MEC Magazine May 2023

20

May 2023

Issue 102

What is the Future Made Of?

At a time when we’re increasingly hearing about the so-called ‘new era’ building materials, bringing organics and DNA-enhanced fibres into a world disillusioned with concrete and waste, we spoke to Delvene Lee, Head of Interior Design, KEO International Consultants, about the substances set to build the future…

UAE Real Estate Market Q1 2023 Overview

Global real estate titan JLL reviews the current state of play across the commercial, residential and hospitality sectors

Technology Does Smarter Equal Better?

The huge buzz surrounding artificial intelligence (AI) and futuristic cities powered by the internet of things (IoT) has raised both concerns and excitement. In this feature article from Micah Aguilar, Middle East Consultant dives deeper into the mechanics of what makes a city ‘smarter’…

The Pluses and Minuses of 3D Printing

3D Printing has graduated to being a master construction method. Engineering specialists TWI-Global look at the advantages and drawbacks

Welcome to the C-Suite Summit

In this, and the next four issues of Middle East Consultant, we’re covering the major conversations emerging from the C-Suite - an important, closeddoors event which took place before Ramadan at The Capital Club, DIFC

Technology Your Pen

or Mine?

The days of traditional, physical signatures on contracts are numbered, as e-signatures become more and more prevalent. But what exactly are the advantages and the limitations of going digital?

Technology

From Cyber to Physical

When it comes to the damage that cyber attacks can do, the focus is set to shift from business interruptions to physical harm. Middle East Consultant spoke to Kron Technologies about the challenges - and what’s next on this troubling horizon…

Expert Opinion

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The 19th Century Spanish philosopher, Jose Ortega Y Gasset, commented that “Life is a series of collisions with the future.” This is surely the case when it comes to recent discussions about urban planning and the future shape of community living - because there seems to be little agreement about whether we’re building high or low, if we’re committing all-out (or not) to sustainable parameters, or whether (let alone when) the new generation of structural materials will actually be available.

That’s precisely why, on 14th June, this year’s Future of Architecture Summit will feature three key trends throughout the day - which should give us all a good shot at hammering out these imponderables once and for all! The three threads for discussion are:

• The debate around whether next generation cities will be high-rise and super-tall, or all about the new, community-led concepts of ‘the 15-minute city’.

• The new era of neo-organic building

materials, including bio-degradables, and to what extent it’s feasible that these will replace ‘classic’ materials any time soon.

• The use of AI-led generative software (such as Midjourney and DALL-E), and its ability to place leading-edge design in the hands of engineering companies.

One of the factors that seems to be contributing to the present hiatus is that while we’ve reached a moment when we know what we want, the actual technology isn’t quite ready to provide it. On this front, I’d urge everyone to read Delvene Lee’s fantastic article, featured in this edition of Middle East Consultant, called ‘What is the Future made of?’ Delvene is Head of Interior Design at KEO International Consultants and gives probably the best exposition I’ve ever read on the evolution and availability of the new-era ‘living’ building materials. Her expertise both pinpoints the desirability of these new elements as well as leaving us in no doubt that this ‘imminent’ future perhaps isn’t quite so imminent after all… Mmmm...

See you all at the Future of Architecture Summit - and let’s continue the debate in person.

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When the future isn’t quite ready…

TECHNOLOGY

Omnix to distribute structural detailing software across the GCC

ANALYSIS: Saudi Arabia is ‘single biggest hospitality opportunity’

INDUSTRY

Diyar Al Muharraq begins third phase of its internship programme

PROPERTY

Benoy

CONSTRUCTION

Azizi’s Park Avenue II set for Q2 completion

EXPERTS: Enabling the airports of tomorrow with digital twins

INDUSTRY

EXPERTS: Think globally, act locally: Delivering projects across borders

Are Architects becoming replaceable? The growth of Smart, AI-led software is putting design in everyone’s hands.

unveils designs for Konoz in Riyadh

Sobha Realty announces new Co-Chairman

ENERGY

Lhyfe announces start of construction of green hydrogen facility

The plant will be located in the Triangle business park in Bessières, 40km from Toulouse

CONSTRUCTION

NBK reveals project awards in Q1 2023 in Kuwait reached $1.71bn

The acceleration was mainly due to projects in the power and water sectors, a report by NBK revealed

CONSTRUCTION

Arada announces handover of 114 homes in Aljada

The developer says that over 5,500 homes have now been completed within the megaproject

MACHINERY

Construction equipment rentals set to exceed $225bn

Innovation and growth in construction methodologies are pushing need for high-end, AI-led equipment

PROPERTY Knight Frank achieves highest-ever price for single land plot in Dubai

The company said the deal is a significant milestone for the UAE’s real estate market

PROPERTY

Sobha Realty launches ‘Sobha Reserve’ in Dubailand

INFRASTRUCTURE

Saudi’s NCP approves 200 projects under PPP model

CONSTRUCTION

Kuwait Arab Contractors wins $367mn contract for infrastructure services

INFRASTRUCTURE

RTA begins second phase of Smart Pedestrian Signals project

INFRASTRUCTURE

SEWA issues RFP for Hamriyah water project

UAE Real Estate Market Q1 2023 Overview

Global real estate titan JLL reviews the current state of play across the commercial, residential and hospitality sectors

central business district (CBD) in Dubai. Indeed, the average vacancy across the CBD dropped to 11% in the first three months of 2023. During the same period, city-wide vacancy in the capital reached 23%.

here were no notable office completions across both the cities in Q1 2023, keeping the stock stable at 9.1 million sq. m. in Dubai and 3.9 million sq. m. in Abu Dhabi. Over the next three quarters, approximately 100,000 sq. m. of office space is scheduled to be delivered in Dubai and 35,000 sq. m. in the capital.

Building upon the strong momentum of last year, the UAE office market continued to perform strongly with robust demand for high quality Grade A spaces that can provide a healthy, vibrant and experience driven environment. As a result, in the first quarter, average Grade A rents in Dubai’s CBD rose by 16% yearon- year (Y-o-Y) to AED 2,140 per sq. m. per annum. Similarly in Abu Dhabi, a combination of high demand and limited stock for quality space pushed Grade A rents up by 9% Y-o-Y to an average of AED 1,800 per sq. m. per annum.

Strong demand has led to fast absorption of available space within the

In a bid to encourage employees back to the office and recruit and retain the best talent, a lot of corporates are looking to upgrade their real estate with increased focus on sustainability and wellness. Significant growth was recorded in enquiries from new market entrants and a strong demand for flexible offices.

Occupiers looking for high quality office spaces are expected to continue to face competition, with landlords less likely to negotiate rates and CAPEX (capital expenditure) contributions.

RESIDENTIAL

Dubai’s residential supply increased by 9,800 units in the first quarter, pushing total stock to 690,000 units. In the remaining months of this year, an additional 32,000 units are scheduled to be delivered. In the capital, around 1,800 units were added,

The market has recovered from the strong preference shown in the Covid era for readily available properties, with investors now avidly engaged with new and off-plan developments.

bringing the total residential stock to 281,000 units. In terms of upcoming supply, Abu Dhabi has an additional 4,000 units in the pipeline for this year.

In Dubai during the pandemic and subsequent years, the majority of investors sought out existing properties as a safer investment option. However, on the back of new launches late last year, off-plan sales transactions started recovery in Q3 2022. This trend has continued for the third consecutive quarter, where offplan transactions outperformed existing properties in terms of value and volume, representing 56% of total value and 59% of total volume. This strongly suggests that both developer and investor confidence has returned to the off-plan market.

Similarly in Abu Dhabi, off-plan transactions have also been leading the market since the second half of last year, supported by the number of new projects launches. According to data from Quanta, off-plan property transactions accounted for around 74% of the value of total residential sales. The continued development of the new islands has put pressure on prices of outdated projects on the main island, as residents preferred to relocate to new developments located on the new islands offering modern amenities. Consequently, average citywide sale prices and rental rates increased modestly by 1% each in Q1 2023, when compared to the same period last year.

