ME Consultant March 2019

For the construction specialist

What’s Next Tarek Shuaib shares his vision for Pace, following the company’s 50th anniversary ON TOPIC

JLL predicts how AUH markets will fare in 2019

IN PRACTICE

Jonathan Keith on security and giving clients value

ON SITE

Women in Construction PFP: Gabriella De La Torre

ISSUE 057

March 2019 Publication licensed by Dubai Production City A product of Big Project Middle East

transformation by design Pace is a leading multidisciplinary consultancy firm based in the Middle East, providing architecture, engineering and planning services to a wide range of public and private sector clients.

Whether it’s the concept for a new city, the detailed design of a rail network, a skyscraper, the design of a rail network, the modelling of a flood defence system or the improvement of a management process, we plan, design, manage and construct solutions.

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CONTENTS

On topic IndustRy VIEWs fROM ACROss tHE MIddLE EAst

07 AnALysIs

06

07

10

13

16

18

24

30

34

38

JLL on the deliveries and performance of Abu Dhabi’s residential, office, retail and hospitality sectors 10 nEWs

RTA signs MoU with Skyway for Sky Pod network; MoCCAE issues new resolution on site waste; Dubai Holding launches Burj Jumeirah and Downtown Jumeirah; GCB to build polymer facility in Kizad

In practice AnALysIs, InsIgHts And IntERVIEWs

16 OpInIOn

Lynnette Abad assesses how Dubai could benefit from the creation of an affordable housing strategy geared at getting more people into their own homes 18 IntERVIEW

Jason Saundalkar talks to Pace’s Tarek Shuaib about his vision for Pace in 2019, nurturing new architectural talent, opportunities and trends in the post-oil world 24 IntERVIEW

K Tech Consulting’s Jonathan Keith on his firm’s approach to building security in the region and the importance of transparency

On site CAsE studIEs, OpInIOns And snApsHOts

34 pROfILE

We talk to CBRE’s Gabriella De La Torre about her influences, career and gender diversity in the construction industry 38 OpInIOn

The construction industry is still playing catch-up in the adoption of technology, says Awad Capital’s Marc Nassim 40 tHE bACk pAgE

Mina Al-Jubori reflects on her career, winning the WIC: Professional of the Year award and the importance of diverse talent 2 MARCH 2019

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Editorial

Get Involved!

I’m convinced I’ve somehow travelled forward in time, because I can barely believe that we’re already in March – I’m still filling in 2018 on security log-in books! But since we are in March, I’ll use this opportunity to bring you up to date with the events Middle East Consultant and Big Project Middle East have planned for H1.

In the last week of March, we’ll be hitting the greens for our annual Contractors (March 26) and Consultants (March 28) Golf Days. This year, we’re moving to a new venue, the Trump International Golf Course, as we’ve been told the course is excellent and will bring out people’s competitive spirit. The final golf day, which pits the best contractors against the best consultants, takes place in H2 on December 12, which I think is a great way to close the year.

Also planned for H1 is the second edition of the Value Engineering (VE) Summit (April 9) and less than a month later, the second Women in Construction (WIC) event (May 1). While the format of the VE Summit won’t change compared to the first edition, the WIC event is morphing into a full-fledged summit with panel discussions and presentations. It’s only logical (#Spock), given that gender diversity is a massive issue in the construction industry and we’ve only begun to bring some of the issues to light, with last year’s dedicated issue (April), our networking evening and the personal stories that we share each month.

With the WIC Summit, the topics of discussion will fall under office environments, work sites and educational institutions. The latter is perhaps the most important element, as there simply won’t be enough fresh graduates for consultants and contractors to hire, if institutions don’t take steps to encourage young people to become the construction professionals of tomorrow. It’s telling that almost all of the women I’ve profiled to date say that their inspiration to get into the industry came from family or even toys, rather than counselling from school faculty.

Personally, I can’t wait to see what May 1 will bring and I encourage you all to get in touch, and get involved.

EDITOR JASoN SAuNdALkAR jason.s@cpitrademedia.com +971 4 375 5475 SUB EDITOR AELREd doYLE aelred.doyle@cpitrademedia.com

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ON TOPIC

MOST POPULAR

feATURed

ReAdeRS’ COMMeNTS

CONSULTANT

ReCONNeCTING dUbAI

Linesight collaborates on luxury project on The Palm

This article (Reconnecting Dubai) is a reminder of the pace of change within the industry and the region.

Many of our cities here, and Dubai in particular, are barely a few decades old and have

CONSULTANT

grown exponentially;

Spain reveals pavilion design for Expo 2020 Dubai

and because of this we are having to think on our feet when it comes to integrating

feature: Site Visit –The Waterfront, Oman

modern city design.

The infrastructure we thought would be futureproof even a decade ago is already in need of a

CONSULTANT

re-think when it comes

IMKAN revamping Abu Dhabi park as multi-use space

to accommodating the need for high-density developments and the mobility solutions for citizens that live in them. The success of real estate close to the Metro in Dubai proves that the most successful

CONSTRUCTION

developments need

India’s Larsen & Toubro wins UAE substation contract

to be connected to the city beyond the road network. A single, sustainable Dubai (and all our cities) that is greater than the sum of developments must be one of our highest priorities.

MACHINeRY

JCB to showcase generators at Middle East Electricity

6 MARCH 2019

Interview: Rahail Aslam, group CeO, Select Group

Name withheld by request

ON TOPIC

ANALYSIS

Abu Dhabi Sector Focus

JLL highlights the deliveries and performance of Abu Dhabi’s residential, office, retail and hospitality sectors in 2018, and discusses what 2019 may hold

A

round 5,000 new residential units were completed in Abu Dhabi in 2018. Q4 saw the delivery of approximately 1,600 units, bringing the total residential stock to approximately 257,000 units. Notable deliveries included Shams’ Al Qurm View and Sea Face Towers.

Approximately 10,000 units are currently scheduled to enter the market by the end of 2019. The majority of expected supply is focused on Al Reem and Saadiyat Island, offering mid-high-quality apartments.

Over the past three years, an average of 35% of all expected supply was actually delivered – as opposed to 2018, when 65% of the supply pipeline materialised. If this rate persists over the next few years, the market will remain oversupplied, which could dampen any potential improvement in prices and rental levels.

Residential Performance

The residential market continued to soften, with further declines in both rents and sale prices throughout 2018. Apartment rents declined by 5% q-o-q and 11% y-o-y to approximately $32,750 per annum. Sales prices for prime villas and apartments registered annual declines of around 13% and 12% respectively, to approximately $2,850 per sqm for both apartments and villas.

As more supply is expected to materialise in the coming year, residential vacancies are anticipated to increase, causing further rental declines. The softening market conditions have forced vendors to decrease asking prices to attract the reduced level of demand. This has resulted in both homebuyers and tenants having more bargaining power when it comes to negotiating terms and conditions, rental rates and sales prices.

MARCH 2019 7

ON TOPIC

Abu Dhabi office supply, million sqm of GLA Stock Annual supply

Abu Dhabi office vacancy rates

4.0

22%

24%

Q4 2017

Q4 2018

3.0

Abu Dhabi grade A office rents, USD/sqm/annum

2.0

1.0

2015

2016

2017

2018

2019

Q4 2017

Q4 2018

2020

Office Supply

Developers have reacted to the subdued demand for office space by delaying projects, with only 170,000sqm of office space completing in the Abu Dhabi market in 2018. No further completions were recorded in Q4, with total office stock remaining stable at approximately 3.7m sqm GLA. While there is currently around 133,000sqm of office GLA scheduled to enter the market in 2019, including the delivery of Parsons HQ in Zayed City, we expect some delays as developers remain cautious about the prospects for leasing and making sales.

The lower level of proposed supply in 2018 has resulted in an increased level of materialisation, with almost 80% of the proposed projects delivered, in contrast to the average materialisation rate of less than 40% in Abu Dhabi over the past five years.

stock. Future demand levels could be stimulated in the longer term by the easing of regulations and increased spending because of the recently announced economic stimulus package.

Retail Supply

There were no significant additions to stock recorded throughout the year, with total retail stock therefore remaining stable at approximately 2.7m sqm GLA. The retail market has witnessed the least delivery of all sectors over the past three years, with an average materialisation rate of just 23%. With market conditions remaining soft and developers remaining extremely cautious, only 17% of the retail space proposed for delivery in 2018 actually materialised.

