New figures from GlobalData show that the construction sector in the Middle East and North Africa (MENA) region is healthier than in most other regions and is continuing to improve.
The MENA region has received an overall score of 0.87 in GlobalData’s January 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData’s database is assigned a score of between 5 and -5 based on its current progress, a score that is continually updated over time. These are then weighted by the value of each project in order to arrive at overall scores for countries, regions and sectors.
That score puts the MENA region in third place out of 11 regions, and is an increase on its score from December 2021 (0.62) when it ranked in seventh place.
One reason for the region’s relatively good performance in the index is its energy and utilities sector, which scores 1.21, putting it in first place out of 11 regions worldwide.
The MENA region’s institutional sector, by contrast, has performed somewhat worse, with a score of 0.48 (putting it in ninth place globally).
Within the MENA region, construction projects are proceeding with fewest obstacles in Qatar, which scores 2.15 in the index. The situation in Oman, however, is somewhat less positive, with a score of -0.02.
The improving health of the construction pipeline in the MENA region is partly due to the resolution of issues in the region’s energy and utilities sector, which has seen its score in GlobalData’s Construction Project Momentum Index move from 0.51 in December 2021 to 1.21 in January 2022.
The construction sector is also seeing fewer and fewer problems in Qatar, which has seen its score on the index go from 1.07 in December 2021 to 2.15 in January 2022.
The Construction Project Momentum Index
GlobalData’s Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project’s score, while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project’s score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids, or the reduction of the project’s scope.
Events that can increase a project’s score in the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.
Ben van der Merwe is a data journalist at GlobalData Media, specialising in FDI. He joined from the Reach Data Unit, where he was a fellow of the Google News Initiative. His investigative journalism has previously appeared in the Observer, VICE, Private Eye and New Statesman.
The top featured image is for illustration and is credit to InvestorMonitor
WORLD FINANCE in this article by Angelica Krystle Donati, CEO, Donati Immobiliare Group. It is on an idea of the transition to sustainable construction.
The image above is of Modular wooden houses made out of renewable resources
Many aspects of life as we knew it changed irrevocably when the global pandemic hit, and even though the path to a circular and greener economy was well underway before then, the rebound from COVID-19 should be a catalyst for change in the construction sector
After many years of stagnation, the construction industry is finally expected to grow significantly in the next decade according to the Future of Construction, a report published by Marsh & Guy Carpenter. The report envisages a solid rebound from the COVID-19 outbreak this year, with worldwide construction production increasing by 6.6 percent. Construction spending contributed to 13 percent of global GDP in 2020 and this is expected to rise steadily over the next few years. By 2030, global construction output is expected to increase by 35 percent from today’s levels.
Thanks to governmental measures aimed both at reaching environmental targets and kick starting the economy, construction, which has always lagged behind other sectors from a growth perspective due to critically low margins and consequentially low R&D spending, is seeing a renaissance. Italy, for example, has a commitment to reduce CO2 emissions by 55 percent by 2030, and to zero by 2050 within the European ‘green new deal.’ The construction sector will be pivotal in achieving this goal, as the built environment must be upgraded to be more sustainable.
Meanwhile, the European Union’s ‘next generation EU’ fund will help support recovery of construction in Western Europe with growth forecasts suggesting the sector will expand by 7.9 percent in 2021. Italy will benefit from over €196bn, and 48 percent of this will be spent on construction projects. For example, €68.9bn is destined for ecological transition and 40 percent of this sum (€29.3bn), is intended for energy efficiency and the upgrade of existing buildings.
On the other side of the pond, the US have established the ‘build back better’ programme, which is a projected $7trn COVID-19 relief and stimulus package designed to accelerate economic recovery and for investment in large infrastructure projects proposed by President Joe Biden. It is projected to create 10 million clean-energy jobs.
Sustainability and the circular economy Climate change and the race to net zero are arguably the greatest challenges that the construction industry is facing. The building and construction industry as a whole is responsible for 40 percent of worldwide greenhouse gas emissions and produces 30 percent of Europe’s waste.
The industry is finally waking up to the importance of proactively addressing climate change concerns and embracing responsibility for its direct and indirect carbon emissions. The major contributors to these emissions are the materials used, as well as the heating, cooling and lighting of buildings and infrastructure. Sustainability is not just a matter of corporate responsibility, but it is good for business – and many companies are investing heavily in sustainable practices not just to be good global citizens, but also because it makes great financial sense.
