Volume 1 - Number 9
CONTENTS The Sections
smart technologies
GOVERNMENT Smaller is Better p.8
Digitization to see $100 trillion in benefits for Society and Business by 2025 p.60
transport
QATAR FOCUS
Dubai Public transport facilities continue to see growth in 2015 p.66
Qatar: A Country With Vision and Ambition p.14
health & communities
construction Benefits of Involving Project Managers from the Start p.42
UAE’s Year of Reading gets fillip with new library p. 70
food & agriculture
sustainability Focus on Renewables and Sustainable Development p.46
Quinoa Labelled ‘Perfect Crop’ For UAE Climate Conditions p.72
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CONTENTS PAGE Volume 1 Number 9
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Volume 1 - Number 9
february EDITION 08
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Editor’s note
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his month’s Future Cities has special focus on the State of Qatar. The resource rich country is making every effort to minimize reliance on its oil and gas while transforming itself to a dynamic, innovative, knowledge-based economy. And it has the vision and determination to do it. We take a detailed look at Qatar’s Vision 2030 and how it is helping the country strengthen the foundations of its economy and society. The Qatar Foundation for Education, Science and Community Development is playing a key role in implementing programmes that are providing Qatari citizens with better and more choices in education, health care and social progress than ever before. The Foundation draws its inspiration from the Sidra tree that grows strong and proud in the harshest of environments, and has been a symbol of perseverance and nourishment across the borders of the Arab world. With cohesion and connectivity at its core, no other project in Qatar reflects the Foundation’s dynamic nature and its future goals as much as the Education City. At a conference held recently a number of educationists from Qatar and around the world gathered to discuss the lessons learned since the inception of this uniquely Qatari project. Qatar’s construction sector is seeing a number of reforms and continues to outperform the rest of the region as it prepares for the upcoming 2022 FIFA World Cup. The country is equally focussed on a highly inclusive social development programme that is educating and uplifting all sections of its society to prepare its people for a highly connected world of the 21st century. In other construction news we take a look at the trends in 2016 for the UAE’s real estate market and how we can achieve sustainable development of the infrastructure required for hosting mega sporting events. Early collaboration in construction has been a key focus area for us and in this issue we explain why project managers should be brought in at an early stage of any development project. The Abu Dhabi Sustainability Week concluded successfully in January with an even bigger global participation than last year and we give you the highlights of key discussions held there. In the technology section we examine the benefits of digitization and the challenges we face as the Internet of Things becomes widespread. Finally, we introduce you to superfood Quinoa and why the region’s farmers should be taking a close look at this grain as the perfect crop. All in all, an exciting menu for all kinds of mental palates this month. We hope you enjoy the feast. Bon appetit!
FUTURE CITIES ME . VOLUME 1 NUMBER 9 2016 February
Publisher & CEO Liam Williams liam@flipflopmedia.ae Managing Director Harry Norman harry@flipflopmedia.ae +971 4 369 9062 Editorial editor sunil Thakur sunil@flipflopmedia.ae +971 4 369 9063 Katy Elliot info@flipflopmedia.ae
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SMALLER IS BETTER
“The new government is comprised of less ministries but more ministers handling national, strategic and dynamic files,” Sheikh Mohammed explained. “The Ministry of Education and the Ministry of Higher Education will be merged under one minister supported by two ministers of state.”
In efforts to optimize and streamline government operations UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan has approved a large-scale restructuring of the federal government and a new cabinet of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
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he UAE will soon have a Minister of State for Happiness with the mission to “channel policies and plans to achieve happier society”. Another new position, the Minister of Tolerance, will “inculcate tolerance as a fundamental value in the UAE.” These positions are just two of the sweeping changes announced by His Highness Sheikh Mohammed in a series of tweets on “Social Media Dialogue of the Future.” The “Dialogue of the Future” live social media event detailed sweeping changes that include a “young and flexible” government, restructured ministries, and a plan to outsource public services to the private sector. He announced the appointment of a 22-year-old female minister, the youngest in the world. Sheikh Mohammed said “in the new structure of Federal Government, we will have a road map for outsourcing most of the government services to the private sector”. “The new government is comprised of less ministries but more ministers handling national, strategic and dynamic files,” Sheikh Mohammed explained. “The Ministry of Education and the Ministry of Higher Education will be merged under one minister supported by two ministers of state.” “We will establish a new independent entity to manage public schools,” said Sheikh Mohammed. “UAE public schools will enjoy a great level of power and independence.” Additionally, he noted that the mandate of the Ministry of Education has been extended to supervise all levels from nurseries to higher education. “We have also
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established a higher council of education and human resources to lead a comprehensive change for the future generation,” he added. In another significant change, the Government is restructuring the Ministry of Health – which is now called the Ministry of Health and Prevention - by launching an independent entity to oversee and manage public hospitals. “The role of the Ministry of Health will evolve to focus more on the prevention of diseases,” he added. Sheikh Mohammed also noted that the Ministry of Labour will become the Ministry of Human Resources and Emiratisation. Tanmia - the National Human Resources Development and Employment Authority will be attached to the new ministry. Marriage Fund is now integrated into the Ministry of Social Affairs, which will henceforth be known as the Ministry of Community Development. Other changes include the transformation of the Ministry of Culture to the Ministry of Culture and Knowledge Development, and of the Ministry of Environment and Water to the Ministry of Climate Change and Environment.
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government
A new post, Minister of State for Happiness, will align and drive government policy to create social good and satisfaction. #WorldGovSummit HH Sheikh Mohammed (@HHShkMohd) February 8, 2016
The National Council of Tourism and Antiquities will now be attached to the Ministry of Economy, and the role of the Ministry of Foreign Affairs has been expanded to oversee UAE aid abroad, and will now be called the Ministry of Foreign Affairs and International Cooperation. The Ministry of International Cooperation and Development will now be a part of that ministry. The Ministry of Cabinet Affairs is now known as the Ministry of Cabinet Affairs and the Future, which will be tasked with preparing UAE for post-oil future. A new “UAE Youth Council” will bring together young men and women under the age of 22 to serve as government advisors on youth issues, while a new UAE Council of Scientists will “review national policy for science, technology and innovation.” l
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The post of Minister of State for Tolerance has been created to promote tolerance as a fundamental value in UAE society. #WorldGovSummit HH Sheikh Mohammed (@HHShkMohd) February 8, 2016 “We don’t need more ministries, but more ministers capable of dealing with change” hh Sheikh Mohammed
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GOVERNMENT
Innovation will ensure better futures: World Government Summit “Innovation in government ensures that our children have better opportunities,” US President Barack Obama said at the official opening of the World Government Summit before commending the UAE leadership for its “commitment to E-government”.
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elivering his televised keynote speech at the inaugural session of the Summit on Monday in the presence of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-president and Prime Minister of the UAE and Ruler of Dubai, President Obama said the US is “proud to be a partner” of the UAE. Through commitment to the justice and rights of humans, he said countries can “learn from one another” across the Mena region and the world. “Governments are here for one reason, to help people.” More than 3,000 dignitaries from 125 countries including representatives of world governments, decision-makers, and ministers, turned out to the opening day of the Summit for its fourth edition. Following on from President Obama’s speech, President of World Bank Group Jim Yong Kim, said there are three key drivers which define a truly “inclusive government”. “Governments need to be transparent, they need to invest in their people and they need to create a business environment based on innovation.” To illustrate the huge steps worldwide governments are making when it comes to empowering its country’s people, Kim touched on the current rate of extreme global poverty. “The rate of extreme poverty has fallen. We now have one billion less people living this way compared to 15 years ago. Shaping future governments so they deliver their responsibilities is essential to our goal of ending extreme poverty by 2030.” He said quality leadership and proactive governments are “more important” than ever. Commenting on Dubai’s progress on “inclusion”,
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government
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“The rate of extreme poverty has fallen. We now have one billion less people living this way compared to 15 years ago. Shaping future governments so they deliver their responsibilities is essential to our goal of ending extreme poverty by 2030.” Kim said input from the community, in particular parents, has helped the Knowledge and Human Development Authority (KHDA) improve education here. Today, more than half of the Emirate’s students are in good or outstanding schools compared to just “30 per cent in as recent as 2010”. He said student achievement has steadily improved over the past five years, with youth empowerment becoming a key focus of the country. “His Highness Sheikh Mohammed, your invitation last week to the UAE’s universities to identify a minister under the age of 25.is one of the most inspiring gestures in government today,” he added. Kim drummed home the importance of education stating that for every year in education, a person’s earnings can increase by 10 per cent annually. “This is why governments need to focus on human capital. Governments that invest in education don’t sow seeds of discontent, they provide opportunities for their people.”
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In the Mena region, and the UAE in particular, Kim said now is the time for “greater ambition”. To Sheikh Mohammed, “I am so deeply impressed with your commitment to your country. If the rest of the region can commit to the complete governance that has built the modern and successful UAE, the prospects for peace and prosperity will greatly improve.” And on behalf of World Bank Group, Kim pledged to stand by the UAE’s side to offer assistance when needed. “(We offer you this so you can) accomplish things that we cannot yet begin to imagine but what you, Your Highness Shaikh Mohammed, are already planning.”l
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qatar focus
QATAR: A COuNTRy WiTH ViSiON AND AMBiTiON
WiTH A CLEARLy OuTLiNED PLAN BASED ON HuMAN AND SOCiAL DEVELOPMENT, SOuND ECONOMiCS AND ENViRONMENTAL SuSTAiNABiLiTy, QATAR PREPARES TO MEET THE FuTuRE WiTH CONFiDENCE and vitality.