Despite the declining market conditions, approximately 214,000sqm of retail GLA is currently scheduled to be delivered Abu Dhabi retail supply, thousand sqm of GLA Stock Annual supply

Office Performance

Office rents in Abu Dhabi continued to decline throughout 2018 in the face of subdued demand. The past quarter witnessed declining headline rentals for both grade A and grade B office space, with rates for shell & core office averaging $450 per sqm for grade A and $240 per sqm for grade B. Though most grade A offices maintain adequate levels of occupancy, vacancy levels have increased for grade B offices in the capital, with overall vacancy rates increasing by 2% to reach 24% in Q4 2018. As landlords seek to attract new tenants and retain old ones, they are offering rent-free periods in addition to reduced rental rates, even at lease renewals. The majority of demand remains for small fitted space not exceeding 500sqm, with tenants even considering second- or third-hand fit-out office space as they continue to minimise expenditure.

We anticipate the office market will soften further in 2019, despite limited further declines in rents due to the lack of addition of grade A 8 MARCH 2019

1,680

3,000

2,500

2,000

1,500

1,000

500

2014

2015

2016

2017

2018

2019

2020

Source: JLL, ADTCA

2014

1,760

ON TOPIC

Abu Dhabi hotel supply, thousands of keys Stock Annual supply

rent abatement periods and permanent reductions have been offered to tenants to maintain occupancy levels.

Looking ahead, rents and occupancy levels in underperforming malls are expected to remain under pressure. Landlords are expected to offer more favourable leasing terms to retain existing tenants, in addition to adopting innovative leasing and marketing strategies to maximise engagement with shoppers.

25

20

15

Hotel Supply

10

5

2014

2015

2016

2017

2018

2019

2020

by the end of 2019. A large share of this supply is attributed to Al Maryah Central Mall, a super-regional mall coming up on Al Maryah Island. The remaining projects in the pipeline are mostly retail shops in mixed-use buildings as well as small neighbourhood and community malls. Beyond 2019, the most notable projects expected to be delivered are the proposed extension to Marina Mall and Reem Mall.

Retail Performance

Despite no significant new supply, tenants have an increasingly strong negotiating position due to the increased level of vacant space as retailers have closed branches in Abu Dhabi. While some tenants have been able to maintain an appropriate operating cost ratio, many have seen costs rise significantly as a percentage of sales. As a result,

Q4 saw the delivery of approximately 900 hotel keys with the completion of The Edition Hotel in Al Bateen and Rixos Hotel and Jumeirah Hotel on Saadiyat Island, among others. Total hospitality stock in Abu Dhabi now stands at 23,700 keys.

With a 90% materialisation rate, 2018 saw the delivery of approximately 1,900 keys, higher than the average annual additions over the previous three years. The most notable hotel scheduled for delivery in 2019 is The Fairmont Hotel in the Marina Peninsula, which will bring approximately 600 keys to the hospitality market.

Hotel Performance

With events such as the Formula One Grand Prix and the launch of the Louvre’s latest exhibition, ‘Japanese Connections: The Birth of Modern Décor’, the number of hotel guests in Abu Dhabi increased by 4.4% (year to October 2018), according to the Abu Dhabi Department of Culture and Tourism.

Occupancy levels remained stable at 71% in Q4, recording no change compared to the same period last year. ADRs declined 5% to $112. As a result, RevPAR declined by 5% (year to November) to $80. This decline can be attributed to the downward pressure caused by supply additions during 2018.

Abu Dhabi residential supply, thousand units Stock Annual supply

Abu Dhabi apartment rent and sale prices

-11%

-12%

Rent Y-o-Y

Sales Y-o-Y

300

250

200

Abu Dhabi villa rent and sale prices

-16%

-13%

Rent Y-o-Y

Sales Y-o-Y

150

100

50

2014

2015

2016

2017

2018

2019

2020

MARCH 2019 9

ON TOPIC

RTA signs MoU with Skyway for Sky Pod network Dubai’s Roads and Transport Authority (RTA) has inked an MoU with Skyway Greentech Company for the development of a Sky Pod network. The deal is part of the RTA’s effort to deliver futuristic solutions to beat congestion.

In a statement, the RTA said the technology is characterised by speed and security as well as saving of resources. The deal is said to contribute to the RTA’s vision and strategy of ensuring safe and smooth transport for all.

The MoU is part of the RTA’s efforts to enhance the integration of public transit means, according to Abdul Mohsen Ibrahim Younes, CEO of Rail Agency, after signing the deal with Pavel Skoypeda, GM of Skyway Greentech Company. The deal also aligns with Dubai’s Autonomous Transportation Strategy, which aims to convert 25% of total journeys in Dubai into autonomous journeys on various transit means by 2030.

“We have signed this deal in the context of RTA’s efforts to envision the future and deliver top-notch technology and services at world-class standards. It will pave the way for innovative mass transport and accordingly raise the ridership of public transit means, which in turn will ease the traffic congestion and enrich the lifestyle in the emirate,” remarked Younes.

10 MARCH 2019

Eagle Hills Diyar begins work on Marassi Galleria Eagle Hills Diyar has broken ground on Marassi Galleria, its 200,000sqm shopping and entertainment destination located within the Marassi Al Bahrain mega project. The mall will offer a range of entertainment options and is expected to bring several new brands to the country.

The ground-breaking ceremony took place in the presence of Shaikh Salman bin Abdulla Al Khalifa, head of the Survey and Land Registration Bureau; Mohamed Alabbar, chairman of Eagle Hills; Abdulhakeem Al Khayyat, vice chairman of Eagle Hills Diyar; and Dr Maher Al Shaer, MD of Eagle Hills Diyar.

“We are proud to be here today to mark the commencement of the works on the highly anticipated Marassi Galleria, the 200,000sqm gateway to the region’s leading shopping and entertainment experience, a key anchor within the Marassi Al Bahrain master plan,” said Alabbar.

Marassi Galleria will host five interconnected lifestyle urban districts, each with a theme tailored to suit a variety of tastes: High Street, Family Plaza, Waterfront Dining Promenade, Animated Rooftop and Luxury Courtyard. The project will also house a multi-screen cinema, an ice rink and an aquarium.

Dr Al Shaer added, “As the first waterfront mall, Marassi Galleria is set to become one of the leading tourism, hospitality and shopping destinations in Bahrain. We are confident that upon its completion, it will fulfil an untapped demand for unique leisure offerings, as it will be a world-class shopping and entertainment destination located in the centre of Marassi Al Bahrain.”

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ON TOPIC

MoCCAE issues new resolution on site waste

Tabreed to build and operate first district cooling plant in India National Central Cooling Company (Tabreed) has signed a deal with the Andhra Pradesh Capital Region Development Authority (APCRDA) to build, own, operate and transfer its first district cooling system in India.

The 30-year concession deal will see a 20,000 refrigeration tonnes (RTs) plant take shape in the new capital, Amaravati.

“As our first district cooling project in India, this signals a significant step for Tabreed to penetrate one of the world’s biggest and fastest growing markets,” said Tabreed chairman Khaled Abdulla Al Qubaisi.

The district cooling system is said to be part of Andhra Pradesh’s vision for Amaravati to create jobs and homes along with worldclass infrastructure, a green city and efficient resource management.

In support of plans for the city to be one of the most sustainable cities in the world, Tabreed’s system will meet cooling requirements for the State’s Assembly, High Court, Secretariat and other government buildings currently under construction, for which cooling services will commence from early 2021, the statement said.

12 MARCH 2019

The UAE’s Ministry of Climate Change and Environment (MoCCAE) has issued a resolution addressing the use of recycled materials from construction sites, as well as demolition waste for infrastructure projects including the construction of roads.

The MoCCAE worked with the Ministry of Infrastructure Development (MoID) and municipal authorities to produce the resolution and says it will support the transition to a circular economy. The ministry expects the resolution to increase the efficiency of waste management and reduce pressure on landfills, and to improve human health and conserve natural resources through reduced reliance on virgin aggregates.

According to a report by WAM, the resolution outlines environmental prerequisites for recycling cement, concrete, steel, bricks, gravel, sand, asphalt, timber and gypsum waste into valuable materials. The document mandates relevant local departments to ensure that contractors collect and sort waste generated at construction and demolition sites.

Additionally, the resolution stipulates that the aggregate must undergo quality testing in laboratories to verify compliance with UAE standards, as well as LEED and BREEAM certification requirements. As per the resolution, government and private contractors can meet up to 40% of their material requirements from recycled aggregates.

ON TOPIC

DH launches Burj Jumeirah and Downtown Jumeirah Dubai Holding has announced a new 550m-tall tower in Al Sufouh. Located close to Sheikh Zayed Road and the Burj Al Arab Hotel, the new Burj Jumeirah will feature homes, hotel units and office space. The tower will also serve as the centrepiece for Downtown Jumeirah, which Dubai Holding describes as a pedestrian-friendly, mixed-use urban destination.