Looking at the residential market performance, in annual terms, rents in Dubai increased by 28% in February 2023. Demand for large units especially for villas continue to push up rents. Furthermore, in Q1 2023, 52% increase in value and 50% in volume of residential sales activity compared to the same quarter last year has impacted sales prices, noting a 12% Y-o-Y increase for the same period.

RETAIL

Around 34,000 sq. m. of retail space was added in Dubai in the form of community retail developments, raising the total stock to around 4.7 million sq. m. in the first quarter of 2023. Over the same period, Abu Dhabi witnessed the delivery of a super regional and community retail development

totaling 212,000 sq. m. of retail GLA (Gross Leasable Area). This subsequently pushed Abu Dhabi’s total stock to 3.11 million sq. m. In the remaining months of this year, around 213,000 sq. m. of retail space is scheduled to be delivered in both the emirates combined. Of this, approximately 194,000 sq. m. is expected in Dubai and 19,000 sq. m. in the capital.

In Dubai, the performance of welllocated primary malls was better in comparison to the overall market in Q1 2023. Indeed, the average rents for primary malls increased by 1% Y-o-Y in the first quarter of 2023. While the city-wide average rents for primary and secondary malls decreased by 1% Y-o-Y, for the same period. That said, landlords are tightening lease terms with tenants, moving away from previous revenue share models and offering little CAPEX support unless in highly exceptional cases. To capture additional revenue, malls with near full occupancy are restructuring space to accommodate more tenants. Some are dividing large anchor stores as well as utilizing other common areas to lease out additional space.

In the capital, average rents remained stable in annual terms in the first three months of 2023. Additionally, landlords are more flexible in comparison to Dubai and are offering incentives to attract and retain tenants. Moreover, depending upon the brand, property managers are able to

residential supply increased by 9,800 units in the first quarter, pushing total stock to 690,000 units. In the remaining months of this year, an additional 32,000 units are scheduled to be delivered”

negotiate offers on revenue-based deals and extended fit out periods.

HOSPITALITY

With the delivery of around 2,000 keys, Dubai’s hotel stock climbed to 150,000 keys in Q1 2023. For the remainder of the year, around 8,000 keys are scheduled to be delivered.

Comparatively Abu Dhabi’s hotel supply completions were limited, delivering around 200 keys to bring the total stock to 32,500 keys. Future supply pipeline for the year remains modest at approximately 200 keys in the capital.

In the first two months of the year,

Dubai welcomed over 3.1 million tourists, up by 42% compared to the previous year. With the top three source markets being Indians, Russians and Omani nationals. The growing number of tourists has positively impacted lower and mid-tier segments. As a result, these segments recorded positive gains of 7-8 basis points (bps) in occupancy and 15% in RevPAR (revenue per available room) for YT February 2023, when compared to the same period last year.

Operators recorded strong performance supported by events organised in Q1, such as Gulfood in Dubai and IDEX in Abu Dhabi.

As a result, occupancy rate in Dubai jumped to 84% for the first two months, up

from 77% recorded for the same period last year. Average daily rate (ADR) did marginally drop by 2% but ultimately yielded a healthy RevPAR of USD 182. In Abu Dhabi, whilst occupancy rate remained stable at 75%, ADR and RevPAR surged by 44% to reach USD 155 and USD 116, respectively.

With the continuous growth in tourist numbers and a wellplanned calendar of events throughout the year to cater to various segments of the market, the hospitality industry is expected to sustain its growth in the UAE. However, applying effective revenue management strategies to boost topline revenue will be essential to operators, especially those in the luxury segment.

150k

8k

84%

KSA Real Estate Market Q1 2023 Overview

pushing up the total stock to 1.4 million residential units. Over the same period, 4,400 units were handed over in Jeddah to bring the city’s residential inventory to 864,000 units. In the remaining months of this year, 45,000 units are planned to be delivered across the two cities combined.

Several government backed projects were launched in recent months to support the growing residential sector, such as the first phase of Al Arous in Jeddah, Al Fursan and second phase of Khuzum in the capital. One of the biggest announcements has been the launch of New Murabba in Riyadh, which aims to be one of the world’s largest downtowns. All these announcements are reflective of strong pent-up demand and the government’s continued confidence in the long-term growth of the residential sector in the Kingdom.

good quality office space in the market. Indeed, the average market wide vacancy in Riyadh dropped to 1% in Q1 2023. As a result average Grade A rents increased by 19% year-on-year (Y-o-Y) to reach SAR 1,764 per sq. m. per annum during the same period.

n the first three months of 2023, around 50,000 sq. m. of office gross leasable area (GLA) was delivered in Riyadh and Jeddah collectively. This brought the total existing stock to approximately 4.9 million sq. m. in the capital and 1.2 million sq. m. in Jeddah. Over the remainder of this year, an additional 61,000 sq. m. and 583,000 sq. m. of offic e GLA is scheduled to enter the market in Jeddah and Riyadh, respectively.

In the capital, the supply and demand dynamics have further shifted the tide towards landlords, and they are expected to continue to remain bullish in order to capitalise on the strong demand. Additionally, corporates have been expanding towards the north where office offerings come with better accessibility and parking. There is tight availability of

In Jeddah however, the office market is exhibiting signs of softening. That said, well managed, single owned quality office spaces are highly sought after. Consequently, average Grade A rents rose by 15% Y-o-Y to reach SAR 1,199 per sq. m. per annum in the first quarter of 2023. Broadly, market-wide demand is being led by local companies and family businesses relocating to newer areas towards the north and west. Accordingly, the citywide average vacancy stood at 8% in Q1 2023.

The office market in the Kingdom is expected to sustain its positive momentum. As Riyadh is being positioned as the new commercial nerve center, we expect more efforts towards substantially improving the infrastructure of the capital, to cater to its increasing popularity.

RESIDENTIAL

Riyadh witnessed the completion of close to 7,800 residential units in Q1 2023,

The government has introduced several measures to expedite homeownership among Saudi nationals and boost the residential sector. Demand has been increasing and is expected to continue to trend-up. In a recent announcement, 100 million sq. m. of land was allocated to the residential sector in the capital and other cities to control the increase in land and residential prices. Undeniably, in the first quarter of 2023, average sale prices and rents in Riyadh increased by 7% and 2%, Y-o-Y, respectively. On the same basis, in Jeddah, average sale prices increased by 11% annually and average rents climbed by 9%.

Overall, there has been a structural shift in the market and demand for apartments has been outpacing villas, with sale prices registering annual growth of 6% in the capital and 17% in Jeddah, in Q1 2023. Over the same period, rents for apartments grew by 4% in Riyadh and 13% in Jeddah.

With so much emphasis on the giga-projects in KSA, the powerful plans underway for existing urban projects and infrastructure are often overlooked.

In the GCC’s most turbulent market, considerable market changes have been underway in recent years; JLL evaluates the trends and statistics

RETAIL

In Q1 2023, there were two retail developments completed in Riyadh, adding approximately 84,000 sq. m. of retail space and increasing the total supply to 3.4 million sq. m. Over the same period, Jeddah’s retail stock increased by roughly 46,000 sq. m. to 1.8 million sq. m. In the remaining nine months of this year, 478,000 sq. m. of retail floorspace is scheduled to enter the market in Jeddah and about 105,000 sq. m. in Riyadh. With the retail market softening in Jeddah, we continue to be cautious about completing future projects on schedule.

Overall, strip retail and smaller

community centres have been performing better than larger super regional malls. Majority of the enquiries were for smaller spaces, particularly in Jeddah, where enquired spaces ranged between 8 to 120 sq. m. Additionally, tenants displayed preference for corner locations with high visibility on the street, and outdoor seating areas have become very important for F&B (Food and Beverage) retailers due to their increasing popularity among consumers.