As construction entrepreneurs, we have a responsibility to lead our industry’s evolution towards the practice of maximum respect for the environment, both in terms of construction methods and the life cycle of the built environment. To achieve this goal, the sector must focus on innovation, sustainability, and the circular economy.
The impact of sustainable objectives To meet sustainability objectives, it is important to positively impact the life cycle of each project as well as improving building methods. There are many construction techniques available that are less damaging to the environment, and technology and materials choices that make long-term management of an asset more sustainable. The circular economy, for example, is creating added value in the construction industry. According to data from the Italian ‘national association of building constructors,’ the transition to the circular economy system is increasingly becoming a fundamental value for construction companies, with 81 percent of respondents to a recent poll stating that it is key to their future goals.
In Italy, the 110 percent super-bonus is giving a positive boost to the industry as it encourages the private sector to invest in energy efficiency by funding upgrades to existing buildings at no actual cost to their owners. In addition, the use of eco-friendly materials as a standard practice is hugely beneficial in the long term as they do not have an adverse impact on the environment when used and can easily be recycled.
Finally, the use of technology is essential for reducing emissions and preserving the ecosystem. The sector has responded to the COVID-19 outbreak by focusing more heavily on innovation as it is fundamental to respond to the evolving needs of the construction market to ensure the industry’s transformation. The sector will have to adapt to a changing environment and create resilience to the serious effects of climate change. For its part, the construction industry has all the credentials to meet this challenge, enhance its evolution to a green economy and contribute substantially to the revitalisation of the global economy.
Sheikh Jarrah is a Palestinian neighbourhood of 3,000 inhabitants at the eastern part of Road 1 that runs north to south through Jerusalem and separates Israeli and Palestinian sectors. The neighbourhood has two distinctive sections: the north is the part inhabited by wealthier Palestinians while the poorer, southern part is populated by hundreds of Palestinian refugees from 1948.
The Salhiya family house is in Sheikh Jarrah’s southern area on land designated by an old urban scheme authorised in the 1980s for the construction of a public building. But part of the house already existed, along with some other structures, when the plan was being prepared. In fact, the house and the other buildings on the plot are already visible on maps of Jerusalem from the 1930s.
Importantly, according to the Jerusalem Municipality itself, Palestinian houses built in East Jerusalem before 1967 are considered legal and therefore cannot be demolished. But zoning the Salhiya plot for public use – which ignored the fact of the existing residential property already on the site – is indicative of a common practice that has characterised Israeli planning of East Jerusalem since 1967.
The Israeli authorities argued that the Salhiya property had been expropriated to establish a “special needs” school for the benefit of the neighbourhood’s residents. But this “top-down” planning did not include any consultation with the family or the community.
Demolition as a tool of control
The police are reported to have arrived at the property in the early hours of what was one of the coldest nights so far this winter, and forcibly removed 15 members of the Salhiya family before bulldozing the house. They arrested Mahmoud Salhiya and five members of his family, as well as some of their supporters, both Palestinian and Israeli activists.
This traumatic event is part of an ongoing attempt of displacing Palestinians from their homes – not only in Sheikh Jarrah but also in other neighbourhoods such as Silwan, on the outskirts of the Old City, which is the subject of the continuing conflict between Jewish settlers and the local Palestinian community over archaeology, tourism development and housing.
Housing demolitions have become an all-too-regular occurrence. According to a report by B’tselem (the Israeli information centre for human rights in the occupied territories) between 2006 and November 2021, Israeli authorities demolished at least 1,176 Palestinian housing units in East Jerusalem. At least 3,769 people lost their homes – including 1,996 children. Housing demolition serves Israel’s attempt to control the city’s “demographic balance” – keeping a Jewish majority within Jerusalem’s municipal territory back to the 70:30 ratio that has driven Israeli policy since 1967.
Emerging urban geopolitics
The Salhiya family’s case should be understood within a wider context of the political processes taking place in Jerusalem since June 1967 and the declaration of the city as Israel’s unified capital. The expropriation of Palestinian land by the state through legal measures was central to the colonisation of East Jerusalem at this stage.
Planning further contributed to the colonisation of the city and was characterised by the construction of settlements (“satellite neighbourhoods”). Since 1967, Israel has expropriated over one-third of the Palestinian land that was annexed to Jerusalem’s municipality new boundaries – 24.5 square kilometres – most of it privately owned by Palestinians. Some 11 neighbourhoods have been erected for Jewish inhabitants only.