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atar is at a crossroads. The island country’s abundant wealth creates both previously undreamt of opportunities and formidable challenges. The Qatar National Vision 2030 which was published in July 2008 outlines the country’s endeavour to move away from its dependency on hydrocarbon resources and transform itself into a modern knowledgebased economy. The people of Qatar are key to achieving this aim, and the plan places development of human resources as the main priority for the next 15 years. QaTar’S NaTIONaL VISION rESTS ON FOur PILLarS
1. HUMAN dEVELOpMENT
Qatar’s progress has depended primarily on the exploitation of its oil and gas resources. But these resources are finite. The country’s future economic success increasingly depends on the ability of the Qatari people to deal with a new international order that is knowledge-based and extremely competitive. To meet the challenge, Qatar is establishing advanced educational and health systems, as well as increasing the effective participation of Qataris in the labour force. in addition, Qatar will continue to augment its labour force by attracting qualified expatriate workers in all fields. EDuCaTION IS kEy Qatar is building a modern world class educational system that provides students with a first-rate education, comparable to that offered anywhere in the world. The system aims to provide citizens with excellent training and opportunities to develop to their full potential, preparing them for success in a changing world with increasingly complex technical requirements. Teaching Critical Thinking: The aim is to do away with rote learning by teaching young people to
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engage in critical thinking and to understand the value of collaboration and teamwork. Hub of Research and Discovery: The growing local and international research community in Qatar complements its educational development. Led by the Qatar Foundation’s Qatar Science & Technology Park (QSTP), the country’s leaders are creating infrastructure and systems to foster research and collaboration with global partners in four primary areas of benefit to Qatar: energy, environment, healthcare, and iT & telecommunications.A national network of formal and non-formal educational programs will equip Qatari children and youth with the skills and motivation to contribute to society. a HEaLTHy POPuLaTION Creating a comprehensive world-class healthcare system whose services are accessible to the whole population is another related focus area. Achieving this will require an integrated system of health care offering high-quality services through public and private institutions operating under the direction of a national health policy that sets and monitors standards for social, economic, administrative and technical aspects of
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healthcare. A skilled national workforce capable of providing high quality health services is being created. This is being financed in part by state funds and in part by public private partnerships. a CaPabLE aND MOTIVaTED WOrkFOrCE The Vision 2030 aims to increase and diversify participation of Qataris in the workforce through investments in certification and training programs to be conducted by public and private institutions. Qataris are being incentivised to enter professional and management roles in various business, health and educational sectors. To aid this, high quality training opportunities for all citizens, corresponding to their ambitions and abilities are provided. Qatari women too are offered increased opportunities and vocational support. Finally, the government is encouraging the recruitment of the right mix of expatriate labour, while protecting the latter's rights, securing their safety, and encouraging those who are outstanding among them.
2. SOCIAL dEVELOpMENT
Qatari society is based on the values of justice, benevolence, freedom, equality, and high
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“Comprehensive development is our main goal in striving for the progress and prosperity of our people.” Hamad bin Khalifa Al-Thani morals. The State of Qatar aspires to advance and develop the social dimensions of its society by nurturing Qatari citizens capable of dealing effectively and flexibly with the requirements of the age they live in, and by preserving a strong and coherent family that enjoys support, care and social protection. Women are assuming a significant role in all spheres of life, especially through participating in economic and political decision-making.This safe, secure and stable society is based on effective institutions. The country promotes tolerance, benevolence, constructive dialogue and openness toward other cultures in the context of its Arab and islamic identity. Moreover, it provides its citizens with their basic needs and guarantees them equal opportunities.
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INTErNaTIONaL COOPEraTION Qatar will continue to build upon its role in the international community in the following areas by playing an increased regional role economically, politically and culturally, particularly within the framework of the Gulf Cooperation Council, the Arab League and the Organization of islamic Conference. One of the spearhead movements of achieving this is the intensification of cultural exchange with the Arab peoples in particular and with other nations in general. The Qatar Foundation is playing a pivotal role in sponsorship and support of dialogue among civilizations, promoting co-existence between different religions and cultures.
3. ECONOMIC dEVELOpMENT
The third pillar of Vision 2030 is economic development, more importantly, sustainable economic development. The current state of the economy is vibrant and a steady improvement in all livelihoods is highly achievable. However, this requires prudent management of exhaustible resources by ensuring the optimum utilization of these resources and creating a balance between reserves and production of non-renewable hydrocarbon resources while aggressively promoting economic diversification. Qatar’s large hydrocarbon resources can be leveraged to make sustainable development a reality for all its people by investing in world-class infrastructure; building efficient delivery mechanisms for public services; creating a highly skilled and productive labour force; and supporting the development of entrepreneurship and
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encouraging national investments is crucial for that. Then there is responsible exploitation of natural resources. Here again governance and technology play very important roles. Lastly, diversification and expansion of industries and services are required to create a knowledge-based economy characterized by innovation; entrepreneurship; excellence in education. World-class infrastructural facilities are the need of the hour.
4. ENVIRONMENTAL dEVELOpMENT
innovation capabilities. However, there are challenges. The first challenge is to enable the private sector to play an essential role in achieving sustainable development. Training and support for entrepreneurs is a basic precondition for enabling the private sector to carry out its required role, besides providing financial and non-financial support mechanisms that will help incubate and grow small and medium-scale enterprises. Qatar has already made good headway in developing a political and organizational climate that supports the business sector. But further steps to enhance competitiveness and attract investment are needed in a dynamic, increasingly borderless international economy.The second challenge is to choose and manage a pathway that delivers prosperity yet avoids economic imbalances and stresses. Once inflation becomes ingrained, or hurried development projects are implemented, or public services can no longer cope with bourgeoning demands, there will be risks to sustaining prosperity and to social cohesion. Skilful and farsighted economic management and effective and agile institutions will be needed to attenuate these risks. Qatar’s economic strategy must be alert to a range of risks that could potentially limit the achievement of its ambitions. The best security against these risks lies in open and flexible markets, affordable social protection mechanisms, and precautionary and strategic financial reserves.Thus economic development will depend on sound economic management along with sustained rates of real economic growth. A stimulating business climate capable of attracting foreign funds and technologies and of
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Economic growth and social development need to be balanced with environmental protection. As time goes on, the environmental pillar will become increasingly relevant. Being an island nation global warming and rise in water levels will become important issues. Severity of the problems will need to assessed and resources effectively mobilized to tackle them. To preserve and protect the environment an environmentally aware population will be of immeasurable value. An agile and comprehensive legal system that protects all elements of the environment along with effective and sophisticated environmental institutions need to be built. Institutions will also conduct awareness-raising campaigns, employ environmental planning tools, and carry out environmental research in order to formulate a comprehensive urban development plan for Qatar that adopts a sustainable policy with regard to urban expansion and population distribution. VISION aND aMbITION In more recent developments it has been reported that a senior member of Qatar’s Olympic Committee has announced a "vision and target" of hosting a Summer Olympics and will bid to hold future games maybe as early as the 2028 games.The fast upcoming FiFA 2022 facilities could be used at an Olympics and for such events as the World Athletics Championships in 2019, the Football World Cup in 2022 and the 2023 FiNA world swimming championships.in the past 12 months Qatar has hosted a World Handball Championships and the Paralympics Athletics World Championships.Outside stadiums too, Qatar is undergoing a massive multi-billion dollar building programme for the World Cup, including the building of a metro system in Doha. All sections of Qatari society and all public and private sectors are playing a role in the country’s arrival and prominence on the world stage. From developments in organizational capacity building, efficient and transparent delivery of public services, fruitful public private cooperation and the creation of a vibrant climate for business and social development, Qatar and its people are fast becoming future ready. l
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Qatar construction to remain robust despite challenging conditions Falling oil prices, rising costs and stricter labour laws are some of the issues qatar's construction sector will have to deal with in 2016.
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ffects of oil prices notwithstanding, Qatar’s construction market promises to be the “most robust” across the GCC region in 2016. Major infrastructure contracts will continue to be awarded for FIFA 2022 World Cup. The World Cup preparations are now in the second stage with contracts already awarded for the construction of the planned facilities, such as the Al-Bayt stadium in Al Khor and the upgrade of the existing Khalifa Stadium, which will increase its seating capacity to 60,000, business intelligence firm Meed has said in a report. Another stadium is up for bid in the Education City. Lusail Stadium, the largest of the stadiums that will be built, is in its early stages. Transport projects like Doha’s metro network and the expressway programme are also progressing. Another huge project that will be tendered soon is the regional rail network that will link Doha and other centres in Qatar to the GCC rail network at the Saudi Arabia border. Qatar Rail prequalified some 15 consortiums in late July to bid for the design-and-build contract. Although lower oil prices may continue to be a challenge, on going projects will have enough impact to stimulate economic growth and help alleviate the concerns of the industry by replenishing diminishing order books. The Meed Quality Awards for Projects, in association with Mashreq has launched its latest search for the Gulf’s highest quality projects. Two of Qatar’s flagship projects have won the coveted 'Meed Quality Project of the Year', the only country to have achieved the feat in the six-year history of the awards programme. The Pearl GTL Project received the distinction in 2012, with Qatar Foundation’s Qatar Faculty of Islamic Studies Project replicating the achievement last year. However, Qatar also faces other challenges.
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“The region’s major commercial centres of Doha and Dubai remain – for the time being, at least – relatively stable locations for developers, benefitting from access to inexpensive labour and energy.”