In line with this trend, several malls have started to establish a separate F&B area located outside of the malls to attract tenants and increase footfall in their developments.

F&B and entertainment segments have been the key footfall generators with increased focus on experiential retail. Moreover, landlords in the capital are trying to attract new market entrants who do not have a local presence in the country. In contrast, landlords in Jeddah are being more cautious and are seeking well known brands to avoid risks associated with new market entrants.

Looking at the rental performance, in annual terms, rents for super regional and regional malls increased by 11% and 8%, respectively, in Riyadh in the first quarter of this year. On the same basis, rents in Jeddah fell on average by 6% across super

regional malls and remained stable for regional malls, signaling slowing market conditions in the city.

HOSPITALITY

There were no new hotel developments completed in the capital in Q1 2023, keeping the total stock stable at 21,000 keys. During the same period, Jeddah saw the delivery of 300 keys, increasing the total existing supply to 16,000 keys. An additional 3,000 keys are scheduled to enter the market in 2023 in both the cities combined. Of this, around 2,000 keys are expected to enter in Riyadh and the remaining 1,000 keys in Jeddah.

As part of its efforts to increase tourism in the Kingdom and reach the target of 100 million visits a year by 2030, the government recently launched a new national airline Riyadh air, which will have its hub at Riyadh’s King Salman International Airport. Additionally,

new stop over (transit) visa was also announced for passengers traveling using existing national airlines, Saudia and Flynas. All these initiatives are going to boost the hospitality industry and help position Saudi Arabia as a global tourism destination in the long run.

The Saudi market is currently going through a cultural shift, where new

entertainment venues are being created and global events are being hosted to establish its presence on the global tourism map.

Looking at the growth prospects of the hotel industry, majority of the operators who already have a presence in the country are planning to aggressively expand their offerings in the Kingdom and increase the volume of rooms under their portfolios. That said, owners of hospitality developments, are seeking to attract new unique operators.

As a result, hospitality sector performed strongly in the first quarter of 2023. Riyadh’s occupancy rate rose to 76% and the average daily rate (ADR) increased to USD 212 for YT February 2023, when compared to the same period last year. On the same basis, Jeddah’s occupancy rate reached 54% and ADR was recorded at USD 147. The Saudi hospitality market is expected to sustain its positive drive and improve further.

WE TRUST QUALITY

The government has introduced several measures to expedite homeownership among Saudi nationals and boost the residential sector”

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WHAT IS THE FUTURE MADE OF?

At a time when we’re increasingly hearing about the so-called ‘new era’ building materials, bringing organics and DNA-enhanced fibres into a world disillusioned with concrete and waste, we spoke to Delvene Lee, Head of Interior Design, KEO International Consultants, about the substances set to build the future…

n the quest for a more sustainable built environment, how important are the latest generation of hi-tech, sustainable materials?

“At KEO, we think it is critically important to always be looking for new methods of advancing our designs. The construction industry is responsible for a significant amount of the world’s man-made carbon dioxide emissions, mostly from concrete and steel which brings a real threat to the continued viability of life on Earth. Therefore, as designers, engineers and specifiers, it is

our responsibility to research and be aware of the latest and upcoming sustainable building materials, particularly new generation hitech sustainable materials, in the quest for a more sustainable built environment. Currently, the construction market is moving slower than anticipated towards a ‘circular economy’ and we hope to help in this regard. The circular economy is the concept that moves away from a take-make-waste society and which designs out waste and pollution, therefore products are kept in use and natural resources can regenerate. This can support both in reducing the need for natural materials and at the same time reducing the overall impact to the environment, as for most of the materials reuse and recycling

requires much less energy for manufacturing.

“Currently, these new generation materials are being researched and developed and are becoming available to play a greater impact on reducing our ecological footprint, waste and environmental impact; some of these are actually carbon-negative, reusable and turn waste into new products.”

What types of new-era materials are now becoming available? We think in terms of neo-organics and biodegradables, but what others are there, specifically?

“There are two types of ‘new’ materials; new-era materials and new-thinking, that is, rethinking natural materials that have been used in the built environment for thousands of years. For example, today, paper as a construction material is considered a new concept, such an example is Shigeru Ban’s Cardboard Cathedral in Christchurch, New Zealand; however, paper has been used for centuries as a craft and construction material; for example, paper screens used in traditional Japanese architecture and papier-mache, as used in furniture and boat hulls for centuries.

“New neo-organic and bio-degradable materials that are becoming available and already used in the construction industry include materials that are plant-derived, mycelium, microbe-derived, cultivated animal cells and recycled material.

Mycelium, which is the mesh of fibrous threads of the root part of fungi, behaves similar to yeast; it produces enzymes which ‘feed’ on waste products and grows a compact mesh of fibres within a shaped mould allowing for organic shapes. When it has grown to its required size, it is heattreated to stop the growth. Myceliumbased materials are carbon-negative and compostable. In fact, a lot of people will have heard about mycelium fungi from the HBO drama series, ‘The Last of Us’, where the Cordyceps strain has led to the destruction of humanity - but I have to emphasise here that there’s something of a difference between the science and pure science fiction!

“An example of a company incorporating new-era materials is General Motors, who

Shigeru Ban’s Cardboard Cathedral in Christchurch, New Zealand, uses centuries-old construction techniques combined with hi-tech composites.

are investing in Mycoworks and developing with them a mycelium (mushroom) leather replacement for the interiors of GM cars as a plastic replacement. If proven economically viable, this is something that could easily find its way into interiors.

“Meanwhile, Biohm is a London-based biomanufacturing research and development company who are developing regenerative and carbon-negative construction materials using mycelium and food waste, such as mycelium-based insulation panels, plantbased alternatives to concrete and alternate wood-based construction sheets.”

Does KEO have a ‘patented’ brand of design that epitomises the use of these materials (in the same way, eg, that Skidmore, Owings & Merrill has ‘Urban Sequioa’?’

“Although trying to be good stewards of our shared planet, KEO does not formally have a ‘patented’ approach to design in this regard. However, we are open to collaboration with industrialists and manufacturers to test their solutions. It needs to be noted also that a patent doesn’t mean that the material

can immediately be used in construction projects, as for some materials it is difficult to pass through authorities for aspects such as fire regulatory compliance and durability.”

How influential in the take-up and development of these materials are the companies - like Stellar Amenities, for example - that will be building highly sustainable structures on Mars for Space X?

“We strongly believe that these materials need to be reusable, adaptable and durable, particularly since there is no garbage dumping on Mars. The biggest durability and adaptability test is whether these sustainable structures which are currently in R&D stage can withstand the conditions on Mars and be adaptable to provide shelter for humans.

“Companies that invest in the research and development of new construction materials, for humanity’s first foray to Mars, can play a crucial role in driving innovation and advancing the adoption of sustainable building practices here on Earth. These companies can collaborate with researchers, engineers, and architects to develop

materials that are reusable, adaptable and durable, but also cost-effective and practical to use in construction projects.

“Similar to what we see in Formula One (F1), where technological innovations pioneered in motorsport eventually make their way into road cars, lessons learned by companies like Stellar Amenities could help inform sustainable building practices on Earth.”

What are the strength characteristics of these new generation materials - for example, the nano-weave biodegradables? What are the compression and tensile values when compared, eg, to rebar or steel-frame?

“Graphene concrete for example can cure within 12 hours compared with 28 days traditionally, and needs less steel framing and rebars. Graphene concrete, also known as Concretene, reduces the volume of concrete by as much as 30%. The

Pascal Leboucq's The Growing Pavilion was the centrepiece of Dutch Design Week 2019.