Under international law, the status of these neighbourhoods is the same as the Israeli illegal settlements throughout the West Bank. As a complementary step, a series of masterplans were drawn that have effectively limited the growth of Palestinian neighbourhoods by limiting construction rights and defining most Palestinian land as not eligible for housing construction.
The beginning of the 21st century marked a shift into a more radical policy in Jerusalem with the construction of the separation barrier. This has allowed Israel to de facto annex another 160 square kilometres of the Occupied Territories.
The route of the barrier creates a sharp division between the walled city of Jerusalem and the Palestinian hinterland. The concrete barrier deliberately disrupts the functional integration of Palestinian neighbourhoods and isolates them from their hinterland in the West Bank.
The construction of the separation barrier has placed the vast majority of territory and resources in the Jerusalem metropolitan under Jewish control. Palestinians are confined to disjointed enclaves, without sovereignty, freedom of movement, control over natural resources, or contiguous territory.
Recent events in Sheikh Jarrah clearly mark the current phase in colonising Jerusalem. This is a micro-scale appropriation of Palestinian territory accompanied by evictions and displacements of Palestinians who remain in the city. Palestinian homes are demolished or colonised by settlers such as in the case of Silwan and Sheikh Jarrah while agricultural land is confiscated from its Palestinian owners – as in the case of Walajeh where the separation barrier surrounds the village and cuts it off from most of its inhabitants’ land.
This is a new phase in which Palestinian space is appropriated not solely through military acts or large-scale urban planning (such as described above) but rather on small-scale urban spaces and the use of planning policies. These include land-use changes, planning for the apparent “public good” (such as the attempt to build a school on Salhiya’s plot in Sheikh Jarrah), infrastructure development and touristic development. There is also clear discrimination in the distribution of building permits. While 38% of the city’s residents are Palestinians, only 16.5% of the building permits were given for construction in Palestinian neighbourhoods.
In this way, Jerusalem has become a model for using “banal” apparatuses such as urban planning to reinforce Israeli domination of this divided and contested city.
We are grateful to Dr Mandy Turner for providing the translation of Mahmoud Salhiya’s words at the opening of this article and the linked video.
Daily Sabah via ANADOLU AGENCY, came up with this assertion that a Turkish construction firm goes carbon-neutral for a sustainable future. Let us see.
The above image is for illustration and is of Daily Sabah.
ISTANBUL JAN 11, 2022: The Turkish construction company Dorçe Prefabrik continues to conduct business based on environmental awareness and fair socioeconomic development by using natural resources for the benefit of present and future generations.
The construction sector is one of the sectors where natural resources are used the most. In addition to high energy consumption, heavy machinery and equipment also use fossil fuels.
For a sustainable world, Dorçe continues to work toward becoming carbon neutral by protecting environmental conditions, using recyclable and renewable materials and minimizing energy consumption and waste generation.
With the United Nations’ global principles and Sustainable Development Goals (SDGs) and the EU’s Green Deal carbon-neutral policy, the effect of the circular economy and technological developments via digitalization, the construction industry in developed countries is evolving into steel prefabricated modular structures.
Dorçe embodies the transformation with the “ISO 14064 Carbon Footprint Declaration Certificate.”
On July 14 last year, the EU approved the Carbon Border implementation, which was prepared with the aim of becoming the world’s first carbon-neutral continent in 2050.
Participating last year in the 26th U.N. Climate Change Conference of the Parties (COP26), which was held as a follow-up to the Paris Climate Agreement and the U.N. Climate Change Framework Agreement, the company once again demonstrated the importance and determination it attaches to this transformation.
The firm considers the concept of sustainability from every angle, continuing its activities with a structure that adopts the U.N. principles and the EU Green Deal targets.
Using Building Information Modeling (BIM) in design, the firm targets reducing its environmental footprint, a zero-waste policy, a fully recyclable production structure, an employee-centered organizational structure, sensitivity to social problems, added value supporting social development in Turkey and other countries where it is active, and developing modular structure projects by benefiting from developing technology, digitalization, and research and development activities.
Sustainable steel structure
The “Workers Accommodation Camps” project, which started as an integrated worker accommodation facility for 4,000 people, was converted into a quarantine hospital by adapting to coronavirus pandemic conditions.
