ME Consultant October 2019

FOR THE CONSTRUCTION SPECIALIST

Design Reimagined MEC speaks to RSP’s Prabhanjan Kambadur, Ralf Steinhauer and Michael Magill about establishing a global design hub in this special issue dedicated to the retail & hospitality sector

ISSUE 063

October 2019 Licensed by Dubai Development Authority

CONTENTS

On topic INDUSTRY VIEWS FROM ACROSS THE MIDDLE EAST

04

06

06 ANALYSIS

JLL shines a light on the supply and performance of Jeddah’s residential, retail and hotel sectors in Q2 2019 10 NEWS

Ramboll appoints new global director of Global Buildings division; Class of Your Own launches Design Engineer Construct! in Dubai 14 OPINION

CBRE’s Gabriella De La Torre states that experience has never been more important as the UAE’s hospitality and retail sectors adapt to changing consumer habits

13

14

In practice ANALYSIS, INSIGHTS AND INTERVIEWS

16 INTERVIEW

Jason Saundalkar talks to RSP’s Prabhanjan Kambadur, Ralf Steinhauer and Michael Magill about establishing the Dubai studio as a global design hub and their plans for growth

16

22

22 FEATURE

Co-living communities and co-working spaces have become a growing part of the UAE’s real estate sector, but what’s driving these trends and what impact will they have? MEC investigates

On site CASE STUDIES, OPINIONS AND SNAPSHOTS

26

32

32 OPINION

Bentley Systems’ Greg Demchak discusses bringing construction planning into the 3D realm 36 PROFILE

We talk to AMPM’s Anita Manoj about her influences, career and gender diversity in the construction industry 40 THE BACK PAGE

Faithful+Gould’s Lay Kiat Neo on working as a PM in the Kingdom

34

36

OCTOBER 2019 1

WELCOME

Group EDITOR’S NOTE

Experience Is Still King The retail and hospitality sectors are two extremely important components of the UAE’s economy, led primarily by Dubai and Abu Dhabi. Both emirates invested heavily into developing these sectors in the last decade with a variety of complex mega projects that have captured the attention, and spend, of local and international audiences. More recently, other emirates have increased their focus on these sectors to not only serve their own residents but also broaden their international appeal.

Over the last couple of years, however, a variety of elements has put significant pressure on these sectors, and that continues today. Analysts point to a variety of factors: a weak global economy, a stronger US dollar and therefore a stronger UAE dirham (as the latter is pegged to the former), pressure from e-commerce and online tourism brokers such as Airbnb, and even the introduction of VAT in the UAE in 2018.

Whatever the reasons, both sectors are not as robust as they once were; however, that’s not to say they’ve had their day and will never recover – far from it. After years of healthy growth, players in both sectors must contend with a different reality.

Whether they are developers, retailers or hotel operators, firms that saw the writing on the wall and prepared ahead of time are in better positions than those that didn’t. The good news for those playing catch-up is that there’s still time to act.

The customer/guest experience has always been a key part of the retail and hospitality sectors, and this is unlikely to change going forward. In fact, today experience is more important than ever, and for those that provide unique or high-quality experiences, it’s a very powerful differentiator, whether you’re talking about a shopping mall, a retail store or even a hotel.

Customers no longer settle for standard or average; they expect a fantastic experience when they arrive, when they spend money and when they need help. Decision-makers who understand this, and adapt their businesses, will outlive their non-reactive competitors, no matter the challenge.

Jason Saundalkar Editor, Middle East Consultant 2 OCTOBER 2019

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ON TOPIC

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

THE POWER OF EFFECTIVE COMMUNICATIONS IN CONSTRUCTION

Empower announces construction of Jumeirah Village plant is 80% complete

I read this article with a lot of interest and, while this centres largely on marketing, it occurred to me just how difficult it is to avoid being reactive and relying on gut instinct in

CONSTRUCTION

daily work without a clear

Neom awards Construction Village contracts to AlTamimi Group and Satco

communication strategy across the organisation.

This isn’t just a fault of the construction industry but

Feature: ‘Class Of Your Own’ launches ‘Design Engineer Construct!’ in Dubai

of business as a whole. As individuals we often fall back on our experience to make informed

CONSTRUCTION

decisions but how much

Sliding phase on world’s largest cantilever begins at One Za’abeel

better would they be if we kept a clear head when all around were losing theirs? Managing upwards, sideways and downwards through effective communication is absolutely essential in construction and

CONSULTANT

can act as a check and

Abu Dhabi residents to use e-scooters to help keep communities green

balance against the often entrenched views you may find on a project.

So, whatever service or product you bring to the construction team, clear messaging from the start is vital and that stays true

CONSTRUCTION

Tasmim’s Habitat project on track for Q1 2022 completion

4 OCTOBER 2019

Insight: JLL’s Thierry Delvaux on Dubai’s new higher committee for real estate planning

through to the end.

Name withheld by request

ON TOPIC

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

THE POWER OF EFFECTIVE COMMUNICATIONS IN CONSTRUCTION

Empower announces construction of Jumeirah Village plant is 80% complete

I read this article with a lot of interest and, while this centres largely on marketing, it occurred to me just how difficult it is to avoid being reactive and relying on gut instinct in

CONSTRUCTION

daily work without a clear

Neom awards Construction Village contracts to AlTamimi Group and Satco

communication strategy across the organisation.

This isn’t just a fault of the construction industry but

Feature: ‘Class Of Your Own’ launches ‘Design Engineer Construct!’ in Dubai

of business as a whole. As individuals we often fall back on our experience to make informed

CONSTRUCTION

decisions but how much

Sliding phase on world’s largest cantilever begins at One Za’abeel

better would they be if we kept a clear head when all around were losing theirs? Managing upwards, sideways and downwards through effective communication is absolutely essential in construction and

CONSULTANT

can act as a check and

Abu Dhabi residents to use e-scooters to help keep communities green

balance against the often entrenched views you may find on a project.

So, whatever service or product you bring to the construction team, clear messaging from the start is vital and that stays true

CONSTRUCTION

Tasmim’s Habitat project on track for Q1 2022 completion

4 OCTOBER 2019

Insight: JLL’s Thierry Delvaux on Dubai’s new higher committee for real estate planning

through to the end.

Name withheld by request

ON TOPIC

ANALYSIS

Jeddah Market Review Q2 2019

JLL discusses the supply and performance of Jeddah’s residential, retail and hotel sectors in Q2 2019

T

he real estate market in Jeddah remained subdued in Q2 2019. Office rents weakened further while vacancy rates showed annual improvement, mainly in quality office space.

With more supply expected to be handed over in the short term, office performance will likely remain under downward pressure.

In the residential sector, sale prices and rental rates continued to decline, albeit at a slower rate, indicating the market is close to the bottom of its cycle.

The retail sector registered mixed performance, with the better quality super regional malls with entertainment options recording stable rents, while regional centres saw rents drop. Meanwhile, hotel occupancy rates decreased marginally in the year to May 2019 compared to the same period in 2018. In turn, average daily rates and revenues per available room registered annual declines.

6 OCTOBER 2019

Residential Supply & Performance

Q2 2019 witnessed the handover of Bayat Plaza Tower One on Madinah Road (176 units), with Tower Two expected to complete later in 2019.

The completion of approximately 1,500 stand-alone units brings the total stock of residential units in Jeddah to 821,000, with a further 4,000 units expected to be handed over during the second half of the year.

Scheduled completions this year include the mid-rise Al Tawheed Tower along the Corniche (122 units), Emaar Residences Abraj Al Hilal 3 within Jeddah Gate (283 units) and the first phase of Manazil Al Safa. While most projects are nearing completion, some are either available for reservations only or are on hold until market conditions and sentiment improve. Looking ahead, and assuming no further delays in construction, an additional 14,000 units are expected to enter the market between 2020 and 2021.

