: HIMOINSA)



Saudi Arabias diesel genset market recorded a healthy growthrate during 2010-14 and is expected to witness an upward trendover the next six years. According to 6Wresearch, Saudi Arabiasdiesel genset market is forecast to grow at a CAGR of 13.55 per centduring 2015-21.

The Italian-headquartered genset manufacturer Pramacs mainmarkets remain Kingdom of Saudi Arabia, Qatar and, to a smallerextent, the UAE, which are all showing signs of growth mainly drivenby construction.

According to managing director of Pramacs Dubai-based officethat oversees all the operations in GCC, East Africa, Asia and Pacific,Cristian Cavazzuti, Qatars construction industry is driven by the FIFAWorld Cup in 2022. As for Saudi Arabia, even with the slowdown dueto lower oil prices, there are lot of construction projects in thepipeline and the Kingdom is spending a lot of money.

The residential sector, which accounted for a majority volumeshare in the countrys diesel gensets market in 2014, has beengrowing consistently in Riyadh and Jeddah, and both of theseregions are expected to fuel growth in the diesel gensets market inthe coming years as well.

Pramacs Cavazzuti notes, However, in the UAE, although there isa lot of hype and buzz around Expo 2020, the market is notbrimming like Saudi Arabia and Qatar. And with tough competition,the UAE has less to offer in terms of business in the genset market.

With regards to applications in the GCC region, Pramac operationsand sales are mainly driven by the construction industry althoughtelecom remains its primary market elsewhere in the world.Depending on the stage of site preparation to the completion of aproject, the genset ranges from 20 kVA to 3 MW. For the telecomsector, the range is from 10 kVA to upto 50 kVA.

With a booming genset industry, surprisingly renting is morepopular than purchase. Cavazzuti attributes this to flexibility inmobility and on the go solution.

Qatar risingAccording to Perkins, there has been substantial infrastructuregrowth in Qatar and there are many opportunities.

Qatars power rental market is expected to grow at a CAGR of23.3 per cent until 2020, making it a key power rental country in theMiddle East.

6Wresearchs report Qatar Power Rental Market 2014-2020 hasmentioned that more than US$200bn is going to be invested acrossvarious projects that would necessitate the need for reliable powerrental equipment such as gensets. Specifically, the renovation ofthree stadia, construction of nine new stadia, Doha Metro Rail,Lusail City, new expressways and hotels are key projects in Qatarthat would require gensets.

The countrys diesel genset market accounted for most of themarket share due to ease of availability, stated the report. Gensetswith rating 100.1 kVA-350 kVA and 350.1 kVA-750 kVA werepreferred due to their extensive usage across various applications.According to analysts, Qatars construction sector growth willcontinue, regardless of the status of the World Cup, as much of theinfrastructure pipeline is not directly linked to the event.

The expanding transportation network, surging investments,growing hospitality sector and changing economic reforms are also anticipated to drive the growth of power rental business inQatar. Therefore, it is but logical for Qatar to see a rise in gensetdemand. But the volume of generators imported and used in Qatar is surprisingly still less than the volume in Lebanon, JubailiBros reveals.

Qatar, being a natural gas-rich country, is expected to showhigher demand for gas powered gensets, reports have stated.

From a forecast perspective, Qatar is very promising, given theFIFA World Cup in 2022. Another big market is Iraq, but given thegeo-political situation, very few risk takers are willing to bet on thatcountry. Some of the regional conflicts will pose their ownchallenges as well as opportunity. For instance, the Iran market willbe opening up, which will create a huge demand for power rentalplayers. Another country to watch for is Yemen, as the situationgets better and rebuilding begins.