The project was inaugurated by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in the presence of Sheikh Mansour bin Mohammed bin Rashid Al Maktoum, Chairman of the Dubai International Marine Club, and Abdulla Al Habbai, Chairman of Dubai Holding.

Sheikh Mohammed reviewed plans for the tower and surrounding area and said that both are a “continuation of Dubai’s vision for becoming a city of the future, distinguished by its intelligent design and cohesive infrastructure and network”.

PARTITIONS

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MARCH 2019 13

ON TOPIC

EWEC requests EOIs for 2,000MW power project Emirates Water and Electricity Company (EWEC) has requested expressions of interest (EOIs) for the development, finance, operation and construction of a new power plant in Fujairah. The 2,000MW Fujairah combinedcycle gas turbine (CCGT) project is a major independent power project (IPP) and billed as a key part of meeting the electricity needs of Abu Dhabi and the northern emirates.

The CCGT power plant will be developed in the Fujairah power and water complex and will be implemented on the Abu Dhabi IWPP Programme. It will be structured as a standalone IPP. The EOI request also stipulated maintenance and ownership of the IPP. The project will support an ongoing cost reduction initiative in the sector through the procurement of competitive and efficient CCGT technology, EWEC said in a statement.

As per the contract, the developer or the consortium will own up to 40% of the SPV, with the remaining equity held directly or indirectly by the Emirati utility. The SPV will also enter into a long-term PPA with EWEC, the single buyer of electricity and water capacity within Abu Dhabi.

14 MARCH 2019

GCB to build new polymer facility in Kizad Gulf Compound Blending (GCB) and Arab Development Establishment have announced plans to build a new polymer facility within the Khalifa Industrial Zone Abu Dhabi (Kizad). GCB – a JV between Met T&S, M. Cecchi & Co and Arab Development Establishment – is part of the new Kizad Polymers Park and will manufacture and supply thermoplastic materials using waste and non-prime materials in the UAE. The facility will produce compound products customised for industries and will link raw material producers and plastic material manufacturers. The company intends to produce 500KMT of products per year in the medium to long term. The facility will contribute to Kizad’s growing polymers hub with its know-how in reprocessed and reconditioned products.

“Global industrial enterprises continue to recognise the strategic location, long-term competitive commercial advantages and supply chain efficiencies provided by Kizad. I’m confident that the holistic port-based industrial zone offering provided by the Kizad and Khalifa Port ecosystem will position GCB to support Abu Dhabi’s Economic Vision 2030 and industrial diversification across the UAE. With some of the world’s largest polymer resin manufacturers based in the UAE, Abu Dhabi is increasingly becoming a major global hub for the sector,” said Kizad CEO Samir Chaturvedi.

The JV also pointed out that as a second step of development, it will expand its activities to plastic recycling as additional feedstock for its compound products, contributing to a new circular economy approach in the UAE.

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IN PRACTICE

OPINION 01 Lynnette Abad is director of Data & Research at Property Finder Group.

How to Make Housing Attainable: A Look at Fannie Mae Lynnette Abad assesses how Dubai could benefit from the creation of an affordable housing strategy geared at getting more people into their own homes

01

W

ith the UAE government already revisiting its rules regarding the residency visa structure, it is appropriate to consider how home ownership factors into these revisions. The most recent figures from the National Budget estimate that the real estate and construction sectors will grow annually by 4.7% and 5.4% respectively.

Although there is steady growth in key sectors, there are a few persistent issues when it comes to home ownership for residents of Dubai.

The first is the reality that a home purchase is one of the largest investments people make in their lifetime. A home’s intended use is longterm, but with residency linked to employment for the majority of residents in the UAE, 16 MARCH 2019

people either resort to being forever-renters, wasting a ton of cash that could otherwise be invested in their own home, or purchase with the foresight of only seven to 10 years. In the US, common terms for repaying a mortgage fall between 20 and 30 years.

The second issue is the current lending system, which prevents the majority of Dubai’s residents from being eligible to apply for a traditional mortgage, as they don’t meet the minimum monthly salary requirement of $4,000. According to Oxford Economics, 22% of Dubai’s residents make $2,580-5,800 a month, and 5% earn $832-2,500. Painting a less optimistic picture is a 2017 labour force survey from the Dubai Statistics Centre (DSC), which categorises 40% of people surveyed as earning $5,440 per month or less, with 30% of these earning $2,700 or less.

Despite these two data sources creating an unresolved gap, we have to admit that there is still a sizeable portion of the population that the current housing market is under-addressing. Referring to DSC’s 2018 Consumer Price Index, 2018 prices rose by 11% overall compared to 2014, with double-digit increases in housing, education

and transportation. Furthermore, wages for a large chunk of society are stagnating and even falling, with GDP per capita decreasing rather than increasing, as reported by Standard & Poor in September.

Combined, these factors make it difficult for people to make the required down payment on a home. These are employed individuals who could be homeowners if only there was a more inclusive financial framework that could allow the lender’s risk to be manageable.

The US Approach to Affordable Housing

When we look to where affordable housing strategies were successfully implemented, the creation of Fannie Mae and Freddie Mac are good examples. When Fannie Mae was established, the housing sector comprised 10% of the US economy. As of 2017, in the UAE, the housing sector comprised 13.5% of the nation’s economic activities, not accounting for financial activities.

In 1938, President Franklin D. Roosevelt and Congress created the Federal National Mortgage Association, more commonly known as Fannie Mae. Due to the number of borrowers who defaulted on their mortgages

IN PRACTICE

after the Great Depression in 1929, the credit sector was unable and unwilling to lend to those it deemed not to be creditworthy. Fannie Mae rescued the housing sector in a time of great need, as it bought mortgages from other lenders, giving them new capital to loan to other borrowers. This system continued to work this way for the next 30 years.

In 1968, the Vietnam War was constraining the national budget, so Fannie Mae was removed from the government’s books and converted to a public company listed on the New York Stock Exchange, thus becoming the burden of investors. Despite being a publicly traded company, its purchasing power is now in the trillions; it is thus deemed too big to fail and is insured by the government. Due to the government’s interest in avoiding monopolistic business practices, the Federal Home Loan Mortgage Corporation (Freddie Mac) was established in 1989, with the same mandate as Fannie Mae. Freddie Mac is also governmentbacked and aims to push the banking sector to issue as many loans as possible.

Since Fannie Mae’s inception, when the agency runs into financial trouble (as it did in 2008), a crisis which was a consequence

of poorly managed derivatives and not a consequence of Fannie Mae’s practices, US taxpayer money is used to fuel the agency – meaning the housing sector. When the agency began, Fannie Mae’s first $1bn came from the government. As banks would lend to everyday borrowers, many who wouldn’t have qualified for a mortgage previously due to having an insufficient salary or few to no assets to their name, Fannie Mae would essentially underwrite that bank’s mortgage and thus ensure that if a borrower did end up defaulting, the bank’s risk would be mitigated. Fannie Mae operates by taking all the mortgages it underwrites and repackaging them into mortgage-backed securities, which are traded by investors. As this practice became more successful, Fannie Mae’s ability to generate profit produced a cyclical effect, as more money was then available for lenders.

For residents who would otherwise have to rent or take on a potentially dangerous loan with exceptionally high interest rates and strict repayment terms, Fannie Mae provided the opportunity for many individuals to become homeowners. As of 2013, Fannie Mae and Freddie Mac owned or underwrote 47% of

all single-family mortgages. Despite the 2008 crisis, the framework for this system of ‘safe lending’ overwhelmingly produces favourable outcomes for those involved.

Many talk about Dubai maturing, but true maturity will not come without more inclusion. Restricting home ownership to the wealthy minority slashes an opportunity for banks, secondary lenders, developers and the government to address the majority market.

A prime opportunity is on the horizon, as expectations are 25m visitors for Expo 2020 and thereby the desire of at least a fraction of those visitors to relocate to Dubai to take advantage of its opportunities across sectors.

A tipping point is approaching. If population estimates by the DSC and the UN Population Division of 5-7% growth per year materialise, current and upcoming residential supply may not be sufficient. However, if growth falls below this, there will be a need for a more formative process to sell units.

To create more tangible permanency, while drawing both financial and human capital, a government programme along the lines of Fannie Mae could prove profitable for the government and property developers.

“Restricting home ownership to the wealthy minority ultimately slashes a much wider opportunity for banks, secondary lenders, developers and the government to address the majority market”

MARCH 2019 17

IN PRACTICE

INTERVIEW

Beyond the Jubilee Tarek Shuaib discusses his vision for Pace in 2019, nurturing new architectural talent and opportunities and trends in the post-oil world uwait’s economy, like that of many of the member states of the GCC, is driven primarily by the hydrocarbon industry.