ON TOPIC

Jeddah apartment rent and sale prices

Jeddah residential supply, thousand units Stock Annual supply 900

750

-10%

-6%

Rent Y-o-Y

Sales Y-o-Y

600

Jeddah villa rent and sale prices

450

300

150

2015

2016

2017

2018

2019

2020

-10%

-7%

Rent Y-o-Y

Sales Y-o-Y

2021

Performance in the residential market remained subdued in Q2 2019. Average rental rates declined 10% for both apartments and villas on an annual basis, while sale prices registered annual declines of 6% for apartments and 7% for villas. However, the rate of decline appears to have slowed down over the quarter as rents and sale prices dropped 1% and 2% respectively.

As more supply is expected to be handed over in the next 12 months, we expect sale prices and rental rates to drop further, albeit at a slower rate. While housing initiatives by the Ministry of Housing had a positive effect on access to home financing, some households are opting to hold back or pull out of buying a home as they anticipate further drops in residential prices. In the long run, however, and as economic activity picks up on the back of government efforts and housing initiatives, we

expect ownership rates to increase, thus exerting upward pressure on rents and prices.

Jeddah retail vacancy rates

Jeddah retail supply, milion sqm of GLA Stock Annual supply

11%

10%

Q2 2018

Q2 2019

Retail Supply & Performance

There were no notable mall completions in Q2 2019, leaving the total retail supply in Jeddah relatively unchanged at approximately 1.43m sqm. Looking ahead, the market is expected to witness an additional 75,000sqm and 172,000sqm of retail GLA in 2019 and 2020 respectively, with the potential completion of the retail component of Jeddah Park (Serafi Mall – 125,000sqm) on Tahlia Street. The remaining pipeline comprises neighbourhood and community centres, with notable projects including Atelier Lavie, Sunset Avenue, Obhur Mall, Manuel Square, Al Hamra Square and WOW.

1.8

1.5

1.2

Jeddah retail average rent

0.9

-3%

0%

0.6

Y-o-Y Regional

Y-o-Y Super regional

0.3

2015

2016

2017

2018

2019

2020

2021

OCTOBER 2019 7

ON TOPIC

Jeddah hotel supply, thousands of keys Stock Annual supply

Jeddah hotel occupancy

18

15

54%

53%

Q2 2018

Q2 2019

12

Jeddah hotel ADR (USD)

9

6

3

2016

2017

2018

2019

2020

Q2 2018

Q2 2019

2021

While several commercial-driven cinema multiplexes have emerged across the country, Q2 2019 saw the launch of the Kingdom’s first arthouse cinema, Cinema El Housh, in Jeddah’s historic Al Balad district. While this was introduced as part of the Jeddah Season festival, we can expect more initiatives to launch in the future as the Kingdom aims to increase household spending on entertainment and improve participation in cultural activities in line with Vision 2030.

Average retail rents in Jeddah saw mixed performance in Q2 2019.

While rents in regional malls fell 3% on an annual basis, rents in super regional centres remained stable over the same period. As landlords continued to offer yearly leasing incentives to retain tenants, marketwide vacancies decreased marginally to 10% y-o-y.

Looking ahead, retail rents and vacancies are likely to face further pressure as more supply is expected to enter the market over the next 12-24 months. This will give tenants more choice and negotiating power.

Pressure is also likely to mount from the growth of e-commerce in Saudi Arabia. The retail market is supported by many initiatives, such as the introduction of e-tourism visas in time for Jeddah Season 2019. Visitors

“Looking ahead, the recently-opened Neom Bay Airport, as part of the Neom Project, is expected to attract more investment, thus boosting demand in the hospitality market” 8 OCTOBER 2019

$215

buying online tickets for the festival can secure an e-tourism visa at the same time. We expect similar initiatives to be launched in order to promote both retail and tourism spend.

Hotel Supply & Performance

The second quarter saw the opening of one budget branded hotel, Ibis Jeddah Malik Road, adding approximately 180 keys. This brings the total supply of hotel keys in Jeddah to 11,900. A further 1,000 keys are expected to enter the market in 2019. These properties include Ibis Jeddah Alesayi Plaza, the new Jeddah Marriott in Al Bawadi, Crowne Plaza Jeddah and Park Inn by Radisson Madinah Road, the first property for the brand. Further growth in the branded serviced apartment segment is expected, with several properties due to be handed over in 2019, including Adagio Jeddah Malik Road and Adagio Alesayi Plaza.

Looking ahead, the recently-opened Neom Bay Airport, as part of the Neom Project, is expected to attract more investment due to enhanced connectivity, thus boosting demand in the hospitality market.

This is likely to reflect positively on the branded hotel segment as the city prepares to cater to a more diverse tourist base.

Hotel occupancy rates registered 53% in the year to May 2019, compared to 54% in the year to May 2018. Meanwhile, average daily room rate (ADR) declined 12% y-o-y to $215. In turn, revenue per available room (RevPar) dropped 13% to $114 over the same period.

In the face of a strong supply pipeline, hotel performance is expected to soften further over the remainder of the year.

Our view of the hotel market remains positive in the long run, given the government’s commitment to investing in huge projects that not only promote tourism, but also diversify the Kingdom’s tourist base. Particularly for Jeddah, which is dominated by religious tourism, these investments are likely to drive a mix of corporate, leisure, local and international visitors.

Source: JLL, Ministry of Justice, STR Global

2015

$244

Etihad Towers | Abu Dhabi | UAE

ON TOPIC

Ramboll appoints new global director of Global Buildings division Richard Beard has been announced as the new MD of Ramboll’s Global Buildings division.

He was recruited internally and will continue to hold his position as CEO of Ramboll’s Middle East and Asia Pacific business.

He will focus on growth and accelerating the firm’s international strategy for Ramboll’s buildings services with colleagues across the firm’s various markets.

“It is an incredibly exciting time right now for our buildings business, following our recent internationalisation with increased global collaboration across the company. I am really looking forward to working further with our international focus in this business area and particularly within smart and sustainable buildings, together with colleagues whom I already know as very competent, creative and dynamic,” said Beard.

Beard will continue the development of Ramboll’s Buildings, from what once was a geographically oriented business based on local relationships, to becoming a market-oriented business with an international mindset where global cross-border collaboration across the group is paramount, the statement said.

10 OCTOBER 2019

Class Of Your Own launches DEC in Dubai Education consultancy Class Of Your Own (COYO) has launched its Design Engineer Construct! (DEC) programme in Dubai, at Fairgreen International School. According to COYO, DEC is a STEAM-focused curriculum first unveiled by the firm in 2009.

According to a statement, young UK DEC students are securing careers in architecture, engineering and construction, and COYO is now appealing to organisations in Dubai to offer their support. The launch on 11 September saw parents of Fairgreen students gather at the school to learn more about the prospects the industry can offer through DEC. “I’m so proud to be bringing DEC to Dubai. Of all the places in all the world, and as the host of what will be an extraordinary World Expo, Dubai can offer its children and young people the most exciting opportunities to get behind the scenes of the world’s most iconic buildings and impressive infrastructure,” said Alison Watson MBE, CEO of COYO. Following a half-hour briefing on the day, Watson and ICE awardwinning DEC teacher Daniel McDonagh took attendees through the programme, highlighting areas that need support.

Watson concluded, “It’s imperative that Dubai pupils see the vast range of STEAM careers the construction industry can offer, and DEC can help them progress to a higher level of learning and ultimately employment.

The programme responds to key government priorities, addresses skills gaps and gives teachers unparalleled access to industry professionals.

It’s a win-win for everyone.”

Sheikh Zayed Grand Mosque | Abu Dhabi | UAE

ON TOPIC

Neom awards contracts for Construction Village

Emrill Services eyes expansion in Sharjah and Ras Al Khaimah Emrill Services has opened two new offices in the UAE, in a bid to grow its business via its range of hard and soft management and manned security services. The firm hopes to replicate its success in Dubai with its new offices in Sharjah and Ras Al Khaimah.

According to a statement, Sharjah and Ras Al Khaimah have experienced a development boom that has seen the creation of multiple residential, retail and hospitality developments.

Sharjah is launching a number of cities that will spread across huge land areas, including Aljada, Tilal City and the Al Zahia mixed-use community. The emirate is also set to build Sharjah Sustainable City, a $544m development featuring 1,120 villas, the firm said.