COST Qatar continues to be one of the most expensive countries in the Gulf to build office towers, retail storefronts and homes, a new report has found. Though blue-collar workers earn relatively low wages, Doha still has some of the highest construction costs in the region, according to an annual ranking by consulting firm Arcadis. This is despite political efforts to reign in industry prices around the country. Over the last year, Doha moved ahead of European cities Brussels and Milan, as well as Tokyo, Melbourne and Auckland in terms of rising construction costs. The report stated that Doha was the 12th most expensive city this year, ahead of Jeddah (16th) and Dubai (18th). Last year, Qatar ranked 16th, still ahead of the UAE and Saudi Arabia. But in a statement, Ian Williamson – the buildings global business leader at Arcadis – downplayed the relative movement and said Qatar continues to be an attractive investment destination: “The region’s major commercial centres of Doha and Dubai remain – for the time being, at least – relatively stable locations for developers, benefitting from access to inexpensive labour and energy.” Arcadis compiles an annual index of construction costs around the world, comparing the relative
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prices of labour and materials required for various building types. Reigning in construction costs has been a priority for Sheikh Tamim bin Hamad Al Thani since becoming Emir in 2013. In his first publicized speech, Sheikh Tamim said the government would try to contain inflation “by all available means and tools,” such as improved scheduling of major projects And last year, the government appeared to take a step in this direction by establishing a ministerial committee to oversee projects of “strategic importance,” according to Qatar’s state news agency. Its tasks include prioritizing major projects, reviewing costs as well as proposing alternative contracting and financing methods. The race to build new roads, schools and apartment buildings for Qatar’s rapidly growing population – as well as the stadiums and hotels needed for the 2022 World Cup – have driven up costs, especially as bottlenecks at the Doha Port restrict the volume of imports. However, the gradual shift to the new Hamad Port – which received its first commercial vessel late last month – is expected to ease this pressure. Meanwhile, Arcadis said persistently low oil prices may serve as a silver lining for some in Qatar’s construction sector. Lower government revenues across the region have prompted authorities in these countires to cancel or postpone some mega-projects, reducing the competition for skilled professionals and raw materials: “Pressure from other parts of the region is, nevertheless, reducing as spend is moderated as a result of falling energy prices. This means that further construction resources can be expected to meet local demand in Qatar,” Arcadis said in its report.
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Particular attention has been focused on the country’s kafala system, which is used in similar forms throughout Arab countries to govern foreign workers and their relationships to their employers. In Qatar, government spending on major projects is budgeted to increase in 2016 despite expectations that the country will run its first budget deficit in 15 years. However, government planners had already cancelled or delayed many non-essential projects unrelated to the World Cup, including the iconic Sharq Crossing, in the face of rising costs. LABOuR At least five separate cases of construction workers’ deaths in Qatar have been prosecuted in recent weeks, with Doha’s criminal court handing down fines and ordering compensation payments. In several of the cases, the workers fell from high scaffolding. The court convicted the responsible companies of manslaughter and negligence in the workers’ deaths. According to Doha News, human rights activists have expressed mild optimism at the convictions. However, it is unclear if these few cases signify a genuine shift in Qatar or whether the back-to-back court scheduling was merely coincidental. The news comes on the heels of the visit by United Nations High Commissioner for Human Rights, Zeid Ra’ad al-Hussein, who said that reforms were being implemented. In recent months the country has come under intense international scrutiny for its treatment of foreign workers. Particular attention has been focused on the country’s kafala system, which is used in similar forms throughout Arab countries to govern foreign workers and their relationships to their employers. In Qatar, the kafala system restricts foreign workers ability to travel and change jobs without approval from their employer. Labourers, mainly from economically poorer Asian countries, are often hired as construction workers or domestic labourers at very low wages.
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Hussein has expressed an optimism about serious reforms to the country’s kafala system. Last year, Qatar began implementing changes to kafala with mixed reactions from rights group. Some suggested that the changes improved little and perhaps would make things worse for workers. Construction companies operating on stadiums for the World Cup have reportedly been rigorously required to implement high standards to ensure the safety of their workers. Nevertheless, there is a long way to go. Meanwhile, across the region a 15% drop is anticipated in the total value of contacts awarded through 2016 is anticipated, according to some news reports. Construction and infrastructure spending in the region for 2016 is set to be $140bln – down from $165bln last year, while the greatest impact in the region will be felt in Qatar, in percentage terms, as new construction spending is forecast to decrease the most. The report cites that the country is expected to spend around 75% of the $30 bln it spent last year on new contracts, totalling $22.2bln in the next 12 months. This is partly owing to the falling oil prices but, also a main contributor, is that Qatar has a budget deficit forecast, resulting in tighter government spending. Last year’s construction expenditure was however, a record figure of $30 bln, riding on the back of major infrastructure projects which included the Doha Metro and the FIFA World Cup stadia, along with the Expressway project and other major infra contracts. Saudi Arabia is set to see the biggest loss in terms of monetary value of contracts, the report noted, with a drop of 20% ($10bln) to $40.7bln forecast. Kuwait is projected to cut awards by 23% to $24.3bln, down from its all-time high of more than $31bn in spending last year. The UAE on the other hand, is forecast to have a smaller spending drop, owing largely to on going investment in transport and infrastructure, along with long-term oil and gas projects in Abu Dhabi. UAE contracts awarded are expected to fall by just 2.4% or less than $1bln, to $36.5bln. l
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qatar focus Images: Qatar Foundation
Mall Of Qatar: the Icon of a new era This is not just a mall for 2016; this is the centrepiece of a master planned community that will soon welcome neighbouring residential developments, schools and the FIFA World Cup Stadium.
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esidents of Qatar are in for a worldclass experience with the highly anticipated opening of the Mall of Qatar in Q3 2016. Phil McArthur, Managing Director and Founder of the mall’s developer McArthur + Company said, “There’s a significant demand for quality integrated shopping, dining and entertainment facilities in the retail sector in Qatar. Spend and dwell time increases dramatically in malls that provide excellent guest services including spotless public restrooms, convenience, entertainment and a wide array of dining options, all of which is among Mall of Qatar’s many advantages.” The Dubai based McArthur + Company is an international shopping centre development and leasing firm, and its latest project Mall of Qatar is setting new customer service standards for Qatar’s malls as the nation’s first super regional shopping centre. The mall, which is owned and developed by Mall of Qatar W.L.L in collaboration with turnkey contractors UrbaCon Trading & Contracting (UCC), is estimating, based on research conducted by T&L Associates, to attract in excess of 20 million visitors in 2017 with a steady 5% annual increase, and a 10% increase in 2022 with the FIFA World Cup being hosted in Qatar. With the increasing attraction of e-commerce, developers around the world are forced to reevaluate and revisit their strategy for malls. McArthur says, “It’s no longer simply about shopping; it’s about what a mall can offer aside from shopping. People like to see people, and you can only get that desired social experience at the mall, not online. This being said, a mall needs to be conducive for shoppers to return.” Mall of Qatar is steering this trend of mall development by listening to their customers’ demands. The mall has been carefully designed to cater to a wide demographic and all age groups. Not only will Mall of Qatar possess one of the best live and
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Not only will Mall of Qatar possess one of the best live and dedicated entertainment venues in the world with different performances each evening, but will also boast an unrivalled and endless food offering.
dedicated entertainment venues in the world with different performances each evening, but will also boast an unrivalled and endless food offering. It is a truly wonderful evolution that is representative of market aspirations. On top of this, the mall will house some of the most sought-after international brands that have not yet been glimpsed in the city before. Mall of Qatar’s bravado and aspiration to create the finest customer experience in the country has not gone amiss. The mall has already signed commitments for over 75 per cent of its retail space and has a large number of eager retailers on a waiting list. Having worked with some of the leading developers worldwide, McArthur comments “Mall of Qatar is by far the most passionate; they are true believers in excellence, quality and setting new standards. The customer comes first and this is reflected in their pace of construction, the entire flow and layout of the mall which is both functional yet beautiful, and ultimately the calibre of architects and consultants Mall of Qatar works alongside. It is a truly wonderful evolution that is representative of market aspirations.” The rigorous team at Mall of Qatar endlessly strives to be the best in every category. Their meticulous attention to detail is unique not just in the
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GCC region, but also in international markets. Mall of Qatar boasts one of the world’s best infrastructures and road networks. The mall will provide the most user-friendly access and the best parking experience in Qatar, as well as being directly linked to the Doha Metro and adjacent to Al Rayyan international station. The mall will be an entertainment district that compliments the national greater vision to attract entertainment and cultural initiatives, as well as health efforts. This is not just a mall for 2016; this is the centrepiece of a master planned community that will soon welcome neighbouring residential developments, schools and the FIFA World Cup Stadium. Qatar presently may have one of the lowest penetrations of mall space per capita in the GCC at .30 metres per capita, however the nation’s major initiatives including the development of shopping malls such as the prestigious Mall of Qatar, Doha Metro, the new Hamad International Airport as well as numerous international sporting events such as FIFA, will herald in a new era for the country. Shem Krey, deputy managing director of Mall of Qatar, has said that the five-star hotel being developed alongside the retail complex is also 85% through its schedule. "We're into the last 15% of the completion of the mall, in terms of core and shell," Krey added. In September 2015, Krey had confirmed that Mall of Qatar has delayed opening of its mega facility until the end of the third quarter of 2016. At the time, Krey said the firm decided to move the opening date to Q3 in order to allow more time for the tenants to fit out at the development. “It’s a nice problem to have,” Krey added. “We are going to have some of the best flagship stores in the region, more importantly, with unique designs exclusive to the Mall of Qatar that will require more fit out time." Rony Mourani, general manager of Mall of Qatar, said: "The opening of Mall of Qatar in Doha will mark a new era in retail and entertainment and will benefit from the promising opportunities that Qatar retail market offers. We have to understand its directions, the needs of the consumer as well as common shopping behaviours." The concept of mega malls is also undergoing a transformation, Mourani said. "A confluence of global trends are coming together to cause mega malls to change the role they play in people's lives," Mourani explained. No longer are they primarily about shopping. The world of retail is changing considerably; however, mega malls still can have a central role in the urban communities, and mega mall operators must expand their horizons of what a mall can be. "They must envision themselves no longer as real estate brokers, but instead as retailtainers [retail-entertainers]," Mourani added. Mall of Qatar is due to open in Q3 2016. l
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Learning from Education City The language of a mission to inspire innovation and empower contribution to a nation’s progression and prosperity can be spoken in many ways.
