ISSUE 42 JUNE 2014 Projects Abu Dhabi plans Ferrari World expansion The owner and operator of Ferrari World Abu Dhabi plans to expand the theme park and increase its capacity to support the development of Yas Island as a regional tourism destination. The expansion plans involve adding seven new rides that will increase the capacity of the park by 40 per cent, together with new entertainment areas and expanded retail and food and beverage areas. The rides will be supplied and installed by specialist contractors. The general contracting and fit-out work will be split into smaller packages. “We are committed to investing in the property,” says Jesse Vargas, general manager of Ferrari World Abu Dhabi. “The expansion will take three years. The rides are in design and in some cases already in production”. The upgrade will not involve expanding the actual building, which is already the world’s largest indoor theme park and home to Formula Rossa, which is the world’s fastest collercoaster with a top speed of 240 kilometres an hour. “We are not looking at expanding the building, but we are expanding the capacity,” says Vargas. The expansion is part of the ongoing development on Yas Island, and Abu Dhabi is aiming to develop its position as a regional tourism destination further. More… Aldar Properties repays $1.25bn bond Abu Dhabi firm Aldar Properties reduces its cost of borrowing. Abu Dhabi-based Aldar Properties has repaid a $1.25bn bond, as the property developer continues to deleverage and reduce its borrowing costs. The bond, which matured at the end of May, carried an interest cost of 10.75 per cent and was repaid using cash and by drawing down on committed liquidity facilities. Aldar has now refinanced or agreed new terms on all its financing facilities since it merged with Sorouh Real Estate in mid-2013. Since the merger, the company has reduced its gross debt from AED14.2bn ($3.9bn) to AED10.1bn. It has lowered its cost of borrowing with its weighted average cost of debt reduced from 5.8 per cent to 2.8 per cent. The company will now pay AED700m less a year servicing its debts, a reduction of 70 per cent over a year. Having improved its debt position, Aldar is now pushing forward with new real estate developments in Abu Dhabi. Aldar is planning 23 new real estate projects and publicly launched the first of these projects in mid-April. The three residential developments have a combined sales value of AED5bn ($1.4bn) and will be built on Yas Island, at Al-Raha Beach and Reem Island in Abu Dhabi. Benefiting from a rebound in confidence in the UAE’s real estate market, Aldar is planning that these new developments will be funded by offplan sales. “We believe these projects will be self-financing,” said Abubaker Seddiq al-Khoori, chairman of Aldar Properties. More… www.abudhabichamber.ae | 1 ISSUE 42 JUNE 2014 Visit Abu Dhabi Chamber new and improved Online Commercial Directory >>>>>>>>>>>>> Saif Al Khaili Group to spend Dh280m on Kizad facilities Saif Al Khaili Group will invest more than Dh280 million in two manufacturing facilities at Abu Dhabi’s Khalifa Industrial Zone (Kizad). The first facility will be built in the mixed use cluster over an overall area of 1,102234 square feet. The facility, a chemical producing plant, will be the first in the country to produce caustic soda and other chlorine derivatives that is used in the aluminium, oil, steel and chemical sectors. It is expected to have a production capacity of 400,000 tonnes per year. More… Abu Dhabi’s Dh10.8bn Midfield Terminal ‘on schedule’ Abu Dhabi International’s Midfield Terminal Building (MTB) will have 35 per cent of the buildings steel structure completed by the end of the month, stated Abu Dhabi Airports top executive. In an email to Gulf News, Ali Majed Al Mansouri, Chairman of Abu Dhabi Airports said that the Dh10.8 billion project “is absolutely on schedule and within budget.” MTB, which will be used by Etihad Airways and its partner airlines, will be between 630,000 square metres and 702,369 square metres, according to reports. It is set to open on July 17, 2017. More… Drake & Scull wins MEP contract worth Dh110m for Plaza View Construction company Drake &Scull International said on Wednesday that it has been awarded a MEP [mechanical, electrical and plumbing] contract worth Dh110 million for Plaza View, a mixed-use development in Abu Dhabi that is expected to be completed by late 2016 . The contract was awarded by Al Fara’a General Contracting (AFGCO). Under the agreement, Drake & Scull will provide engineering detailing, procuring, installing, testing, commissioning and handover of MEP systems, such as water supply works and drainage, among others. More… NDC inaugurates 7 new rigs in Upper Zakum The National Drilling Company, NDC, has inaugurated seven new rigs assigned for drilling operations on artificial islands at the Upper Zakum offshore oil field. The rigs are part of NDC’s fleet expansion plans that cover land, offshore and island rigs, to serve the oil and gas industry in Abu Dhabi and keep abreast of the long term plans of its clients. NDC Chief Executive Officer, Abdullah Saeed Al Suwaidi, said that the expansion plans have resulted in a doubling of the rig fleet over the past three years.“NDC has met this challenge and proceeded to acquire seven specialized rigs with the highest standards of health, safety and environment and quality and technical specifications. The rigs are designed and built to suit Zadco’s innovative and mega-scale development for the Upper Zakum islands,” he said. More… www.abudhabichamber.ae | 2 ISSUE 42 JUNE 2014 Abu Dhabi Emirate Contractors Awards Value Total Project Value Estimates in US$ Billion *Estimates Abu Dhabi Emirate Major Players No. Clients Name Projects Value (US$ Billion) 1 ALDAR Properties 2 Abu Dhabi Department of Transport (DOT) 54 3 Abu Dhabi National Oil Company (ADNOC) 53 4 Abu Dhabi General Services PJSC (Musanada) 34 5 Tourism Development & Investment Co. (TDIC) 32 6 Masdar (Abu Dhabi Future Energy Company) 29 7 Abu Dhabi Oil Refinery Company (Takreer) 28 8 International Petroleum Investment Co. (IPIC) 28 9 Al Qudra Real Estate 26 Abu Dhabi Tourism Authority (ADTA) 24 10 105 Source: Ventures Middle East – January 2014 www.abudhabichamber.ae | 3 ISSUE 42 JUNE 2014 Abu Dhabi Chamber of Commerce & Industry Abu Dhabi, UAE P.O. Box: 662 www.abudhabichamber.ae To share your projects news with us please E-mail us at: [email protected] www.abudhabichamber.ae | 4