“For Emrill, expanding with new offices in Sharjah and Ras Al Khaimah is well timed and demonstrates the company’s commitment to our long-term business strategy. It comes as part of our plans to grow throughout the UAE and capitalise on our leading position in Dubai’s FM sector. With the opening of these new offices, we are building on years of success and are investing for future organic growth,” said CEO Stuart Harrison.

12 OCTOBER 2019

Al-Tamimi Group and Saudi Arabian Trading & Construction Company (Satco) have been awarded contracts to build, finance and operate Neom’s Construction Village for a period of 10 years.

The accommodation at Construction Village will host workers who will move to the site to develop various areas of the Neom mega project, located near the Red Sea. As per a statement, Al-Tamimi Group will develop two residential areas within the village, while Satco will build the third area. Each area will house 10,000 residents, and both firms will be responsible for operations for 10 years. The project can also be expanded as Neom develops, to accommodate more than 100,000 residents.

Both developers will build the residential areas with conditions in line with the best international standards for contractors’ accommodation, as per the IFC (International Finance Corporation), Neom said.

“The awarding of these contracts is another milestone in our journey to turn the Neom dream into a reality, and I’m happy to see our partners joining us to make this happen. Building a giga project the size of Neom is a great challenge that requires manpower to settle there for years to come, and we are keen on creating the best environment for those who will work and live there,” said Nadhmi Al-Nasr, CEO of Neom.

ON TOPIC

Arada begins handover of homes in Phase 2 of Nasma project

Three60 brings Circ e-scooters to AUH city Three60 Communities has partnered with Circ to provide e-scooters for residents of Reem Village, Marina Square and City of Lights in Abu Dhabi. The partnership is said to support Abu Dhabi’s Environment Vision 2030, which prioritises mitigating the impact of climate change and ensuring safe and healthy living conditions through clean air and reduced noise pollution.

Circ will hold education and training events in the communities to ensure safety and the best possible driving experience, as it promotes micro mobility.

“Three60 Communities, as one of the largest and most qualified OAM and PM companies in the region, is committed to ensuring we meet the expectations of our customers through the delivery of innovative solutions by our trusted and highly talented partners. Circ’s electric scooters offer residents an enjoyable, convenient and eco-friendly micro transport solution; they are also the fastest and most affordable transport option over short distances.

“We are certain they will be extremely well received as they enhance accessibility across public transport and intra-campus travel services, and we look forward to the positive impact our partnership with Circ will have on Abu Dhabi’s communities in the coming months and years. We have no doubts that it will be a huge success that will lead to similar initiatives in other cities throughout the Middle East,” said Chris Roberts, CEO, Eltizam Asset Management.

Both firms will now establish parameters including GEO zones, go/nogo zones, speed limits, parking and hotspot locations in the designated communities, ensuring that the scooters add value to residents’ living experience in a Three60 Community without inconveniencing any stakeholders.

Arada has begun handing over homes in Phase 2 of its Nasma Residences community in Sharjah.

The developer states that the first set of the 184 villas and townhouses in Phase 2 were completed on September 5, and the handover to owners is now underway.

Nasma Residences was launched in March 2017 and features 968 townhouses and villas in total, to be delivered over five phases. The firm is on track to hand over homes in Phase 3 by the end of the first quarter of 2020, and units in the final two phases by the end of the second quarter of 2020, a statement from Arada said.

“We’ve been stepping up the pace of handovers since we started delivering homes in Phase 1 of Nasma Residences in May. There are now only a limited number of units left for sale at this incredible new community, and we expect to be fully sold out by the end of this year,” said HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada.

Spread over five million sqft in the Al Tay suburb, the heart of New Sharjah, Nasma Residences is said to host a variety of amenities, including a GEMS international school and a 13-acre landscaped park.

OCTOBER 2019 13

ON TOPIC

OPINION 01 Gabriella De La Torre, director – Strategic Advisory at CBRE MENAT.

The Importance of Experience Experience has never been more important as the UAE’s hospitality and retail sectors adapt to changing consumer habits, says CBRE MENAT’s Gabriella De La Torre

01

I

n recent years, we have seen an increasing focus among consumers, particularly millennials and Gen Z, on experience.

People increasingly seek new experiences when they shop, dine and travel, and at the same time they want to be able to share these experiences with others, be it physically or digitally. With the growth of social media and the Instagram culture, consumers have more opportunities to do so than ever before. These trends are not only impacting the way people shop, eat and travel, but are also significantly impacting the physical spaces we interact with on a daily basis, especially within the retail and hospitality sectors.

14 OCTOBER 2019

Let’s take Gen Z as an example – while members of this generation are known as digital natives, they still crave brands and retailers that offer an immersive online and offline experience. The purchasing process in many cases begins online but ends in-store, with Gen Z preferring brick-and-mortar shopping. In a report by the International Council of Shopping Centers (ICSC), 76% of Gen Z said physical stores provide a better experience compared to online. What’s most important within these physical shopping experiences is for them to believe they are being cared for and understood by their favourite brands.

Furthermore, within the retail sector there is a greater focus on F&B and entertainment as part of the wider retail merchandise mix. Malls are increasingly transitioning into places where people gather and where they can experience the products they are interested in, rather than simply the traditional retail experience of going from one retail store to the next. With this in mind, retailers are working together to secure a larger customer base, pairing sectors that historically would not occupy the same space. Customers are reaping the benefits of this enhanced customer experience across the Middle East, which sees new concepts such as garden centres harbouring organic food cafés and greater F&B and entertainment options within traditional malls.

The key lies in exploring and identifying partnerships that have potential to provide a cohesive shopping and entertainment experience which will increase footfall. Malls are becoming savvier at handpicking tenants in a bid to create one-stop destinations to cultivate new communities and enhance live, work and play environments – whether that be daycare for children, a spa or even a medical centre.

Leading the Way

Dubai has been at the forefront of these trends, with the early emergence of entertainment venues such as Ski Dubai, Magic Planet, the Dubai Mall Ice Rink and Hub Zero at City Walk. However, with increasing competition in the retail market, landlords are turning to even bigger and better entertainment options, seeking to attract consumers to their locations and increase the dwell time they spend in their various establishments.

F&B is also playing a greater role in the region’s retail destinations, with new F&B brands, both local and international, entering the market every year. In CBRE’s ‘How Global is the Business of Retail’ report, Dubai tops the list of cities internationally which have welcomed new brands to the retail space, many of which are F&B operators.

More and more, restaurants are moving towards a more interactive experience for

ON TOPIC

“With increasing competition in the retail market, landlords are turning to even bigger and better entertainment options to attract consumers to their establishments” customers, whether through the fit-out in their unit or in enhancing customer behaviour within the restaurant. Even traditional retail shops are increasingly focused on incorporating an experiential element into their storefronts, giving their consumers an opportunity to touch, feel and experience their products before ordering them online or purchasing them instore. Apple has been one of the retailers at the forefront of this trend, creating beautiful physical spaces which are increasingly focused on trying out new products and servicing existing Apple products, while creating a unique atmosphere which reflects and communicates the Apple brand with its customers.

Beyond the retail sector, the hospitality sector has also been increasing its focus on

experience, with a greater emergence of boutique hotels characterised by a unique sense of place and tailored levels of service.

Airbnb and homestays are also reflective of this increased desire to ‘live like a local’ when travelling to different places, with Airbnb now offering different tours and experiences as part of its wider programme.

Furthermore, hotels themselves are increasingly becoming places of wider interaction, not just for visitors but for the surrounding community as well. Many properties are now finding new ways to create more lively lobby areas for visitors. In some cases, the reception is no longer a traditional reception desk but may feature a bar or a communal area, with different events and

programming offered for both hotel guests and outside visitors.

Similarly, we are also seeing co-working programmes incorporated within hotel spaces, with networks such as Letswork in Dubai giving members access and preferred rates to various hotel properties within the city.

Dubai is a shining example of adaptability when it comes to implementing new practices across the retail and hospitality sectors. Its continued ability to overcome changing market conditions is paramount to providing worldclass retail and hospitality experiences for residents and visitors alike. The city’s flexibility and responsiveness to changing consumer demands will be key in driving the sustained success of these sectors moving forward.

