a New highlight

A new
Highlight
Other articles:
Infrastructure update
Four Seasons Hotel underway
Bahrain Bay goes organic
BULLETIN - Winter 2010 Newsletter
Welcome
to the Winter 2010 issue of the Bahrain Bay Bulletin
CEO update
— A message from our CEO
4-5
INFRASTRUCTURE UPDATE
— Infrastructure update
— Infrastructure gallery 6
7-9
INVESTOR & DEVELOPER NEWS
— Building on success
— Four Seasons Hotel
— Meet a key developer
10
11-13
14-15
NEWS & PRESS
— News & press gallery — Industry news
— Community matters
16-19
20
21
the Environment
— Bahrain & its environment
22
Cover: Artist impression of Four Seasons Hotel, Bahrain Bay
Inside Cover: Aerial view of Four seasons Hotel Island (Nov 2010)
All information contained in the Bahrain Bay Bulletin was correct at the time of going to press.
Bahrain Bay accepts no responsibility for any of the articles herein.
Bahrain Bay Winter Bulletin - CEO update
A message from our CEO
“Since joining the Bahrain Bay team in 2006,
I have watched with each year that passes,
the project grow, exceeding expectation and
overcoming challenges.”
4
“A tribute to both Bahrain Bay and Bahrain, this achievement
signifies that Bahrain not only competes with the best
in Middle East real estate, but also prevails in this highly
competitive property arena.”
Welcome
In this context, after successfully passing its final tests, the Shamal
66KV substation was energized on 18th October. In addition to
this, the 66KV cables running from the Arcapita station to Shamal,
together with the optical fiber communications cables have been
laid and connected to the substations at either end. These cables
have now also been energized. In the same month, the Janoob
substation underwent its initial inspection by EWA’s Civil Works
Department. The station’s final inspection took place at the end of
November.
Welcome to the Winter issue of the Bahrain Bay Bulletin.
As 2010 draws to a close, we are able to take a step back and
reflect on the projects progress over the last year. 2010 has
seen the development meet several key milestones including
the achievement of 50 uninterrupted months of work on site,
the completion of the Arcapita Bank headquarters - the first
of our third party developers to complete their individual
projects - and the recent handover of land title to Ajmera
Mayfair Group. In addition to this, construction on the Four
Seasons Hotel has also commenced with the preparation of
foundation piles and other substructure works well underway.
The external works program is making the site extremely busy
(see image on page 8-9).Work on the North Manama Causeway is
underway with construction works ongoing along the full length
of the road. Due to be completed within a 3 year period, the North
Manama Causeway will link the Bahrain Financial Harbour and
Bahrain Bay to the King Faisal Highway, allowing for seamless travel
between the three districts.
It also gives me great pleasure to announce that Bahrain Bay were
pronounced the “Best Mixed Use Development in the Middle East” at
this year’s International Property Awards - Arabia, which was held in
Dubai in October. The International Property Awards is a prestigious
Industry Awards body that boasts a panel comprising of prominent
individuals in the real estate sector from across the globe. In winning
this award, Bahrain Bay has subsequently been invited to attend the
International Property Awards Ceremony in London, which takes
place towards the end of the year and which will ultimately recognize
the world’s finest property companies. A tribute to both Bahrain
Bay and Bahrain, this achievement signifies that Bahrain not only
competes with the best in Middle East real estate, but also prevails
in this highly competitive property arena. I would like to take this
opportunity to extend my thanks to the Bahrain Bay team for their
ongoing efforts towards ensuring Bahrain Bay continues to deliver
on its promise of providing an exceptional investment opportunity
in unique surroundings. I’d also like to recognize our developers for
their commitment and hard work as without them, the project would
not be the success it is today. They continue to make impressive
strides with their individual projects and we expect an even more
active site with multiple developments next year.
Looking Ahead
Bahrain Bay has long been committed to creating a high-quality urban
integrated mixed use development. Since joining the Bahrain Bay
team in 2006, I have watched with each year that passes, the project
grow, exceeding expectation and overcoming challenges, the most
recent of late, the global recession. It is our shared purpose and our
shared commitment to excellence that differentiates Bahrain Bay
from other developments. It is the unwavering commitment of our
partners, shareholders and employees. Together we are building an
enduring legacy for Bahrain. As we close the door on 2010 and look
forward to the new Year, I can promise you, that we will continue
to execute to our strategy and deliver to you what has already been
proudly recognized throughout the real estate industry as the Middle
East’s best mixed use development.
Project Update
As I mentioned in the Autumn newsletter, this year’s focus has
largely been on construction rather than sales. This decision has
accelerated infrastructure works, with completion scheduled for
the end of the year. Since commencing in 2006, the infrastructure
programme has remained on track and on schedule, which has
meant our third party developers have been able to plan and
proceed with their own individual developments in the knowledge
that key primary elements such as district cooling, sewage and
electrical works are all in place.