Boom in KuwaitKuwaits diesel genset industry is expected to have a booming futurein this region. According to a study, in 2013, the Kuwait diesel gensetsmarket stood at US$49.1mn. It is expected that this market will

Import to top GCC countries

US$102.7mn

US$98.2mn

US$89.3mn

US$12.6mn

US$4.3mn

US$11.1mn

UAE (2014)

Saudi Arabia (2013)

Saudi Arabia (2012)

Qatar (2013)

Oman (2013)

Kuwait (2013)

Genera!ng sets, diesel, output < 75 kVA




US$51.9mn

US$149.9mn

US$158mn

US$24.6mn

US$15.1mn

US$21.8mn

US$48.7mn

UAE (2014)

Saudi Arabia (2013)

Saudi Arabia (2012)

Qatar (2013)

Oman (2013)

Oman (2012)

Kuwait (2013)

Generang sets, diesel, output 75-375 kVA


US$289.9mn

US$331.2mn

US$466mn

US$56.3mn

US$81.8mn

US$55.4mn

UAE (2014)

Saudi Arabia (2013)

Saudi Arabia (2012)

Oman (2013)

Oman (2012)

Kuwait (2013)

Genera!ng sets, diesel, output > 375 kVA


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register growth at a CAGR of five per cent during the period of 2014to 2023 and will reach US$79.7mn by the end of the forecast period.

Kuwaits construction industry is thriving, with a series of newprojects set to be completed in the near future. Kuwaits overallenergy construction spending is expected to reach US$100bn overthe next five years as it begins the implementation of itscomprehensive 2030 strategy, research compiled by VenturesMiddle East reveals.

However, this region has faced major problems of power supplyshortage in recent times. Consequently, the demand for dieselgensets is expected to rise in the coming years as the gensets, apartfrom being a steady source of standby power, are also utilised forcontinuous power supply in large construction projects. On theother hand, the added power generation capacity and increaseddeployment of renewable energy in this region is likely to curb thedependency on diesel-fuelled power solutions, limiting the marketfor diesel gensets in Kuwait.

The rental diesel gensets market generates more revenue thanthe new diesel gensets market, and is thus considered thedominant segment based on product type. The residential sectorutilises these gensets as a source of backup power, whereas thehydrocarbons and defense industry often uses these as primepower sources. 500-2,000 kVA and over-2,000 kVA diesel gensetsare generally employed in large establishments as a source ofstandby power. Large industrial users such as airports and refinerycomplexes deploy such large diesel gensets for power backup.

Upward trajectory for diesel gensetsAltaaqa Globals Ford said, Saudi Arabia, Qatar and the UAE havebeen demonstrating high economic growth rates buoyed byindustrial and commercial development. As such, these countrieshave been the biggest market for gensets in the region, for bothrental and generator sales. On the sales front, a recent report byFrost and Sullivan shows that the genset market in the GCC is set togrow to as much as US$950.4mn in 2018. Rental figures follow asimilar trajectory. It is interesting to note that certain markets, likethe UAE, reflect encouraging genset sales figures because they arevital trading hubs for re-exporting generators to nearby markets.

A number of other Middle Eastern markets like Yemen, Iraq andLibya, are currently going through a very difficult period. As thegovernance of these countries becomes more stable in the comingyears, we believe that they will represent excellent marketopportunities for temporary power providers.

He adds that in near future, there will also be significantopportunities for infrastructure rebuilding and development incountries such as Iraq, Libya and Syria.

HIMOINSAs Webb asserts that the lack of extensive gridinfrastructure in some areas in the region has led to high demandfor diesel generator sets.

Surge in the number of gas gensetsInmesol, a provider of gensets for telecom industry and standbysectors, said that as in the rest of the world, the telecom market inthe GCC region is asking for more and more hybrid solutions.Hence, gas powered gensets is a growing sector. The gas gensetmarket will probably grow more than the diesel market because theburning off or flaring of the residual gases from refineries needs tobe put to better use and this will lead to the use of such gas. Thereturn can be economical as well.

HIMOINSA too maintains that gas gensets are gaining ground inthe region. Webb notes that he is hopeful that increased interest in

natural gas gensets would emerge, but for that to happenappropriate distribution infrastructure must be in place. The realchallenge now is the availability of the gas where it is needed, theGM notes. Currently, HIMOINSAs natural gas gensets range from 8KW to 1,500 KW.