The Umm Slal COVID-19 Quarantine Hospital, which currently has a bed capacity of 4,000, can be increased to an 8,000-bed capacity if needed.
As part of the emergency and preventive measures taken by the Qatari government against the pandemic, the four-story hospital buildings were completed in a short time with the method of recyclable prefabricated light steel structures.
After the 2003 earthquake in Bam, Iran, the company met the emergency accommodation needs of the earthquake victims with prefabricated modular solutions in a very short time.
The modular housing units, which can be dismantled, reinstalled and easily transported, continue to serve as student dormitories throughout Iran.
Hosting the World Cup is what many countries dream of, but hosting does not come without its drawbacks. It is a very costly event with no guarantees on economic return.
Any country that hosts the World Cup must meet strict infrastructure requirements, amongst many other standards required by all. These minimum requirements include criteria for all infrastructures, stadiums, hotels, transit, and communications and electrical grids. Despite all that is allowed by the accumulated petrodollars, fans could face accommodation shortages.
For that, Qatar will make a newly built and yet to be completed City in the Desert available for the event. Meanwhile, here is another aspect of the fothcoming tournament.
World Cup 2022: if Qatar can silence critics with a strong tournament, an Olympic bid could be next
The above image is for illustration and is of beIN SPORTS.
When FIFA picked Qatar as the first Middle Eastern country to host the men’s football World Cup in 2022, some considered it a bold gamble. Others thought it was a mistake – including former FIFA President Sepp Blatter.
Whether these issues will ultimately dissuade supporters from travelling to Qatar in late 2022 remains to be seen. The organisers will certainly not want a repeat of what happened when Qatar hosted the IAAF World Athletics Championships of 2019, which took place in half empty stadia.
Football has more global appeal than athletics, of course, and so far both Qatar and FIFA remain bullish that millions of fans will travel to the Gulf from all over the world. The event is certainly “unique” in sport event terms and that may drive fan interest. No expense has been spared by Qatar to deliver this unique experience, that is for sure. They have certainly spent big in the lead up to the tournament.
Even as early as 2010, estimates of the total cost for Qatar were in the region of US$65 billion (£48 billion) – a different level to the then record-breaking US$14 billion which Russia spent hosting the tournament in 2018. More recent reports, however, cite costs closer to US$300 billion.
The reason for such staggering sums is not just grandeur. The actual stadium costs, at around US$10 billion, are low in relation to the overall estimated total. The bulk of the money has been spent on infrastructure and transport projects in the country. Some of these were planned anyway, with the forthcoming tournament merely accelerating developments.
There is also a bigger picture at play here. In many ways, it has never been about the money for Qatar, one of the richest countries in the world.
The primary gains Qatar is seeking are non-commercial, with international relations at their heart, and and an opportunity to introduce itself to billions of people across the world. This has led to accusations of “sportswashing”. This can be defined as using sporting events as a way of seeking legitimacy or improving reputations and has been used in the context of Qatar 2022 given the controversies cited above.
Despite the negative press, Qatar will be encouraged by its latest foray into major international sporting events, including the inaugural Qatar Grand Prix in Formula One. The race was the first of a three-part Middle-East finale to the F1 season which also includes races in Saudi Arabia and Abu Dhabi. This could help place Qatar on a comparable level to its Arab neighbours in another very marketable sport.
Events like these, alongside the 2022 men’s World Cup, are designed to provide a legacy both socially and culturally – a legacy which creates national identity and places Qatar as a legitimate actor on the world stage.
Yet although money may be no object to the hosts, one organisation hoping to make some is FIFA. Their entire business model is geared around a successful World Cup. Russia 2018 helped FIFA to generate record revenues of US$6.4 billion, much of which is spent on “education and development”, and it will be hoping for similar takings from Qatar 2022. In the same way, FIFA’s (widely condemned) proposals to hold the tournament every two years are largely driven by the desire for more income.
So while the goals for Qatar and FIFA are different, both parties need the rest of the world to play ball. It’s worth bearing in mind that to make this happen, the majority of men’s domestic professional football leagues have altered their schedules to allow the 2022 competition to be staged, for the first time ever, in the months of November and December.
If the timing works, and Qatar’s non-commercial plans are achieved, it will then surely aim to become a regular major player in the sports event hosting market – so expect to see a bid to host a future Olympic Games. Money again here will be no object. Qatar will no doubt put on a show for the World Cup. A show that it hopes the rest of the world will be watching.
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