Bob Vincent
5
Bahrain Bay Winter Bulletin - Infrastructure update
Infrastructure
update
As construction work on Bahrain Bay’s infrastructure comes
close to an end, activity on Government infrastructure
around Bahrain Bay is rapidly increasing.
In November 2008, a six month construction contract for a
permanent potable water connection to Bahrain Bay from Hoora
Tank, which is located near the Diplomatic Area, to a temporary
connection point to the north of the King Faisal Highway was
awarded to WDD. Unfortunately, due to the difficulties with the
alignment of the pipeline, work on the connection only began in
July of this year. However, since commencing works, a significant
portion of the pipeline has been laid and the project is now
scheduled for completion in Q2 of 2011.
Infrastructure contracts with a construction value in excess of
BD150 million (US$400 million) have been awarded in the last six
months by Government Ministries and Agencies. These range from
the North Manama Causeway with its major viaduct section, to
water and electricity supply projects, to the award of the Northern
Detour Road contract in November, which is stage 1 of the King
Faisal Highway upgrade.
Finally, on Bahrain Bay, infrastructure works on the two main
north and south islands are nearing full completion. The two 66kV
primary substations of Shamal and Janoob are complete with
Shamal energized and providing power to the development. The
four pumping stations, potable water and sewerage, are undergoing
final commissioning and both north island pumping stations will be
in service in January 2011. The utility networks are completed with
final snagging being carried out and the bridges across the Bahrain
Bay canal connecting Bahrain Bay to the Four Seasons Hotel Island
are complete apart from the completion of parapet erection.
The North Manama Causeway was awarded to the Belgium /
Bahraini Joint Venture of Six Construct - Haji Hassan in July 2010
with a construction value in excess of BD100 million. The project
involves the construction of a 4km highway of which 1.45km is on
a viaduct and includes a bridge over the Bahrain Bay Canal. The
projected construction period for the project is 3 years and it will
be divided into 3 sections. The causeway will provide 4 dedicated
accesses to Bahrain Bay, three at-grade traffic light controlled
junctions and a forth via a loop flyover. The loop flyover will bring
traffic into Bahrain Bay from the North Manama Causeway at North
Green Street near to the Arcapita Bank Headquarters.
Work on the BD184 million King Faisal Highway upgrade has
also commenced with the construction of the Northern Detour
Road and enabling works removing monuments and greenery in
the surrounding areas of Bahrain Bay and the Diplomatic Area
underway. The upgrade is part of a series of projects in Bahrain that
is set to enhance the Kingdom’s infrastructure.
With regards to electrical works, the electrical network for Bahrain
Bay is currently being reinforced by the construction of a 220kV
substation in the same compound as the BSP and Arcapita 66kV
substations, both of which were built and financed by Bahrain Bay
and which were energized in mid-2009. The 220kV substation
will provide all of Bahrain Bay’s future power requirements and
will be connected through the BSP substation to all 4 of Bahrain
Bay’s dedicated 66kV substations. The civil work on this substation
commenced in September 2010 with electrical fit out due to start in
April 2011 and energization scheduled to take place in Q4 of 2011.
Image
Ivor Palmer VP infrastructure, Bahrain Bay.
6
“Bahrain Bay is emerging as a unique model for efficient planning. Our
proactive approach has ensured that we remain on schedule and within
budget, which has lead to the successful completion of 95 percent of all
infrastructure works”.
- Ivor Palmer VP infrastructure, Bahrain Bay
Images
Top: infrastructure works on the north and south islands nearing completion.
Below: Aerial view of the Bahrain Bay Utilities site.
7
Bahrain Bay Winter Bulletin - Infrastructure update
Infrastructure
update
1
2
3
3
3
8
7
8
3
1
Connection of North Manama Causeway to
King Faisal Highway - complete by mid 2011
2
North Manama Causeway Stage A complete by mid 2011
3
Road access from North Manama Causeway complete by mid 2011
4
North Manama Causeway Stage B including
Loop Flyover - complete by end of 2011
5
BBU District Cooling Plant and Sewerage
Treatment Plant - Complete by end of 2010
6
EWA 220KV Electrical Substation complete by end of 2011
7
Connection of North Manama Causeway to
King Faisal Highway - complete by end of 2011
8
King Faisal Highway Detour Road and
Corniche upgrade - Complete by end of 2011
4
5
6
9
Bahrain Bay Winter Bulletin - Investor & developer news
Building on success
Cityscape Global
As I mentioned in the Autumn newsletter, this year was Bahrain
Bay’s fifth year exhibiting at Cityscape Global which was held
in Dubai in October. Each year Cityscape, the region’s biggest
business to business real estate exhibition allows us to showcase the
developments latest progress and meet with key industry players.
Our aim at this year’s event was to highlight the projects milestones
and promote not only Bahrain Bay, but the Kingdom, as an effective
and practical operating base. And although we were successful in
this, unfortunately the effects of the economic downturn could still
be seen as the event did not receive as many visitors or exhibitors as
it has in previous years.