According to the Altaaqa Global CCO, availability of diesel and thenascent increase in the supply of natural gas, particularly in Africanmarkets, is creating a growth market for the sector. He adds thatthere is also gradual expansion of the natural gas and dual-fuelgenset markets, particularly where inexpensive locally-extractednatural gas is available. The growth of such markets is supported bythe increase in unconventional gas resources and by thedevelopment of stringent emission regulations in many countriesaround the world.

Adding onto this, Jubaili Bros also opines that there is a growingoptimism towards gas generating sets in the region. Gas gensetsare on the rise in areas where gas is affordable and where the largegenerators are required to run in continuous operation for long, butthey are not as popular as the diesel ones.

Diesel is easy and faster to set up for the lower initial cost, but ittakes a higher cost to maintain. With regards to gas, there is ahigher initial cost but it is cheaper to maintain. This, again, dependson the area and application and capacity needed for the generator.

In conclusion, Perkins Gray asserts that the users decision onwhether to select diesel or gas ultimately depends on theirindividual power requirements.

Brand mattersLooking at different segments, construction and short-term rentalsfigure in ranges below 500 kVA and prime power opportunities tendto be around 1,000 kVA. Though there are many Chinese players inthe low-end market, rental players tend to stick with two or threemajor brands. This is due to the critical nature of application andreliability associated with major brands. The service network andcapability of top suppliers is also a driving factor, which is hard toreplicate by smaller players in the market, Cummins states.

For Inmesol, the preferred genset range in the region is between150 kVA and 650 kVA.

For the Middle East region, Perkins has a large range of engines forthe electric power market, offering power from 5 kVA to 2,500 kVA.It also offer 60 Hz engines for Saudi Arabia and 50 Hz models for therest of the region. The 400 and 1103 engine models are popular withtelecommunications solutions in the region as they are compact andeffective sources of power for hybrid tower installations or thestandard standby power generator set. The 1100 Series and 1500Series engines are for small manufacturing industries throughoutthe Middle East, while the 4000 Series meets prime powerrequirements in remote locations and large standby powerrequirements for infrastructure projects.

HIMOINSA covers the full range of genset power demand, from 3kVA to 3,000 kVA. In the rental market it sees strong demand from35 kVA to 640 kVA, as well as 1,250 kVA to 1,500 kVA for standbyapplications for construction, retail and healthcare. The Spanishmultinational firm predicts that the industry will continue to grow aslong as infrastructure activities continue in the GCC region.

Among the key genset manufacturers and distributors in theregion are Jubaili Bros, Perkins, Inmesol, Altaaqa Global, HIMOINSA,Pramac and Cummins .

Graph sources: UN Comtrade, Powergen-Statistics




S06 TRME 4 2015 - Waste Management_Layout 1 03/09/2015 05:54 Page 27

SLOWLY BUT SURELY the Middle Eastis suffocating under a gigantic wastemountain of its own making.Environmental experts are warning thatunless the region can quickly get to grips withthe challenge of managing its domestic wastein a more sustainable way, the environmentaldisaster that looms could pose a seriousthreat to urban ways of life.

The Gulfs rapid increase in wealth,accrued through the many tens of billions inpetrodollars earned over the past fewdecades, has gone hand in hand with amassive leap forward in urbanisation.Indeed, such has been the extent of thisurban growth that some countries Kuwaitand Qatar now have an urbanisation rate ofmore than 90 per cent.

Terry Tommason, city executive at Arcadis,which produces the Sustainable Cities Index,says that both Dubai and Abu Dhabi serve asan example of what happens when urbaninfrastructure fails to keep pace with growth.

Dubai and Abu Dhabi will see an urbanpopulation growth of more than 80 per centfrom now to 2030. This growth will placetremendous stress on transport networks,water supply, waste collection systems,sewage systems and land values,Tommason remarks.