OCTOBER 2019 15

IN PRACTICE

01

16 OCTOBER 2019

IN PRACTICE

INTERVIEW

Design Reimagined Jason Saundalkar talks to RSP’s Prabhanjan Kambadur, Ralf Steinhauer and Michael Magill about establishing Dubai as a global design hub and their plans for growth eadquartered in Singapore, RSP offers a variety of services and now works with a diversified base of clients across sectors and several geographies including Asia, the Middle East, Australasia, Africa and Europe.

The over 60-year-old international firm began on-ground operations in the Middle East, specifically Dubai, in 2009, as the company’s decision-makers saw potential in the market, despite the fact that AEC firms were exiting the market in the wake of the 2007-2008 global financial crisis.

Michael Magill was charged with the task of establishing RSP’s local presence. He first joined the firm as SVP of the MENA region and now serves as RSP MENA managing director, though he’s quick to point out that he sees himself more as a creative director.

Discussing the firm’s performance in 2019, Magill says that despite challenging market conditions, the design-led studio has had a great year so far. “It’s fantastic that we’ve been able to keep growing our business – we’ve added a number of talented people in 2019. That’s been on the back of some signature projects; one is a cultural project – the Hindu temple in Abu Dhabi. That’s been a fantastic project to be involved with, and it’s been great working with the government of Abu Dhabi and with the BAPS organisation. That project has developed over the year – we see that as a signature project and construction is starting in a couple of months.”

“We also have projects at Expo 2020, which have been very successful for us. Additionally, we’ve got a large number of projects outside of that, five that we’re on-site with now, so we’ve been ramping up our teams to deliver projects on the Palm Jumeirah – the Palm Mall, Palm Tower, as well as Deira Mall, Dubai Hills, an office complex and residential projects for Emaar.”

As an international design firm, RSP has multiple design hubs, including Dubai, which work on local and international projects. Magill reckons this approach has enabled the Dubai studio to stay on a positive trajectory despite regional challenges.

“We’ve done a large masterplan for retail in South China, as well as an interior design (ID) project in Beijing. We’re also working on a high-end residential masterplan in Singapore, several projects in Sri Lanka and we’re

now doing a five-star hospitality project in Bangalore, India. So even with a slight slowdown in the Middle East and in the UAE, we’ve been able to take our local experience and use it internationally and build our business.”

Magill also attributes some of the Dubai studio’s success to RSP’s global network of studios. “Coming out of the summer, we’ve just secured another major project in the region, so that again will keep the team motivated – it’s a high-end residential project. We are positive about the future. In terms of where we are today, we’ve grown bigger and we’ve seen more revenue than we’ve done in previous years.”

Reflecting on the firm’s success, Ralf Steinhauer, director MENA at RSP, comments, “It’s been a great success story of building the team, building the portfolio and getting the brand established in the UAE, the GCC and the wider MENA region. We’ve worked hard to establish an understanding of the brand, of who we are, of what we stand for and what our capabilities are. Within our first decade, we’ve worked with every major developer in this country and the region. We are very excited about the rest of 2019 because some of these amazing projects will be be inaugurated.”

Driven by Design

Magill notes that innovative ideas and quality design have always been at the core of RSP’s approach to projects, and confirms that the office in

“The plan was always to set up a design-orientated studio and sell design, because at the end of the day, people can build buildings but we design a lifestyle, a brand, a destination for a client” OCTOBER 2019 17

IN PRACTICE

02

“What sets Dubai apart is the quality of projects.

They are very complex mixed-use projects and can be benchmarks for developers around the world” Dubai was established to be a design hub. He reckons RSP has achieved a solid reputation for delivering quality work and is keen to demonstrate that RSP comprises people that push new ideas.

“The plan was always to set up a design-orientated studio and sell design, because at the end of the day, people can build buildings but we design a lifestyle, a brand, a destination for a client. That’s where we see the future and that’s where we’ve been able to secure very large-scale projects, because we’ve been able to sell that vision to our clients. It was a case of doing great work in this region and then getting the projects built, which set a signature, and then taking that expertise and leveraging it globally. So the UAE has very much been a very local market in terms of work and projects, but if you look at the expertise we’ve developed here, it sells very well internationally,” he explains.

Weighing in on the projects in Dubai and what they have given RSP in terms of experience, Prabhanjan Kambadur, director MENA, comments: “What sets Dubai apart is the quality of projects. They are very complex mixed-use projects and can be benchmarks for developers around the world. So as Michael said, essentially over the last 10 years we’ve built up a portfolio of work which has given us the ability to start advising other offices. That’s how we established a design hub in Dubai, and that’s been the story of Dubai for us.”

Magill says the large mixed-use project in China mentioned earlier was secured on the back of RSP’s delivery of major projects and expertise gained in the region, and says the studio is now looking at designs to export out of Dubai. He is confident that the UAE economy can benefit from the export of ideas and services.

“I think that’s a big growth for the UAE economy, that they build up a huge skill 03 base in this region around design, branding, marketing. That has huge export potential in the same way as London, New York, Singapore export design, financial services

01 Prabhanjan Kambadur, director MENA at RSP (left); Ralf Steinhauer, director MENA at RSP (centre) and Michael Magill, managing director MENA at RSP (right).

02 Hindu Mandir – a mandir and cultural centre, the first in the region, serving the Hindu community and the people of the UAE. 03 Confidential 5-star hotel in a 18 OCTOBER 2019

30-storey tower in Manchester.

IN PRACTICE

and marketing services. We believe this is now going to be a hub and we are the centre of it, and we’re going to promote design out of the UAE as a quality brand to secure international work. We’ve done it in the last two years very successfully.”

Changing Gears

As part of its growth plan and commitment to creative design work, RSP is currently going through a rebranding with a very specific goal in mind.

Steinhauer remarks: “We are going through this very exciting and interesting rebranding exercise of RSP, so that there’s more definition of a global company. Part of this is we’re trying to have an inter-studio exchange of talent – we’re trying to bring in designers from other parts of the world – they come to Dubai and work with us for a while to bring in a different view and have interactions with different studios.”

Kambadur elaborates, “We come across a lot of young talent, and what makes RSP attractive to them is the nature of projects we undertake. It’s also the work culture we have across all our offices. We have a flat organisation, we don’t have hierarchies, any talent who joins is straight away given hands-on experience and works with the best designers and uses the best technologies. I think that’s why it is very easy for us to attract the best of talent from the region or from overseas. That’s been our hallmark.”

Here, Magill points out that reimagining design is part of RSP’s fabric. “We see design as something that needs to be reimagined in a different way – that should be our tagline. Each time we approach a project, we’ll go through the design process, analyse and develop ideas and options, but then we look at it in a completely different way and

“We don’t have hierarchies, any talent who joins is straight away given hands-on experience and works with the best designers and uses the best technologies” reimagine the whole project. It’s like taking design to the next level, and we’re looking at experiential design – design is not just a series of interconnecting spaces, it’s about creating experiences, whether they are emotional, physical, in terms of interactive space, in terms of fluid space, in terms of online presence and real presence.”

He adds, “These are the new ideas that are shaping and forming new architecture today. This is what we’re looking at, it’s the language and the communication we’re talking about to clients, and it’s very much about the online as well as the offline. That comes back to this studio and our expertise globally within the whole RSP structure, and we here are very specialised around hospitality, retail and education.”

Magill says the Dubai studio’s specialisation has already led to other RSP offices leveraging its expertise.

04

OCTOBER 2019 19

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04 An exclusive 70-key eco resort in Sri Lanka that features complete spa treatments, wellness guest rooms, bungalows, beach villas and mangrove villas.

05 Sampur Masterplan – a large mixed-use development with luxurious waterfront resorts and residential communities, rivalling top global addresses of the world, with a world-class marina and a very exclusive fashion design campus.

05

“If a client comes in to see someone in our Vietnam office and they’re looking at a five-star hotel, for example, that office will get in touch with us because we have that hospitality expertise. We’re then brought into Vietnam and we engage with that client and promote how we now approach the design in a new way.”

“That’s the whole philosophy within RSP, it’s to promote exchange because at the end of the day, we’re people with ideas – the more we interact, the more we exchange ideas and develop new ideas. This is what makes us different from the competition.”