Third Party Developer Update
One of the most significant milestones achieved by the development
this year was the start of construction on the Kingdom’s only
Four Seasons Hotel. The Four Seasons brand has been growing
strategically in recent years with currently over 50 projects in
development. The brand’s presence in Bahrain serves as a clear
indicator of the country’s readiness for investment and supports
the Kingdom’s desire to become an attractive tourist destination.
The architecturally innovative building will tower 201 meters above
Bahrain Bay. Upon completion the 43-storey structure will offer 260
guest rooms, a penthouse level “Sky Pod” restaurant and conference
facility, a hi-tech business centre and versatile meeting and events
facilities, and several fine dining venues. We are extremely pleased
that Bahrain Bay was selected as the location for the Four Seasons
Hotel, their presence further emphasises the exceptional quality of
the development and I am looking forward to watching as the project
takes shape.
The IMF’s World Economic Outlook released in October stated
that the Middle East and North Africa region is recovering
strongly. Talking about Bahrain specifically, the IMF projects
that the country will see a 4.5 percent growth in real GDP in
2011. This is largely in line with the growth projections for
most other GCC countries. Much of the Kingdoms projected
economic growth is as a result of the continued buoyancy in
oil prices and the ongoing support of the government. Over
the last several months, there have been clear indications
that Bahrain’s economy has weathered the worst and is now
entering a positive growth phase. This outlook was further
supported by the increasingly optimistic third quarter results
of the regions financial institutions. The results, which were
the best the industry has seen since the start of the downturn,
were a welcome surprise and have had a direct effect on the
real estate industry as investors look to place their funds in
construction materials again. This uplifting movement will
undoubtedly be reflected in the countries real estate sector
with the industry forecast to see significant improvement
in 2011. Despite difficulties that might be faced along the
way, real estate, in the long run is never going to be a losing
proposition due to the ever increasing population size, which
will ensure an ongoing and relatively stable demand for
properties, as well as remaining an attractive asset class for
investment. Furthermore, the pool of end users and investors
is continuing to widen as the country diversifies into new
sectors such as the tourism and leisure industries.
In other TDP news, Indian developer, Ajmera Mayfair Group, recently
announced its intention to invest US$130 million into its residential
development within Bahrain Bay after the successful completion of
their land payment and title transfer. Bahrain Bay is the Group’s first
real estate investment outside of India and we are very pleased to
have been chosen as the location for their ambitious project.
This year also saw the Manama Municipality award building permits
to developers Al Baraka Banking Group and Cooperation Investment
House. Another three TPD’s are expected to complete their design
process and be ready to move on site at the start of next year,
maintaining the constant activity onsite at Bahrain Bay.
Just outside of Bahrain Bay, work on the King Faisal Highway
up-grade is also progressing well. The up-grade is part of a series
of projects in Bahrain that will help ease traffic congestion as
well as enhance the countries infrastructure and in-turn meet the
requirements of future investment. In addition, work on the North
Manama Causeway is also underway with completion scheduled for
the second quarter of 2013.
Abdulla Faisal Al Doseri
Deputy CEO
10
Four Seasons Hotel
Commenting on construction progress and the commitment of
BBD’s third party developers, Abdulla Al Doseri, Deputy CEO,
Bahrain Bay, said, “The start of construction on the Four Seasons
Hotel further supports the ongoing progress the project is making
and the commitment of our third party developers. Bahrain Bay has
remained resilient during these challenging times and has continued
on track to become a leading mixed-use waterfront development,
and with the presence of the regionally and internationally renowned
brands like the Four Seasons and Raffles City, we are well on our way
to making this objective a reality.”
Situated upon an island of reclaimed land approximately
200 meters offshore, the Kingdom’s first Four Seasons Hotel
will be located at the very heart of Bahrain Bay. The Hotel,
which will be of international standard, will tower 201 meters
above Bahrain Bay, transforming the Manama Skyline. Under
the management of BBD, work on site commenced on June
13th with the preparation of foundation piles and other
substructure works. Upon completion the architecturally
iconic 43 story structure will offer 260 guest rooms and
boast a penthouse level “Sky Pod” restaurant and conference
facility commanding views across the Arabian Gulf. The
Hotel will cater to three key markets; business, tourism and
leisure, and will offer a variety of services and amenities
including, but not limited to, a hi-tech business centre,
versatile meeting and event rooms, a multi-use ballroom and
banqueting hall, a health club and swimming pool as well as
several fine dining venues.
The construction of the Four Seasons Hotel remains on schedule
and has moved in to a new phase with detailed design works now
underway and completion scheduled before the end of 2013.
The Four Seasons brand has been growing strategically in recent
years with currently over 50 projects in development. Spread
across four continents, the Four Seasons Hotels and Resorts remain
resolute and consistent when it comes to service standards and
are passionate about maintaining their position as the world’s
leading operator of luxury hotels and resorts. The brand’s presence
in Bahrain serves as a clear indicator of the country’s readiness
for investment and its desire to become an attractive tourist
destination, whilst supporting Bahrain Bay’s aspiration to become a
leading mixed-use waterfront community.