As a result of the 2014 fall in oil prices and continued price fluctuations, the country’s economy has come under strain in recent years. In response, the Kuwaiti government has initiated a number of programmes and initiatives designed to diversify the economy away from oil & gas.

Unveiled in 2017, Kuwait Vision 2035 seeks to turn the country into a financial and commercial hub for the northern Gulf. Since Vision 2035 was announced, Kuwait has seen an uptick in its construction sector, driven by new infrastructure, healthcare, education and housing projects.

In fact, the ‘Construction in Kuwait – Key Trends and Opportunities to 2020’ report published by Timetric’s Construction Intelligence Center (CIC), predicts that Kuwait’s construction sector will hit $15.6bn in 2020.

The report also states that the sector’s CAGR will increase to 6.44% over the forecast period (2016-2020), due to Vision 2035 and other initiatives.

The country is estimated to have spent $8.3bn on construction projects last year, with Kuwaiti multi-discipline firm Pace contributing significantly to the delivery of several high-profile projects.

“In terms of project completion, we’ve delivered several key projects throughout 2018. The Avenues – Phase IV was opened in March last year; also, with Pace’s fast-track construction solutions, we delivered and opened the new Jazeera Airways terminal in May. Two months later, one of the largest healthcare projects in the region was inaugurated by His Highness the Amir of Kuwait, which is the new Jahra Medical City,” says Tarek Shuaib, managing partner at Pace.

“We also reached milestones in 2018 for other projects including the completion of structural works for the Kuwait University City Campus Administration Facilities project and the multi-level Ghazali interchange.

The latter is part of the Jamal Abdul Nasser Street Development project.”

Nurturing Architectural Practice

Pace was founded in Kuwait City in 1968 by Hamid Abdulsalam Shuaib 18 MARCH 2019

and Partners and celebrated its 50th anniversary last year. In its history, the consultancy has delivered numerous high-profile and transformational projects and is a part of the country’s architectural fabric. In line with the anniversary, Shuaib notes that his firm rolled out a number of CSR initiatives designed to reward and nurture architecture in the country.

He explains, “Pace partook in several educational programmes last year as part of its efforts to promote excellence in the study of architecture, with an aim to nurture and reward talent and encourage architectural debate in the country. Towards the end of April last year, we collaborated with the Royal Institute of British Architects (RIBA) and the British Embassy in Kuwait to host RIBA’s annual President’s Medals Awards exhibition in Kuwait. We also sponsored and academically supported the Architectural Association Visiting School – Kuwait Chapter’s workshop, in addition to partnering with Engineers without Borders to support their home renovation programmes.”

Shuaib points out that Pace is dedicated to sharing its accumulated experience and strives to foster and support emerging talents. “We gladly welcome such events, where talent can be appreciated and a thoughtful dialogue can take place between architects of different nationalities and all ages.”

As part of its 50th anniversary, the firm also held an exhibition to highlight the evolving face of architecture within the country. “2018 was a year of celebration, success, growth and change for us as an organisation.

The year marked a milestone in the history of the company as our 50th year. It brought with it a campaign to celebrate our history and forward direction, which has reached far and wide across the region, culminating in the ‘50 Years of Architecture in Kuwait’ cultural exhibition that took place in Al Shaheed Park, Kuwait City in October. The exhibit offered a unique insight into the iconic architecture of Kuwait, commemorating its evolution throughout the past five decades.”

“It demonstrated the contrast between past and present Kuwait, borrowing elements of Kuwait’s iconic architecture, and went beyond their architectural properties to present them as dramatic sculptural forms.

The event was a great success and I’m very proud to have brought this to Kuwait, not only for our great staff within Pace, but for the wider public to celebrate the rich architectural tapestry of Kuwait and the wider region.”

IN PRACTICE

“I am proud to watch my firm grow from strength to strength and to continue delivering award-winning projects that shape the country and some of the region’s architectural landscape” MARCH 2019 19

IN PRACTICE

01 The new Jazeera Airways terminal (T5) can handle in excess of 2.5m passengers annually.

02 Structural works for the Kuwait University City Campus Admin facility were completed in 2018.

03 Phase IV of The Avenues mall added new districts and amenities, as well as two hotels.

01

Shuaib is quick to point out that Pace is continuing to celebrate and highlight its heritage in 2019. “The work to celebrate our heritage and future continues into 2019, with the upcoming launch of Pan-Arab Modernism. This is a research publication that we will launch globally to celebrate the history of architectural practice in the Middle East. It will harness Pace’s projects and archived data.”

Asked about his thoughts on Pace’s contributions to Kuwait thus far, Shuaib exclaims, “I am proud to watch my firm grow from strength to strength and to continue delivering award-winning projects that shape the country and some of the region’s architectural landscape. Pace’s landmark projects are now recognised elements of Kuwait’s skyline – some have even been featured on postage stamps and the Kuwaiti currency, and this makes me so happy. I am gratified as well to see our design concepts shared and adopted across the region, not to mention projects being replicated in other countries in the GCC, such as The Avenues in Bahrain.”

Sumarising 2018 from an organisational standpoint, Shuaib comments, “We continued to expand our business both regionally and internationally, with a number of key projects at different stages of delivery,

20 MARCH 2019

including the Saudi Public Investment Authority (PIF), Wafra Towers, Marassi Al Bahrain and the LIWAN projects. Our international team continues to expand their projects and scope of work across the globe with success.”

“We also continue to grow our staff numbers, build teams and introduce new skills into the business. From the first of January 2018 to date, we welcomed over 100 new members of staff and we are now a business of over 800 people. We recently welcomed a director of Planning and head of Concept Design into the business – two key hires outlining my intent to continue our legacy of design excellence both regionally and internationally,” he asserts.

Hopes for the Future

Shuaib is confident that his business will continue to make a significant contribution to Kuwait’s skyline, as the country grows in line with Vision 2035. He’s also keen to build his firm’s international portfolio.

“My hope for 2019 is for this to be a transformative year for the business. We’ve recently occupied an additional floor of Baitak Tower in Kuwait and are continuing to invest in our people, skills and capabilities. The extension 02 of the office space represents a milestone in the growth of our business and reflects my commitment to put people first and invest in the development of employees.”

“My commitment to our ongoing business transformation is resolute. In order to prepare and shape Pace for the future, I have created the Pace Leadership Team to steer the development of our business strategy. Into 2019, two key programmes will be embarked upon, the Pace Delivery Process and Talent Management project, both of which are aimed at future proofing the quality of our work and investment in our people. These projects were established to

“My hope for 2019 is for this to be a transformative year for the business. We’ve recently occupied an additional floor of Baitak Tower and are continuing to invest in our people, skills and capabilities” innovate the way we design and deliver projects, through critical design thinking in all disciplines with an efficient fully digitised process.”

Weighing in on trends in the post-oil world, Shuaib explains that reduced liquidity has had far-reaching effects. “Without a doubt, the falling price of oil has had a significant impact on business in the region and spurred a transformation imperative. Budgets for public sector work have generally downsized as a trend across the region.”

“2018 saw an explosion of new technology and innovation. Digital is transforming the construction industry itself and helping us to create the cities of tomorrow. Firms operating in this industry have a unique opportunity to leave a mark on future generations, through designing and building smart cities of the future, using advanced technologies to assist productivity and reduce waste.”

He elaborates, “These technologies hold the promise to help firms reduce costs while improving margins. Firms that embrace innovation

via the projects of tomorrow and invest in digital transformation will be the ultimate winners. Many award-winning cultural, tourism and leisure edifices have been developed around the region, with more eco-friendly and sustainable solutions employed to mitigate the harsh climate costeffectively, while maintaining the indoor/outdoor feel required for these establishments. Co-working spaces have been popping up all over the country as well, with the rise of entrepreneurs and creative aiming to establish new businesses to address the post-oil economic challenges.”

“Pace has a proud record as an early adopter of advanced new technologies and construction methodologies in the region, offering new opportunities for innovation and quality for clients who benefit from improved project efficiencies, reduced environmental impact and savings in operational and management costs. These include, but are not limited to, fast-track construction solutions, building information modelling (BIM), Revit, a new project information management (PIM) 03

Nick Merrick © Hall+Merrick Photographers

Nick Merrick © Hall+Merrick Photographers

IN PRACTICE

MARCH 2019 21

system and integrated project delivery (IPD) protocols.”

Nick Merrick © Hall+Merrick Photographers

IN PRACTICE

04 Jahra Medical City is part of Kuwait’s plans to improve national healthcare.

quality partnerships that will bring in new technologies and enhance present capabilities. The state is keen to enable the private sector to lead diversified economic activities, foster competitiveness and increase productivity, with the support of viable public institutions.”