Expansion on the Horizon

Looking ahead, expansion is on the road map, Magill says. He’s keen on establishing a base in Saudi Arabia, given the vast potential that the market holds, though other markets are also on the firm’s radar.

“We’ve been going to Saudi Arabia a lot and engaging with clients there. We know clients need to be facilitated by people on the ground, so we’re looking at a presence there, but that presence will also connect to our global network of designers. Our Singapore office is now heavily engaged with a government client, but we need a presence there to ensure that relationship works.”

Magill adds, “In terms of Africa, we’re already doing a project in Kenya, a resort. We’ve been engaged a lot in Africa, so we want to serve Africa from

“We are positive about the future. In terms of where we are today, we’ve grown bigger and we’ve seen more revenue than we’ve done in previous years” 20 OCTOBER 2019

this office and then bring in our experience into different countries in Africa. Ralf has been exploring Africa the most.”

Steinhauer chimes in. “For North and East Africa, it’s still convenient for us to serve those markets from Dubai, at least for the moment. We’ll see what traction we get there in the next few years, and then reevaluate – but it’s the same idea that we’ll call upon for, eventually, going into southern Europe or other parts of Europe. When we feel a presence is needed, we’ll start establishing something there. For now, we’re looking across the border from the MENA region and want to tie more interesting regions into the global network for RSP.” Asked about the challenges of entering new markets, Kambadur says finding the right clients is key. “We want to work with clients that can appreciate design and invest in it. I think the initial forays that we make are to find the right clients to work with. Of course, the challenge is to serve that market based out of Dubai, so there’s a lot of travelling involved and we have to make sure that there’s constant dialogue between us and the clients. But yes, Dubai is the hub to jump start all these regions.”

“Recently we did two big projects in Sri Lanka; of course, it was unfortunate about what happened there recently, but I’m sure it will pick up again. Those were large masterplans, and we see there are clients who want to get international designers into the countries and establish benchmark projects. That’s where we fit in, that’s why we’re exploring these regions.”

Here, Magill re-emphasises the importance of the Dubai studio.

“We’re building Dubai as a regional hub to be on a par with our Singapore and Shanghai offices. In the past, there’s been a trend that clients want to go to different centres, whether it’s London, New York or Singapore, but we believe that in the future requirements will be served out of this office and served from this region. This way the client gets a more direct response, but obviously they get to tap into the global knowledge and we bring in our global experts as and when required.”

Steinhauer concludes, “We feel that some of our competition is leaving town, I think that a lot of people lost their vision and some lost a bit of their trust in this region, but I think it’s normal that we’re going through a little bit of a downward trajectory now, but it will pick up.

We believe in Dubai as our design hub for the region, so we’re going to invest here. We want to stay here for a long time, and I think this is really what we believe after being here for 10 years, that it will bounce back and there will be amazing projects announced soon.”

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IN PRACTICE

“While these segments are still nascent in the UAE, we believe that they are among the most important and disruptive trends to have arrived in the real estate market for many years�

22 OCTOBER 2019

IN PRACTICE

FEATURE

New Stock on the Block

Co-living communities and co-working spaces have become a growing part of the UAE’s real estate sector, but what’s driving these trends and how will they impact the market? Middle East Consultant investigates o-living and co-working are global trends that have taken root in the UAE in recent times. The two concepts are, of course, different from each other; the former refers to a community of private apartments that share productive spaces and amenities, whereas the latter refers to work spaces used by people from different companies.

While the two concepts are still new to the UAE, developers have been launching and delivering co-living projects in Dubai, Abu Dhabi and Sharjah, while there are also several co-working spaces.

“The co-living segment in Dubai is a newer concept with projects such as Una in Town Square and Socio in Dubai Hills. The concept is that you have a smaller personal living space and all amenities are shared throughout the project, such as a common eating area, library, TV room, meeting rooms, etc. The projects also offer other amenities such as a gym, restaurants, cafés, shops, etc,” explains Lynnette Abad, director of Research & Data at Property Finder.

The uptake of these concepts is being driven by several factors: the preferences and demands of millennials, a desire to keep costs OCTOBER 2019 23

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01 Ahmed Alkhoshaibi is the CEO of Arada.

02 Lynnette Abad is director of

and travel times to facilities and workspaces low, and avoiding isolation and distractions while working from home, among many others.

Abad notes, “There is a new trend, especially among millennials, where people prefer not to buy but rather 01 rent in a project where they feel part of the community, while keeping a private living space. Co-living in other countries tends to also be more affordable than an average rental; this remains to be seen here in Dubai, since these projects are not yet completed.”

“Co-working spaces have become quite popular in Dubai, as it’s a great way for freelancers and small companies to conduct business without the large expense for office space and fit-out. Emaar recently launched a new project called Executive Residences in partnership with DMCC, where the units came with 02 a DMCC free zone business licence. This was very successful and a clever way of rethinking the co-working model to attract investors and end users alike.”

Ahmed Alkhoshaibi, CEO of Arada, the developer behind Nasma Residences and Aljada in Sharjah, agrees that both co-living and co-working have seen a steady rise in interest in recent years.

Explaining the drivers, he states, “The main factor contributing to this growth is that both trends are being driven globally by the steady pace of urbanisation. Research by the UN stated that half the world’s population lived in 03 cities in 2007, and the figure is expected to rise to two thirds by 2050. More and more city dwellers are trying to find living space in smaller areas and jobs in ever more crowded markets, with all the challenges that brings for urban planners and developers.”

Alkhoshaibi says co-living has become particularly pronounced in cities that not only have strong and well-developed economies, but also vibrant start-up scenes. “In addition, the trend is exacerbated in cities that also have high rents, such as Singapore and Hong Kong.”

Asked about the different offerings coming to market in the co-living sector, he explains, “Within the co-living sector there are a number of 24 OCTOBER 2019

Research & Data at Property Finder.

03 Richard Fenne is principal and regional executive chair at Woods Bagot.

different asset classes on a global level, including student housing, shared rented accommodation and senior living housing. If we look at student housing, which is an area in which Arada has taken a special interest, we can see that this segment is already very well established in more mature markets elsewhere throughout the world.”

“According to global property agency Savills, investment into student housing worldwide has risen by 87% over the last five years. In the US alone, according to CBRE, $8bn was invested in US student housing in 2017, with $17.5bn invested in total worldwide. In many parts of the world, student housing has switched from being a specialist area of investment and gone straight into the mainstream. It is now a global asset class in its own right, although maturity in the sector differs vastly from country to country.”

Growing Appetite?

Discussing the rise of the co-living and co-working segments in the UAE, Woods Bagot’s Richard Fenne confirms that his firm is working on several such projects in the country. “We are working on a co-working project in Abu Dhabi for a government entity, which is part of a wider commercial zone. Here we are bringing our significant learnings from other markets, such as New York, to design an exemplary space. We are also seeing clients looking for a co-working style typology for their own corporate environments. Rather than a co-working offering with external parties, this is more akin to adopting the aesthetics and culture of these spaces, promoting collaboration and flexibility.”

Property Finder’s Abad is also confident that co-living and co-working spaces will do well in the UAE. “The co-living projects so far launched in the market have been successful and usually sold out quite quickly. In fact, there were two co-living projects by Emaar where the entire projects were

IN PRACTICE

“The more legislation that is created to entice businesses to Dubai, including start-ups, the more co-working space will be needed and in demand”

of the mega project, he says, “We launched Nest in March this year, and have received an extremely impressive response, especially given that this is an entirely new asset class for direct investment here in the Gulf.

As of end July, we have sold nearly two thirds of this district, which has a total sales value of $218m. These results prove to us that the co-living segment in general is a key growth area for the UAE’s real estate market.

If we take student housing as an example, it is instructive to look at how the segment has evolved in other markets around the world, and how it is therefore likely to grow in the UAE.”

purchased by one single investor. I would say the opportunity for their success is high, as long as they are done and laid out correctly. The more legislation that is created to entice businesses to Dubai, including start-ups, the more co-working space will be needed and in demand.”

Arada’s Alkhoshaibi believes both concepts are important. “While these segments are still nascent in the UAE, we believe that they are among the most important and disruptive trends to have arrived in the real estate market for many years. There is huge potential for developers who are moving into this space, and who can make the most of the ample opportunities that present themselves.”