Commenting on the project, Scott Woroch, Executive VP Worldwide
Development at Four Seasons Hotels and Resorts said, “Bahrain
has firmly established itself as a leading financial hub for the Gulf
region. We look forward to meeting the needs of the business and
leisure traveller as well as the corporate and group segments. We
are confident that Bahrain Bay provides Four Seasons with a prestige
location through which to service tomorrow’s guests.”
Bob Vincent, CEO of Bahrain Bay, said, “As one of Bahrain Bay’s
anchor developments and arguably the world’s foremost hospitality
and lifestyle brand, Four Seasons fully appreciates the demands of
today’s business and leisure guests and will bring to Bahrain new
standards in service, luxury and style.
“The progress we are making with the Four Season’s site is one of
the clearest demonstrations yet of our commitment at Bahrain Bay to
creating a world class, dynamic and sustainable urban environment
in which people can live, work and play. The presence of the Four
Seasons brand firmly positions the project as a leisure destination
as well as a business and financial hub, further endorsing Bahrain’s
ambition to be a leading tourist and business destination”
Image
From left Bob Vincent, CEO Bahrain Bay, Isador Sharp, Founder,
Chairman and CEO Four Seasons Hotels and Resorts.
11
Bahrain Bay Winter Bulletin - Investor & developer news
Four Seasons Hotel
Images
Above - View of Four Seasons island and the Bahrain Bay Masterplan, Opposite page - Four Seasons Hotel Main Entrance.
12
“We are confident that Bahrain Bay
provides Four Seasons with a prestige
location through which to service
tomorrow’s guests.”
- Scott Woroch, Executive VP Worldwide
Development at Four Seasons Hotels and Resorts.
13
Key Data
• 5 Star Business and leisure Hotel
• 43-storey tower
• 260 Guest rooms
Bahrain Bay Winter Bulletin - Investor & developer news
Meet a key
developer
Interview with Nasri Chami, CEO, Dalkia Bahrain Co. WLL
Q. Could you tell us about the History of Dalkia, the concept behind your organization and its overall mission?
A. Dalkia is the energy division of Veolia Environment, a global
specialist in environmental services. We also have another
shareholder, French utility company Electricité de France (EDF),
which has a 32% stake. Veolia Environment has four divisions;
water, which is the longest running division, 157 years waste
management, both domestic waste and industrial waste, energy,
under the name of Dalkia, and finally transportation.
Dalkia was created 70 years ago and has over 50,000 employees spread throughout the world in more than 42 countries. Dalkia is one of the leading energy service providers in Europe. What we aim to do is help our customers to manage their energy use and spending and to reduce their environmental impact. We specialize in all areas of energy including heating, steam
production, cooling and compressed air networks and installations for thousands of plants, public facilities, healthcare establishments and offices.
Dalkia’s overall mission is to provide customers with highly professional technicians who have the right tools and equipment and who are part of a network with tens of thousands of members worldwide. We guarantee to give our customers performance, and we give that guarantee over a substantial period of time, such as 25 or 50 years.
Q. Can you tell us about your project within Bahrain Bay?
A. In 2006 we had the opportunity to meet the Bahrain Bay
Development team who were looking for an International company
for their district cooling. By the time we met with them, they
had already received several proposals from Middle Eastern
companies for the District Cooling project. However, they were
looking for something very specific, and after having a look at the
project, we said, “OK, we can do it”, and after signing a concession
for 50 years, we started construction by the end of 2007. At
Dalkia, we are incredibly conscious of the importance of being
environmentally sound and it was a great pleasure to discover that
Bahrain Bay shared the same values. Bahrain Bay was a good fit
for us as we were looking to be involved in a project that was on
par with international standards, who shared the same values, the
same quality of performance and of good service to the end user.
Business is much more exciting when you share the same vision.
Image
Above: Nasri Chami, CEO Dalkia Bahrain Co. WLL.
14
“At Dalkia, we are incredibly conscious of the importance of being
environmentally sound and it was a great pleasure to discover that
Bahrain Bay shared the same values.”
Q. In what ways will the future tenants of Bahrain Bay
benefit from district cooling and the other services you are providing?
A.The introduction of a private district cooling system takes the responsibility off the Government who would normally provide 50 percent more power needs under the traditional system. This in turn benefits the country as significant savings can be made. Due to the efficiency of the system that has been put in place, we have also avoided another 48 megawatts of electricity production. The second and very important point is that the plant uses sea water, not treated water. The sea water is collected through a beach well that provides natural sand filtration and do not create any suction velocity. The largely titanium system is designed to withstand sea water, which is treated and sent to the cooling towers. Once the water has been through the system it is then ejected back into the sea with only a 3 degree rise in temperature, a considerable drop from the normal 7 - 8 degree rise which is common of the traditional systems.