Image © Igor Vermeer.

advantages of Concretene is that it can be produced and applied using conventional equipment, there is 30% less material for the same performance as RC30 concrete and no need for steel reinforcement which has less associated costs and emissions.”

We hear that certain categories of new-generation materials actually ‘breathe’ - putting oxygen back into the environment. Can you tell us more about this?

“A start-up in London called ‘Post Carbon Lab’ has been able to apply a photosynthesis coating on the fabric of garments that absorbs carbon dioxide and emits oxygen. According to the co-founder Dian-Jen Lin, nearly a square metre of material generates almost as much oxygen as a six-year-old oak tree. This photosynthesis coating could also be applied on to interior fabrics such as curtains and pillow cases, and potentially having the same benefits of a ‘biophilic’ interior.”

To what extent are clients currently interested in these new materials and actively requesting them? How often does KEO propose them as part of the project brief?

“Although it is our goal to bring new ideas

forward, clients generally are not aware of these new materials and therefore are not actively requesting them. They are typically only asking for sustainable building materials with performance requirements that comply with local green building codes as per their environmental objectives. Nowadays, due to high sustainability rating aspirations, more clients are asking us to provide materials with environmental product declarations. Low environmental impact materials are beneficial for the project’s sustainability certifications.

“This being said, it seems the easiest way to save on emissions or meet sustainability targets is to reduce overall power or reduce cooling in a building project or reduce water

consumption via flowrates. And in the future, can the new sustainable materials have the same impact?

“It is up to us as design consultants and engineers like KEO to drive this change and lead the way in educating our clients of the possibilities and advantages in newgeneration construction materials. Even though the initial costs of these new materials could deter clients, they must be made aware of the possible savings in maintenance due to higher-performing and more durable materials, as analysed and to be confirmed by the cost and sustainability consultant. These materials have less chemicals in manufacturing process so they’re generally better for occupants, produce less waste and add to the natural aesthetic.”

What do you see as the key uses of these new generation materials? Can they be used in building super-tall, or do they have other preferred applications?

“These new generation materials are suited to high-end projects with a particular level of environmental objectives as part of the brief. These can definitely be used with super-tall construction and highly-designed architecture but they come with an inevitable cost. The specialised knowledge and expertise is also not readily available; however, environmentally-friendly ‘current generation’ natural materials can be used immediately in interiors, like cork and bamboo.

“New gen materials, particularly biodegradable materials could be used in temporary structures in the future, for

Future Mars habitats must observe incredibly stringent standards of sustainability, and will be led by pioneers such as Stellar Amenities.

Graphene concrete has faster setting times and higher tensile and compression strength ratios.

example expo pavilions. They can also definitely be used to build super-tall as high-performance concrete and advanced metal composites may result in stronger, lighter and more energy efficient buildings. Other preferred applications for these new generation materials may include buildings which are more resilient to natural disasters such as earthquakes, hurricanes and floods.”

How straightforward is it to source and procure materials of this type - are they still seen as something quite exotic and not generally available?

“Yes, these materials are still seen as quite exotic, especially in this region. They may also require long lead delivery times if the design is bespoke - which of course means that consideration needs to be given about their use at a very early stage of the design.”

Can you give us two or three examples of current or future KEO projects that will use these new hi-tech sustainable materials?

“KEO picked up the award for Sustainable Project of the Year at the Middle East Consultant Awards in 2021, for Expo Village. In fact, KEO was the Lead Design Consultant and AOR for the residential buildings and civil works of the Expo village and provided the full integrated Design Service as well as Construction Supervision services, including Sustainability Certification Services. The Expo Village achieved reduced energy consumption and reduced potable water consumption, resulting in lower CO2 emissions and lower operational costs.

“Expo Village, however, did not use newgen materials, as these are mostly all still in the research and development phase - and the reason for this is because currently, these materials are not required for sustainability compliance. Perhaps international green building codes should start to include the requirement of using some of these newgeneration sustainable building materials in the near future, in the quest for a more

sustainable built environment.

“As the new Head of Interior Design for KEO, I am thrilled to be working in a time where there is so much exciting research and development happening around the world in the field of materials. This is a thrilling time for our industry, and we, as designers, engineers and specifiers can play a leading role in driving change, working together with manufacturers - and indeed, helping Clients make the right choices to deliver innovative solutions that meet the needs of the communities we serve.”

As designers, engineers and specifiers, it is our responsibility to research and be aware of the latest and upcoming sustainable building materials ”

Delvene Lee, Head of Interior Design, KEO International Consultants.

Welcome to The C-Suite Summit

In this, and the next four issues of Middle East Consultant, we’re covering the major conversations emerging from the C-Suitean important, closed-doors event which took place before Ramadan at The Capital Club, DIFC. We’ve held back on releasing this material until post-Eid, because we felt that its impact and implications were such that they deserved to be released when the economic community was fullyfocused and best-placed to act on the findings…

Saudi’s giga-projects, payment issues and price-driven markets, and the impact of war in eastern Europe.

THE TABLE CAPTAINS

• Sachin Kerur, Head of Middle East Region, Reed Smith

n 14th March 2023, six top executives from the fields of consultancy, project management, architecture & design, dispute resolution and law, met in the Majlis Lounge of The Capital Club, DIFC. For three hours, they discussed key issues relating to the construction and development market, tackling fundamental issues such as the economy, rising costs, recruitment,

The event - termed The C-Suite - followed an amended version of the Chatham House Rule. This means that while our coverage can comprehensively report what was said, when it comes to who said what, comments cannot be attributed and remain fully confidential. Thus, with the promise of confidentiality, the panelists - whom we term ‘Table Captains’ - could fully express their views in a fully-informed and heartfelt way. This often led to astonishingly frank moments in the discussion and a set of insights and observations that are not only ground-breaking, but are critical reading for every construction and development professional.

• Venkatesan Sethuraman, Executive Vice President, Danube Group

• Adam Smith, Managing Director, Polypipe Middle East

• Jad Chouman, Partner, Head of Middle East, HKA

• Spencer Wylie, Chief Executive Officer, Compass Project Consulting

• Ammar Al Assam, Chief Executive Officer, Dewan Architects + Engineers

THE PROMPTS FOR DISCUSSION

The C-Suite generated its three hours of dialogue via three key discussion ‘prompts’. These were shared with the Table Captains 10 days before the event

itself, to allow time for preparation and research, as required.

The three ‘prompts’ were:

1. Geopolitics and conflicting trends

Currently, the GCC is very much at the centre of the fall-out from the geopolitical storm currently impacting eastern Europe. We see the influx of the uber-rich pushing the prices of up-scale real estate everhigher - demand looks set to far exceed supply in the months ahead - while the deep pockets of this demographic can only be a very good thing indeed for the luxury retail and lifestyle sectors. Yet the same events are having mixed connotations for other aspects of the Construction and development sectors, not the least the rising cost of steel imports pushing the price of rebar higher (reaching epic proportions back at mid-year 2022). What are we to make of these conflicting dynamics and economic pressure points?

The C-Suite participants were able to contribute according to the Chatham House Rule, enabling complete cofidentiality of their remarks.

2. The new AI-led technologies and generative design software

Things are moving so swiftly with these new technologies that in many cases, there is not even a relevant user manual to follow. Yet they enable even modestlysized engineering firms and consultants to become structural engineers, architects and cost consultants - giving bespoke solutions to the most complex engineering and architectural challenges, and even taking care of procurement and budgeting. Will they now de-centre the industry and make traditional professional roles - eg, Architects and Designers - surplus to requirements?

3. Are giga-projects creating a ’false dawn’?

The current crop of Saudi giga-projects are certainly a huge focus of attention, but are they based on seriously false logistical and economic assumptions? If they are, does this imperil other activities across the GCC (and even further beyond?). Can they actually ever be completed on time; and given that they’re diverting so many materials and resources from the regional supply chain, are we in effect creating a ‘false dawn’ here?