He adds, “We have already seen a number of developers, both government-backed and private, move into both the co-working and coliving segments, and the first tranche of these projects will be completed in the very near future. These communities, including the ones we have announced at Aljada, are just the start of this trend, which will grow in line with the UAE’s rapid rise in population, its growing economy and its increasing reputation as an educational and entrepreneurial hub for the Middle East, Africa and the South Asia region.”

Using Aljada’s East Village as an example of the appetite for developments of this sort, he states, “We can really only speak about our own experience, which has been strong. We launched East Village in April last year and have since sold 85% of the released units in this second phase.”

In the first quarter of 2019, Arada launched Nest, a student housing community on the University City side of Aljada. Discussing this part

It seems obvious that co-living and co-working spaces are off to a healthy start in the UAE; however, as these are still new concepts, there are also a lot of questions and unknowns. One question likely to be part of conversations around this topic for the near future is what impact these spaces will have on existing real estate stock.

Woods Bagot’s Fenne is positive. “Co-living will have to transcend a bigger cultural adjustment, but we believe there are already opportunities within the corporate accommodation and education sectors to adopt this model, where there is a strong demand. Co-working will have an impact on encouraging SMEs and start-ups to flourish – supported by the right legislative infrastructure,” he says.

Arada’s Alkhoshaibi also has a positive outlook, and reckons the trend is an extension of what’s been happening in the UAE real estate sector. “The UAE’s real estate market has been characterised in recent years by developers responding to market demand and ensuring that a variety of smaller units are available, thus satisfying the interests of the middle- and lower-income sections of the population. The addition of co-living spaces really represents a continuation of that trend and is another sign that the local market is steadily maturing.”

He concludes, “Co-living spaces are not designed to replace traditional apartment stock; they actually complement them. They allow a greater proportion of the population to step onto the property ladder and ensure that the local market has a far wider variety of investment options, in line with other more traditional markets around the world.”

Impact on Existing Real Estate

OCTOBER 2019 25

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26 OCTOBER 2019

IN PRACTICE

INTERVIEW

A Green Touch

Angitha Pradeep talks to Desert Golf’s Rory Hutchison about the changing trends in regional landscape architecture and how Dubai is moving toward a more sustainable approach to urban development reen spaces are critical to a city beyond their visual appeal, and since Dubai’s early days authorities have made efforts to incorporate greenery into the cityscape.

In fact, as part of the Dubai 2020 Vision, 122sqkm of land has been earmarked for transformation into green spaces through landscaping and horticulture projects, according to the Dubai Municipality.

Given the region’s harsh climate, the right expertise is key to realising this vision and maintaining existing as well as new green spaces. One of the city’s early green experts, Desert Landscape Company (DLC), has been in business for over 30 years and has evolved from a landscape firm into a group of companies under the Desert Group banner.

“Being an early player in the region, we’ve been involved with the landscaping of many of the iconic hotels and landscape projects in Dubai and the UAE. And along the way, it did not take us long to realise that there are several other aspects of landscaping that projects needed support with,” says Rory Hutchison, GM at Desert Golf, Desert Group.

From a GCC perspective, he says Desert Group has always worked across the region. “We’ve worked on projects in Oman, Saudi Arabia, Egypt and many other Gulf countries. But yes, the majority of our construction work has been UAE-based, and primarily in Dubai. Recently, we have been targeting and winning projects in Abu Dhabi as well.”

He notes that the long-term focus is to carry out projects where there is a need, while adding that the firm has started to see opportunities in Saudi Arabia and is preparing to venture into that market as well. He is also keen to point out that the UAE has always tried to set the trend in terms of international standards and global practices, in all areas of infrastructure and landscaping.

Given the harsh climate in the Middle East, there are challenges to creating and maintaining green spaces in Dubai and the broader region. Hutchison says that one of the biggest challenges with regard to sustaining landscapes in the UAE is the substantial water requirements.

“There is a continuous effort to create more green open spaces, green road villages, etc, but when viewed from a global perspective, it is important to ensure that we continue to develop in a way that is more sustainable and suited to the environment in this region. As far as challenges are concerned, besides scarcity, the quality of water is not favourable for the construction and maintenance of golf courses.

We also struggle from time to time due to the harsh winds that blow away shapes and sand.”

Hutchison reveals that another issue in certain areas is gazelles and camels eating the grass that has been carefully grown.

Asked what’s driving interest in investing in green spaces in the region, he notes that the desire to soften the hard landscape is tremendous, not just in this region, but internationally as well.

“Singapore is the model, and other leading cities have been working towards creating greener spaces for residents.”

Given current economic realities, he says clients are becoming more demanding in terms of finance and time frames. They want their projects completed within a short time frame and to a tight budget, he notes.

Golf, the Real Estate Engine?

Hutchison asserts that golf courses are a big seller when it comes to real estate, and that they go hand in hand, even globally. “There is no doubt about the demand for new golf courses, especially in countries such as Saudi Arabia and Egypt where there are insufficient courses.”

“People today crave to be surrounded by nature and therefore are prepared to pay more in order to live in places with open spaces, parks and green lands” OCTOBER 2019 27

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01

01 Desert Golf completed the Dubai Hills Golf course in 2017.

02 The firm recently renovated the greens at the Arabian Ranches golf course. The course was closed for a greens renovation due to the invasion of foreign grasses.

In addition to operating across the Middle East, he says Desert Group has also focused its attention on other markets. “We are doing a project in the city of Multan, Pakistan, for Nick Faldo, which is his first signature golf course in Pakistan. Being an international signature golf course, the standards of construction are very high. We currently have a substantial labour force based there, and there are more to go over the next six weeks as work progresses.”

He adds, “The team currently working there are mainly Pakistani staff who have worked with Desert Group for many, many years and have been trained by us. For this particular project, we are taking the lead in managing the construction of the golf course, as well as the construction

“There is no doubt about the demand for new golf courses, especially in countries such as Saudi Arabia and Egypt where there are insufficient courses” 02

28 OCTOBER 2019

of SHA nursery, where we will be growing the grass that will be used on the golf course.”

Expanding on the work schedule in Pakistan, Hutchison comments, “Work so far is going well and as per schedule. We have begun to move soil to achieve the shapes a Nick Faldo design demands. Soon we will be working on the shaping, followed by the drainage, irrigation and finally planting. Grass sprigs will be coming from the USA in October, while irrigation work in the nursery began in mid-September.”

Shifting focus back to the Middle East, there are talks of more golf course in the UAE, since the climate, particularly in the winter months, is favourable.

“At Desert Golf, we have just completed reconstruction of all 18 greens at the Arabian Ranches Golf Course. We have also begun work at the Yas Acres Golf Course project by Aldar Development in Abu Dhabi for architect Dana Fry, who has an excellent international reputation as a golf course architect. We have also been involved in a number of projects for developers such as Emaar, Bluewaters, Meraas, Dubai Properties, Damac, Aldar, as well as select government projects.”

A Common Future

Asked about future trends, Hutchison notes that on a global and regional level, the use of desert adaptive top plants and local varieties of plants that can help save on water is on the rise.

“Sustainable landscaping and water conservation is where future trends are headed,” he notes. “Moreover, Expo 2020 Dubai is leading that way and taking the trend forward by adopting a more sustainable approach to development.

This is really exciting and there are many opportunities going in that direction, as opposed to the traditional approach of having lush, colourful, thick planting that everyone has previously seen across projects in the region. Trends are now returning toward xeriscape landscaping, which involves choosing very specific plant

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03 The firm was responsible for shaping works, drainage installation and irrigation installation at the Dubai Hills Golf course.

“Expo 2020 Dubai is leading that way and taking the trend forward by adopting a more sustainable approach to development. This is really exciting and there are many opportunities going in that direction” palettes that are actually much more desert adaptive and can survive in drought conditions.”

He explains that Expo 2020 Dubai will bring another change in terms of choosing more desert adaptive top plants by sourcing local plants and growing them in nurseries, and encouraging firms to use these plants for landscaping.

“But this will require a change in the thought process at different levels of the business. We are hoping that this trend works its way forward, so that the city fits in with its desert environment and is more responsible towards water.”