He explains further, “The legislative reforms that are currently underway should attract fresh foreign investors to the Kuwaiti market. Among the recent mega projects – part of the new Public Authority for Industry strategies – is the establishment of four new industrial smart cities, with agreements currently being formulated with the private sector and international entities for implementation and management.”

Growth Potential

Speaking about the effect of the aforementioned trends on his firm’s business within Kuwait and internationally, Shuaib notes, “Our work in planning, property and infrastructure continues to expand both in Kuwait and overseas, as clients increasingly seek organisations that are capable of delivering projects to recognised international standards. We have diversified our portfolio across these three key sectors, while developing our project management consultancy and international businesses.”

“We are seeing steady growth across sectors within 04 our business. Large-scale infrastructure, retail and healthcare projects have assisted this growth across the region. As a design-led firm, I am keen to invest in our capabilities across a broad range of disciplines and expand our project portfolio accordingly,” he says.

Here, Shuaib keenly points out that Pace is committed to delivering projects in a sustainable manner and in alignment with a client’s aspirations and requirements.

“Sustainability is a key focus in the design and delivery of all the work that we undertake. We are committed to ensuring that all of our projects are designed and constructed against the highest standards of sustainability. Many of our projects have utilised sustainable construction techniques and materials, including solar and innovation in precast concrete for heating of buildings with less energy input.”

He adds, “As an example, we’ve brought the first mega solar energy station to an education campus in Kuwait. Regulation has really helped push the sustainability cause; the Kuwait government, for example, has set plans for 15% of its energy to be from renewable sources by 2030.

This in turn has put emphasis on solution providers to raise our efforts in sustainability.”

“With the new vision set forth by the authorities to transform Kuwait into a leading regional financial, commercial and cultural hub by the year 2035, all efforts are being mobilised, with endless potential opportunities for those in the construction sector. The country is actively looking for 22 MARCH 2019

Reflecting on Success

When asked about what he is most proud of and what element of the business has had the biggest personal impact on him, Shuaib says, “We’ve delivered over 1,250 successful projects across different sectors.

However, what has an impact on me personally is when I see the team, client, partners and public come together and experience the reality of a project we’ve delivered.”

He concludes, “I am most proud of the partnerships we’ve established and maintained with our esteemed clients and business associates, with several of them lasting for more than 25 years. I’m proud of assembling and retaining a mighty team of over 750 professional experts, including architects, civil/structural/mechanical/electrical engineers, planners, project and commercial managers, interior and graphic designers, and quantity surveyors.”

“We also have employees that have worked with Pace since its inception. With their extensive knowledge and experience ranging from architecture and interior design to transport and industrial engineering, I continue to be amazed by how they all apply their expertise to bring something new to the table. I am grateful for how they have helped Pace continuously address different design challenges through taking on diverse projects across many different sectors, further enhancing our technical know-how and design expertise.”

www.studiolumen.com

Siddharth Mathur PARTNER

p: +971 4 3385806 e: sm@studiolumen.ae

IN PRACTICE

INTERVIEW

The Business of Security K Tech Consulting’s Jonathan Keith on his firm’s approach to building security, the importance of transparency between project stakeholders, and market challenges Tech Consulting offers several services including security audits, vulnerability assessments, conceptual design, project management and supervision and coordination. Here, Middle East Consulting sits down with Jonathan Keith, MD of K Tech Consulting, to discuss the firm’s early years, as well as trends and challenges in the market.

Take us through K Tech Consulting’s early years.

We started the company as an offshore (freezone) company in DMCC in 2013, mainly carrying out work in Saudi Arabia. When there was a slowdown in the economy in the Kingdom, we made the decision that we would concentrate in Dubai and, using some of my previous contacts, we managed to get some work here.

We then decided to shift to an onshore Dubai company, so that we could obtain certification as a Dubai Protective Systems (police) consultant. The process took us about six to eight months and once we obtained the certification, and because of my contacts, we managed to start off with two projects in quick succession. Thanks to the good work that we did on those two projects, we gradually increased our workload – we started with one person (myself) and we now have 10 people including consultants, engineers, CAD people and administration.

What did 2018 look like for your business in Dubai?

I think everybody was and still is looking for value for money. We won a lot of projects in 2018 and we are now in the supervision phase. We’re concentrating on these and there is a lot of pressure in terms of getting responses back during the supervision phase of the projects, so we need to have a quick turnaround. As you know, the supervision phase is where K Tech is employed as a specialist consultant; our engineers are required to carry out inspections and respond to submissions such as material 24 MARCH 2019

submittals, drawing submittals, method statements, etc, and when we receive any of these submissions, we only have a certain amount of time to respond. Even though the KPIs are usually one or two weeks, people expect responses often by the same day or the next day, so the pressure is quite high to finish them and get the responses back.

While we have several ongoing projects, unfortunately we do see that there is a bit of slowdown in the number of new projects coming onto the market. I’d say we’re receiving 25% of the number of RFPs we received last year. As a result, we’re trying to look elsewhere for business; we started working on projects in Abu Dhabi and have a military project in Kuwait. Simply put, we are trying to expand into other markets, we don’t wish to have all our eggs in one basket.

What’s your view on Saudi Arabia today?

Obviously it’s a big market and the difficulties will be similar to other Middle East countries, like contractual and payment issues. We see some big projects in Saudi Arabia that we’d like to be involved in; however, we see that the Middle East is becoming extremely competitive. In Dubai, it’s competitive; however, we are also licensed by the police,

“To provide value to the client, you have to show that you are advising them properly and giving something back to them.

Everybody has to try and maintain their good order and requirements”

IN PRACTICE

MARCH 2019 25

01

IN PRACTICE

The firm provided threat & risk assessment, concept design, schematic design and detailed design services, created construction/tender documentation and obtained Dubai Police approval on the Dubai Hills Mall project.

02 K Tech’s first project was the King Abdulaziz International Airport in Jeddah. The firm provided detailed design services.

so we have an advantage. In Saudi, we must compete like everybody else. It’s challenging, but we will be focusing on Saudi more and more.

How is spend on security viewed in this region?

We come in when there are bigger assets, such as buildings, that people would like to secure, although some clients really don’t want to implement it fully because security is viewed as a grudge spend. Part of the problem is the market looks at security too late, which means it costs more than planning the security early. On many projects, cost-cutting takes place because some people don’t see security as an advantage – it’s something they must pay for but really don’t want to. However, we are trying to educate people that it works together with building operations.

We are trying to make security an advantage and plan things early.

of the time, it’s a case of ‘this is the bottom line and let’s just get rid of what we can’. However, 01 we know that by taking this approach, they are willing to incur more costs in the long run. I know on some of the projects we have, the project costs and the running cost of the building are not in the same budget, so the people who are doing the projects are not willing to pay the money – they would rather push it to somebody else.

When the building gets taken over, developers build the building and the project cost is with the project. When it gets handed over, the running cost is with somebody else, so what some developers try and do is get this cost out of the project and push it to somebody else. The problem is that cost can be 50% more if they don’t do it at the beginning.

We try and educate them and I’m sure that this issue occurs across all disciplines – it’s not just in security. Unfortunately, this is a region-wide reality and there’s pressure on budgets. It’s up to us all to help our clients.

What’s your approach to educating clients?

How does your firm tackle these market biases?

We try and educate as much as possible.

There’s also the current legislation where we have a minimum requirement from the law. Some believe that this is not what people need – for them, the law is too much – but we have to do it. In some cases, there are parts missing from the law that are required; that is something we have to deal with, whether it’s when you’re speaking to consultants or clients. We always try and ensure all parties understand the requirements and the spend.

That said, we also try to make sure that the cost for the client is the lowest possible.

We try to not look only at the initial cost, we look at the projects over maybe 10 years. That’s our aim, yet a lot of the time, it’s not what people are interested in. A lot 26 MARCH 2019

02

Security is a little bit different. You’ve got the law, which is now

IN PRACTICE

03 03 The Vida Residence was the firm’s first project in Dubai back in 2014.

given by an entity called SIRA (Security Industry Regulatory Agency). They have a set of requirements that people have to meet, and you also have the client requirements. For example, we work mainly with developers and they have their own security guidelines – these are the main stakeholders – and then you have got the project team who is designing and building the project.

We must understand all these, coordinate and get across to everybody what the requirements are of each party. Obviously, the law is the law and once we have the developers’ guidelines, we educate the project teams and we work hand in hand with the architect, because in the end, this is who needs to deliver the overall design. We’re usually hired by an architect and must provide security requirements through them as part of the design.

Talk us through your process on projects.

