Construction

AESG's initial focus in Australia will be on developing its Environment and Sustainability services. (Image source: AESG)

AESG, a global consultancy firm, has expanded its reach by opening a new office in Sydney, which will serve as its headquarters for the Australasian markets.

The Sydney office will collaborate closely with AESG's Singapore office to enhance the firm's value proposition for clients across the Asia Pacific region. This expansion represents a significant milestone for AESG, which has rapidly grown over 14 years to become one of the largest privately-held consultancies in the region. With offices in the UAE, Saudi Arabia, the United Kingdom, and Singapore, AESG continues to serve clients in the Middle East, Europe, and Asia.

AESG’s momentum in Australia will be spearheaded by Devan Valenti who has been brought on as Director of Sustainability for the country. He brings over a decade of expertise in sustainability across three continents and has been pivotal in advancing ESG practices within the property sector.

“Today, we proudly extend the reach of our world-class service portfolio into Australia. The nation’s ambitious decarbonisation strategy and emissions reduction targets for 2035 aligns perfectly with our mission as a business to drive the net zero and sustainability agenda in our sectors. I am excited by this unique opportunity for our team to rise to the exciting and challenging opportunities in the Australasian market, at a very exciting period in the nation’s development.” said Saeed Al Abbar, CEO at AESG.

“By placing our industry experts on the ground, with their years of international experience yearned from working on some of the world’s most demanding development undertakings, we hope to infuse the market with global best practices and fresh perspectives. By the same measure, I am confident that the talented professionals we hire locally will not only provide local know how within the Australian market but also inject significant value back into our organisation, and the clients we serve across markets,” added Al Abbar.

By appointing Devan Valenti, who played a key role in developing the Green Star Buildings Rating now widely adopted by Australian property developers, as Director of Sustainability in Australia, and Brent Ridgard, formerly National Director of Environmental Assessment & Planning at a leading Australian firm, to lead its Environmental Division in the Middle East, AESG has shown its ability to attract top talent from various regions.

AESG's initial focus in Australia will be on developing its Environment and Sustainability and Specialist Engineering services to guide developers towards energy-efficient, net-zero solutions and address complex engineering challenges. Key service offerings for Australian clients include Environmentally Sustainable Design (ESD), Façade Engineering, Fire and Life Safety, ESG Advisory, Carbon and Net Zero Consultancy, Green Building Certifications, Low Carbon Engineering, Ecological Surveys, and Environmental & Social Impact Assessment. AESG has delivered these services on globally renowned projects such as The Red Sea International Airport, ICD Brookfield Place, NEOM, Masdar City MC2, and the NHS Trust Net Zero Roadmap.

This partnership looks to develop a 52-storey tower that will feature 294 luxurious apartments. (Image source: DAMAC Properties)

DAMAC Properties has signed a contract with Modern Building Contracting Co. (MBCC), one of the leading construction companies in the UAE. This partnership looks to develop a 52-storey tower that will feature 294 luxurious apartments.

“We are excited to partner with MBCC on this landmark project. Their proven track record and dedication to excellence align perfectly with our vision for this development. This 52-storey tower will not only enhance the skyline but also set new benchmarks in luxury living,” said Mohammed Tahaineh, general manager of projects at DAMAC.

Under this contract, MBCC will be responsible for the main works package, which encompasses the full construction of the tower and the parking block. Renowned for their proficiency in handling large-scale projects in Dubai, Sharjah, Ajman, Ras Al Khaimah, and Lebanon, MBCC brings extensive experience and a solid reputation for quality and dependability to this ambitious venture.

Construction is already well underway, with shoring and piling complete, and the focus now shifting to the basement substructure, paving the way for subsequent phases of development.

The 52-storey tower is slated for completion by Q2 2027. This timeline underscores the careful planning and coordination needed to execute a project of this magnitude, ensuring that every aspect meets the highest standards of quality and excellence.

In line with DAMAC’s dedication to innovation and sustainability, the project will utilise advanced construction technologies, including prefabricated bathroom pods. These units will streamline the construction process, boost efficiency, and ensure uniform quality throughout all apartments.

Strategically located between Port Rashid and Dubai's Drydocks World, DAMAC Harbour Lights offers spacious 1, 2, and 3-bedroom apartments that blend maritime heritage with contemporary seafront living.

Construction technology. (Image source: Adobe Stock)

Pranav Jaswani, technology analyst at IDTechEx, digs Into the electric excavator industry. 

The construction machinery sector is still in the nascent phase of electrification, having introduced the first small electric machine in 2015. Nevertheless, IDTechEx's latest report, "Electric Vehicles in Construction 2024-2044: Technologies, Players, Forecasts," underscores significant advancements in today's electric machines, which are more robust and efficient compared to those from less than a decade ago.

Original Equipment Manufacturers (OEMs) globally are accelerating the development of electric machinery, and IDTechEx predicts that the industry will expand to a value exceeding US$126bn by 2044.

Performance improvements

The initial electric machines introduced were mini-excavators, chosen for their smaller size and lighter workloads, making them suitable for testing construction electrification. Initially, there were concerns among construction companies about whether these electric machines could meet the job site's demands and perform on par with diesel engines.