Asked what his company does to maintain a balance between sustainability and cost-effectiveness, Hutchison responds, “We are very conscious of the quality of water we use, since it plays a major role in maintaining high-quality turf and landscapes. Not only that, issues 03

30 OCTOBER 2019

such as algae in the lake and the smell of lakes etc, caused by TSE, is another cause for concern. To combat this, we use natural, chemicalfree products that improve quality of the water in natural ways. These assist with kick starting oxygenation, which betters the quality of water.”

He also observes that there is keen interest in designing, constructing and maintaining projects that are sustainably inclined. “We like to be involved in projects from the initial stages, as we then have the opportunity to provide our expertise and integrate various facets of the development with the common goal of sustainability. People today crave to be surrounded by nature and therefore are prepared to pay more in order to live in places with open spaces, parks and green lands. This is a worldwide trend and there is no doubt that living in an urban environment within a concrete surrounding can get monotonous, and cities have started working towards creating greener spaces for residents.”

An important part of this is technology. Hutchison explains that Desert Landscape Construction has its own design arm with everything done in CAD. “We also have GPS resources out in the field which are able to record via satellite GPS positions, and that information is given to the CAD team with the help of which they are able to produce drawings, design work and shop drawings. Add to that, our sister company Desert Ink, a design firm, has a number of highly experienced landscape architects who are doing landscape design work and are also very technically inclined.”

Asked about his goals, given the growing demand for green spaces, Hutchison says his firm would like to be part of any discussions, as opposed to a contractor that gets engaged after decisions are made.

“We would like to be more of a facilitator of those early ideas, so that instead of all the various designers being in their silos and not communicating with one another, we can do things that are truly sustainable and involve everybody early on to work towards a common purpose.”

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ON SITE

OPINION 01 Greg Demchak is a technical architect at Bentley Systems.

Mixed Reality for Construction Planning and Ops Bentley Systems’ Greg Demchak discusses bringing construction planning into the 4D realm

01

P

layers in the construction sector are always looking for ways to improve safety and productivity on job-sites. Enter the HoloLens, a mixed reality head-mounted display which provides a natural interface for understanding 4D construction information. Thanks to this technology, not only does construction sequencing become free from the constraints of a 2D screen, the hologram can also be aligned with physical reality and offer a hands-free experience.

32 OCTOBER 2019

This feature provides a quick and easy way to evaluate the situation being planned against the actual constraints of a job-site.

Users see this capability as an opportunity to evaluate their construction approach, identify safety concerns and improve planning and project management by embracing the idea of radical transparency for project delivery.

Once you introduce reality meshes to a project, it leads to other interesting possibilities. For example, a reality scan of as-built conditions can be loaded into the HoloLens, thereby providing superherolike X-ray vision. Users can effectively look through walls and ceilings to see what was built, by superimposing the scan-data on the physical space as a hologram. From a maintenance and renovation perspective, these capabilities are game changing.

your 4D model as a hologram floating in front of you in your office space. Taking a step further, Bentley can work with your team to get your design models aligned with the physical job-site for mixed reality overlay.

Creating a 4D model is not as difficult as some people might believe. Most contractors already have schedules/programs in P6, Microsoft Project or Asta, and they also have 3D design models from a range of authoring platforms. SYNCHRO allows users to import all these formats and link the schedule to the models, thereby creating a 4D construction visualisation. Once created, the construction plan can then be animated and displayed on the HoloLens by connecting it to your SYNCHRO project running with cloud services.

SYNCHRO XR: The Technical Details

Getting Started with SYNCHRO XR and HoloLens

To get started with mixed reality, you will need a HoloLens, the software, 3D models and a willingness to try something new. The first step is to get a HoloLens and download the SYNCHRO XR app from Microsoft Store onto the device. Get familiar with how to use the menu system and basic interactions.

Then, you can start with a project and load your model into the app. You will see

SYNCHRO XR works by making a connection to a construction digital twin database using cloud services. At the core of that database is SYNCHRO data, which includes tasks, resources, 3D meshes, user fields, documents, issues, users, companies and status. From this database, the application can generate 4D models and can move back and forth through the construction timeline.

This feature allows construction teams to visualise their planned job approach using

ON SITE

“Users can effectively look through walls to see what was built, by superimposing the scan-data on the physical space as a hologram. From a maintenance and renovation perspective, these capabilities are game changing” the holographic computing power of the HoloLens – the most advanced mixed reality device in the market. Once the data is loaded into the HoloLens, users can align digital assets and information with the physical world and even make updates to the data and synchronise those changes back to the server.

Working with Digital Twin Data in a New, Immersive Environment

The objective of SYNCHRO XR is to improve the accessibility and usability of digital twin data. The app is a live connection

to a construction planning database, which opens the door for new human-machine interfaces. Put simply, the objective is to uncover new ways of working with data in an immersive, context-aware manner. It explains what it means to have digital data become part of our physical space – not as screens that we look at, but as 3D objects that we interact with in space and time.

SYNCHRO XR is more than just an engaging experience. It synchronises live data with a cloud server that hosts the construction project data, allowing users to

interact with the data in new ways. This ability to bring 4D digital construction models into mixed reality is a first in the industry and promises to change the way the entire supply chain interacts with digital twins.

From a training and adoption perspective, HoloLens 2 provides a very natural experience and is easy to learn. The pre-work to get models to the HoloLens involves the creation of 3D/4D models using building information modelling capabilities, and the SYNCHRO 4D solution to link models with the construction schedule.

OCTOBER 2019 33

ON SITE

SHOW PREVIEW

The Big 5 2019

New product sectors, industry research, exclusive C-level forum, and a stronger focus on technology and innovation

C

elebrating its 40th anniversary, the Middle East’s leading event for the construction industry has much in store to support construction companies through a shifting economic landscape, boost business, launch the latest building solutions, educate industry professionals, and foster best practices championing technological innovation.

Matt Denton, president at dmg events, comments: “This 40-year milestone is a great testament to how our teams have effectively worked towards keeping the show fresh and relevant for our stakeholders and attendees. Innovation and adaptability have always been at the core of our strategy as we transform each edition to keep up with the changing business environment and industry needs.”

For the first time, The Big 5 2019 will cover the full construction cycle.

This year, in fact, the exhibition will run together with six co-located events allowing industry professionals to source thousands of products for every stage of the construction projects, from inception to completion. The Big 5 Heavy, Middle East Concrete, HVAC R Expo, Middle East Stone, The Big 5 Solar and the Urban Design & Landscape Expo will all run alongside The Big 5 at the Dubai World Trade Centre, from 25 to 28 November.

The show will also expand its product sectors’ offering with the introduction of the brand new Offsite & Modular Construction sector.

34 OCTOBER 2019

Further, in an effort to drive informed decision-making, The Big 5 will present the ‘Voice of the Construction Industry’, the largest research project conducted in the sector. Based on the responses of nearly 6,000 industry stakeholders from 136 countries, it will unveil current and upcoming trends, opportunities, and challenges faced by construction players.

Josine Heijmans, portfolio director at dmg events, explains, “We are proud and excited to be releasing this report at The Big 5 2019. We expect the ‘Voice of the Construction Industry’ to massively support the decisionmaking of construction industry players for the next three years in a shifting economic landscape, providing exclusive intelligence that will help generate revenues, save money and shape future strategies.”

The findings of the report will be announced at The Big 5’s CEO Roundtable, a new forum gathering developers, contractors, consultants and government entities in the UAE. The initiative will facilitate communication across the industry, providing a unique opportunity for key stakeholders to meet and discuss current challenges, trends and strategies in a closed-door set-up.

The Big 5 is organised by dmg events and runs from 25 to 28 November 2019 at the Dubai World Trade Centre from 11am to 7pm daily. The constructionfocused event is free to attend for all pre-registered visitors. To find out more, visit www.thebig5.ae.

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INTERVIEW

WIC Profile: Anita Manoj Jason Saundalkar talks to AMPM Project Delivery Professionals’ Anita Manoj about her influences, 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. Here we catch up with Anita Manoj, founder & project lead at AMPM Project Delivery Professionals.