On a day-to-day basis, we coordinate with all of the architect subconsultants on behalf of the architect and the end user. Right from the beginning, we start communicating with the client’s security teams, because we don’t like to miss any requirements that they have. Often, these requirements don’t match the initial design – people are coming from a different angle and we have to straighten this out and make sure that they are all going in the right direction. We are in the same process flow as the architects, so during the concept design, we do the threat and risk assessment of the project, which gives everybody a look that these are the threats and risks and we ought to do x, y, z in order to mitigate those risks. This goes to the client, and once that is approved, we understand that we have to go down a certain path.

Following the path, we go through the concept/schematic design, through the detailed design, and at every stage it gets approved. Quite often, when we get down to the end of the schematic and detailed design stages, they begin understanding the costs better and the pathway has a little bit of diversion. It’s important that we keep in communication and remain flexible.

28 MARCH 2019

With long-standing customers, they sort of know what we are going to do. They know the situation and they know that at some stage, there are going to be changes because of value engineering (VE) and things like this. What we have seen is the design is approved by everybody and everybody is happy, yet when they start to do the construction, often we get some changes in architecture or requirements, or we have to implement them in VE. Sometimes we do that in conjunction with the contractor, once they are onboard. So, there are these different elements, and we always try and stay flexible on principle – if there is something that needs to be done, we do it.

As mentioned earlier, during the design phases there are always a lot of changes. However, from the security side, once we have implemented our design from the schematic stage, we are more or less straight.

However, as things change architecturally, we have to be flexible and move. Our intention is not to force anybody to do anything; we want to work with people and try and get our requirements in, even if we have to make adjustments. We don’t like to see big changes and we don’t wish to incur too big a cost change for the clients.

How do you maintain standards in a cost-sensitive market?

We have a minimum standard and we try not to go below that; however, sometimes people don’t like it when we try and maintain that level.

What we see in the market is that it is very competitive, and everything is extremely price-sensitive, and not just for us. It’s for all the consultants, the clients, the contractors and everyone involved in the building.

So what’s happening now is that the cost of doing something at minimum standard has gone down because everyone is getting squeezed. The main thing is even though you’re getting squeezed, you need to provide value, especially as a consultant. To provide value to the client, you have to show that you are advising them properly and are giving something back to them. Everybody has to try and maintain their good order and requirements.

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Experts in Security and IT Design Threat & Risk Assessment Operational Requirements & Audit Full ELV System Design Supervision Services

SIRA Licensed Security Consultant : +971 4 380 1101 @: info@ktech-consulting.com

ON SITE

“Our approach is about not being too institutional but more about preserving that little bit of cheekiness. The college has always had this, so all we have tried to do is give it a more modern twist�

30 MARCH 2019

ON SITE

CASE STUDY

Upgrading an Icon

Jason Burnside highlights Godwin Austen Johnson’s approach to modernising Dubai College’s facilities and overcoming project challenges ubai College is an educational institution that has been part of Dubai’s history for over 40 years. Founded in 1978, the independent school was originally housed in two villas near Safa Park before moving to its current location on the – then – fringes of the city.

Since those early days, Dubai has grown to the point where the school is now surrounded by a network of roads and other developments. This reality, as well as the high regard for the school, has forced the institution and its consultancy of choice, Godwin Austen Johnson (GAJ), to think carefully and creatively about expanding the facilities over the years.

“When a school has stood for 40 years and has been a much-loved part of the Dubai community, expanding its facilities and modernising it requires a thorough understanding of its history, its ethos and its quirks.

Dubai College has always been a school that people perhaps knew but weren’t familiar with. What we’ve done is give the campus more visibility in terms of highlighting it as more than a compound of buildings in the middle of the city,” explains Jason Burnside, partner at GAJ. GAJ is a long-term partner of the school and has been upgrading the school’s facilities to keep pace with demand. “Dubai College has been working with GAJ for the lifetime of the school and we are very happy to continue this relationship. This long-standing commitment ensures that we have an architect who is sympathetic to the tradition of our community but also to the ambition of our students and their families. Good design communicates to students and teachers that we are committed to providing the very best infrastructure to support the MARCH 2019 31

01

ON SITE

GAJ recently upgraded the school’s D Block, transforming it into a modern teaching environment with open-plan spaces and think tanks for collaborative learning.

02 An aerial shot of the Dubai College campus as it stood in 1984.

03 Jason Burnside is a partner at Godwin Austen Johnson.

very best education. The construction of the upcoming Wellbeing and Integrated Sports and Performing Arts Centre will embody our core commitment to high quality holistic education, which looks after the creative, physical and mental health of every member of the community,” comments Michael Lambert, headmaster of Dubai College.

Discussing the school and what GAJ wanted to achieve, Burnside notes, “It has a leading reputation as a traditional school that delivers quality education, but it also has a charm and quirkiness that we wanted to maintain. It’s fundamentally a British school but very firmly rooted here in the Middle East. What we wanted to achieve, in the spirit of the original idea, was to ensure that the new buildings complemented the existing master plan, but also that they take into account the growth of Dubai College and how the new buildings contribute to creating a new public face for the school.”

The result, according to Burnside, is “something that is very British but with a nod to its location. Our approach is about not being too institutional but more about preserving that little bit of cheekiness. The college has always had this, so all we have tried to do is give it a more modern twist.”

Back to the Master Plan

According to GAJ, the master plan 40 years ago responded to demand at the time and was planned around student intake, which meant that it was a smaller offering on a fairly large site. Back then, the school consisted of a couple of classroom blocks, a swimming pool and a number of external buildings.

Over the years, the school has expanded significantly due to the increase in student numbers, which in turn has led to a demand 32 MARCH 2019

02

for more classrooms. Discussing one significant challenge the school faces, Burnside explains, 01 “The challenge we have now is that the college needs to further expand but the real estate available is not as big as it once was, which means we have had to look at utilising the gaps between the buildings.”

Burnside points out that the school is different from other educational institutions in the city. “It’s an old campus that has grown organically and has refused to be melded into one big superstructure. Each element has its own character and what we are trying to do now is to follow the quirkiness and eccentricity that the school is keen to maintain.”

“Going forward, we will be incorporating more modern buildings that align with modern teaching standards, as well as incorporating sustainable design that doesn’t jar with the history of the school. The new reception building was the first step and now we look ahead to introducing new facilities within the next two to three years.”

The New Reception

The approach for the new reception block and the significance of the

ON SITE

building for Dubai College as an established school was important, Burnside says.

Before the building came to be, there were several different access points to the site. “That’s not ideal in terms of security and the safety of students when they are dropped off,” he cautions.

The new reception block was conceptualised as a contemporary visitor centre that would address several goals. First, to show progression of the campus and that the school was no longer just a series of red brick buildings, but rather is trying to incorporate the regional context with the fact that Dubai College is a British school. “We tried to make the architecture modern but at 03 the same time not completely alien to the existing campus or to the region. It also has the added benefit of controlling access to parents and visitors and channelling them into a central location.”

“The location of the building was a key factor in the way that we designed it. It needed to occupy a visible location near the plot boundary, which meant that it was highly visible from the road. The original entrance building was right at the back of the campus and not visible, which did not help present the school to the public in any obvious way.”

The new building began with the idea that it should be “unique and visible, and was designed to be the start of a new series of external spaces and building installations”. Burnside says this reconnects the master plan and vision from the original, which grew organically, leaving GAJ to fill the spaces between the buildings to bring it back into a cohesive campus.

Discussing the building’s canopy, he comments, “The idea of the floating canopy at the front of the building, with a vertical fin, is a very abstract interpretation of the traditional screening found in this region, which is used to help reduce solar gain. This was done in a very contemporary way – a nod to the past and to the future at the same time.”

With the expansion of space and facilities, the consultancy had to upgrade the service buildings, so the school could manage its energy consumption. “We worked with our in-house MEP team to create a service compound to improve energy efficiency. It’s a significant investment but one that will provide a better return on the school’s efficiency.”

He elaborates, “When planning the new service buildings, we first needed to assess the needs of the entire campus and projected expansion plans. We also needed to determine how we were going to roll out the new buildings with the existing service buildings, which are almost at capacity. The new service buildings are being expanded outwards and will be fully able to cater to all future demands.”

Here, Burnside is keen to point out that architects have to look at the sustainability of the campus rather than just the physical teaching spaces.

The Sports Complex

Speaking about the next upgrade, Burnside says, “Next for us is the biggest phase yet: the sports hall and drama building. This is an ambitious project on a very condensed part of the site at the back of the campus, which will require us to demolish the existing swimming pool, sports hall and then rebuild from the ground. The end result will be a state-of-the-art sports, drama and music hub over two levels, which will give the college a new swimming pool, spectator area, drama theatre, music rooms, black box, double sports hall, CrossFit multipurpose hall, gym and fitness studios.”

