Construction & Real Estate

German Hochtief eyes major order in Qatar

German construction group Hochtief AG hopes to ink a contract for the construction of one of the longest causeways in the world, which should connect Qatar and Bahrain. Hochtief and French Vinci are leading the consortium that will build the 40 km (24.85 miles) bridge. The Essen-based company has not yet received the major order, but it has the first small orders for the development of the project, said a Hochtief spokesman. He did not disclose details on the estimated value of the project.

Syria: Seeking partnership

Syria is embarking on a new era of infrastructure development, pursuing partnership with the private sector in the construction, delivery and maintenance of public services traditionally undertaken and managed solely by the government. While there is no universally agreed definition of what technically constitutes a public-private partnership (PPP), the concept most broadly involves the tender of public services and public projects to private operators. The arrangement has become increasingly popular around the world as a result of constricted public funding. According to findings by the World Bank, developing countries such as Syria should be dedicating around 10 per cent of GDP towards infrastructure spending should they wish to fully capitalize on, and keep pace with, their growth potential. Abdullah Dardari, the deputy prime minister for economic affairs, recently told OBG, "We estimate the need to spend a massive US$50 billion on infrastructure from now until 2015. Attracting and facilitating PPPs is crucial to achieving this." [source: OBG]

UAE firm to build 5-star hotel in Iraqi city of Karbala

A firm from the United Arab Emirates plans to construct a five star hotel with a capacity for 3,000 guests in the Iraqi sacred city of Karbala. The name of the firm was not revealed, but construction will begin next year. The city, located about 100 kilometers southwest of Baghdad, is sacred to Shiite Muslims and attracts many religious pilgrims. UAE investments in Iraq are estimated to make up a quarter of all foreign direct investment in the country.

Qatar SWF property arm begins US$400m Sudan project

The property arm of Qatar's sovereign wealth fund has started work on a mixed-use project in Sudan's capital Khartoum. The 20.6 hectare mixed-use Mushaireb project will include a 5-star hotel, residential towers, office and retail space, Qatari Diar Real Estate Co said in a statement. The project will cost US$400 million said Hassan al-Fadala, the firm's deputy chief executive for operations. Qatar, the world's largest exporter of liquefied natural gas, has been on the hunt globally to snap up real estate bargains stemming from the global economic downturn, with excess cash from a six-year boom in the Gulf Arab region.

Saudi housing demand, prices seen rising

House prices in Saudi Arabia will rise in the next two years as its rising population continues to raise demand and the economy recovers from a drop in oil prices, Egyptian investment bank EFG Hermes said. Saudi Arabia will have an annual demand of 160,000 new units each year and up to 50,000 units in unmet demand, EFG said in a report. "We believe prices have been fairly stable over the past year, but we expect them to start to increase again in 2010 and 2011, particularly if liquidity comes back to the market either through higher oil prices, stock market performance or mortgages," the bank said. Saudi Arabia's growing population has risen to over 25 million, according to government estimates, posing a challenge to the government in terms of providing jobs and housing.

Bouygues Construction wins EUR 950m deal in Qatar

Bouygues Batiment International, a unit of French builder Bouygues Construction, has won a EUR950 million (US$1.42bn) contract for a big real estate project in Doha, the capital of Qatar. The project was awarded by Barwa Financial District, a unit of Qatari property group Barwa Real Estate. Under the deal, Bouygues Batiment International will build a complex, which will include nine 18- to 52-storey office buildings, a five-star hotel, a shopping center, a conference centre, a mosque and parking facilities.

Qatari fund to buy London's US Embassy building as diplomats move to new high-security site

The US government said it has agreed to sell its vast London Embassy building to a Qatari government-owned company. The embassy said the State Department had signed a deal to sell the 600-room Chancery building to the Qatari Diar Real Estate Investment Co., the Gulf state's property investment fund. The embassy announced plans last year to move from central London's Mayfair district to a new high-security building south of the River Thames. The winner of a design competition is due to be announced next year, and officials hope the building will be completed by 2017. The current embassy, a concrete-and-glass building by modernist architect Eero Saarinen, has been given protected status at the request of architectural guardian English Heritage, meaning its facade cannot be altered. That restriction on redevelopment is likely to have reduced the sale price. The embassy did not disclose terms of the deal, but said it expects the sale of the Chancery and its other Mayfair buildings to pay for construction of the new embassy.

Bahrain construction sector 'better off than most'

Bahrain's construction industry, although struggling somewhat, is performing better than most in the region, according to a new study. However, the pace of development has slowed down across the kingdom, said the study by CB Richard Ellis Group. The Kingdom's construction sector was strong but had not "overheated" by the time economic conditions worsened in the region and as a result it was not faced with such a sharp adjustment when compared to other major centers, it said. According to CB Richard Ellis, the construction activity is still happening even as the country emerges from the difficult economic period.

Egypt to conduct giant housing project in Iraq

Egyptian companies will build 3.5 million housing units in Iraq as part of a cooperation program that also includes investment projects in the country. "The Iraqi-Egyptian relations have entered a new phase of development following a cooperation program that allows Egyptian companies to powerfully enter the Iraqi markets," according to a local paper.