Building on expertise from down under

As it stands, more than 100 of Australia’s biggest building and construction-related conglomerates out of about 300 registered companies have established themselves in the UAE, raising the country’s global profile.

“There is increasing recognition of Australian companies and capabilities. Many take advantage of the UAE’s advanced transport, financial and communications infrastructure and make the UAE their regional base,” says Paul Sanda, Communications Manager, the Australian Trade Commission or Austrade.

With the UAE’s real estate sector having recovered from the global financial crisis over the past two years, the construction sector, along with the infrastructure sector, has returned to normal growth, a fact that has not gone unnoticed in Australia.

Furthermore, the shift from residential and commercial construction to large infrastructure projects with billions in investment has benefited Australian specialist construction firms. It is expected that the UAE government’s expenditure on large projects such as schools, hospitals, transport infrastructure, energy and utilities will provide even more opportunities for the construction industry.

This will focus not only on Dubai but also on Abu Dhabi, where the government has kicked off aggressive spending in large-scale projects in line with its Plan Abu Dhabi 2030.

Mammoth projects there include the Capital District, development of Al Reem, Yas and Saadiyat islands, hospitals, schools, universities, hotels and resorts including golf clubs as well as the development of Al Ain and the Western Region, Al Gharbia.

Another huge area where Australian firms are perceived to have plenty of experience is rail transport and freight infrastructure. The UAE portion of the new 2,000-plus-kilometre high-speed passenger and cargo rail that links the Gulf countries will measure some 1,500 kilometres and cost around $11 billion (about Dh40 billion). In addition, Abu Dhabi’s planned metro and light-rail line is currently in the planning stage at a cost of up to $2 billion.

One of the largest Australia-related construction companies in the UAE is Habtoor Leighton Group, formed in 2007 following the merger of the UAE’s premier building contractor, Al Habtoor Engineering, with Gulf Leighton, the Sydney-based Leighton Group’s original operating company in the Gulf region. The Leighton Group is Australia’s largest project development and contracting group.

Habtoor Leighton is currently delivering major projects in each of its core sectors in the UAE, including Al Habtoor City for the Al Habtoor Group, Dubai; the Jafza Convention Centre for Jebel Ali Free Zone, Dubai; the Zadco Accommodation and Utilities Project for Abu Dhabi National Oil Company, Abu Dhabi; the Mafraq Hospital for Abu Dhabi Health Service Company, Abu Dhabi; the Abu Dhabi Islamic Bank Headquarters in Abu Dhabi; and the mixed-use development Dubai Pearl.

“Over the years, Habtoor Leighton Group has developed a strong reputation for delivering complex projects in remote locations,” Chris Gordon, General Manager, Performance and People, Habtoor Leighton Group tells GN Focus.

Innovative solutions

“However, this continues to be a challenge for the group,” Gordon says. “But by leveraging our local experience and international expertise, not only are these challenges overcome, we also take advantage of these challenges to identify new ways of delivering innovative and efficient contracting solutions.” >

Habtoor Leighton Group’s core capabilities span infrastructure, building and rail, as well as oil and gas projects, and the company is able to tap into its group-wide capabilities offered through its largest shareholder, Australia’s Leighton Group. “As with each project presenting different challenges, each one also presents a unique opportunity to explore new technologies and identify improved skills to deliver a best-in-class development for clients,” says Gordon.

Challenging situations

Habtoor Leighton Group identifies and uses sustainable designs and innovations that deliver long-term benefits for clients and end users. “As a member of the Emirates Green Building Council, Habtoor Leighton Group benefits from its ability to access leading information on the latest green innovations to improve development and operational efficiencies across the region,” says Gordon.

Another significant Australian construction company in the UAE is Dutco McConnell Dowell, which has been active in the Middle East for around 35 years. Dutco McConnell Dowell describes itself as a local specialist with international expertise in delivering technologically challenging projects with a wide range of competencies in oil and gas, petrochemical, industrial, power, water and infrastructure sectors.

Dutco McConnell Dowell is a joint venture between Dubai-based Dutco and McConnell Dowell, a Victoria-based engineering and construction firm whose roots go back to New Zealand. Its current projects in the UAE include pipeline construction and industrial installations in the mining and aluminium industry. Dutco McConnell Dowell’s Managing Director Jeremy Coles was, however, not available for comment.

Apart from construction companies, Australian infrastructure investment firm AMP Capital has recently made it on UAE investment radar. The company is one of the largest investment firms in Asia-Pacific, with more than 50 years of direct property investment experience. In November 2012, it attracted significant investment from Abu Dhabi.

Harina Company Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority, invested in AMP Capital’s managed funds. Together with the Canada Pension Plan Investment Board, the two organisations have invested A$872 million (Dh3,321 billion) in new equity in AMP Capital Retail funds, which has interests in the Australian shopping centres Macquarie Centre and Pacific Fair.

It remains to be seen if this move could lead to real estate investment activity by AMP Capital in the UAE.