The two cities performed particularlypoorly in the indexs environmental category,which looked at energy use and share ofrenewable energy, waste management,greenhouse gas emissions, air pollution,drinking water and sanitation and exposure

to natural catastrophes. Abu Dhabi wasranked 44th, while Dubai came 47th.

The reason, say many environmentalists, isclear. The Gulfs urban populations may beadopting the sophisticated tastes andlifestyles of their western counterparts, butthey have yet to adapt to western levels ofwaste management. A study by Synovaterecently concluded that even thoughconsumers in the UAE are among the toppurchasers of ecological and organicproducts, they nonetheless rank near thebottom when it comes to recyclinghousehold waste.

The total waste generated throughout theMiddle East North Africa (MENA) has nowcrossed the 150mn tons per year (tpy) markwith GCC countries alone producing 80mn

Nnamdi Anyadike examines some of the innovative policy solutions being explored to help the Middle East overcomeits ever-growing waste mountain.

Conquering thegarbage summit

28 Waste Management


More than 150mn tons of waste isgenerated throughout the MENA region

each year. (Photo: Jose Angel Astor Rocha)


T: +971 4 558 5900 | M: +971 55 567 0302 | E: [email protected]


30 Waste Management


tonnes. But less than 20 per cent of this solidwaste is properly treated, and less than fiveper cent is recycled.

In the wider MENA region, Egypt is thegreatest producer of municipal solid waste(MSW) comprised of paper, glass, plastics,metals, wood and other organic matter with a total of 20mn tpy.

This is closely followed by Saudi Arabiawith 15mn tpy; the UAE with six million tpy;Morocco with five million tpy; Qatar with2.5mn tpy; Tunisia with 2.3mn tpy; Jordanand Kuwait with 2mn tpy each; Lebanon with1.6mn tpy and Bahrain with 1.5mn tpy.

However, consumer waste is not the mainculprit. Rather, it is construction wastestemming from the regions constructionboom over the past few decades. Indeed,during the height of the boom, 55 per cent ofall waste in the GCC was estimated to comefrom construction and demolition.

There is also a huge quantity of sewagesludge, which presents a serious problemdue to its high treatment costs and risk toenvironment and human health. This sewageoutput is rising by 25 per cent every yearacross the region. And EcoMENA theindependent environmental consultancy inthe MENA region estimates that, onaverage, the rate of wastewater generation is80-200 litres per person each day.

Unsurprisingly, officials andenvironmentalists are desperate to arrive at asatisfactory answer to the vexed question ofwhat to do with the regions rapidlyaccumulating waste, with schemes such aspay-as-you-throw being proposed.

But tackling the Middle Easts wasteproblem will need more than that. It willrequire nothing less than the development ofa comprehensive and definitive wasteprevention plan, along the lines of similarplans that have been developed over thepast two decades in the US and the EU.

To achieve this, environmentalists say thatdiscussions involving both business andMiddle Eastern governments on thepromotion of a waste hierarchy and the need

to place greater emphasis on wasteprevention and resource efficiency, need tobe taking place with much greater regularitythan they are at present.

They urge the proposal of measures suchas tool kits on waste minimisation, businesswaste reduction trials and a wasteprevention fund. Municipal officials in theregion, they say, also need to urge residentsto help tackle the increasing volumes ofwaste by changing entrenched habits andtaking personal responsibility to ensureclean surroundings.

One solution to the problem of MSW thatis being touted is biomass conversion orwaste-to-energy (WTE).

Almost 50 per cent of the regions solidwaste is contributed by organic matter. Andthis, argue WTEs proponents, can beefficiently converted into energy and fuels byadvanced thermal technologies, such asgasification and pyrolysis by conventionaltechnologies including incineration, mass-burn and landfill gas capture.

In recent years the UAE, Qatar and SaudiArabia have all unveiled multi-billion dollarinvestment plans to improve the wastemanagement scenario, including WTE. InQatar, a Domestic Solid Waste ManagementCentre has been established, and it isgarnering interest in the deployment ofsimilar waste-to-energy systems elsewherein the Middle East.