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t can be spoken through vision, through accomplishment, and through ambition. It can also be spoken through one of the most visible manifestations of a mission: the buildings within which it is being fulfilled, and from which a potent message about the essentiality of imagination is conveyed. Across the unique and enriching environment of Qatar Foundation (QF), such buildings are found at every turn. Impressive in their scale and their embracing of the state-of-the-art, their scope is, however, extended much further. Intertwining and coalescing to form Education City – QF’s flagship, tangible testament to its commitment to unlocking human potential – while retaining their individual identity and ethos, every facet of these structures is embedded with the values of QF. The architecture of Education City is the architecture of a knowledgebased economy, built for those who will shape Qatar’s future. Celebrating and showcasing the way in which QF’s dedication to creativity, innovation, and the advancement of knowledge is portrayed through its architecture, ‘Learning from Education City’, a ground breaking conference organized by QF in partnership with Columbia University’s Graduate School of Architecture, Planning, and Preservation, and in collaboration with the American Institute of Architects Middle East Chapter, was held at Hamad bin Khalifa University (HBKU) Student Center in November last year. It brought together renowned
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“Through this conference, we have reflected on how we began, how far we have come, what we have learned, and what we can learn from each other, while celebrating the creativity and innovation of this great project, Education City,” said Engineer Telefat. architects and architectural thought-leaders from Qatar, the region, and the world to explore and examine the fabric and the concept of Education City. Attendees gained insights into many of Education City’s pioneering projects, and contributed to discussion and debate surrounding its development and broader architectural and design themes. While outlining how Education City has evolved since the establishment of QF in 1995, the inaugural conference brought the essence of the development, and of QF, to the attention of an international audience from myriad backgrounds and schools of thought. Among those attending were eminent architects whose ability to embrace QF’s vision and mission, and
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to translate and integrate the richness of Islamic and Arabic heritage into contemporary and forward-thinking design, saw them create some of Education City’s defining buildings. “We believe that everyone can learn from Education City,” Engineer Jassim Telefat, Group Executive Director, Capital Projects and Facilities Management, QF, told the conference. “To look at Education City is to see the proof that QF is fulfilling its mission of contributing, through the unlocking of human potential, to the building of a sustainable and prosperous society, and of supporting the transition of Qatar to a knowledge-based economy.” It is a concept, according to Ameena Ahmadi, Technical Director, Capital Projects Directorate, QF, and the conference’s moderator, that recognizes the need for a space in which the acquisition and application of knowledge thrives to be “something special that offers imaginative opportunities for learning”. As Ahmadi stated:
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“Learning does not just happen in the classroom; we take into consideration the spaces that surround the classroom.” ‘Learning from Education City’ offered delegates a journey through time, chronicling Education City’s conceptualization, expansion, and maturation through presentations by key figures in its development. It also provided an exhibition narrating the progression of its Masterplan, which encapsulated the campus as “an organic realm of knowledge and cultural exchange, where a new generation is being nourished within a unique learning environment”. This environment’s beginnings were revisited by the man who designed one of its first buildings, QF’s original headquarters. At that time, according to Ibrahim Jaidah, Group CEO and Chief Architect, Arab Engineering Bureau, it was impossible to envisage what Education City would become. “It was the seed that created this magnificent place called Education City, where we celebrate contemporary Arabic architecture and challenge the best architects in the world not just to create buildings, but to create buildings that celebrate
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a culture,” he explained. “This culture opens up new horizons in architecture.” Developing a framework In opening up the horizons for Education City’s diversification and expansion, the adaptability and flexibility of its Masterplan – the development’s guiding document has been, and continues to be, essential. Reflecting QF’s dynamic nature and its future goals, the blueprint for Education City has cohesion and connectivity at its core, as Hiroshi Aoki, Director and Principal Architect, and Karim Chahal, Director and Senior Project Manager, Isozaki, Aoki & Associates – the firm that, in its previous guise of Arata Isozaki & Associates, devised the Masterplan’s early stages – outlined to the conference. “Our role was to assist in developing a framework that would allow the dynamic project of Education City to grow and develop, in alignment with the vision of QF,” said Chahal. “We had to create a system that could adapt to change. “The goal was to invite leading architects from around the world to submit their individual ideas, accepting the broad limits of the development as set out in the Masterplan, and respecting
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inclusive” building that respects and contemporizes the tenets of Islam. For architect Rem Koolhaas, who conceived the building that will house the new Qatar National Library (QNL), a member of QF – a piece of architecture that, he explained, is intended to inspire “in the same way that an open book inspires” and promote the importance of reading through accessibility and visibility of content - and QF’s new headquarters, Education City, and the symbolism and values infused in its buildings, signifies “unique” ambition. “It reflects Qatar as a benchmark for globalization, seamlessly bringing together different influences and perceptions of modernity,” he said. Adding: “Education City is already home to many universities. I believe QNL demonstrates the aspiration for it to become a center of urban life for all citizens.”
and building on the achievements around them. It was expected that individual buildings should be able to express their own identity through their architectural theme, while acting in synergy with each other.” Four of these buildings – QF partner universities Texas A&M University at Qatar, Carnegie Mellon University in Qatar (CMU-Q), Georgetown University in Qatar; and the HBKU Student Center - were devised by Legorreta + Legorreta, a firm synonymous with Education City’s development, and whose Partner and Design Leader, Victor Legorreta, spoke of how Education City’s message about the value of learning and knowledge now resounds globally. “All the architects who worked on Education City have different histories and traditions, but we all understood the vision of QF and the vision for Education City,” he said. “It is a great architectural example of interaction between cultures, and embracing each culture’s character and personality. It is sending a message to the world about the importance of education.” Other leading architects, whose imprint can be seen at QF, emphasized the concept of creating buildings with a purpose that extends far beyond their function. Ali Mangera, Director of Mangera Yvars Architects, the architects for the World Architecture Festival Award-winning building that comprises the Education City Mosque and Qatar Faculty of Islamic Studies, a college of HBKU, a member of QF, described it as a “visible, dynamic, and
Laying the foundations In addition to informing – and inspiring – participants by illustrating and interpreting the architecture of QF, and offering tours of its facilities and some of its key buildings, ‘Learning from Education City’ served as a platform for provoking thought, sharing perspectives, and fostering dialogue on a series of wider topics, and for centralizing the importance of science, technology, and innovation in design, city-planning, and place-making. Outlining the requirements and qualities of an innovation hub, and how creativity and ingenuity can only flourish in an environment that allows it to do so, Dr Maher Hakim, Associate Professor of Entrepreneurship, CMU-Q, identified the need for such spaces to incorporate four key elements: diversity, inclusivity, stability, and the enablement of new and imaginative thinking. “By designing spaces that allow people to be inspired, to collaborate, to think, and to be stimulated, you are laying the foundations for innovation,” he said. “I see the ability of Education City to get innovation started, and I believe it can be the next great cradle of innovation.” Dynamic growth – allied to the ability to blend tradition and modernity, perceptive, innovative design that energizes learning and cultivates knowledge – has always characterized Education City. The vision and ambition of QF will ensure this continues, as future chapters are written in the story of a project with no global equal. l Source: Qatar Foundation.
qatar focus Images: Qatar Foundation
Designed To Inspire Within and beyond Qatar Foundation (QF), in a physical and conceptual sense, it is visible and iconic; an embodiment of architectural excellence, but also of the power of learning and thought, and the connectivity that exists and endures between past, present, and future.
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weeping across the ground and reaching into the sky, it is the unique and exceptional landmark structure that encompasses the Education City Mosque and Qatar Faculty of Islamic Studies (QFIS), a college of Hamad bin Khalifa University, a member of QF. With the values of Islam, of QF, and of Qatar, embedded in every aspect of its composition, it is also now officially one of the finest buildings in the world. In being selected as the winner of the ‘Religion – Completed Buildings’ category at the World Architecture Festival (WAF) – the world’s largest celebration of inspirational architecture, held in November 2015 at Singapore – global recognition has been afforded to the building, and to QF’s commitment to demonstrating architectural innovation and originality. The only Islamic building to be shortlisted, its category award placed it in contention for the overall World Building of the Year 2015 accolade, a contest in which it received a high commendation from the WAF’s Master Jury. In the words of the judges, the project represents “a cultural breakthrough where client and architect have produced a remarkable building”. Yet this is a building that represents much more than the result of imaginative, creative design and state-of-the-art construction techniques and facilities, and the coalescence of study and worship. Officially opened in March 2015, it stands as a symbol of the vision and mission of QF, of its dedication to fostering a progressive society in which the culture of Qatar, and its Islamic and Arabic heritage, is embraced, appreciated, enhanced, and preserved. As a contemporary reinterpretation of the traditional model of a madrasa, a staple of ancient Islamic cities, the building exemplifies the way in which Islamic architecture can reflect and respect the past while adopting the style of the future. Its twin ribbons – rising skywards and pointing toward Makkah, while also intertwining to create the structure’s internal spaces – are emblematic of knowledge and enlightenment, concepts that guided every step of the project’s design. Five large columns, representing the five pillars of Islam, are the bedrock on which the Education City Mosque rests, each bearing a verse drawn from the Holy Qur’an. Throughout the building, symbolic and poetic references to
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Islam and its civilization are found. Through its cleanness, its use of color and water, and its framing of natural light, it channels the cornerstones of Islamic and Arabic heritage into a masterpiece of modernity. Global honour The ingenuity, attention to detail, and excellence in design that characterizes the building lie behind its WAF Award and high commendation, following its nomination by QF’s Capital Projects Directorate (CPD) with the support of the architects for the project, Mangera Yvars Architects. One of 338 projects from 47 countries to be shortlisted across a range of categories, it was one of three entrants from Qatar – and the only completed building from the nation – and 10 from throughout the GCC to be represented at the WAF, whose judges made their selection based on design quality, evidence of innovation, imagination, and expression, and the potential for projects to inform, and contribute to, the field of international architecture in general. With more than 2,000 architects from 60 countries attending the WAF – globally renowned as the premiere international architectural event and awards program – the shortlisting, the award, and the admiring comments of the Master Jury, have brought the essence and the ethos of QF to a wider global audience. “We consider this to be an achievement for QF as a whole – it stretches beyond an accolade that is
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“The region’s major commercial centres of Doha and Dubai remain – for the time being, at least – relatively stable locations for developers, benefitting from access to inexpensive labour and energy.”