As I mentioned earlier, Dalkia is incredibly environmentally conscious and we take our responsibility very seriously. In addition to using sea water instead of treated water and reducing the temperature of the water which is sent back in to the sea, we also only use 0.8 kw of electrical power per ton of refrigeration, whereas a traditional system uses 1.6 kV. This is a benefit to both the environment and the end user.
Q. What do you foresee as the future of the energy sector in of petrol; which in turn means it will be one of the last places to suffer from energy problems. However, in order to have a long term vision it is wise to look at the price of energy in the future which is likely to be much higher than what it is today. If you can put yourself in a situation where you pay twice the cost you are paying today, it will enable you to have a better, longer term vision, which in turn allows you to choose more efficient equipment.
For Bahrain, the main problem is that the government funds a significant portion of the cost of energy, this is not necessarily a good thing as it does not encourage people to take care of how much they are using and as a result there is a significant amount of wastage. So I think one of the main challenges facing the country is the need to bring back the true cost of energy and recover some of the money lost, which could then be put to better use.
Q. How do you view Dalkia’s future and its future presence Besides District Cooling we provide all water services for the development. We also built a high standard waste water treatment plant with membranes (MBR). We recover the treated water for irrigation and we dry the sludge to make fertilizer that will be used for green areas.
in the Middle East?
A. The overall goal of the company is to have a long-term energy services company in the Middle East?
A. Today, I would say that especially for District Cooling, the Bahrain and the region?
A. The region has a very big advantage, which is that it is the home Q. What are some of the unique challenges you face as an Here in the Middle East, one of the main problems that we face is planning. Building prior to the projects development is necessary to have all utilities available on site. But if the construction is late we do not get any income to recover our investment.
situation is very difficult in the Middle East because we are fighting against both inconvenient electricity prices and the fact that the majority of people prefer individual systems.
15
contribution and presence in the Middle East. Dalkia’s future and its future presence in the Middle East is dependent on delivering on its promises and to continue to provide our clients with the very best service. It is also important that we remain selective on the projects we undertake and who we work with. We are not in the game of numbers, it is about quality, and we need to make sure that we are working with the right projects.
Bahrain Bay Winter Bulletin - News & press
News & press
BAHRAIN BAY WINS
INTERNATIONAL PROPERTY
AWARDS
“The fact that the Bahrain Bay
Development has been judged
to be the best development in
the Middle East amongst such
other quality projects is a huge
achievement for our team and
one that we are exceptionally
proud of.”
Bahrain Bay Development, has been pronounced the “Best
Mixed Use Development in the Middle East” at this years
International Property Awards, Arabia, in association with
Bloomberg television.
The International Property Awards is a prestigious Industry Awards
body that boasts a panel comprising of prominent individuals in
the real estate sector from across the globe. Open to commercial
and residential property professionals from around the Middle
East, the Arabian Property Awards celebrate the highest levels of
achievement by companies operating in all sectors of the property
and real estate industry.
Speaking on this recent achievement, Bob Vincent, CEO,
Bahrain Bay, said, “We are delighted to have been awarded
the title of best mixed use development in the Middle East.
The fact that Bahrain Bay earned not one, but two of these
most converted tributes shows Bahrain not only competes
with the best in Middle East real estate, but also prevails in this
highly competitive property arena. The award affirms Bahrain
Bay’s promise to deliver exceptional quality in unparalleled
surroundings. The fact that the Bahrain Bay Development has
been judged to be the best development in the Middle East
amongst such other quality projects is a huge achievement for
our team and one that we are exceptionally proud of.”
Winning two awards, both the 5 Star Award and the Best
Mixed Use Development in the Middle East Award, Bahrain
Bay successfully out performed tough competition after being
marked on several aspects of the project including innovation and
industry leadership, integrated utilities and services, construction
management, site wide facilities management, safety, security and
sustainability. Marks were also awarded for BBD’s pioneering and
eye catching marketing campaigns.
Other nominees for the Best Mixed Use Development in the Middle
East award included Boulevard, by Kuwait Commercial Markets
Complex Company; Barwa Financial District, by Barwa Real Estate;
Mena Mall Project, by Mena Holding; Dubai Pearl, by Dubai Pearl
and Yas Island Development, by Aldar Properties PJSC.
Abdulla Al Doseri, Deputy CEO, Bahrain Bay, added, “This
is the third major industry award Bahrain Bay has received in
the past two years. Last year we were recognized at the 5th
Annual Construction Week Awards, where the development
was shortlisted for “Developer of the Year” and was runner up
for the “Supreme Judges Award”. This ongoing recognition is
a testament to the hard work of the Bahrain Bay team and the
Bahraini Government who have remained committed to the
project from the beginning and whose unwavering support has
seen the development become the success it is today.”