Ernst & Young (E&Y) says that leadingjurisdictions are beginning to developregulations, tipping fees and tariffs toincrease quantities of recyclable andrecoverable material. This, it claims, will mostcertainly lead to more quality, high calorificvalue material on the market for treatmentfacility investors that will drive marketgrowth in the WTE field.

Earlier this year, Frost and Sullivan forecastthat the GCC region will continue to sustainthe 20 to 25 per cent WTE growth rate it hasattained over the past three years. Thecompanys report predicts that upcomingregional WTE projects in the region will, by2020, produce between 300-500MW ofpower. This burgeoning interest in WTE isnow beginning to open up significantopportunities for industry players who areinterested in the market's immensepotential. But a complicating issue for WTEand the Middle Easts waste management asa whole is the growth of electronic andpackaging waste.

Over the past decade, the EU has dealtwith the problem with the introduction ofvarious legislation such as the WasteElectrical and Electronic Equipment (WEEE)

Directive (2002 first) and the 2008 WasteFramework Directive. Experts say that theMiddle East now needs to move forward withsimilar measures, arguing that priorities forwaste prevention should include electricaland electronic equipment, clothing andtextiles, construction materials, food wasteand packaging. Meanwhile, a number of localentrepreneurs are refusing to wait for theintroduction of a comprehensive waste andrecycling framework before tacking theproblem. And they are increasingly seizingthe opportunity to launch their own grassroots waste recycling initiatives.

In April 2015, an Egyptian-headquarteredelectronics re-manufacturing and recyclingcompany, Speak Ink, opened what CEOEssam Hashem described as the firstfranchise in electronic waste recycling in theArab region.

The offer includes a new electronicsrecycling franchise programme in Dubai and acollections and processing warehouse. SpearInk, accredited by Egypts Ministry ofEnvironment, currently operates a processingwarehouse in the Alexandria Public Free Zonein Ameriyah, near Cairo. The company hasalready earned collection contracts from theRoyal University of Bahrain and from OrascomTelecom in Egypt. Another local initiative isthe regional Waste Free Environment (WFE)cleanup campaign, launched by the GulfPetrochemicals and Chemicals Association(GPCA) in 2013 and backed by the QatarPetrochemical Company (QAPCO).

Now in its third year, it kicked off its 2015campaign in Qatar in February amid what theorganisers claimed was an enthusiasticresponse from the local community, whichthey hope will lead to even greater successthan in 2014. Last year saw a recordcollection of 11 tons of waste from 5,512participants from GPCA member companies,schools and local communities in nine GCCcities. Volunteers included students from 71schools and universities, and included clean-up teams in beaches and waters as part of theday- long campaign. The GPCA says it iscommitted to the principle that plasticsshould not be disposed of irresponsibly andthat they should be reduced, reused, recycledand finally recovered for their energy value.QAPCO sees the WFE campaign acting as amuch needed catalyst to propel wastedisposal best practices across the community.

But laudable though these separate localinitiatives may be, the mammoth task ofcleaning up the Middle Easts environmentwill ultimately rest on the provision by theregional authorities of a solid regulatorywaste and recycling framework.

Fifty-five per centof all waste in theGCC was estimated

to come fromconstruction and

demolition.



S07 TRME 4 2015 - Concrete Technology_Material Handling_Layout 1 03/09/2015 05:50 Page 31

CONCRETE IS THE Gulfs mostwidely used construction material,so it is not surprising that world-leading innovations are employed here thickand fast. The problem for local designersand contractors is simply keeping up withthe trends.

Most of the worlds concrete is based onconventional powdered cement, theproduction of which is one of the biggestcontributors to global warming, because ofthe unavoidable emission of greenhousegases. Cement and aggregates are also verycostly products to move around, so majorefforts continue to be made to economisethe use of these materials and to recyclelow-cost waste at the same time. One of thekey technologies designed to achieve this isthe incorporation of chemical and mineraladmixtures, which alter the properties ofthe poured or cast product.