In fact, is there enough resource across the entire GCC supply chain to service their needs? Does this imply that the giga-projects - dazzling though they are - are in effect intended more as positive messaging for Saudi Arabia than they are as feasible community developments? These critically important themes have often been inferred, but not explicitly discussed.

THE DIALOGUES

On the ‘big day’, the discussion basically broke into five key dialogues; we’re going to be covering these across the next four issues of Middle East Consultant. In this issue, logically enough, we’re focusing on the first Dialogue.

Dialogue #1 - The threat of rising prices

The consensus view was that the UAE and Saudi Arabia are very much operating ‘in a bubble’, separated economically and geopolitically from what’s happening in the rest of the world. So, we had better make the most of it!

Yet, this protective bubble doesn’t come without a cost. One of the consequences of being protected from international, downward market forces is that it’s very easy for companies - contractors, consultants, architects, and so on - to get work at the moment. But because costs are generally very high, it’s exceptionally hard to make any money from it.

Costs are often the highest they have ever been in the region: rent, salaries, training and a host of corporate essentials are at exorbitant pricing levels. So, we are now seeing a lot of pressure on margins: perhaps more than ever before. This is driving more and more companies to set up satellite hubs in nations such as Vietnam, Thailand and the Philippines, where labour and rental costs are traditionally at a far lower gearing.

Yet there is another, deeply disturbing, factor at play here too. Costs in this region are now so high, we are actually seeing businesses setting up satellite hubs in the UK and Australia - because even those nations are significantly cheaper than here!

One example of the surprising cost

differentials is the fact that a senior architect will be earning 30% more salary in the UAE than in the UK - and that is even allowing for the 41% personal income tax.

Are these pricing differences and the impact of rising costs the result of the war in eastern Europe? The overwhelming conclusion was ‘no’. At a certain time early in the war, there was indeed a spike in oil prices, for example, but now, these are at the same level as they were before the war started. Similarly, while the cost of steel rebar is currently rising, it’s still only at the level of $602 per tonne - again, this is a fraction of the price it rose to in the early stages of the war.

Other costs, though, are rising dramatically: take, for example, the average ‘fitting and finishing’ cost per sq.m. for a villa in Dubai. This has gone from an average of $30-35 per sq.m. in 2020 to a current figure of $50-55 per sq.m.

The result is that developers tend to be ‘sitting it out’ - delaying projects until prices get back to normal. There was a

consensus around the table, in fact, that developers are very adept at doing this…

Yet there is also the danger that in a climate of rising prices, many contractors will try to ‘cut out the middle man’, often taking on board considerable risk in the process. There is also the extra dynamic that, at present, contractor’s order books are ‘full to the brim’ - but if they don’t have adequate resources to supply the client, they would be heading for disaster. So, in the building sector, both of these tendencies are increasingly leading developers to set up their own procurement offices in countries such as Turkey, dealing with the raw materials purchasing directly, rather than going through a wholesaler. In so doing, they may save 15-20%, but in turn, they take on board the risk of catastrophic failure if the materials prove to be of inferior quality, if they are in any way faulty, or if there are severe supply issues.

Now, see next month’s issue of Middle East Consultant for Dialogue #2 - Do rising prices and geopolitics lead to more adversarial behaviour?

Dialogue #1 was dedicated to a discussion as to whether rising costs were having an adverse effect on the Construction market.

mart cities are becoming increasingly popular worldwide. Currently, there is a growing interest and commitment among organisations and government bodies towards smart city development. Information communication technology (ICT) has paved the way for transforming cities with smarter and more sustainable infrastructure that has greatly influenced urban policymaking and planning. From the adoption of new technologies and the Internet of Things (IoT) to the creation of greener infrastructure and the promotion of eco-friendly transportation, cities around the world are finding innovative ways to address the challenges of urbanisation and climate change. Saudi Arabia's recent project to build Neom, a futuristic megacity with a budget of over USD500bn, is a prime example of the growing interest in smart cities around the world.

According to the International Telecommunication Union (ITU), one of the UN’s specialised agencies for ICT innovations, nearly 70% of the global population will be living in cities by the year 2050. Likewise, the global smart cities market is anticipated to grow from USD457bn in 2021 to USD873.7bn by 2026. In response to an increasingly urbanising world, the United for Smart Sustainable Cities (U4SSC) was launched by the United Nations (UN) introducing key performance indicators (KPI) as part of its initiative to promote smarter and more sustainable living in cities. The KPIs consisted of a comprehensive framework for cities to track and evaluate their progress over time and identify areas for improvement.

DOES ‘SMARTER’ EQUAL BETTER?

The huge buzz surrounding artificial intelligence (AI) and futuristic cities powered by the internet of things (IoT) has raised both concerns and excitement regarding the prospects of these technologies transforming urban living. In this feature article from Micah Aguilar, Middle East Consultant dives deeper into the mechanics of what makes a city ‘smarter’…

Technology

In terms of global ranking in smart cities development, the recent publication of the smart city index report by the Swiss business school, Institute for Management Development (IMD) revealed a staggering 141 cities taking the leap to transform their urban ecosystems, with countries in Asia and Europe ahead of the pack. The IMD's ranking not only suggests a growing focus on improving the quality of life but also establishes a benchmark for cities to continuously enhance their ICT practices to attain higher levels of intelligence and sustainability.

Simply put, the concept of a smart sustainable city aims to utilise digital innovation in planning, designing, and managing cities with the main goal of creating a more liveable, efficient, and sustainable urban environment. This grand transformation is geared towards enhancing the quality of life of the residents by concentrating on key sectors, such as transportation, energy, water and waste management, public safety, healthcare, and education.

On a more technical note, behind the comprehensive and interconnected systems enhancing city living is the information collected and analysed to optimise urban environments. Tarek Abdoun, programme head and professor of civil and urban engineering at New York University in Abu Dhabi, shared his expertise on the subject and breaks down the key elements that defines a smart and sustainable city. He notes that the effectiveness behind the functionality of a smart city concept goes beyond installing sensors and renewable energy.

“A smart city is about instrumentation and data collection. And the data doesn’t have to come from an instrument installed in a building, but it could be from people driving their cars and using their mobile devices. The main concept of smart cities is being informed as you go when making decisions. Its overall mission is to optimise the city functions, help drive the decision for economic growth and improve the quality of life based on information collected,” he says.

Smart cities, with their emphasis on efficiency and sustainability, are designed to help mitigate the environmental impacts caused by urbanisation. For instance, shifting to renewable energy sources like solar panels to power buildings can reduce dependence on non-renewable energy generated from fossil fuels. However, Tarek Abdoun notes that prolonging the life expectancy and careful selection of raw materials used in construction are also crucial factors in sustainable infrastructure.

“Green buildings involve more than just renewable energy and using less resources. It starts from the design phase. This part is crucial where efforts are made to minimise resource usage, select sustainable building materials, and limit carbon production during construction.

“Another important aspect of sustainable infrastructure which is often overlooked is prolonging the lifespan for existing structures. Typically, when we design a new building, the life expectancy is usually around 50 years until its eventually demolished. Economically, that’s very expensive. But if we could increase the building’s lifespan to 100 years or even 75 years, that would have a huge impact in terms of sustainability and the ecosystem.”

Apps also play a significant function to increase connectivity and are commonly used in smart cities to provide access to various city services such as public transportation, waste management, and public safety. Additionally, many cities are also developing self-service kiosks and other interactive displays that provide similar services in public spaces. Cities like Dubai provide access to government services in the form of apps, which have made it possible for its residents to access its services anywhere and at any time. For example, applications like the Dubai Police app were designed to offer safety services to UAE residents, provide realtime updates regarding traffic conditions, and report accidents.

