ASGC chief, Bishoy Azmy, highlights the importance of selecting the right projects for success

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1 SEPTEMBER 2017 ASGC chief, Bishoy Azmy, highlights the importance of selecting the right projects for success THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS CBNME takes a tour of the $4bn Sobha Hartland project, being developed by Sobha Group Deadlines for nominations extended for Construction Innovation Awards 2017 A monthly round-up of the global and regional construction equipment market We design.. we construct.. we build.. Classified Class 1 ISO 9001 Kingdom of Saudi Arabia, PO Box Riyadh Tel: Fax:

2 On the web Keep up to date with all the latest news, features and much more on our website. // contents September 2017 // Issue # Ed Note News Comment Portacool talks about negative effects of heat on productivity Comment Bentley Systems Andy Smith discusses BIM to redefine modern structures Cover Story The Recipe for success is right selection, says ASGC s Bishoy Azmy Site Visit A tour of the $4bn Sobha Hartland project by Sobha Group construction business news me // September 2017 // 3

3 // Cover Story Lead Born to Bishoy Azmy, chief executive officer (CEO) of ASGC, talks about the importance of selecting the right clients and projects for the company s success The man behind the home-grown contracting company, Al Shafar General Contracting (ASGC), Bishoy Azmy, believes in two factors selecting the right clients and provide quality service to them. Present in the market for 30 years, the contractor has worked on numerous prestigious projects across various sectors including residential, commercial, retail, industrial, hospitality, and healthcare. The past two years have been quite fruitful for the company, according to Azmy. In 2016, we have witnessed double-digit growth as compared to We did not have any issues with our profitability as well; it was a positive year in all measures. The kind of projects we have delivered and the ones we have been working on are also an upgrade from what we have been doing previously. It s a positive step in terms of maintaining revenue growth and the profit margins. One of the projects under its kitty is the Mohammed bin Rashid Library, located in Dubai Culture Village, and expected to be complete in The main building comprises basement, a ground floor, and seven storeys, including a central warehouse for books and a preservation lab. The project will also include specialised libraries such the information centre, an Arabic library, a popular library, a children's library, a family library, an international library, and a media library. In addition to it, ASGC is also working on the much-awaited expansion of the Dubai Mall to cater for its 100mn annual visitors. The construction of the expansion will be approximately 275,308 sqm and will extend the existing Fashion Avenue, enhancing the city s high-end retail offerings and further catering to the international demographics of Dubai s tourists. 28 // construction business news me // September 2017

4 We do not depend on our contract conditions; we mostly focus on the positive relations with our clients. Bishoy Azmy, ASGC construction business news me // September 2017 // 29

5 // Cover Story Dubai International Airport Concourse - D Along with these, some of its other projects include the refurbishment of Dubai International Terminal 1, Waldorf Astoria on Palm Jumeirah, Damac s Oceanscape on Reem Island in Abu Dhabi, and the Business Central Towers on Sheikh Zayed Road to name a few. Azmy says: We are very selective about who we work with; we have a huge checklist of criteria and we go through each one of them very carefully before we accept any project. We decline more projects than the ones we accept. I think they are a big part of our positive financial position. Once the project starts, we try to remain focussed on the requirements of the clients to ensure that they are satisfied. We do not depend on our contract conditions; we mostly focus on the positive relations with our clients. It comes from not only being nice with them but from trying to see what makes the client happy and try to accommodate as much as we can. Hence, we have never faced any cashflow issues with our clients since Challenges on the way Despite the sombre state of the current regional economy, Azmy says that the company s last two years have seen positive upwards growth. Of course, we are aware of the tremors in the market in terms of the financial challenges. We know that the price of oil is low and we can see that affecting the government spending and the projects. But we have been lucky that the few projects that we have been working on continues to be of utmost importance to our clients. Hence, they have been prioritised over others, and as a result, we have insulated from the financial challenges. We do worry about the general environment but so far we have had not seen any adverse effects. Other than the UAE, which is the company s predominant market, ASGC has a presence in Egypt, Saudi Arabia, and Kuwait. Azmy believes that there are considerable risks associated with being present in the UAE only, hence they are now looking towards Africa as well. We recognise that we are only present in the UAE and there are risks associated with that. We first looked at the GCC for expansion but we believe this is not the ideal time for penetration in the market. Hence we are looking in Africa for our need to grow. All the efforts put in to make a project successful depends on the team 30 // construction business news me // September 2017

6 // Cover Story Etihad Museum and the client, Azmy mentions. He says: The client decisions come at the beginning of the job mostly. The clients we work with are mostly developers; they know what they are doing. We don t work with clients who are not aware of their interests. With our clients, important decisions are mostly taken early at the job and no major changes are incorporated at the end. From the beginning itself, we select the right clients and projects, so that the job doesn t get delayed. Azmy also points out that the UAE-based contractor believes in working with local suppliers because Dubai has a pool of talented and successful enterprises. Future outlook Azmy doesn t claim that the company does amazing things for its workers but we are doing a lot. He adds: The first and the most important thing we do is that the labourers are paid properly. We pay salaries that are either in line with the market or slightly better. We look at how we can be efficient and continue to pay our workforce properly. Secondly, our camps are in very good condition; they are clean and we try to maintain as much as humane conditions possible in the accommodation. This is to achieve better productivity. We regularly organise cricket and rugby tournaments for our workers. Recently we had a collaboration with the Dubai Municipality to Clean up Al Quoz campaign. For the remainder of 2017, the contractor will be focussing on winning a couple of projects in the UAE and also on digital transformation of the company processes. Azmy says: We have appointed a new chief information officer (CIO) to focus on changing the processes. Everything is online and on the cloud. We are currently looking forward to challenging ourselves; reworking on all our processes and trying to become more efficient. It was something we have thought of doing gradually. The company doesn t plan to become a regional or a global player anytime soon. Azmy concludes: We are very thankful for the positive growth that we have witnessed in the UAE. We believe that the country will remain to be the most vibrant market for construction and real estate, and for us as well in the future. 32 // construction business news me // September 2017

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