According to IDTechEx's latest report, electric mini-excavators have now developed to a stage where they can match diesel machines on nearly all key metrics. Electric vehicles (EVs) now offer comparable or even superior power compared to their diesel counterparts, with models from Kato and Wacker Neuson generating 30-60% more digging force than a typical diesel machine of the same size. There have also been significant advancements in runtime. While the first electric machines could operate for only 4 to 6 hours on a single charge, newer models can now run for up to 8 hours (a full workday) as a standard. Continued battery development has significantly contributed to this improvement, and IDTechEx anticipates runtimes will soon extend to 9 to 10 hours.

Electric construction machines are increasingly focusing on larger excavators and loaders. Initially dominated by mini-excavators, the market has shifted towards developing larger machines, such as excavators and wheel loaders, which accounted for 35% of all equipment sales in 2023 and are significant greenhouse gas emitters. Electrifying these machines is crucial for the industry's decarbonization.

From 2019 to 2023, the size of new electric machine models has grown substantially. Previously, 3-tonne mini-excavators were the pinnacle of electric technology, but now multiple OEMs produce large excavators over 20 tonnes, with the Chinese OEM Know-How even producing a 52-tonne electric excavator in 2023. Wheel loaders have also seen similar growth, with 20-tonne models becoming standard.

This growth in machine size has driven the need for larger and more advanced battery systems. Battery sizes have increased dramatically, from around 30 kWh in 2018 to over 500 kWh in 2023. The Know-How 52-tonne excavator features a massive 700 kWh battery, estimated to cost US$210,000 and weigh over 3.5 tonnes.

The future

Many of the larger electric construction machines now on the market have achieved performance levels comparable to their diesel counterparts. Original Equipment Manufacturers (OEMs) have moved beyond merely matching diesel performance and are now focusing on expanding their electric vehicle (EV) portfolios to include larger and more varied equipment. Chinese OEMs are leading this trend, having developed bigger excavators and wheel loaders, and are also pushing forward with the electrification of mobile cranes that weigh hundreds of tonnes.

The future of the electric construction industry heavily depends on advancements in battery technology. Currently, OEMs face higher battery costs compared to the automotive industry, but scaling up EV production and establishing dedicated supply chains are expected to reduce these costs. Enhancing the efficiency of existing battery technologies and introducing more advanced lithium-ion and future battery innovations will allow for a broader range of machines to be electrified and improve their overall performance.

According to IDTechEx’s new report, "Electric Vehicles in Construction 2024-2044: Technologies, Players, Forecasts," the electric construction machine industry is projected to grow at a compound annual growth rate (CAGR) of 21%, reaching a market value of US$126bn by 2044.

IFC supports MAN Enterprise Group to expand in MENA, enhance gender inclusion, and promote sustainable growth amid regional challenges. (Image source: Adobe Stock)

IFC, part of the World Bank Group, granted a US$15mn loan to MAN Enterprise Group, an engineering, procurement, and construction Group to expand in MENA & Europe, fostering green growth and gender inclusion in Lebanon's challenging economy

The loan will help the group grow its operations across the Middle East and Africa, supporting private sector development and job creation.

It will also assist the group in initiating new projects to establish its presence in different countries, enhancing its internal capacity for climate-friendly technologies, and improving its gender inclusion practices.

The conflict in the Middle East has been impacting countries in the region, including Lebanon, a nation that has already faced several economic challenges in recent years. Unemployment, especially among Lebanese youth and women, is a significant issue. According to estimates by the International Labour Organization, nearly half of Lebanon's youth are unemployed (47.8%), with women facing even greater difficulty finding jobs.

"IFC's support is not only a vote of confidence in our Group but also in Lebanon's private sector potential as a growth engine," said Patrick Abi Nader, CEO of MAN Enterprise. "Apart from the financing, we will collaborate with IFC to integrate climate-friendly practices into our operations and address gender disparities in our workforce to unlock a more diverse talent pool critical to our success."

The construction industry is a major global driver of employment, contributing 13% of total employment in the Middle East and North Africa region in 2020. In addition to its investment, IFC will partner with MAN Holding in Lebanon to enhance gender inclusion by offering childcare solutions for working parents. This initiative aims to attract and retain women in the workforce, boosting their participation in economic recovery efforts. This effort is part of the Care Arabia program, a regional initiative led by the World Bank Group through IFC.

"Despite Lebanon's challenging environment, IFC has been selectively identifying opportunities to support the Lebanese private sector through South-South investments, preserving jobs and aiding the economy during a critical period," said Ashruf Megahed, regional industry head of manufacturing, Agribusiness and Services for the Middle East, Central Asia, and Türkiye. "Investing in a local market leader like MAN Enterprise will enable the company to access corporate capital complementary to traditional financing, enhance sustainable and inclusive practices, and strengthen resilience against economic downturns."

IFC's financing aligns with the World Bank Group's strategies for the Middle East and Africa, aiming to foster job creation through accelerated private sector growth, competitiveness, and sustainable green development.

For over five decades, IFC has been a steadfast partner in Lebanon, supporting the country's private sector with investments and guidance across various sectors including finance, manufacturing, construction, retail, and ICT. These efforts aim to enhance competitiveness and create more employment opportunities, particularly for women, youth, and vulnerable communities. Since 2005, IFC has invested over US$920mn in Lebanese firms, deploying US$603mn from its own funds and mobilising US$317mn from other partners, leading to the creation and preservation of more than 40,000 jobs, with over 7,000 held by women.