Harpreet Seth, Director of Architecture Studies at Heriot-Watt University in Dubai, believes that people are the core

Smarter living should be aimed at engaging citizens with experiences that will give a sense of ownership to people and that sense of belonging to their smart community”

stakeholders in the design, delivery, and overall operation of smart cities or “smart people-oriented cities”. Considering its significant reliance on connectivity and automation, it is also vital to know if and how technologies are able to improve the quality of people’s lives.

“It’s all about smart liveability and the experiences that comes out of those. Smart liveability essentially includes the public safety and environmental footprint that a community or a city would have. It is important that when we integrate these technologies within the urban infrastructures is that our focus remains on people.”

Inclusivity and inter-city collaboration were one of the key findings presented on the 2023 IMD Smart City Index report, revealing a significant level of importance towards tolerance and openness for minorities and immigrants for a successful smart city growth. Such results indicate that people are an essential benchmark that defines liveability in future cities.

“Beyond green infrastructure and renewable energy, I think we really need to look at its potential to engage people and communities. Smarter living should be aimed at engaging citizens with experiences that will give a sense of ownership to people and that sense of belonging to their smart community,” added Seth.

On the other hand, there is also the growing concern surrounding privacy and sensitive data leakage associated with digital innovation and widescale data collection within urban communitiesdata of citizens that can be vulnerable to misuse or theft, leading to potential privacy breaches. Abubakr Sajith, founder of Dubai-based education data company, Talysis Education, argues that significant reliance on automation, as well as internet connectivity, are necessary for achieving a smart city concept.

“Privacy is a concern for everyone, and nobody is a fan of having their data collected. Which is why we try to maintain the highest standards of security and transparency to achieve a level of trust our users can rely

on. But to some extent, the effectiveness of most systems requires a certain amount of information to perform at an optimum level, but it shouldn’t be at a point that’s very intrusive,” said Sajith.

Talysis places a strong emphasis on smart education with the use of innovative technologies to provide a more effective and efficient learning experience. Through the power of facial recognition technology, the company created a tool that can measure the level of understanding of students during classes and provide realtime feedback to teachers.

“With our system, we took into consideration the risks of data leakage and breaches, which is why as a precaution we opted out of storing personally identifiable data. Instead, we store it as a class so that you can’t really go back and see each student. It’s certainly a disadvantage of the system, but in this case, we have to take an ethical route rather than taking an effective route.”

Smart cities are an increasingly popular concept worldwide, with growing interest and commitment from organisations and government bodies towards smart city development. Evidently, ICT and AI has greatly influenced urban policymaking and planning with the integration of more sophisticated systems into urban spaces to enhance quality of life. But amidst the proliferation of technologies, it is essential to remember that people remain to be the core stakeholders in this development and therefore, inclusivity and diversity play a defining factor in shaping living experiences in cities.

While the effectiveness behind the functionality of smart cities goes beyond installing sensors and renewable energy, the comprehensive and interconnected systems enhancing city living rely heavily on data collection and analysis to optimise urban environments. However, despite the privacy risks associated with storing and collecting data, significant reliance on automation and internet connectivity is essential and almost unavoidable for a city to become smarter.

A smart city is about instrumentation and data collection. And the data doesn’t have to come from an instrument installed in a building, but it could be from people driving their cars and using their mobile devices”

The Pluses and Minuses of 3D Printing

3. Print-on-Demand

Print-on-demand is another advantage; because 3D Printing is so quick, there’s no need for stockpiling inventory, meaning huge savings in storage space and inventory stockpile costs. There is simply no need to print in bulk unless required.

The 3D design files are all stored in a virtual library as they are printed using a 3D model as either a CAD or STL file. This means they can be located and printed when needed. Edits to designs can be made at very low costs by editing individual files without wastage of out-of-date inventory and investing in re-tooling.

4. Strong and Lightweight Parts

irstly, what are the pluses of using 3D Printing in construction?

There are important advantages related to project design, time and cost, amongst others, and this list of ‘pluses’ should certainly include the following -

1. Flexible Design

3D Printing allows for the design and print of far more complex designs than traditional

manufacturing processes. More traditional processes have design restrictions which no longer apply with the use of 3D Printing. This applies not to only to sheer intricacy of shapes; it’s a sobering thought to bear in mind that the vast majority of ‘finishing’ activities and techniques - damascening, tooling, etc. - can now be manufactured as an integral part of the structure, rather than applied later.

2. Rapid Prototyping

3D Printing can manufacture parts within hours, which speeds up the prototyping process. So when compared to machining prototypes, 3D Printing is inexpensive and quicker at creating parts, allowing for each design modification and its testing to be completed at a much more efficient rate.

The main 3D Printing material used is plastic composite, although some metals and ground wood or mineral composites can also be used for 3D Printing. Plastics offer advantages as they are lighter than their metal equivalents. This is particularly important in industries such as automotive and aerospace where light-weighting is an issue and can deliver greater fuel efficiency. The newest generation of materials can bring both great compression resistance and tensile strength, especially given that bracing and reinforcements can be built into the core design. Also, parts can be created from tailored materials to provide specific properties such as heat resistance or water repellency.

5. Fast Design and Production

Depending on a part’s design and complexity, 3D Printing can print objects within hours, which is much faster than moulded or machined parts. It is not only the manufacture of the part that can offer time savings through 3D printing, but also the design process that can be very quick - simply creating STL or CAD files ready to be printed.

6. Minimising Waste

The production of parts only requires the materials needed for the part itself, with little or no wastage as compared to alternative methods which are cut

From being used strictly for small or single-storey properties - or to create specific components for fit-out - 3D Printing has graduated to being a master construction method, regularly providing modular framework for buildings in excess of 150m. Yet just as it has strong advantages it brings with it very significant compromises and drawbacks. Middle East Consultant spoke to engineering specialists TWI-Global about the various pluses and minuses…

from large chunks of non-recyclable materials. Not only does the process save on resources but it also reduces the cost of the materials being used. This is not to deny that factors like on-site assembly will require a level of sanding-down, filing away rough joins and surfaces - but this will only imply very minimal wastage.

7. Cost-effective

As a single-step manufacturing process, 3D Printing saves time and therefore costs associated with using different machines for manufacture. 3D printers can also be set up and left to get on with the job, meaning that there is no need for operators to be present the entire time. As mentioned above, this manufacturing process can also reduce costs on materials as it only uses the amount of material required for the part itself, with little or no wastage. While 3D Printing equipment can be expensive to

Even relatively large infrastructure assembly can use drastically fewer teams on-site, with the help of 3D printed modular units.

buy (particularly larger-format machines), with smaller projects it’s possible to avoid this cost by outsourcing the project to a 3D Printing service company.

8. Low transport costs

3D printers are becoming more and more accessible with an increasing number of local service providers offering outsourcing services for manufacturing work. This saves time and doesn’t require expensive transport costs compared to more traditional manufacturing processes that may require transport from overseas manufacturing hubs such as China, Korea or Vietnam.

9. Environmentally Friendly

As 3D Printing technology reduces the amount of material that’s wasted, the process is inherently environmentally friendly. However, the environmental benefits are extended when also considering factors such as improved fuel efficiency from using lightweight 3D-Printed parts and massively reduced transport costs, with all the fuel and resources that might otherwise entail.

Now, what are the disadvantages of 3D Printing?

As with almost any other process, there are also drawbacks in 3D Printing technology which should be considered before opting to invest in a large-scale commitment, or a transition away from other manufacturing processes or technologies.

1. Limited Materials

While 3D Printing can create items in a selection of plastics, composites and metals the available selection of raw materials is not exhaustive. This is due to the fact that not all metals or plastics can be temperature-controlled enough to allow 3D printing. In addition, many of these printable materials cannot be recycled (and incidentally, very few are food safe).