purely for a particular project,” Ameena Ahmadi, Technical Director, CPD, QF, told The Foundation. “It is an acknowledgement of QF’s commitment to creating unique, and very special, architecture, and a manifestation of the values that are embodied throughout QF. “The Education City Mosque and QFIS Building is also a manifestation of the timeless values of the architecture of the Muslim world, and how it is possible to interpret these through different physical models. It carries a philosophical and conceptual message; conveys the importance of learning, knowledge, and innovation that is central to the vision and mission of QF; and represents the preservation and continuation of Qatar’s cultural heritage.” Source of inspiration For Ahmadi, the building reflects a demonstration of how QF’s devotion to extending the frontiers of architectural ambition results in architecture that is of the highest infrastructural caliber, but that acts as a source of inspiration and insight. “We challenged the architects for the project to study and research the architecture
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of the Muslim world, in order to extract its inherent values and characteristics, and reinterpret this in a futuristic, forward-looking way,” she explained. “We have always believed that a building which is designed for learning is not a typical building. It is an opportunity to facilitate, to inspire, and to engage people culturally and intellectually. The purpose of learning is to encourage people to think critically, ask questions, look beyond the surface, and contemplate. In the design of this building, this purpose is reflected.” It is a design of great complexity and sophistication, visualized with the intention of every fiber of the building communicating a message, and realized through the utilization of cutting edge technology, and the deployment of technical acumen and engineering accomplishment that is of the very highest standard. “The execution of any project at QF is driven by the goal of producing architecture that is exceptional,” said Eid Al Qahtani, Project Manager, CPD, QF. “Innovation, professionalism, technical capacity, and awareness and appreciation of the vision and mission of QF are the hallmarks of every project that we undertake at QF, and the architectural landscape of Education City is testament to this. "While projects of this kind represent a challenge, it is one that we actively embrace, and that we consider an opportunity to break new ground, and to push back the limits of architectural achievement. The Education City Mosque and QFIS Building, of which we are immensely proud, is a reflection of what can be achieved through this approach. “Its design combines modern and innovative elements, adherence to sustainability and respect for the environment, and the intrinsic values of Qatar and its Islamic and Arabic heritage. It is a significant feat of engineering and of imagination, and for it to be recognized in such a prestigious international architectural forum as the WAF is a proud achievement that will provide us with added impetus for our future projects.” A place of beauty Through its prominence, its purpose, and its status as an exemplar of how architecture can blend tradition and innovation in order to engage and inspire, the Education City Mosque and QFIS Building – the interior design of which was managed by an alumnus of QF, Mona Hamad, Senior Interior Designer, CPD, and a graduate of Virginia Commonwealth University in Qatar, a partner university of QF – occupies a special place within the built environment of QF, and in the progression and communication of its vision and mission. As Ahmadi says: “It provides a continuous feeling of being among beauty, in its different forms, represented in different ways. “Whether it is through the way natural daylight pours into the building, its natural palette of colors, or the connection it builds with nature, it provides the visitor and the user with a constant opportunity to connect with the wider world, and to contemplate. “The fact that such an immediately observable building represents these values so vividly sends a very strong message about QF. It sends a message that, following such a great achievement on the international stage as the WAF Award, will resonate further. “It is a message that speaks of the work of QF, of its vision and mission, and of our commitment to constantly seeking to enhance our achievements in order to ensuring the realization of this vision.” l Source: Qatar Foundation.
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Sustainable venues for hosting major sports events Author: Edward Gallagher – Business Development Director, De Boer Structures
Sport is bigger business than ever and with more and more major events coming to the Middle East, it has never been more crucial organising committees, as well as countries and cities bidding for future events, develop their plans based on the leading thinking in the industry. One of the current key focusses, recently highlighted in the International Olympic Committee’s [IOC] Olympic Agenda 2020 overhaul, is sustainable development: designed at lowering the investment threshold required to host major championships as well as providing a far more costeffective legacy for the host cities and countries in the years after the event has moved on.
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amously, many hosts of the world’s biggest sporting event, the summer Olympic Games, have fallen foul of old-fashioned thinking and have been left with unused, deteriorating facilities which leave cities a sole legacy of ongoing operations and maintenance bills costing millions. In 2004, the Athens Olympic Games saw a spend of over $10 billion on infrastructure. Most of those venues now lie abandoned and crumbling: Not the kind of ruins
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Greece can use to attract more tourists to the country. Beijing suffered similar problems following the 2008 Olympic Games; its $55m rowing park now in disuse, its cycling tracks now empty and covered in weeds and the iconic “Bird’s Nest” National Stadium struggling to fill its calendar with events. Central to the cure in the IOC’s recent call for change is the “maximum use of existing facilities and the use of temporary and demountable venues”. Whilst it has long been standard practice to use temporary infrastructure for hospitality and back of house facilities, the systems and technologies available now mean whole stadia can be built from modular systems which are far more costeffective than permanent buildings and as they are removed and re-used after the event, result in no ongoing costs. This isn’t only the case for mega-events such as the FIFA World Cup or Olympic Games, but any organiser wanting to attract a specific championship or sport to their city or country can easily build a world-class temporary venue for a single sport (where one does not exist locally) creating the opportunity to bring something new to their city or region. Delivered sustainably, the long term positive impact of sport on the local economy (alongside the social and community gains) is a huge incentive, particularly here in the Middle East, where it can provide invaluable diversification for oil-led economies. In a recent Deloitte report, Dubai’s sporting industry is now shown to be worth more than $1.7 billion with over half of sport’s economic contribution generated by home-grown events and sport overall accounting for nearly 1% of the total Gross Domestic Product (GDP). It is estimated more than one million people are now attending sporting events in Dubai annually – many of whom are
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In a recent Deloitte report, Dubai’s sporting industry is now shown to be worth more than $1.7 billion with over half of sport’s economic contribution generated by homegrown events and sport overall accounting for nearly 1% of the total Gross Domestic Product. tourists, adding substantial value to the visitor economy. Equally, Qatar has become a major hub for sport in the region. In the 2014/15 calendar, Qatar hosted 43 international sporting events, five of which were major world championships (from the IHF World Men’s Handball Championships to the 12th FINA World Swimming Championships). Looking ahead, with the likes of the World Cycling Championships coming to Doha in 2016, the sporting calendar is undoubtedly delivering economic upside and creating strong momentum in the build-up to 2022. The use of temporary infrastructure for venues is already proven to give potential host cities wanting those economic gains the edge in the bid and attraction phase, as well as saving huge amounts of money and eliminating the risk of creating costly ‘white elephants’ for those who have successfully been awarded events. At the London 2012 Olympics, just eight of the 34 venues were newly built with all others being existing or temporary. With around 170,000 seats being removed after the event, FIFA cited the planned
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temporary infrastructure as one of the key successes of the Qatar bid for the 2022 World Cup and for the Tokyo 2020 Olympic Games, eleven of the main venues will now be constructed from completely temporary infrastructure, part of $1.7 bln savings since starting to implement Agenda 2020 in January. With such modular building systems now readily available in the Middle East market, the turn to temporary facilities as a more sustainable and viable solution for hosting major sporting championships is a trend set to continue here – with proof of its use now demanded by rights holders but its acceptance also driven by a tighter focus on cost control from bidders and host organising committees. l
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New PPP Law in Dubai When the ruler of Dubai issued Law No. 22 for 2015, regulating partnerships between the public and private sectors (PPP) in the emirate of Dubai, all involved took notice of the potential effects for their own organisations. Stuart Jordan, partner and co-head of construction for international law firm, King & Wood Mallesons, explains more...
