WS Atkins came up with the drawings for the sail-shaped Burj al Arab and also designed the Dubai Metro's Red Line.
WS Atkins came up with the drawings for the sail-shaped Burj al Arab and also designed the Dubai Metro's Red Line.

Brits build hopes for future



British construction companies have played a major part in laying the foundations for Dubai's development success. One of the first to arrive was Costain when it picked up the US$10 million (Dh36.7m) deal to build Dubai International Airport in 1959.

A few years later, Balfour Beatty arrived on the scene and with a local partner, Dutco, built the Mina Jebel Ali port. As Dubai grew, so did British construction companies. WS Atkins, the UK's biggest engineering and design firm, came up with the drawings for the sail-shaped Burj al Arab hotel in 1994, while Carillion helped to build Dubai Festival City. As the good times rolled, dozens of others joined them, making their marks on projects ranging from the Palm Jumeirah and Dubai Metro to building roads and bridges.

But the financial downturn of the past couple of years has left British builders in a precarious position, with at least one, Mouchel Group, a consultancy company, deciding to pull out. The company's once robust earnings from the region tumbled as hundreds of projects came to an abrupt end at the height of the global financial crisis. This time last year, British construction companies were reportedly owed $2 billion in unpaid fees from Dubai developers, spurring Lord Mandelson, the former UK business secretary, to raise the issue with the Government.

Mouchel said it was owed about $16.2m, prompting it to put its regional business division up for sale at the end of last year. A sale is yet to be finalised. Still, other big players including WS Atkins, Halcrow, Hyder and Mace have vowed to ride out the slowdown, despite facing a struggle to keep staff employed with a sluggish workload. Even Hopkins Architects, which is embroiled in a legal dispute with Dubai Properties, has said it will keep its office in the emirate open.

"You can't give up on Dubai," says Mario Pishiri, a managing director at Hyder, which said in February it had $14.9m in outstanding debts from Dubai clients. "There is a consolidation, but it will come back again ? It's too vibrant a place not to come back again." Whether they have made redundancies, asked staff to take a salary cut or moved people to busier locations in the region, British construction firms have undergone a significant overhaul during the past couple of years to cope with tougher market conditions.

WS Atkins, which also designed the Dubai Metro's Red Line, has cut 1,433 jobs across its Middle East network, bringing the total number employed in the region to 1,867 from 3,300 at the end of 2008. Keith Clarke, the chief executive at WS Atkins, says it has no intention of "walking away from the Gulf". "We've been here for 30 years and we'll be here for another 30," he says. "We're very comfortable that the region has a secure, long-term future. We see it as having the same financial issues, frankly, as the rest of Europe and America - only theirs came rather more abruptly, and a bit later than the rest of world. But they are getting solved at about the same rate as the rest of the world.

"The Middle East is not different materially. It had a phenomenal boom and will return to a more normal market." Perhaps the speed at which Dubai is seeking to settle its debts has helped to instil confidence in British construction companies. While payment problems across the board persist, Nakheel, the troubled Dubai World-owned developer, provided a glimmer of hope last month when it started paying its trade creditors.

Halcrow, an engineering company which was owed money for work done on Nakheel's Palm Jumeirah, has received the first 40 per cent of its outstanding bills. The UAE is not a market that Halcrow is going to turn away from, says David Yaw, the company's regional managing director. "We're in it for the long haul and are still seeking to 'defend' our position in what we regard as our home markets," he says.

"That said, we recognise that Dubai in particular is going to be quiescent for some time. There are some signs of recovery but it is not going to rebound quickly to anything like the activity levels we saw within the last five years, which frankly is not desirable as it was so overheated." And there are distinct signs of recovery. Government spending on infrastructure projects, whether for roads, schools or hospitals, has encouraged companies including the consultancy Mace to shift their focus towards various areas of the construction sector and different countries in the region.

"To compensate for the loss of markets in the UAE, our strategy has been to actively develop our business across the region, focusing on countries such as Saudi Arabia, Qatar, Kuwait and Syria, where demand remains and is increasing for project and construction management services," says Andrew Johnson, a director at Mace. While companies are weighing up their options across the region, others point to the UAE's downturn as a prime time for seizing opportunities.