2. Restricted Build Size

3D printers currently have small print chambers which restrict the size of parts that can be printed. Anything bigger will need to be printed in separate parts and joined together after production. This can increase costs and time, as not only does the printer then need to print more parts, but manual labour will subsequently have to be used to join the parts together.

Due to this, many of the larger building projects using 3D Printing have had more of a ‘novelty value’ than a real cost-saving benefit, since they have actually required as many people on-site as traditional assembly techniques using manufactured parts.

Image © Anthony Vu.

3. Post Processing

Although large parts require postprocessing, as mentioned above, most 3D Printed parts need some form of cleaning up to remove support material from the build and to smooth the surface to achieve the required finish. Post-processing methods used include water-jetting, sanding, a chemical soak and rinse, air or heat drying, assembly and others. The amount of post-processing required depends on

factors including the size of the part being produced, the intended application and the type of 3D Printing technology used for production. So, while 3D Printing allows for the fast production of parts, the speed of manufacture can be slowed quite dramatically by post processing.

4. Large Volumes

3D Printing is a static cost, unlike more conventional techniques such as injection moulding, where large volumes may be more cost-effective to produce ad cist reduces in direct proportion to quantity. While the initial investment for 3D printing may be lower than other manufacturing methods, once scaled-up to produce large

volumes for mass production, the cost per unit does not reduce as it would with these other methods.

5. Part Structure

With 3D Printing, parts are produced layer-by-layer. Although these layers adhere together it also means that they can delaminate under certain stresses or orientations. This problem is more significant when producing items using fused deposition modelling (FDM), while polyjet and multijet parts also tend to be more brittle. In certain cases it may be better to use injection moulding as it creates homogenous parts that will not separate and break.

6.

Impact on economies through reduction in Manufacturing jobs

Another of the disadvantages of 3D technology is the potential reduction in human labour, and the concomitant impact on national economies and employment levels. Many Developing and Third World countries rely on low-skill jobs to keep their economies running, and this technology will undoubtedly put these manufacturing jobs at risk, as it cuts out the need for production abroad.

7. Design Inaccuracies

Another potential problem with 3D Printing is directly related to the type of machine or process used, with some printers having lower tolerances, meaning that final parts may differ from the original design. This can be fixed in postprocessing, but it must be considered that this will further increase the time and cost of production.

8. Multiplication of errors

3D Printing can not only roll out all the benefits of the design that’s been used, but all the disadvantages too - which can then become an inherent flaw in thousands of units produced. Building framework manufacture is a cogent example, whereby if one piece lacks sufficient compression strength, they all will.

In recent years, the sheer scale of possible 3D output has increased dramatically, enabling the creation of sub-communities or structures in excess of 350m.

Image © Apis Cor.

veryone knows that cybersecurity is a must: as individuals, we are all familiar with the massive upturn in ‘cheap’ attempts at online fraud which bombard our company e-mail accounts - but these are simply the poor relations of highly sophisticated attacks which have grown exponentially in the last few years (up 214% since 2017, according to McAfee).

Meanwhile, Istanbul-based international digital security firm, Kron Technologies, explains that this is leading to Boards across the globe having a new set of priorities: today, an emphasis on data privacy laws, ransomware attacks, cyber-physical systems, and board-level audits drives the priorities of security and risk leaders on the C-Suite. In fact, perhaps the most important question now being asked as a consequence of cyber risk is: "How do we ensure that our customers and clients are not physically harmed by fraudsters?"

This, according to Kron, is the question that security and risk leaders must anticipate for the future; and they must plan accordingly.

The proliferation of cyber-physical systems, which include systems that combine the cyber and physical worlds for technologies such as autonomous cars or digital twins, poses another security risk for organisations. How cyber-attackers can target these systems is one of the most important predictors for the coming years.

It’s now a truism that security and risk management has become a Board-level issue for organisations. At global data specialist Gartner, for example, analysts envision an environment in which factors such as greater decentralisation, increased regulation, and security implications will be more severe.

In fact, for Gartner, there are eight key important cyber security predictions:

1. By the end of 2023, modern data privacy laws will cover the personal information of 75% of the world's population.

The General Data Protection Regulation (GDPR) from the EU was the first major consumer privacy legislation, but others quickly followed, including Turkey's Personal Data Protection Act (KVKK), Brazil's General Personal Data Protection Act (LGPD), and California's Consumer Privacy Act (CCPA).

The scope of these laws means that companies will manage multiple data protection laws in various jurisdictions - and customers will want to know what kind of data your business is collecting from them and how it is used. This also means that companies need to focus on the automation of a solid data privacy management system.

2. By 2024, organisations that adopt a cybersecurity network architecture will be able to reduce the financial costs of security incidents by an average of 90%.

Organisations now support a variety of technologies in different locations, so they need a flexible security solution. The cyber safety net expands to include identities outside the traditional security perimeter and creates a holistic view of the organisation. It also helps improve security for remote working. These demands will accelerate the transition to this approach over the next two years.

From Cyber to Physical

often overlooked that A.I.with all its smart capabilitiescan now be embedded in sophisticated cyber attacks.

When it comes to the damage that cyber attacks can do, the focus is set to shift from business interruptions to physical harm. If that’s not daunting enough, we’re already seeing cybersecurity risk becoming massively influential in thirdparty transactions and business relationships. Middle East Consultant spoke to Kron Technologies about the challenges - and what’s next on this troubling horizon…

3. By 2024, 30% of enterprises will deploy cloud-based Secure Web Gateway (SWG), Cloud Access Security Brokers (CASB), Zero Trust Network Access (ZTNA), and Firewall as a Service (FWaaS), sourced from the same vendor. Organisations are turning to optimisation and consolidation. Security leaders typically manage dozens of tools, but they plan to reduce that number to even less than 10. From this perspective, SaaS will become the preferred delivery method and consolidation will affect hardware adoption times.

4. By 2025, 60% of organisations will use cybersecurity risk as the primary determinant in conducting thirdparty transactions and business relationships.

This is already happening. Investors, especially venture capitalists, use cybersecurity risk as an important factor in evaluating opportunities. Organisations are increasingly looking at cybersecurity risk during business deals, including mergers and acquisitions and vendor agreements. As a result, there may be requests for more data

about a partner's cybersecurity programme, through surveys or security ratings.

5. The percentage of nations that enact laws regulating ransomware payments, fines and negotiations will increase to 30% by the end of 2025. Pay up or else? Even if your company has the money, deciding to pay up may not be all that simple. While broader regulations currently apply to ransomware payments, security experts may face increasingly strict measures on payments. Given an - as yet - unregulated crypto-currency market, paying the ransom has ethical, legal and moral implications, and it's vital to consider the implications. The decision to pay (or not) should be left to a cross-functional team that can address all these concerns.

6. By 2025, 40% of boards will have a dedicated cybersecurity committee overseen by a qualified board member.

As cybersecurity has become (and remains) a top issue for Boards of Directors, companies can expect a Boardlevel cybersecurity committee and tighter oversight. Importantly, this increases the visibility of cybersecurity risk across the organisation and requires a new approach to board reporting, the details of which may depend on the background and experience of specific board members. In this respect, businesses should conduct a communication that focuses on risk and cost values.

7. By 2025, 70% of CEOs will build a culture of corporate resilience to protect themselves from threats from cybercrime, severe weather events, social events, and political instability. Being able to cope with a host of broader risks will be the hallmark of a quality enterprise. That means going beyond cybersecurity and enterprise resilience to thrive in much wider security environments. Meanwhile, the now prevalent passion for digital transformation adds extra complexity to the ‘threat landscape’, which will further affect how businesses produce products and services.