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imed at encouraging the private sector to develop projects and increase investment in different fields, the focus of the law is to better service the economic and social development of the emirate, while also enabling individuals in the community to have better access to cheaper services. The new law aims to increase productivity and improve the quality of public services, better transfer private sector commercial knowledge to the public sector and aid qualifications of Emiratis in management and project operation positions. In addition, government approval of partnership projects below AED200 mln were made simpler. Projects costing between AED200-500 mln are approved by the Department of Finance and those over AED500 mln will be approved by the Supreme Financial Policy Committee. Simple. This framework for Public Private Partnerships (PPP) as a means of procuring public facilities and services is an important step for the Gulf region,
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which previously had not embraced this model although other states have similar laws in place. Let’s consider what it means for contractors, consultants, funders, lawyers and financial advisors: So why has Dubai taken this step? Until now, the Gulf region has stuck to the traditional model of capital spending for public facilities, which historically they have been more able to afford. Perhaps this is a signal the situation is changing due to the low oil prices. Limited public money and public borrowing limits were the main reasons for the original PPP model. There are other factors – good and bad - and we can look at whether they apply in Dubai. Positives Apart from unlocking private capital, and the transferring of project risk to the private sector, the main advantage is the importing of private sector expertise and efficiencies in the procurement. It is widely accepted that the private sector is simply better at managing risks in construction and operation; also more innovative in devising
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The profit motive is powerful and this can result in better service provision as well as cheaper services. This is borne out when we look at the concession companies themselves. Across the world, they are typically a consortium of building-engineering contractors, facilities management contractors and institutional funders. new ways to do things. The profit motive is powerful and this can result in better service provision as well as cheaper services. This is borne out when we look at the concession companies themselves. Across the world, they are typically a consortium of building-engineering contractors, facilities management contractors and institutional funders. Clearly, the private sector works by gathering true specialists together to bid for and to handle these concessions. So can we say this model is viable in Dubai? This new law is partly in recognition that the private sector expertise is strong enough in Dubai. There are certainly
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such contractor specialists working locally and ready to take on this role. Others will surely come as well. This is also the case on the financing side: although the PPP model has not been widely used, there is already a great deal of private project financing of power and water infrastructure in the region: built by the private sector under long term offtake (supply) agreements with public utilities. These sectors are subject of separate existing laws and are excluded from the new PPP law. In support roles, the international finance and legal firms have the experience from 20 years of PPP in other parts of the world. Challenges Firstly, all new things can go slowly and often go wrong. PPP deals in the UK were very slow and expensive to put together at first. The UK Treasury distributed a lot of guidance at the time and slowly the basic structures became standardised and market norms were established for key risks. Transaction cost and time in Dubai will of course benefit from the lessons learned elsewhere but a lot will still depend on the ability of the public authorities
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to agree good deals. If public authorities are generally less good at procuring projects in the traditional way, the adoption of the PPP model can exacerbate the problem, since PPP deals are complex. This has been an issue in other places where concession companies are seen to be making “super profits” in the later years of the concession, with services costing a lot more than the equivalent facility procured in the old way. The private sector efficiencies will not necessarily accrue to the public side of the deal. We understand one of the first projects earmarked for the PPP model (at least as a bidding option) will be the Dubai Metro Red Line extension, so at least the sponsor is a big public body – Dubai Roads and Transport Authority – with recent experience of big projects and of procuring similar facilities in the traditional way. This is bound to help.
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If public authorities are generally less good at procuring projects in the traditional way, the adoption of the PPP model can exacerbate the problem, since PPP deals are complex. This has been an issue in other places where concession companies are seen to be making “super profits” in the later years of the concession, with services costing a lot more than the equivalent facility procured in the old way. The Dubai PPP law does provide that the public sponsor may take a stake in the concession company as an investor. This is an interesting twist, in that profits can come back to the public purse but also means project risk is not fully transferred. The big question is about control within the concession company: will the private sector allow strategic or project operational control (i.e. in doing the PPP deal or operating it) to be shared with the party on the other side of the agreement? There will continue to be comment on the detail but we all hope the new law will enable PPP projects to add quickly to the financing options in Dubai. With all the valuable experience of PPP gained elsewhere, there will hopefully not be too steep a learning curve, adding to deal time and cost. l
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Construction, Development & Infrastructure
JLL Unveils 2016 Top Trends for UAE Real Estate Market JLL, the world's leading real estate investment and advisory firm, has released its '2016 Top Trends for UAE Real Estate'. For the ninth consecutive year, this highly anticipated report assesses and forecasts the major trends that JLL anticipates are likely to impact and shape the UAE real estate sector over the next 12 months.
JLL outlines eight key trends that will affect the UAE real estate market this year: 1. Tightening liquidity: With oil prices remaining low, the government has less scope to inject liquidity into the financial system, resulting in a general tightening of liquidity that will impact investment into real estate development in 2016. Conventional project financing such as bank lending or IPOs will become more difficult, and developers will have to look for alternative funding mechanisms such as joint ventures, refinancing, public private partnerships (PPPs) and co-investment vehicles. 2. Increase in 'Build-to-Suit' (BTS) and 'Sale & Leaseback (SLB)': One of the alternative means of funding new development in the face of tightening liquidity will be 'build-to-suit'. BTS involves developers building schemes according to the specifications provided by corporate tenants, who then commit to either lease or purchase the premises upon completion. This concept is prevalent in more developed markets, and would signal further evidence of the maturation of the UAE real estate market. Sale and Leaseback (SLB) is a means by which occupiers of existing buildings can free up capital for reinvestment in their core
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With subsidy cuts, reduced spending and the potential introduction of a Goods and Services Tax (GST), the government is already realigning its strategy to further reduce its reliance on oil revenues. 2016 is likely to be a more challenging year for the UAE real estate market than 2015, but it must be recognised that the overall economy is still expected to grow at around 2.7%, so there remains opportunities as well as challenges.
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business. BTS and SLB solutions have been most prevalent in the office and industrial sectors of the UAE market to date but there is increasing interest in these concepts in the education and healthcare sectors. 3. Reduced outflow of capital: 2016 will witness reduced capital outflows from the Middle East into real estate in the rest of the world. Capital outflows are expected to decline from 2015 levels when ME investors injected USD11 billion in overseas markets. An increasing share of the Middle East capital flow in 2016 will be from wealthy private individuals or families, as compared to sovereign wealth funds that dominated activity in 2015. As sovereign investors become more mature, they are expected to change their investment strategy in 2016 and will look at profitable exits, which will increase selling activity. 4. Project delays reduce risk of oversupply: A by-product of the slowing market conditions in 2016 is likely to be a continuation of the trend of project delays. This will represent something of a 'blessing in disguise' and will help stabilise the market and avoid excessive oversupply. Project delays will be attributed to a number of reasons, including financing issues, contractual disputes, construction delays and licensing/approval delays, while some developers will deliberately hold back completions to avoid flooding the market. Over the past five years, the materialisation rate of proposed projects has been relatively low, with only 30% for proposed residential projects and 45% of proposed office space completing on schedule. The materialisation rate is expected to remain low with further project delays in 2016, which in effect will reduce oversupply risks. 5. Buildings that work: Productivity will be a key factor for occupiers selecting new office premises –resulting in demand being increasingly focussed on those functional buildings where they can operate more efficiently and productively. While overall levels of demand are expected to be lower than in 2015, those buildings that offer functional and efficient floor plates, high quality lifts and other services, sufficient parking and access to public transport will remain in demand. There is also an increased recognition that office premises contribute to staff productivity and high quality and flexible office space can therefore assist occupiers attract, retain and motivate staff. 6. Adding value to existing buildings: Another trend that can be expected
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in 2016 is a renewed focus on adding value to existing buildings rather than developing new buildings. This trend is resulting in increasing demand for fit-out within retail, office and hospitality projects, as owners seek to position them to match demand patterns. In a challenging economic environment, many occupiers are re-examining their fitouts as this may represent a more cost effective option than moving to new premises. The demand for new office fit-out is growing as occupiers increasingly seek functional, productive, spacious and affordable premises. In contrast, there is less demand for iconic or less functional buildings. 7. Changing hotel landscape: The UAE hotel and hospitality landscape is expected to evolve and change significantly in 2016 as overall demand softens. The market will be affected by disruptions relating to technology (i.e. online bookings), growing demand from new customer profiles (i.e. younger generation), broader hospitality offering (i.e. growth of resorts) and a general move from Dubai's core luxury offering into a more broad based hospitality offering. This changing landscape and the issues and factors around it will impact how hotels operate and their profitability in 2016. 8. Emphasis on building safety: 2016 will witness greater attention towards building safety from various stakeholders, including developers, landlords, occupiers, consultants and government Abu Dhabi Prime Rental Clock
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2016 is expected to see more challenging conditions in the UAE real estate market as we begin to feel the impact of the continuing fall in oil prices and ongoing geopolitical tensions leading to reduced liquidity, and pressure on government budgets. Whilst this overall scenario will naturally impact the UAE and wider GCC region, the UAE real estate market is now better equipped to deal with such challenges than it has ever been. agencies. Due to increased overall awareness, there will more demand for well-maintained buildings with better fire safety and other systems. The market will also witness new regulations where building owners will have to adhere to stricter fire safety guidelines from government agencies such as Civil Defence. The important need in 2016 is probably less for new regulations, but for more effective enforcement of the existing codes and regulations. This is likely to remain a hot issue as stakeholders seek to reduce the reputational risk to their brand from accidents and incidents relating to building safety.
Dubai Prime Rental Clock
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Craig Plumb, Head of Research, JLL MENA concluded: "In a more challenging economic environment, real estate stakeholders (including investors, developers, occupiers and the government) need to consider a range of new strategies to realign themselves and accept the new realities. Despite softening demand across many sectors of UAE real estate there remain significant opportunities for those willing to embrace the new trends offered by an increasingly mature and sophisticated market. It is also important to recognize that while the pace of economic growth in 2016 is expected to be below that seen in 2013 and 2014; it remains in line with that seen in 2015. The market may be slowing but it is still growing". The UAE remains an attractive real estate market and some buyers, especially owner-occupiers and those investors taking a long term perspective may well see value at current levels. Overall, we remain confident that while prices and rentals will soften further in the short term, they are likely to increase again, perhaps as soon as 2017, as the UAE continues on its' path to becoming a more mature real estate market. l
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Benefits of involving project managers from the start By Zander Muego
Picture the scene: You have a AED250 mln construction project and the works are finally underway. It is two weeks in, with the contractor mobilised on site and the contractor has now discovered significant elements of the project cannot be built the way the design proposes. The materials need to be ordered immediately to stay on schedule.