Wates Construction International, which has built 26 schools in Britain, moved to Abu Dhabi late last year to make the most of the emirate's spending on educational facilities. Even though competition is tough, Wates recently won two contracts worth a combined $58.5m to build a school and renovate another for Aldar Academies in partnership with Abu Dhabi's Al Fara'a Contracting. "The market is ferocious and speaking to our partner, Al Fara'a Contracting, this is the most difficult period they've experienced for many decades," says Matthew Kennedy, the director of Wates.

"But we came to Abu Dhabi when the market was flat with a view to taking advantage when things recovered." @Email:agiuffrida@thenational.ae

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

FIXTURES

Saturday, November 3
Japan v New Zealand
Wales v Scotland
England v South Africa
Ireland v Italy

Saturday, November 10
Italy v Georgia
Scotland v Fiji
England v New Zealand
Wales v Australia
Ireland v Argentina
France v South Africa

Saturday, November 17
Italy v Australia
Wales v Tonga
England v Japan
Scotland v South Africa
Ireland v New Zealand

Saturday, November 24
|Italy v New Zealand
Scotland v Argentina
England v Australia
Wales v South Africa
Ireland v United States
France v Fiji

Gulf Men's League final

Dubai Hurricanes 24-12 Abu Dhabi Harlequins

ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

A QUIET PLACE

Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou

Director: Michael Sarnoski

Rating: 4/5

Boston Strangler

Director: Matt Ruskin
Starring: Keira Knightley, Carrie Coon, Alessandro Nivola
Rating: 3/5

HAEMOGLOBIN DISORDERS EXPLAINED

Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.

Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.

The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.

The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.

A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.

The winners

Fiction

  • ‘Amreekiya’  by Lena Mahmoud
  •  ‘As Good As True’ by Cheryl Reid

The Evelyn Shakir Non-Fiction Award

  • ‘Syrian and Lebanese Patricios in Sao Paulo’ by Oswaldo Truzzi;  translated by Ramon J Stern
  • ‘The Sound of Listening’ by Philip Metres

The George Ellenbogen Poetry Award

  • ‘Footnotes in the Order  of Disappearance’ by Fady Joudah

Children/Young Adult

  •  ‘I’ve Loved You Since Forever’ by Hoda Kotb 
FORSPOKEN

Developer: Luminous Productions
Publisher: Square Enix
Console: PC, PS5
Release date: January

Company of Heroes 3

Developer: Relic Entertainment
Publisher: SEGA
Console: PC, PS5, XSX
Release date: February

Star Wars Jedi: Survivor

Developer: Respawn Entertainment
Publisher: Electronic Arts
Console: PC, PS5, XSX
Release date: March

Suicide Squad: Kill the Justice League

Developer: Rocksteady Studios
Publisher: Warner Bros
Console: PC, PS5, XSX
Release date: May

Final Fantasy XVI

Developer: Square Enix
Publisher: Square Enix
Console: PS5
Release date: June

Street Fighter 6

Developer: Capcom
Publisher: Capcom
Console: PS5, XSX, PC
Release date: June

Diablo IV

Developer: Blizzard Entertainment
Publisher: Blizzard Entertainment
Console: PC, PS5, XSX
Release date: June

Baldur's Gate 3

Developer: Larian Studios
Publisher: Larian Studios
Console: PC
Release date: August

The Legend of Zelda: Tears of The Kingdom

Developer: Nintendo
Publisher: Nintendo
Console: Nintendo Switch
Release date: September

Marvel's Spider-Man 2

Developer: Insomniac Games
Publisher: PlayStation
Console: PS5
Release date: Fall

Assassin's Creed Mirage

Developer: Ubisoft
Publisher: Ubisoft
Console: PC, PS5, XSX, Amazon Luna
Release date: 2023

Starfield

Developer: Bethesda Game Studios
Publisher: Bethesda Softworks
Console: PC, Xbox
Release date: 2023

COMPANY PROFILE

Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded

AUSTRALIA SQUAD

Aaron Finch, Matt Renshaw, Brendan Doggett, Michael Neser, Usman Khawaja, Shaun Marsh, Mitchell Marsh, Tim Paine (captain), Travis Head, Marnus Labuschagne, Nathan Lyon, Jon Holland, Ashton Agar, Mitchell Starc, Peter Siddle

Company Profile

Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices


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