Entries were judged by a panel of professionals including Ben
Wood, Industry Head Property Markets of Google UK; Peter Bolton
King, Group Chief Executive of the National Federation of Property
Professionals; Patrick Grove, Executive Chairman of iProperty.com
Group Asia Limited; Fiona Nixon, Chairman of the Australia Institute
of Architects; Hendrik Nelde, President of FIABCI Belgium; Helen
Shield, Editor-in-Chief of International Homes Luxury Collection
magazine and Sven Johns, CEO of the German Real Estate
Association.
In winning the award, Bahrain Bay was automatically entered into
the overall International awards which took place in London on
26th November, to ultimately recognize the world’s finest property
companies.
Image
Opposite page: Gené Redelinghuys, Marketing Manager Bahrain Bay and Nour
Alagraa, Marketing Associate Bahrain Bay, at the award ceremony held in Dubai.
16
BAHRAIN BAY WELCOMES A VISIT
FROM HIS EXCELLENCY YANG
WEIGUO, THE AMBASSADOR OF THE
PEOPLE’S REPUBLIC OF CHINA
The Deputy CEO of Bahrain Bay, Abdulla Al Doseri, welcomed
His Excellency the Ambassador and his wife to the Bahrain
Bay project. Whilst visiting the onsite Marketing Centre, the
Ambassador and his wife were given a presentation on the
development followed by a site tour of the project and the
Arcapita Bank headquarters building.
Impressed with the overall project and by the Bahrain Bay
executive management team’s ongoing efforts in implementing the
development plan, the Ambassador extended his congratulations to
Bahrain Bay on creating a significant real estate project that supports
the country’s real estate and financial position as well as Bahrain’s
Vision 2030.
Image
(from left) Abdulla Al Doseri Deputy CEO Bahrain Bay with His Excellency the
Ambassador of The People’s Republic of China Yang Weiguo and his wife Wang Yan
Fen at the Bahrain Bay on site marketing centre.
17
Bahrain Bay Winter Bulletin - News & press
INDIAN DEVELOPER TO INVEST ADDITIONAL US$130 MILLION
IN BAHRAIN BAY
At a joint media briefing with Bahrain Bay Development, the
senior management team from the Ajmera Mayfair Group
provided an update on their project’s progress, in addition
to announcing the completion of its land payment and the
transfer of title from Bahrain Bay to the Ajmera Mayfair
consortium, who intends to invest up to US$130m (BD50
million) in its residential development within Bahrain Bay in
the near future.
Mr. Manoj Ajmera and Mr. Dhaval Ajmera, Directors of the Ajmera
Group commented, “Despite the challenging environment that has
engulfed the real estate sector we are pleased to report that our
project is progressing as planned. This development is a significant
investment and a strategic step for both Ajmera and the Mayfair
Group and we are confident in the project’s and Bahrain Bay’s
success.”
Mr Nayan Shah, CEO, Mayfair Group, added, “This is our first
investment outside of India and is one of great importance. Bahrain
Bay is an excellent master plan development and offers significant
benefits to developers, such as land parcels complete with
infrastructure as well as a world class living and working environment,
and we are very pleased to be a part of it. We feel that Bahrain and
Bahrain Bay is the right place to be investing for long term returns.”
One of the largest real estate developers in India, Ajmera
Mayfair consortium has an annual turnover of over USD250
million and USD1 billion in assets. Currently engaged in over 30
megaprojects, the Group joined the Bahrain Bay team after seeing
the visibility of real estate investment in Bahrain and learning
about Bahrain’s Vision 2030.
The Ajmera Mayfair consortium plans to build a twin towered
residential development within Bahrain Bay. The project, which is
being designed by world renowned architects Skidmore Owings
& Merrill (SOM), will offer high-end state of the art freehold
residential apartments.
Image
From left - Abdulla Al Doseri, deputy CEO Bahrain Bay, Nayan Shah ceo Mayfair Housing, Dhaval Ajmera,
Director Ajmera Group, Manoj Ajmera Director Ajmera Group, Bob Vincent CEO Bahrain Bay.
18
Riffa Views International School selected Bahrain Bay
Development & the Arcapita Headquarters Building as
part of their 2010 Grade 7 Mathematics & Social Studies
curriculum program
Images
Above: From left - Mohammed Al Jamea, Head of Shariah Arcapita Bank, Abdulla Al Doseri, Deputy CEO Bahrain Bay,
Geoff Ward and Catherline Pantling, Teachers at the Riffa Views International School.
Below: Riffa Views International School Grade 7 students at the Bahrain Bay site.
19
Bahrain Bay Winter Bulletin - News & press
Industry news
Market View
In addition to this, there has been an increase in interest from
Western investors who are looking to park funds in commercial
real estate in emerging economies like the Middle East and South
East Asia. This recent surge of interest would undoubtedly have a
positive affect on the Kingdom’s economic growth. This belief was
supported by Ethan Penner, the President of CB Richard Ellis (CBRE)
Capital, who speaking at Cityscape Global in Dubai in October, said,
“Commercial real estate is completely and perfectly correlated oneto-one to the broader economy. Real estate professionals cannot and
do not create tenants out of thin air and only a growing economy can
generate sustainable demand for space. The macro economic climate
and the health of the financial system are the two driving forces that
dominate real estate value.”