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ou call in the newly appointed project management consultants and they arrive to assess the potential impact of the situation and help resolve the problem. This is an all too familiar scenario and one of the biggest challenges of construction and property consultant, Zander Muego’s profession - being pulled in to manage a project too late in the process. This situation often lends itself to considerable complications, wasted resources and ultimately time delays and increased cost. Mr Muego explains the benefits of bringing the project manager in at the project’s inception stage. It is simple from our perspective as project managers, if the accountability is going to land at our feet, which it should, it follows we should be part of the process from day one. The project begins in earnest with selecting the consultancy team. It is difficult for a client to hold its project manager accountable for the team’s performance if they haven’t had any input during selection. Conversely, if we can work collaboratively with the
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Being involved from the beginning of a project also helps the PM fully understand the project’s objectives and drive it in the right direction. Developing a robust brief that will underpin the project and that is tied to the client’s underlying project drivers is extremely important. client to ensure the right team members are selected, we can ensure the project is set up for success from the outset. Effective project managers bring a wealth of knowledge to the process of choosing multiple entity teams. While the focus can often be heavily on function, technical skills and cost, an experienced PM will also have an understanding of the specific challenges relating to that project and will look to bring together the right mix of personalities who will work well together.
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If the consultancy and construction contracts are not structured correctly, then gaps can emerge during the project. A major benefit of having an experienced PM involved at the inception stage of a project is ensuring deliverables and KPIs are tied to the wider project objectives. This needs to be done in a way that allocates risk and responsibilities in an appropriate way; and specifically in a way that will add value to the project and client. Being involved from the beginning of a project also helps the PM fully understand the project’s objectives and drive it in the right direction. Developing a robust brief that will underpin the project and that is tied to the client’s underlying project drivers is extremely important. This is what will ensure the project creates tangible value once complete. For example, in the private sector a project will usually be driven by financial metrics and profitability, which in turn may be driven by the projected sales or rental values. The design therefore needs to focus on the areas that will enhance this and ultimately maximise the client’s returns. With public sector projects however, the value equation will change and the focus may shift to the benefits the project will create for society, environmental considerations and durability of the completed project. An important value-add is the body of experience of the project management team, which can help inform the project’s strategy and set realistic expectations, particularly when it comes to the team composition, project schedule and budgets. Many developers and clients are very experienced, but this is often in delivering
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their own specific projects. A PM company like Thomas & Adamson will bring a wider breadth of current experience across different sectors to the table and can therefore offer different perspectives on the project by drawing on this experience. Most construction projects involve the input of multiple different specialist entities, whose combined input will comprise the design. Each specialist will often have to overcome quite complex challenges to ensure their element of the design is compliant with local codes, international best practice, the client’s brief and the underlying architectural and engineering requirements. While there will often be a ‘lead designer’ during this stage of the process who is ‘coordinating’ the design, a lack of practical input from a ‘buildability’ perspective is one of the most common causes of delay. The specialist advice and experience of the project manager can add significant value at this incredibly important stage. Case 1: Leisure fit-out One example is a large Dubai restaurant, nightclub and lounge project, for which Thomas & Adamson was not involved in during the design stage, instead being brought in at construction stage. As we got into the construction process and commenced the works on site, major issues were discovered with co-ordination of the mechanical and plumbing services and how these interact with the interior design proposals and existing structure. There were a host of design changes that needed to be addressed immediately, while at the same time the contractor was already purchasing materials and installing the systems on site. Ductwork needed to be relocated, elevations revised and floor levels adjusted. While we dealt with this quickly and efficiently, if this had been discovered later it could have caused weeks of delay for the client with significant additional costs. Case 2: Confidential government project We recently went through a design and procurement process for a government entity where the proposed design had major challenges from a buildability point of view. There was one specific element of the project that was very unique – a first of its kind. While the
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Most construction projects involve the input of multiple different specialist entities, whose combined input will comprise the design.
designers had developed the ‘detailed’ design, the practicalities in terms of sequencing and detailing of the works were extremely challenging. If left for the contractor alone, they would have procured materials and commenced construction only to discover the issues during the installation stage. Having identified this challenge, we engaged with the designers, contractors and specialist suppliers to
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Construction, Development & Infrastructure
About the Author: Zander Muego is regional director of construction and property consultant, Thomas & Adamson, delivering project management and cost management for a diverse range of projects, ranging from leisure and entertainment industry fit-outs to large-scale government construction projects. work through the practical challenges and develop a workable technical solution, while maintaining the intended look and feel. Through the solutions that were developed, the construction process was simplified and a cost saving amounting to approximately 5 per cent of the construction cost was realised. Where the real benefits lie however is in avoiding the risk of the potentially catastrophic construction delays had this issue not have been addressed up-front, which would have had significant financial impact for the client. This was a great example of the value that can be added to a project through the collaboration of the entire team from an early stage in the process and the value that can be added by having PM input from an early stage, turning a potentially disastrous situation into a positive project experience. l
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Focus on Renewables and Sustainable Development Policy, business, leadership, awareness and research key pillars of Abu Dhabi Sustainable Week (ADSW) 2016.
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lobal decision makers from government, business, industry and research joined 33,000 attendees from 170 countries at biggest ever sustainability event in the Middle East. During the discussions concrete steps were discussed to implement solutions to the world’s most pressing sustainable development challenges. The week saw a number of conferences, events and exhibitions based on the key pillars of policy, leadership, business, academic research and awareness. Hosted by Masdar, Abu Dhabi’s renewable energy company, ADSW had heads of state, ministers and international delegations discussing the
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region’s growing energy and water needs, the challenges of urbanisation, and the priorities of climate change mitigation. HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Masdar said: “The UAE is delivering on its goal of achieving the long-term economic prosperity and welfare of its people, guided by the vision of its leadership and a long-standing commitment to diversify all sectors of the economy, including renewable energy. Sustainable development is integral to our continued advancement as a nation, and reflects our core national values of peace, prosperity, stability, tolerance and unity.” “There is no single solution to meeting the world’s growing energy needs. As a leading hydrocarbon exporter, we have long recognised the importance of investing in new technologies to maintain our energy leadership and ensure a diversified, secure energy future. “ADSW is an important reflection of the UAE leadership’s economic and energy diversification goals, which are aimed at achieving sustainable development. Our experience shows that advancing these goals presents an unparalleled economic opportunity, one that will lead to more jobs, more innovation, and more prosperity,” added HE Dr Al Jaber. As the first major international gathering of 2016, ADSW served as a timely platform to sustain the forward momentum achieved in 2015, especially following the recently
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with 2016 marking the third cycle of offering such loans. The loans this year bring ADFD’s total loans provided in collaboration with Irena to $146 million. ADFD had earlier said it would offer a total of $350 million in loans over seven cycles. The fourth cycle of loans is expected to see $56 million on offer to developing countries. Headquartered at Masdar, IRENA is the world’s first intergovernmental organisation dedicated to renewable energy and counts 171 countries as members. Later in the week the winners of the Zayed Future Energy Prize were announced. The Prize represents the environmental stewardship vision of the late Shaikh Zayed Bin Sultan Al Nahyan and celebrates impactful, innovative and long-term achievements in renewable energy and sustainability. It also reflects the UAE’s commitment to finding solutions that meet the challenges of climate change, energy security and the environment. The 2016 winners ranged from SOS HG Shaikh Secondary School, a school for 300 students three hours from Somaliland’s capital, Hargeisa, to BYD, the largest rechargeable battery supplier and new energy vehicle manufacturer, based in Shenzhen. A lifetime achievement award was conferred on Dr Gro Harlem Brundtland recognised her many achievements and accomplishments, included being a guiding force behind the “Brundtland Report” on sustainability over 25 years ago.
adopted Sustainable Development Goals, and the Paris Agreement aimed at mitigating climate change. Just before the start of ADSW the sixth assembly of the International Renewable Energy Agency (IRENA) was held on January 16-17 during which IRENA and the Abu Dhabi Fund for Development (ADFD) announced $46 million in loans for four renewable energy projects in developing countries. The four projects will result in nearly 12 megawatts of new renewable energy capacity, create jobs, and provide energy to rural communities. They will also reduce carbon dioxide emissions by 18,640 tonnes per year. The $46 million will go towards funding of a four-megawatt wind and solar project in Antigua and Barbuda ($15 million), and a 3.6-megawatt solar project in Burkina Faso ($10 million), which will provide modern energy services to over 12,000 local families. It will also fund a two-megawatt solar and wind project in Cabo Verde ($8 million), and a two-megawatt solar project in Senegal ($13 million). The loans are part of ADFD’s strategy to drive sustainable development across developing countries,
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WOMEN IN SUSTAINABILITY Women in Sustainability, Environment and Renewable Energy, or WiSER, opened its activities as part of Abu Dhabi Sustainability Week 2016, attracting a large number of international environmental experts, organisations, company representatives, students and officials, including Minister of State, Dr. Sultan Ahmed Al Jaber, who was in attendance. Established by Masdar and the Zayed Future Energy Prize, the forum recognises the pivotal role that women play in advancing sustainable development. WiSER hopes to inspire and empower women to be catalysts and drivers of climate change solutions, helping to secure access to food, energy and water. Speaking during a panel debate, Yukari Niwa Yamashita, Board Member, Director of Japan’s Institute of Energy Economics, said that some of the aspects that advocate change include educating manufacturers and contractors on using more environmentally friendly practices, but she stressed that conscious consumers, especially women, are the key to any real change. “Consumers need to be aware of using energy efficiently, so one’s lifestyle is important; change can be achieved either by being very conscious and doing it yourself or using the right energy efficient products,” she said. Ms. Yamashita further pointed out that women as decision-makers, especially in the household, can use their powers to create a catalyst and promote sustainability. “We have to spread the word and have think about the communication which can be effected by women. We are very good communicators and very much the decisionmakers regarding the household, so whenever we want to buy a refrigerator or an air conditioner, we make the decisions, so we self-educate and spread the word.” During the event, Dr. Nawal Al Hosany, WiSER Programme Director, announced a new partnership with General Electrics, GE, which hopes to empower women through expert training. “Masdar and GE are working together to create a tailored programme that will help equip as many women as possible with the right tools. Through this environmental leadership training programme, which will take place in GE’s Ecomagination Centre in Masdar City, we hope to achieve our objectives,” she said.