Highlighting the challenges, he asserts, “We’ll have to work with a very limited footprint, which will be challenging, but it will be one of the best school sporting facilities in the region once completed. For the design, we took the big sports hall on the ground floor, lifted it up onto the first floor and then built underneath that a CrossFit area, cardio zone and weights area, as well as the sports science classrooms and drama studios. We then took the double basketball court and put that on top, as it’s more efficient to have this big open volume that is sitting on top of the structure. This has enabled the college to be able to offer a lot more facilities in terms of training and better teaching spaces.”

He concludes, “It’s a complicated project and difficult to do logistically, but the benefit of taking this one year of headache will provide an unrivalled sports facility. This will provide a unique facility to host big events such as netball tournaments, indoor football championships, etc.

– like the American collegiate systems. It will be a centre of excellence.”

MARCH 2019 33

ON SITE

INTERVIEW

WIC Profile: Gabriella De La Torre Jason Saundalkar talks to CBRE’s Gabriella De La Torre about her inf luences, career and gender diversity in the construction industry ollowing our special edition dedicated to women in the construction industry, Middle East Consultant continues to share the inspiration and experiences of women working in the male-dominated industry across the GCC region. Here, we catch up with Gabriella De La Torre, associate director at CBRE.

What’s the proudest moment of your career?

In all assignments that I advise on, I encourage myself and the team members I work with to look not only at the financial benefit of the wider development, but also any potential impacts on the community and the environment. Construction projects are about more than building homes, roads and commercial buildings; every project should have a beneficial impact on the community at large.

What are some of the barriers to women entering the construction

What drove you to get into the construction industry?

industry? What was your personal experience?

My father was an architect, so I inherently had some knowledge and exposure to construction and development, although I never deliberately pursued a career in the field. I was pursuing a career in hospitality, but my first role as an intern with a real estate consulting company was instrumental in my exposure to buildings and construction across a range of asset classes and project types.

Living and working in Dubai meant that I was at the epicentre of construction and real estate growth. My work advising on large-scale real estate developments piqued my interest in other disciplines, including architecture, master planning and engineering. My interest was focused on being a part of delivering the physical built environment in a way that enhances the lifestyle and well-being of a building’s inhabitants.

Real estate and construction historically have been, and still are, maledominated industries. As a woman, there is the need to prove your skills and capabilities much more than your male counterparts. It simply is not an industry where female talent is prevalent. In my previous role, women were generally not considered for projects in Saudi Arabia, for example. However, I pushed to be able to work in the Kingdom and was able to earn exposure to unique large-scale projects which my female counterparts were historically not exposed to.

Now we can proudly say that within CBRE’s consulting team, which is 45% women, the majority of the women have worked and travelled to Saudi Arabia, giving them an edge in terms of project exposure and experience across the Middle East.

Share a brief about your career, mentioning key achievements

The GCC construction sector is still male-dominated, but

with regard to your role.

diversity is beginning to increase. If you agree, comment on what

As an associate director with CBRE’s consulting team, my day-to-day work consists of leading real estate consulting assignments across the region with a focus on Saudi Arabia, which has grown exponentially in recent years. In my previous role, I was the first woman to travel and work in Saudi Arabia within the entire consulting team. I have advised on real estate developments spanning over one billion sqm of land and, most recently, played a central role in growing CBRE’s consulting team in the region and building the company’s business in Saudi Arabia.

is driving this and how you see the GCC markets changing in the

34 MARCH 2019

coming years. If you do not agree, please share your thoughts/ views of the market.

Instigating, facilitating and maintaining dialogue is an integral part of changing the status quo. At CBRE, for example, there is constantly a push to include women within wider company growth plans and to provide women with exposure to all types of projects and opportunities.

The CBRE Women in Business events that take place regularly also

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provide an excellent platform to discuss the barriers that contribute to the ‘glass ceiling’ effect for women. The event hosts women from different industries to explore sectorspecific challenges and how women can support younger female employees. It also focuses on the important role that men must play in the advancement of women in the workplace and gender differentiators in leadership roles.

The events are a great way to create more awareness and dialogue for us to collectively dispel the status quo and perceptions which are ingrained in our society. It is our responsibility as women, and as leaders, to play an important part in promoting the knowledge, exposure and opportunities of our female counterparts.

Everyone has a part to play in diversity and equal pay. What would you like to see government authorities and construction firms do to increase diversity and make pay a level playing field?

Indicators set by the government are key for identifying trends and monitoring progress. For example, in the UAE, key indicators of human development include the Human Development Index (HDI), Inequality-adjusted Human Development Index (IHDI), Gender Development Index (GDI) and Gender Inequality Index (GII).

Collaboratively, governments and employers must work together and share insights and trends, to help tackle pertinent issues.

The onus also lies with employers, to ensure the provision of more growth opportunities for women to reach senior and leadership positions. It is encouraging to see that we now have more women in senior leadership positions. These women acting as mentors is an integral step in talent development. Vocal, visible support trickling down an organisation is imperative in supporting women’s careers. It should be embedded into every organisation’s culture, not simply as a business goal but as a core pillar of the company.

has ranked the highest for gender equality in the GCC, with a growing female workforce and more women continuing higher education than men, according to the Human Development Report 2018. Education is key.

Leaders of individual departments and business lines within companies should take time to think about gender equality and how they can contribute towards a firmwide effort. HR managers within different companies must also implement strategies to encourage senior level management, as well as all employees at all levels, to engage as frequently as possible and communicate with transparency about issues faced, so that they can all work together towards a positive outcome.

Besides authorities and construction firms, who else can play a part in increasing diversity and balancing pay scales?

As a woman in the industry, what has your experience been

The initiatives must start early, at an educational level. Before women even set foot in an office, they should be educated with the right skills to lay the foundation to their success. As a thriving business hub, the UAE

working in the GCC construction sector? If you have worked

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in markets outside the GCC, how does your experience here compare with what you’ve experienced in other markets?

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“Facing bias and overcoming existing perceptions mean there is an initial hurdle to overcome from the onset.

Women seem to have to prove themselves harder than their male counterparts, but once they have proven themselves and overcome the initial barriers, they can continue to excel and thrive professionally” My focus has been on advising clients on their development projects across the region. Overall, I would say that my experience as a woman has not been significantly harder than I think it would be in other parts of the world.

Over the last few years, I have increasingly witnessed more and more women forming a crucial part of the sector, which allows for a greater spread of ideas, perspectives and approaches to leadership and project management.

In your opinion, what is the biggest challenge women in the

continue to excel and thrive professionally. Of course, it always helps to work for a supportive organisation that effectively champions their success on a day-to-day basis.

Do you feel that there’s a limit to how far you can progress within the CBRE?

Not at all, CBRE is renowned for its dedication to achieving a diverse and inclusive workforce where every employee is supported in their professional journey.

How does CBRE approach diversity in the workplace? What more can your firm do to increase diversity?

CBRE’s regular events, such as Women in Business and the monthly Ladies Forum, give not only our employees but a wider network of professional women the opportunity to meet and discuss issues that impact us professionally. It is a great space for networking, collaboration and seeing what works and what doesn’t, in driving diversity in the professional arena.

There are also mentorship programmes that are available to all members of the company on both a formal and informal basis.

Mentoring can be a one-time conversation, a short-term series of conversations or a multi-year relationship. The majority of mentoring takes place one-on-one, but some mentoring programmes offer group mentoring, where the mentor works simultaneously with a small group of mentees with similar interests.

There is also reverse mentoring, where the mentor is younger and/ or less experienced than the mentee, but provides helpful insights, perspectives or solutions. At CBRE, mentoring is an integral part of our culture. It is a voluntary professional development approach that can contribute quite significantly to talent development, employee satisfaction and retention, and continued career growth for both mentors and mentees.

How do you personally push for diversity and equal pay in the construction sector? Are you involved in any groups/councils etc that focus on increasing diversity and equal pay?

I believe that it is important, regardless of your gender, to take the initiative to create a unique product, service line, offering – whatever it may be – to set yourself apart and ahead. The industry in the region, as well as globally, is highly competitive, and it is important that in order to seek rewards and recognition you continually deliver to the utmost standards.

construction sector face in GCC countries? How can these challenges be addressed?

What advice would you give to a woman entering the GCC

Facing bias and overcoming existing perceptions means there is an initial hurdle to overcome from the onset. Women seem to have to prove themselves harder than their male counterparts, but once they have proven themselves and overcome the initial barriers, they can

construction industry today?