According to the World Bank’s recent Regional Economic
Outlook entitled ‘MENA Sustaining the Recovery in Times
of Uncertainty’, the pace of the economic recovery in
the MENA region has been slightly less vigorous than
in other developing regions, with growth in the MENA
region expected to average 4 percent during 2010 which
compares with an average of 5.6 percent in advanced
economies such as Europe and the USA. Within this context
according to Bahrain’s 2010 Economic Review, the Economic
Development Board (EDB) estimates the Bahrain economy
to post growth of 4 percent with an increase to 5.5 in 2012.
2010 has seen Bahrain continue its modest economic recovery, with
much of the Government income largely dependent on oil income.
With a rising break-even price required to meet infrastructure cost
challenges, the Government has little room for manoeuvre after the
huge downward shift in prices since 2008. In this context, rising
production represents very good news for the Kingdom and its
people. Production is set to rise from the current level of 262,000
barrels per day to around 600,000 barrels per day during the next
year or two, which will undoubtedly have a huge impact on the
government’s financial resources.
Bahrain has also recently been ranked as the most economically
free Arab nation in a report published by leading international think
tank, The Fraser Institute. This year marks Bahrain’s seventh year at
the top of the index with an overall score of 8.0 out of 10. The 2010
Economic Freedom of the Arab World report reflects the prudent
steps that Bahrain has taken to build an open economy based on
ethical values as enshrined in Bahrain’s Vision 2030. Bahrain’s
constant ranking in first place reflects the success of a decade of
social and economic reforms.
Another key news item that will have a significant impact on the
future of the Bahrain economy is the proposed “Friendship Bridge”
linking the Kingdom to Qatar.
As part of the Qatari World Cup bid, Qatar has announced to FIFA’s
inspection team that a rail link between the two countries will be in
place by 2017 as part of a US$43 billion network which will include
a metro network in Doha, and international GCC rail link and a rail
freight network. The link would connect Qatar through Bahrain to
Saudi Arabia and will have huge implications for Bahrain in that it
places the Kingdom between the two powerhouse economies of
the region. The ability to set up businesses and live in a relatively
low cost and moderate environment while serving both Saudi
Arabia and Qatar will likely provide a significant boost for non-oil
economic growth in Bahrain.
So as the global markets begin to recover, albeit slower than many
commentators predicted, Bahrain also continues to make the
necessary steps to diversify the economy, attract Foreign Direct
Investment and guide the country through these more challenging
times and into recovery.
Information for this piece was sourced from:
• http://economictimes.indiatimes.com
• http://www.ameinfo.com
• http://www.bi-me.com
“The ability to set up businesses and live in a relatively low cost and
moderate environment while serving both Saudi Arabia and Qatar will
likely provide a significant boost for non-oil economic growth in Bahrain. “
20
Community matters
BAHRAIN BAY GOES ORGANIC
Come February, Bahrain Bay will launch a new green initiative - the
Grow Your Own sustainable Vegetable Garden challenge. The
initiative, which is geared towards school children between the
ages of 5 and 8, aims to promote the benefits of environmental
sustainability though a fun and educational challenge. The initiative
will be launched at the 2011 Bahrain International Garden Show
(BIGS).
Safety
There are many ways in which food may become contaminated,
whether at the farm, the manufacturer or the transportation
center. When you grow your own vegetables, you can control the
conditions and stop worrying about the safety of your food.
Environmental Impact
By growing your own vegetables, you are also helping to preserve
the environment. Organically grown vegetables reduce the amount
of chemicals introduced into the Earth by way of pesticides and
herbicides. Pollution from fossil fuels will also be reduced by
decreasing the amount of fresh, offseason vegetables being shipped
all over the world.
The challenge which will be open to schools from across Bahrain
will start along with the new school year in September 2011. All
participants will be provided with a “Challenge Pack” which will
include all the tools needed to build a sustainable organic garden.
They will then be given 4 months to grow their individual gardens,
documenting progress and challenges faced along the way. At the
end of the challenge period, Bahrain Bay’s judging panel will visit the
gardens of participating schools in search of a winner. The winning
garden and school will be announced at BIGS 2012.
Good for You
Adding fresh vegetables to your diet is a great way to boost your
meal’s vitamin value, but that isn’t the only health benefit you can
obtain. Gardening is also a wonderful form of exercise.
When asked about the new initiative, Bob Vincent, CEO of Bahrain
Bay, said, “Many kids in Bahrain and across the world don’t know
the magic of seeing a seed flourish into an item you can eat, or even
know the names of common vegetables. We want to help cultivate
an appetite for locally grown food, reward the top performers and
hopefully encourage children to want to eat better and take home
the lessons they have learnt.”
Extra Appeal
Adding a vegetable patch to your home’s landscape gives your
garden extra appeal. Interesting to look at and often just as attractive
as plants or flowers, they will blend in beautifully with the rest of your
garden.