What drove you to get into construction and your very first role in the industry? What were some of the influences that set you

ranging from hospitality to residential, retail fit-out and infrastructure works, including landmark ones like Al Ghurair Mall Expansion, Ain Dubai Bluewaters, Bulgari Hotel & Development, Seventh Heaven and Ashjar in Al Barari. During these years I spent most of my time on construction sites as part of the project management team.

After over 18 years of construction experience, I set up APMP Project Delivery, a company focused on the delivery of projects. I am currently working on Hotel Indigo, managing interior design and execution works. In all my years of experience, despite the hardships, pain and sweat, the time spent on-site has undoubtedly been the most rewarding and enjoyable part of my career.

on your path?

As a child, I was a builder, keen to create three-dimensional models with clay, cardboard, fabric, wires, whatever I could find. I was fortunate to have been inspired by strong women architects during my deciding years, and this encouraged me to pursue architecture as a career.

Share a brief about your career, mentioning key achievements with regard to your role.

My formal education is in architecture. I started out as a junior architect with Atkins, moved to RMJM – both multi-disciplinary design practices.

Among interesting projects such as JBR, Hyatt Regency, American School and Deerfields Mall, my favourite project as an architect is the ADNEC Tower (furthest leaning man-made tower, Guinness Book of Records 2010), where I was involved from concept design to site support. The project was an initiation into site works, and the restless doer in me found fulfillment here. This project was also a turning point when I realised the importance of good project execution.

I then pursued a masters in Construction Project Management and hence began to seek roles that required the knowledge of an architect combined with management skills required for project delivery. My jobs were mostly at consultancies like Confluence and WSP, and with clients like Al Ghurair, MAF and Brio Hotels on a variety of projects 36 OCTOBER 2019

Besides fairness and being the right thing to do, diversity in the construction industry is important because of the value women can bring to employers, clients and customers. How have you made your mark in the industry working on specific projects?

Women come to the table with their own skill sets. By nature they are solution-driven and can multi-task with ease.

Proud moments cannot be singled out – problem solving on a dayto-day basis or taking a drive past completed projects gives me a sense of pride and accomplishment.

What are some of the barriers to women entering the construction industry? What was your personal experience?

I don’t see barriers posed by the industry these days. I see women working alongside men in design and construction.

The GCC construction sector is still male-dominated; however, diversity is beginning to increase. If you agree, comment on what is driving this and how you see the GCC markets changing in the coming years. If you do not agree, please share your thoughts/ views of the market.

I agree diversity is on the increase as more women choose the

ON SITE

“I don’t see barriers posed by the industry these days. I see women working alongside men in design and construction” OCTOBER 2019 37

ON SITE

construction industry as an exciting and challenging place to be. Opportunities to work on iconic mega projects is what the GCC construction sector offers. This is a strong driver.

Besides, female professionals today are willing to work internationally and this has really improved diversity in the region.

rewarding experience – being able to witness several projects from concept to completion within a short span of time.

In your opinion, what is the biggest challenge women in the construction sector face in GCC countries?

How can these challenges be addressed?

Women with young children find the long hours demanded by this sector quite challenging.

Achieving work-life balance is not often easy. Flexible working hours and working from home options will help improve the overall quality of life.

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?

Remuneration and benefits in the industry should be based purely on merit. Government authorities must enforce labour laws which ensure diversity and equal pay, irrespective of gender.

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

The media can pay a big role in publicising best practices in construction from around the world. It can inspire the younger generation to take up careers in construction.

As a woman in the industry, what has your experience been working in the GCC construction sector? If you have worked in markets outside the GCC, how does your experience here compare with what you’ve experienced and observed elsewhere?

I have only worked in the UAE. I have been on many construction sites, been the only woman around the table. I do not really think too much of it, as I see each individual as a professional contributing to a common cause. As a professional, working in the GCC has been a very

“Women come to the table with their own skill sets. By nature they are solution-driven and can multi-task with ease” 38 OCTOBER 2019

Do you feel there’s a limit to how far women can progress within large firms?

I do not belong to a corporate set-up anymore, but from the 18 years of being in several, I do believe there are glass ceilings in some organisations. Then again there are also organisations and individuals who promote women on the work front.

How does the firm you’re currently engaged with approach diversity in the workplace?

I’m currently working with Brio Hotels to develop Hotel Indigo in Business Bay, and I haven’t worked with so many women on any other project before! Right from the GM of the hotel to designers, artists, procurement, suppliers, finance, admin team – you name it. It is a very refreshing change.

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 do my bit while interviewing and recruiting to ensure pay is fair.

What advice would you give to a woman entering the GCC construction industry today?

Construction in the GCC is an intense field due to tight project timelines. That requires not just talent but dedication and willingness to go the extra mile. Therefore, ladies, equip yourselves with the best possible support system around you, so that you can be your best self at work, stress-free.

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LAST WORD 01 Lay Kiat Neo is project manager, Middle East at Faithful+Gould, a member of the SNC-Lavalin Group.

All About the Saudi Live-In Experience Faithful+Gould’s Lay Kiat Neo chronicles her experiences of working as a PM in the Kingdom

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audi Arabia has always held a mysterious appeal to me, it’s a land so ancient and rich with history and culture. It’s a place I’ve always been curious about. In May 2019, with burgeoning projects in the Kingdom sprouting up on my company’s commitments, I was recommended to join the team in Saudi Arabia. Since the offer fell into my lap and it was a country that I was curious about, I accepted.

I was excited but also concerned. Past conversations created an impression that I’d have some social restrictions that could impact my experience. However, I resolved to make the most of the opportunity.

The day finally came and before I knew it, I was picked up from Riyadh Airport and on 40 OCTOBER 2019

the way to the client’s office for the start of my six-month tenure. The next two weeks, aside from managing the project, I started to get accustomed to my surroundings and my long flowing abaya. Four months on and I’m still in Riyadh, having survived the teething problems – I’ve even mastered wearing my abaya.

And, I’m enjoying myself! I’m working on a very interesting project, which is a oncein-a-lifetime opportunity – one that will top headlines when it is completed next year. And this is just my first project in the Kingdom.

Working in Saudi Arabia presents great career growth opportunities. In fact, Saudi Arabia is now the place to be, due to initiatives to build up mega-scale infrastructure across the Kingdom. Many expatriates have relocated to KSA and there were many familiar faces I encountered in my office and across various projects, which made work considerably easier.

One thing that I quickly realised and appreciate is that there is a strong focus on Saudisation, which gives me the opportunity to work with enthusiastic and capable local talent. The ability to speak Arabic is therefore a crucial skill in KSA. I have found myself many times in meetings where everyone in the project chain – client, consultant and contractor – were Arabic-speakers. Having said that, they were always considerate and spoke in English, so that I could actively take part in the discussion.

Saudisation is regulated and embedded in many parts of business. For instance, not only do companies in KSA need a certain percentage

of the local workforce, but businesses are also encouraged to ‘support local’ and use products and materials from home-grown companies.

This approach demonstrates how the private sector can play an active role in supporting local industry and stimulating economic impact to ensure sustainable growth. At our company, we’ve launched a two-year graduate development programme in Saudi that helps young professionals master technical skills through on-the-job training, planned rotations within our operations and achieving the developmental milestones needed to obtain their professional designation. Eight young Saudi graduates are enrolled in this programme within Atkins’ business (including Faithful+Gould, Acuity), and we’re looking to expand in collaboration with clients/partners.

Overall, working in Riyadh has been exciting and fulfilling, with my clients pleased with the progress I’ve brought to the table. Also, contrary to my initial misconception, the city is safe and has interesting activities to offer and beautiful landmarks. I can wander around the streets on my own and I can freely take a taxi alone. Locals are also very welcoming and open to sharing their culture, lifestyle and knowledge.

I feel I’m now settled and comfortable in Riyadh. I’ve enrolled in an Arabic class which will give me the chance to practise the language with my Arabic-speaking colleagues and friends. My Saudi live-in experience has been an enjoyable ride so far, and I look forward to what more it has to offer.

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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 Control Room Design System Integration Policies & Procedures Site Surveys & Audits Crisis Management

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2015, 2016 & 2018