Chemicals can be used to accelerate orretard the curing (hardening) of the poured

material. Air entraining agents can beincorporated to increase its insulationqualities, while plasticisers can be used toenhance and extend workability. Variouscorrosion inhibitors, bonding and colouringagents can be used, and there are materialsthat can enhance pumpability (essentialfor the ultra high-rise structurescommonplace in GCC cities) too.

Mineral additives such as fly ash (fromthermal power stations) and ground slag(from blast furnaces) are used to stretchthe material, reducing cost of per cubicmetre poured. Compressive and tensilestrengths can be increased by fine tuningthe mix at the same time. Modern batching plants can be set up to adjustrecipes automatically.

A key source of information aboutinnovations is the US-based PortlandCement Association (PCA). Referring totheir website (www.cement.org) will reveala treasure trove of data about the latest

New materials and techniques are used by the worlds cement-based industries to keep costs and performancemoving in opposite directions. We look at how you can keep ahead of the game.

Ideas to stay on topof the construction game

32 Concrete Technology


The incorporationof chemical and

mineral admixturesto cement alter the

properties of pouredor cast product.


Standing tall on concrete legs.


33Concrete Technology


developments in concrete design and uses. Among the manyapplications that were featured on the PCAs site as we went topress included: White (Portland) cement as the key ingredient on decorativeconcretes that are made to be seen through pigmenting, specialforms including piercing and other finishing techniques RPC or reactive powder (ultra-high performance) concrete is anextremely workable material that avoids the use of coarseaggregates altogether (some other concretes minimise fines). It canbe toughened by incorporating steel and various other types offibre, including organics. Very impressive tensile and compressivestrength (7,000 psi and well over 20,000 psi respectively) can beachieved by varying the mix with silica fume, water reducers andvarious other reactive ingredients in fine powder form Self-consolidating concrete is designed to flow easily intorestricted spaces without the use of vibration. A smooth surface canbe created without any segregation of the mix Insulated concrete form walls facilitate rapid construction and aquieter commercial or residential environment without any loss ofdurability. High blast and trauma resistance are claimed too. Light,hollow foam blocks that provide excellent sound and heat insulationcan be stacked and then in-filled with steel reinforced concrete Post-tensioning can be used as a way of reinforcing concrete bypre-stressing it. Post-tensioning is a method of treatment wherebythe steel tendons are tensioned after the concrete has cured, thepre-stressing force being transferred through the end anchorages (inpre-tensioning, the tendons are stretched before the concrete isplaced). Extra fire resistance is claimed too.

Another useful organisation to be aware of is the German Societyfor Concrete & Construction Technology, or DBV. Their website(www.betonverein.de) provides access to an invaluable range ofstate-of-the-art publications about European advances in concretetechnologies and applications. Germany is home to some of theworlds leading admixture producers, such as Munich-based WackerChemie which promotes dry-mix mortars modified with its ownrange of high-tech polymers to produce energy-saving insulationsystems, flexible tile applications and self-levelling floor compounds.

A third worthy resource is the UK-based Institute of ConcreteTechnology (www.ict.concrete.org.uk), which specialises inprofessional development. A scientific group, Concrete Society(www.concrete.org.uk), and an association for commercial interests,Ready-mixed Concrete Association (www.brmca.org.uk), are otheruseful UK-based resources.

Closer to home, Gulf states have a rich tradition of hosting world-scale construction trade shows, several of which have a significantemphasis on cement-based products and the equipment for theirproduction and use. The multinational Big 5 series incorporates PMVdisplays and others, such as Middle East Concrete (23-26 Novemberthis year in Dubai) are more specific. This years Saudi Build (26-29October) will also be incorporating a subsidiary event within its ownpopular PMV series.