Good Clean Fun
It might not be the cleanest hobby, but gardening and watching your
fresh vegetables grow is well worth a little bit of dirt. Get out there
and start planning your own beautiful and aromatic herb garden. It
really is fun, and the benefits can’t be beat.
THE BENEFITS OF GROWING YOUR OWN GARDEN
Save Money
Growing your own vegetables will trim a significant amount of
money from your grocery budget. Seeds are inexpensive and can
be dried and used year after year. By learning to preserve, can or
freeze your yearly harvest, you can enjoy fresh produce all year long
without spending a fortune at the grocery store.
Bahrain International Garden Show ( www.bigs.com.bh)
February 25 - 27, 2011
Bahrain International Convention and Exhibition centre
A Family Affair
A fun and educational pastime for the whole family! By involving
children in vegetable gardening, they are more likely to want to
try out what they have grown. Gardening is also a good way to
get exercise, fresh air and relax, the perfect way to spend a Friday
afternoon.
Fresh is Best
There is nothing like the taste of vegetables freshly picked from your
very own garden. Vegetables from the grocery store have endured
lengthy and stressful shipping conditions, only to arrive at the store
and sit for an undetermined period of time.
21
Bahrain Bay Winter Bulletin - The environment
Bahrain &
its environment
Global Water Shortages
One technological solution which some believe would provide
ample supplies of additional water resources is desalination; a
process whereby excess salt and other minerals are removed from
saline water (salt water) converting it to fresh water. Currently,
there are approximately 11,000 desalination plants in over 100
nations in the world, 60 percent of which are in the Middle East,
and this, amongst others, is the solution that Bahrain is looking to
adopt to help combat the Kingdom’s water shortage problem.
Keen to act before the situation worsens, Bahrain is already in talks
with Egypt about a cooperation agreement that will enable both
countries to develop water desalination projects. In addition to
this, Bahrain is also investigating the potential rationing of water
consumption and a means of benefiting from rain water storage as
well as holding courses on water management.
In most developing and advanced countries, water is
readily available, and because of this, it is often taken
for granted. But the Intergovernmental Panel on Climate
Change (IPCC) predicts that by the year 2050 around
60 percent of the world’s population will experience
severe water shortages, with 33 percent thought to be
already under water stress. The World Bank reports that
80 countries are now facing water shortages that are
threatening to health and economies while 40 percent of
the world - more than 2 billion people - have no access to
clean water or sanitation at all.
One of the prime causes of global water concern is the everincreasing world population. As populations grow, industrial,
agricultural and individual water demands escalate. According to
the World Bank, world-wide demand for water is doubling every
21 years, even more in some regions and the water supply simply
cannot keep up with the pace of demand.
However population growth alone is not solely to blame for the
increase in water demand. Since 1900, there has been a six-fold
increase in water use for only a two-fold increase in population
size. This reflects greater water usage associated with rising
standards of living. It also reflects potentially unsustainable levels
of irrigated agriculture.
Ultimately, however, an awareness of the global water crisis
should serve to put our own water concerns in perspective and we
should all be doing our part, no matter how big or small.
Bahrain Bay takes its environment responsibility very seriously.
From the outset the BBD team has taken steps to ensure the
development is sustainable and environmentally friendly. In 2007
Bahrain Bay teamed up with Dalkia, the leading European provider
of energy services, contracting the company to implement
the projects District Cooling network. Also conscious of their
environmental responsibility, Dalkia has employed a system
whereby sea water is extracted from the ocean and utilised in the
plants cooling towers rather than fresh water. BBD and Dalkia are
also providing a state-of-the-art sewerage treatment plant that will
treat all effluent from Bahrain Bay to a high quality for re-use as
irrigation water throughout Bahrain Bay. By implementing our own
district cooling system and recycled water for irrigation, Bahrain
Bay is not only self sufficient, but is also helping to conserve the
Islands water reserves.
The socio-economic implications of a severe global water shortage
are huge and are closer than ever to becoming a reality. Water
shortage could prove to be even more devastating to the world
than the shortage of oil, and conflicts over resources could
even lead to wars being fought. In order to try and control the
underlying effects on the environment and the world at large,
strategies to confront the growing global water problem are in
place. Actions include slowing population growth, reducing
pollution, better management of present supply and demand and,
of course, water conservation.
Image
Bahrain bay district cooling plant.
“Currently, there are approximately 11,000 desalination plants in over
100 nations in the world, 60 percent of which are in the Middle East, and
this, amongst others, is the solution that Bahrain is looking to adopt to
help combat the Kingdom’s water shortage problem. “
22
Please recycle.
Cover is 100% recycled.
Inners are from well managed forests.
Bahrain Bay Bulletin
Winter 2010
Bahrain Bay Development B.S.C.(c)
PO Box 5092
Manama, Kingdom of Bahrain
Tel 973 17 50 5555
Fax 973 17 50 5550
[email protected]
www.bahrainbay.com