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European and local companies make successful contract bids

Dubai might have wooed the Carlyle Group and Halliburton into crossing the Atlantic, but it was local businesses that were awarded top contracts during the emirate’s latest business coup.

While foreign investors lined up in the hope of securing one of the region’s most prestigious construction projects, it was the Kuwait-based M.A. Kharafi & Sons that finally sealed the deal to build the half a billion US dollar Dubai Logistics City Headquarters and Office Park.

But although it might be a local concern, Kharafi & Sons is not in any sense, parochial. In fact, the privately-owned group which will complete the coveted project by 2009, has interests across 33 countries and is worth an impressive US$ 3.3 billion.

The second large contract to be awarded to a ‘home team’ was for the construction of two Central Utility Complexes (CUC) which will be used to create the district cooling requirements for Dubai World Central’s Phase one facilities, worth US$ 106 million.

The National Company – a Kuwaiti firm, will build the CUC’s to serve the airport area and the DLC HQ and Office Park.

Michael Proffitt, CEO, DLC said: “The Office Park will respond to administrative space needs for companies wanting to establish a business within the DLC Free Zone but without the requirement of warehouses or similar facilities.”

Part of the free zone, but situated outside the customs bonded area, the Office Park will combine free zone operational advantages with unrestricted public access. The Park will provide leased office buildings and also host two business hotels, serviced apartments, banks, business centres, coffee shops, snacks, prayer rooms and shops.

Covered parking spaces will be provided for tenants at underground level with easy access to all office blocks. Dedicated visitor parking spaces will be provided within a separate parking structure.
Phase one of the Office Park will include 10 six-storey office buildings each with a total built up area of approximately 255,000m2, in addition to 110,000m2 of underground parking and 60,000m2 of an independent parking structure. This will provide a net office space of around 198,000m2.

Eventually, a total of 18 office buildings will be included in Office Park which will be linked to the Emirates Road via a dedicated road network.

“For those who need modular office space, sections of 100 square metres can be combined to create larger integrated offices or merged into entire floors. This allows companies to set up their local operations, administrative offices, showrooms, customer front ends or even entire regional or head offices,” continued Proffitt.

A local/European joint venture called Arabtec/Max Bogl JV has bagged the US$ 142 million passenger terminal and the cargo terminal building structural package, and the air traffic control tower.
Meanwhile, German-based logistics giants, Westfalia Logistics Solutions Austria GmbH, will be setting up a regional branch in DLC.

Harald Suchentrunk, CEO of Westfalia ME, and Michael Proffitt signed the landmark deal which will see Westfalia Middle East as one of the first tenants to move into the DLC Office Park.

“With the opening of this local office, Westfalia ME joins the growing number of large multinational logistics companies establishing themselves in our new fully integrated, multi-modal logistics free zone,” said Proffitt.

“There is a growing demand for warehousing facilities in the region; and as a global player in logistics technologies and solutions, Westfalia will play an important role in meeting this demand from local, national and international clientele.”

Westfalia is currently responsible for more than 600 operational warehousing and automated car parking installations throughout Europe, North America and South America. The opening of Westfalia ME at DLC illustrates the company’s ambitious regional expansion plans, with a focus on the automated parking solutions market.

Dubai World Central
Dubai Duty Free
Dubai World Central-Logistics City
Dubai International Fiancial Centre
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Project Director
Haitham Chreif
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