Finally, away from the Gulf, but an essential venue forprofessionals, is the long-running World of Concrete trade exhibition(www.worldofconcrete.com), held every year in Las Vegas, USA.Next years event will be held from 2-5 February.

So there we have it, Technical Review MEs mid-decade guide toall thats best and newest, in terms of information sources onindustrialised countries most popular building material.

Chemicals can hasten or slow down curing.

Light, hollow foam blocks thatprovide excellent sound and

heat insulation can be stackedand then in-filled with steelreinforced concrete to make

insulated walls.



CROWN EQUIPMENT CORPORATION(Crown), the worlds fifth largestmanufacturer of poweredindustrial lifts, has extended the range ofits electric counterbalance lift trucks withthe launch of the Crown SC 6000 Series.The new three-wheel and four-wheelmodels have capacities ranging from 1.3 to2.0 tonnes and lift heights of up to 7.5metres. They offer a combination ofstability, advanced technology and task-focused ergonomics. The new lift trucks arecapable of performing a wide variety ofmaterial-handling tasks in both indoor andoutdoor conditions.

The SC 6000 Series incorporates Crownsproven ergonomics for operator comfortand control. The low step height of 375 mmand good head clearance make it easier toget on or off the truck. The truck design alsogives operators unobstructed views in alldirections, even when fitted with one of themany available cab options. The partialcabin includes a windshield, rear panel androof with an optional reading light. The soft

cabin features flexible doors with integratedmagnets for weatherproof side protection.Even the all-weather hard cabin for outdooruse offers unobstructed line of sight in alldirections including upwards. It comes withclear-view doors, two-way sliding windows

and a heater option. Operators freedom ofmovement remains unimpaired irrespectiveof the cabin option chosen. Thanks to awide variety of other options for controls,lighting and accessories, the lift trucks canbe customised precisely to each customersspecific needs.

The solid design, which includes a solidfloor plate beneath the battery, keeps thetruck in excellent shape even in toughconditions. Steel is used instead of plasticsat crucial points. The steer axles featuresteel/cast-iron construction and heavy-dutytapered roller bearings which enable thetruck to withstand jolts as it travels overrough surfaces and dock boards. Even thefour-wheel trucks turning circle is nearlyzero, making it almost as agile as the three-wheel version. A clear view of both frontwheels facilitates taking advantage of themanoeuvrability this affords.

Crown SC 6000 trucks are also fitted withhigh quality, heat-resistant drive motorsthat are designed to avoid the need toreduce the motors power output to

The new SC 6000 Series forklift truck provides all-round visibility, precision control and safe, easy manoeuvrability.

Crown Equipment extendsrange of forklift trucks

34 Material Handling


The four-wheel lift in action.

The cab designoffers unobstructed

views in alldirections, evenwhen fitted withone of the many

available options.



prevent overheating. The high thermal ratings of the motorsminimise downtime, as well as spare part and maintenance costs.

The intelligent on-board control system delivers precise control,providing great stability and comfort. The system ensures that theSC 6000 maintains constant speed on ramps and assists operatorsby automatically adjusting the operation of control functions incorrespondence to different load weights, lift heights, steeringangles and travel speeds. For instance, tilt speeds areautomatically limited, based on fork height and load weight, andbelow free lift height, operators have access to the full range offorward tilt and full tilt speeds.

Customers who tested the new multifunction trucks on theirpremises prior to the market launch confirm the high quality ofthe Crown products. The four-wheel model is exceptionallyversatile and offers great ease of use, impressive hydraulicperformance, and superb all-round visibility, even when a cab isfitted, said Werner Drnec, purchasing and operations Manager atGebrder Weiss.

Detlef Erdmann, warehouse management group Leader at CarlKhne K of Germany, another customer involved in trialling thenew trucks, commented on the driving performance andergonomic handling of the SC 6000 counterbalance lift truck.When working on ramps in particular, the forklift can be easilyand safely manoeuvred, thanks to the

technical review middle east 4 2015

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