8. By 2025, cyber-attackers will be able to use operational technology environments as weapons successfully enough to cause human casualties. Beware: as malware spreads from IT to OT, the focus is shifting from business interruptions to physical harm. So, the risk arena changes dramatically and irrevocably. Who must take responsibility here? The final responsibility rests with the CEO. Meanwhile, this scenario demands a focus on asset-centred, cyber-physical systems, while ensuring the right teams are in place to handle the appropriate (and resource-heavy) management they will require.

Cyber security, rather than existing in an abstract plane, is the gatekeeper to protect staff from dangerous scams, potentially involving physical harm.

n 4th April 2023, the UAE’s Ministry of Energy and Infrastructure activated the digital signature and verification feature in its UAE Pass for engineering project contracts. This will now allow consultants and contractors to use the UAE Pass to sign electronically on bids and contracts, while still maintaining the highest levels of information privacy and protection.

Of course, the new option for digital signature and verification is aligned with the UAE’s commitment to achieving a fully digital working environment. It will potentially speed up the contractual process, removing the need for physical delivery or travel, with the option for completely remote document approval and clearance. This will no doubt be particularly important for large, multi-stakeholder projects, where the need for traditional signature chains can be costly and time-consuming.

Notwithstanding, this move will take many businesses into otherwise uncharted territory, and so it’s useful to review a

number of the key issues around digital signatures, their applicability, usefulness - and indeed, their legal standing when compared to normal, physical signatures.

First things first. An electronic signature, or e-signature, is simply data in electronic form used by a signatory to confer their assent on an electronic document. This doesn’t mean, however, that the e-signature on a $500 million-dollar construction contract is necessarily the same as your credit card company requires when you’re sent a new credit card. While an e-signature can be as simple as a name typed into an electronic document, it can also be something much more sophisticatedusing a complex code encrypted by a digital security mechanism. This can be an agreed numerical sequence (as opposed to a name being signed) which can be agreed in advance by key parties, usually in the presence of an assigned lawyer.

If all this sounds very hi-tech, in essence it is nothing very new. Courts in the USA and UK, for example, have recognised the validity of faxed signatures since the 1980s. In some jurisdictions, even telegraphic signatures have been found legally valid, dating back as far as the mid-19th Century.

While the concept is old, the unprecedented popularity of e-signing, particularly in high-worth industries like construction, is certainly something new. Now, the reality is, construction consultants who fail to embrace e-signing

While we are all familiar with the onscreen signatures we use to validate credit card issuance, in reality, a digital signature can involve deeply embedded encryption that greatly benefits its key stakeholders.

risk being left behind by competitors. On the other hand, those who do so without fully understanding the implications of moving to a system of electronic signing risk rendering their business contracts unenforceable. Construction professionals who wish to remain industry leaders need a solid understanding of both the potential benefits of digital signatures, and the potential pitfalls.

WHAT ARE THE BENEFITS?

The first benefit is simple: time is money. There are a thousand reasons a construction project might be delayed, but waiting around for the delivery and return of physical documents should not be one of them. A document can be electronically signed in seconds. Moreover, all the stakeholders can sign simultaneously: two (or more) parties on opposite sides of the globe, as long as each has access to an internet connection, can sign the document at the same time. Done deal.

Yet speed is far from being the only benefit. Documents that are fully electronic save on printing and storage costs. These costs can add up for a upscale construction company that might generate thousands of signed documents every year. From a public relations perspective, cutting out the wastefulness of printed paper documents is also an easy and lowcost way to secure a reputation as a “green” company. Furthermore, documents signed and maintained in an electronic format are more easily archived, and more easily searchable, than paper documents.

There is another factor, too. Perhaps surprisingly, electronic signatures even allow for added security benefits compared to signing paper copies. After signing,

The days of traditional, physical signatures on contracts are numbered, as e-signatures become more and more prevalent. But what exactly are the advantages and the limitations of going digital? Middle East Consultant investigates…

Your Pen or Mine?

e-signed documents can be tamper-sealed. Paper documents, however, are always open to tampering by more conventional methods. Even a skilled computer hacker cannot crack into a properly tamper-sealed electronic document, but anyone with a steady hand, or access to a home printer, can make startlingly subtle alterations to paper documents.

All that being said, it’s not always quite so simple. If a company does not implement a system of electronic signatures carefully, there can be real risks. In order to realise the many benefits of e-signatures, construction companies must take action to minimise the risks.

SAFETY AND SECURITY

There was a time - perhaps only 30 years ago - in the GCC nations when many of the biggest deals were seldom, if ever, underwritten by a signed, physical contract: they simply hinged on a verbal agreement (for example, even today, many of the key food and beverage franchises, involving household-name European

or American brands, have never been supported by a contract). Today, though, it is almost universal to recognise the value and absolute necessity of having strong, enforceable contracts, in writing. This makes it all the more important to understand the potential shortfalls and ‘snags’ of electronic signatures, and when necessary, to be able to explain how those more negative aspects are best avoided.

Let’s start with Enforceability questions. For many would-be stakeholders, the first question is likely to be, ‘Is an e-signature legally enforceable?’ A signatory may wonder whether an electronic signature is as legally valid as a signature made by hand, with a pen. In most cases, the answer is yes.

Generally, an instrument signed electronically is just as enforceable in court as one traditionally signed on paper. A document signed electronically is therefore legally equivalent to the same document printed out and signed by hand.

Worldwide, the United States has probably the most evolved definitions of what can qualify as an electronic signature. The U.S. Uniform Electronic Transactions Act defines an electronic signature as “an electronic sound, symbol or process, attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.”

Then, what about the risk of Forgery?

Probably the most common fear among the e-signing uninitiated is forgery or fraud: a person signing a document pretends to

Construction professionals who wish to remain industry leaders need a solid understanding of both the potential benefits of digital signatures, and the potential pitfalls”

be someone else, or a person signing a document then later claims that s/he did not in fact sign the document.

The reality is, though, that very few contract disputes are related to the identity of the contracting parties or the authenticity of the signatures on the documents. Even so, neither paper signatures nor electronic signatures are fully resistant to fraud, and occasionally accusations of forgery or fraud do come up in the e-signature context. Fortunately, the two easiest ways to avoid forgery or fraud allegations when dealing with electronically signed documents are the same things that are best practices anyway in the business process of obtaining e-signatures.

The first is to use aligned, complimentary businesses processes. It is going to be hard for a signatory to claim it was not her who in fact e-signed a document if the other party can produce outgoing and incoming emails showing receipt and return of the signed document from the signatory's individual email address.

The second common method to prevent forgery or fraud in e-signing is by using security software. The reality is that it is very (extremely!) rare for a forgery or fraud claim to arise out of the electronic signing

of a document. Such claims are relatively easy to prevent with basic precautionary measures. In fact, even e-mailing a document for e-signing is more secure than sending a paper document, as people need unique user names and passwords to log in to email accounts - whereas anyone can pick up a loose paper document if it’s left unattended.

THE VALUE OF LEGAL HELP

It should be obvious by now that the transition to e-signatures has many advantages: the e-signing of documents can be a very solid pathway to reduce overheads, streamline business practices, and become a much ‘greener’ business into the bargain - all with very little risk. Yet nothing connected with contractual procedures should ever be taken lightly. Moving towards e-signing should be a careful process monitored and advised by the company’s law firm or in-house counsel. A qualified lawyer is best-placed to advise on the business practices which will ensure enforceability and prevent fraud and can then, as a concomitant next step, create documents specifically formatted for the benefits of encrypted e-signing.

One of the challenges inherent in any contract signature is the risk of forgery, but this can be greatly reduced by advanced approaches to digitisation.

While an e-signature can be as simple as a name typed into an electronic document, it can also be something much more sophisticatedusing a complex code encrypted by a digital security mechanism”

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Threat & Risk Assessment

Gap Analysis

Security System Design

IT/AV Design

Master Planning & Development

Operational Requirements

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Testing & Commissioning

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System Integration

Policies & Procedures

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Site Surveys & Audits

Crisis Management