Don’t be afraid to ask for more. You must be prepared to have to push for things you want in your career – for more responsibility, more engagement and more challenges.

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OPINION 01 Marc Nassim is partner and managing director at Awad Capital.

On the Brink of Transformation The construction industry is still playing catch-up in the adoption of technology, says Marc Nassim security and revenue. Big data, cybersecurity, automation and the sharing economy are just a few of the areas currently touted as having the greatest impact on the sector. Let’s take a look at some of these technological innovations.

Big Data

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hile real estate is the largest commodity in the world, having a value of over $200tn, the sector remains considerably behind almost all others when it comes to digital transformation. A report published by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI) highlights the point, stressing the under-utilisation of technology across the sector. Slowly, however, what is now termed ‘PropTech’ is beginning to emerge, offering to revolutionise the industry.

From changing the way properties are developed through to the administration and management of investments, industry stakeholders have significant benefits to gain, including greater levels of efficiency, 38 MARCH 2019

The real estate industry is finally catching up with big data and analytics, and the rewards are game-changing. From streamlining data to creating transparency and providing increasingly accurate predictions on future valuations, big data is reducing the risks involved in property investment for all stakeholders.

For customers, data and analytics mean making smarter purchases and reducing risk. For example, insights on the local neighbourhood or local property values over time make for more informed decisions and can protect buyers from bad investments, unlike archaic forms of property valuation such as the automated valuation model used by banks in the US, which leads to over- and under-valuation of properties. Indeed, big data is already being used in search engines as buyers search for their ideal home. This will only mature to better match individuals and properties based on their unique needs.

US realtor Zillow, for example, uses data to provide prospective buyers with information on everything from local neighbourhood trends to estimated mortgage payments and the value of the property over time. The data is gathered from multiple sources including public data,

surveys and market conditions, to which a formula is then applied to provide a prediction.

Granted, the projections are not foolproof, but they are transparent and a much more accurate picture of the future than ever before.

By collecting and processing data on neighbourhoods and communities, developers will have better insights to create properties that match residents’ needs. Moreover, such data will inform larger-scale projects such as community planning, which has considerable positive implications for sustainable development.

Construction Automation

The automation of construction sites is closer than many think, particularly with the use of BIM, 3D printing and advances in robotics in recent years. BIM has proven effective in minimising waste, managing workflows and coordinating budgets. Today, it is also used by government agencies in the design, construction and management of critical infrastructure such as water, gas, electricity, and roads and transport.

3D printing and robotics pair well with BIM and are already being used to print building components, moulds, interior design objects and even entire buildings. Chinese company WinSun was the first to construct from recycled materials in 2013 – ten buildings in just 24 hours – with the use of the technology. Providing the ability to build a house in a matter of days, the technology offers enormous savings in both time and money and is being touted as an affordable solution for many housing challenges,

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including in disaster areas and refugee camps.

The industry is estimated to reach $56.4m by 2021, with players including French company Constructions-3D and Dutch company MX3D. Building Materials of the Future

Technological innovation is also paving the way for new building materials that promise to revolutionise construction. In some cases, such as with self-healing concrete, these offer solutions to long-held problems. One of the most widely used materials in the sector, cement can cause major issues when cracks appear.

Self-healing cement offers a solution thanks to microcapsules contained within the material, which produce limestone to seal the crack when combined with water.

Carbon fibre is another potential game changer. Five times stronger than steel yet only a third its weight, it is durable and flexible, making it easier to mould into any required shape. Resistant to harsh weather, it is suitable for environments where freak weather such as tornados and hurricanes can cause havoc.

Another material to keep an eye open for is aerogel, a gel-like substance touted as an environmentally friendly alternative to

insulation. It is four times more effective than fibreglass, shock-proof concrete and graphene.

PropTech in the Middle East

The UAE is leading the way in the adoption of PropTech, with Dubai said to be striving for implementation of blockchain technology by 2021 in the administration of all government documents, including those relevant to the real estate sector. The technology offers a secure and transparent solution for the management of sensitive documentation, protecting all parties from risks such as fraud and identity theft, as well as reducing transaction costs. Paper title deeds and licences will be a thing of the past.

Blockchain is also touted as a tool for crowd-funding, giving blockchain start-ups the ability to offer their own currency for investments – these are purchased by the investor in exchange for goods, be it money, cryptocurrency or another security. These investments, into what is called an Initial Coin Offering (ICO), can then be digitally tracked and traded. BitRent is an innovator in the field that seeks to help companies source funding for construction projects, though uptake in the region is not yet apparent.

Saudi Arabia is also investing in the PropTech sector, as part of its broader diversification plans laid out in the Vision 2030 plan. The country plans to develop a smart city, drawing inspiration from Google, which plans to do the same in Toronto. The city is set to be a free-zone that uses robots for critical functions such as security, logistics and home delivery, while being run solely with wind and solar power. At the heart of this new project is the drive to become a leader in the use, development and implementation of technologies like 3D printing, the IoT, robotics, renewables and nanotechnology.

With the value of the PropTech industry growing from $221m in 2012 to over $2bn in 2016 and predicted to continue to rise, Middle Eastern markets such as the UAE and Saudi Arabia will be critical players in the sector.

Industry experts claim PropTech’s impact on the real estate sector will be similar to that of FinTech in the banking sector. What we are witnessing now in the industry is just the tip of the iceberg – we can expect considerably more disruption across the industry as tech-driven innovations continue to revolutionise the entire construction and real estate sectors.

“The real estate industry is finally catching up with big data and analytics, and the rewards are game-changing”

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THE BACK PAGE

LAST WORD 01 Mina Al-Jubori is client director – Infrastructure, Middle East at Aurecon.

Blazing a Trail Mina Al-Jubori reflects on her career, winning the WIC: Professional of the Year award and the importance of diverse talent me, the two are not mutually exclusive; I am a woman but first and foremost, I am an engineer.

The Grim Early Years

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s a girl growing up in the Middle East, I always wanted to be an engineer. However, I learned early on that it would be difficult for a woman to succeed in this predominantly male profession. Back then, the idea of an award to recognise the region’s most successful female engineer didn’t even cross my mind, let alone the thought that I might be its first winner.

But, in December 2018, the inconceivable happened: I received Middle East Consultant’s inaugural Women in Construction: Professional of the Year award. It’s a moment I will remember forever and an achievement I’m truly proud of.

As the congratulatory messages rolled in, I reflected on how my life as a woman and my career as an engineer had brought me here. For 40 MARCH 2019

Growing up in war-torn Iraq, I saw enough suffering and destruction to last several lifetimes. But I also witnessed resilience and creativity. Even when food, water and electricity were virtually non-existent, people found a way to live, to get by – even thrive. I realised nothing is impossible and if you think creatively, you can succeed. It’s a lesson that has served me well.

After graduating with a BSc in Civil Engineering from the University of Baghdad, I packed my bags and moved to Oman. Back then, the idea of a single female travelling solo and working overseas was frowned upon, but I was blessed with a supportive and progressive family that helped me pursue my dreams.

Arriving in Oman, I thought, how hard could it be to get a job and project experience?

As it turns out, I was too optimistic. Although there were many vacancies, not many companies were willing to take on a young female engineer.

But I decided I wasn’t going to take no for an answer, and volunteered to work for free in exchange for a chance to prove myself.

Despite this, it was still a struggle to secure a position, but eventually I landed a role as a structural engineer. It was unsettling to be the only female engineer in the office, but what did I have to lose? I wasn’t being paid, after all.

It was only after six months that the company finally offered me a paid position.

From there, it was full steam ahead. In 2008,

I was head hunted by a previous client to join the team that went on to deliver Khalifa Port in the UAE. In 2011, I joined Aurecon, working initially in Australia and then relocating back to the Middle East. In 2016, I was appointed to lead the company’s operations in Abu Dhabi.

The clients and projects I’ve worked on have helped me grow as an engineer and leader.

Engineer the Future

I believe engineers need to bring new ideas to the table, especially in the region, where developments are often more complex. Taking on these challenges calls for innovative solutions, better integration of digital technology and a human-centred approach. Here, I passionately believe that greater diversity will be key.

As the UAE continues towards Vision 2021, the engineering profession should harness the potential that a diverse new generation of young engineers presents. As the first recipient of the Women in Construction: Professional of the Year award, I hope I can play a part in encouraging and motivating young female engineers to follow their dreams. As I often say to young engineers: I’m a citizen of the world and my job is my passport.

I love being an engineer in the Middle East, using my skills to help build a better future for everyone. My career is proof that women can succeed and become leaders here. Fortunately, the world has changed since I started my career, and I know my daughter will not need to struggle like I had to, should she also decide to be an engineer.

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2015, 2016 & 2018