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Deb Frodl, Global Executive Director, GE Ecomagination, said that it is very exciting to be collaborating on this effort which aims to garner more women into the industry. “We are very excited and honoured to be part of localisation efforts happening in the UAE and the region,” she said Deb Frodl, Global Executive Director, GE Ecomagination, said that it is very exciting to be collaborating on this effort which aims to garner more women into the industry. “We are very excited and honoured to be part of localisation efforts happening in the UAE and the region,” she said. The Women in Sustainability, Environment and Renewable Energy initiative hosted its first fullday conference on January 20, which included the announcement of new partnerships aimed at empowering more women to become leaders in the sustainability field. INTERNATIONAL WATER SUMMIT Abu Dhabi aims to reduce daily domestic water consumption more than 40% by 2030. To achieve this target, managing consumer demand is crucial, experts pointed out at the International Water Summit (IWS). Speaking at the IWS keynote panel debate, Mr. Saif Saeed Al Qubaisi, Acting Director General of the Abu Dhabi-based Regulation and Supervision Bureau, outlined the strategic initiatives set out by the Bureau to drive efficiency through regulatory reform in the water and power sectors. “The purpose of these initiatives is to support Abu Dhabi’s economic and population growth. Action needs to be taken now to ensure the Emirate’s future water and electricity needs are met in an economical and efficient manner,” Mr Al Qubaisi said. “This can only be achieved by developing effective energy efficiency programs, educating consumers to encourage sustainable use of water and electricity, and building the knowledge base that is needed to support water and electricity efficiency strategies.” According to the 2014-2018 Water Resources Management Strategy for the Emirate of Abu Dhabi, daily domestic water consumption stood at 614 liters per capita in 2010, and future
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targets aim to curb this figure to less than 340 liters by 2030, which means reducing consumption by nearly 45 per cent. Earlier in February, the Abu Dhabi Distribution Company increased water tariffs from AED 9.9 to AED 10.55 per 1000 liters for those who exceed the allocated daily limit of 700 liters in flats and 5,000 liters in villas, as part of its continuous efforts to promote sustainable domestic water use. Enhancing efficiencies throughout the supply-demand value chain while mitigating environmental risks in the process is crucial to achieving a sustainable water future for the UAE, according to experts. Eng. Shaikha Ahmed Al Hosani, Deputy Executive Director for Environment Quality at the Environment Agency – Abu Dhabi, and a speaker at the IWS conference, said: “The UAE is witnessing rapid population and industrial growth, and with this comes a surging demand for water. Here at the Environment Agency – Abu Dhabi, we are committed to harnessing this resource without compromising the environment through continuous industry collaboration, research and development, and innovation in technology.” “By bringing key stakeholders together under one roof to discuss some of the most pressing challenges and opportunities in the water sector, the International Water Summit plays a pivotal role in shaping a sustainable water future not only for the UAE, but also for the region and worldwide,” she added. IWS, hosted by Masdar and held in strategic partnership with the Abu Dhabi Water and Electricity Authority, took place from 18-21 January at the Abu Dhabi National Exhibition Centre and brought together world leaders, field experts, respected academic authorities, and
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business innovators to accelerate the development of sustainable strategies and technologies. SHAPING THE URBAN FUTURE TOGETHER The Future Cities Forum in Abu Dhabi was held on the theme of “Shaping the Urban Future Together: Creating Sustainable and Resource Efficient Communities”. Attendees heard from leading global government experts on best practices in managing complex, long-term urban challenges and the latest innovations across energy, water, transport, urban planning, and mitigating climate change. Sixty six per cent of the world’s population is projected to live in urban areas by 2050, up from 54 percent in 2014, according to the United Nations. To meet the challenges of urbanization, governments around the world are using advanced technology to develop Smart Cities, with Frost and Sullivan predicting a USD1.56 trillion marketplace by 2020 itself. The Middle East and North Africa hosts among the world’s most ambitious smart city plans, including Abu Dhabi’s Masdar City, Qatar’s Lusail City, The Kingdom of Saudi Arabia’s four Economic Cities, and Morocco’s largest city of Casablanca. Thanks to smart buildings, a pedestrianfocused layout and technology cluster, Masdar City consumes 40 per cent less energy and water than built-up areas of a comparable size. Masdar City recently
inaugurated a solar power storage system with Energy Nest, and signed an agreement with Chinese real estate firm Vanke on a research and development project. “Masdar City is a ‘green-print’ for sustainable urban design – and what we focussed on at the Future Cities Forum is the need for global cities to integrate both environmentally friendly policies and commercial opportunities to drive sustainable development,” said Anthony Mallows, Director of Masdar City. Smart Dubai is working with the United Nations’ International Telecommunications Union to develop the world’s first smart city key performance indicators, and the Dubai Clean Energy Strategy 2050 aims to generate 75 per cent of power from clean energy over the next 35 years. “Dubai is undergoing a seismic shift in developing and encouraging smart city solutions – and at the Future Cities Forum we will focus on the power of public private partnerships, government innovation, and data-based analytics for smart buildings, transportation, and utilities that will support Dubai as a leading global smart city,” said Dr Aisha Bin Bishr, Director General, Smart Dubai Office said before the Forum. Atkins, the international design, engineering and project management consultancy, shared best practices from supporting the future-proofing of cities in the GCC, China, the United States, and the United Kingdom. “The tools and insights which are accessible to us today mean we’re able to develop a much better understanding of how buildings, infrastructure and their environment really do interact and perform, and to make well informed decisions to support their lifecycle – it’s essential that we apply this knowledge today for the benefit of our future urban and social environments,” said Simon Moon, Chief Executive Officer, Middle East of Atkins. Many Smart Cities across the region are diversifying their energy mix to include renewables, especially solar power. Global consulting, design and program management firm C2HM, showcased its vision for smart, sustainable cities and infrastructure, and shared best practices from its recent delivery experiences in the Middle East, India, and Europe. The Future Cities Forum also hosted the Habitat III Sustainable Energy Thematic Meeting, determining the policy agenda for the United Nations New Urban Agenda. l
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Saudi, Egypt and Morocco investing in renewables More than $100 billion in Saudi Arabia renewable energy projects will help meet its future energy demands and diversify its energy sector, industry experts have said.
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he Kingdom’s energy demand is expected to grow by 45 per cent from 69 GWs in 2014 to 100 GWs in 2040, an amount that is nearly as much as all of the rest of the GCC combined, according to a recent report by Frost & Sullivan. In anticipation, the Kingdom plans to spend $109 billion to install 54 GWs of renewable energy by 2040, added Frost & Sullivan. By 2020, Saudi projects alone will account for 70 per cent of the total value of the GCC’s renewable energy projects. “With the Middle East’s renewable energy sector rapidly advancing, Saudi Arabia holds the region’s biggest potential for both solar and wind power,” said Roberto De Diego Arozamena, CEO, Abdul Latif Jameel Energy and Environmental Services, which will be one of the key sponsors of the World Future Energy Summit 2016 in Abu Dhabi, UAE.
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“Renewable energy can help Saudi Arabia meet its growing energy demand, and also help diversify its economy, shift government energy subsidies, and provide jobs for the Saudi workforce,” added Roberto De Diego Arozamena. Solar power in particular is seeing the strongest takeup, with the Kingdom planning to install 41 GWs of solar power by 2040, according to an Arthur D Little report. To support solar, Arthur D Little calls for easy financing of solar projects, strategic partnerships, deploying before manufacturing, and proactive energy policy reforms. “The market has significant innovation support thanks to its world-class universities. Generally, for a successful renewable sector, governments need to implement holistic plans that boost both the innovation and manufacturing capacity to deliver practical, affordable, and competitive energy solutions,” said Robert De Diego Arozamena.
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Abdul Latif Jameel Energy and Environmental Services covers power infrastructure development, sustainable power generation, alternative resources, and energy efficiency. Through its portfolio company Fotowatio Renewable Ventures (FRV), a leading global developer of large-scale solar power plants the company holds a 4.3 GWdc pipeline of projects in emerging solar markets including the Middle East, Australia, Africa, and Latin America. Meanwhile, Egypt continues to mobilize private regional and foreign capital to support the country’s renewable energy sector, with wind and solar PV under the feed-in-tariff scheme presenting an investment opportunity of at least USD 6 billion to 2018, one of the region’s leading investment banks commented before the World Future Energy Summit. Facing growing energy demands and pressure on fuel supplies for conventional energy generation, Egypt is focusing on renewable energy as a viable and effective source to add to the gas-dominated energy mix. Egypt’s New and Renewable Energy Authority aims to generate 20 per cent
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“The market has significant innovation support thanks to its world-class universities. Generally, for a successful renewable sector, governments need to implement holistic plans that boost both the innovation and manufacturing capacity to deliver practical, affordable, and competitive energy solutions,” said Robert De Diego Arozamena. VOLUME 1 NUMBER 9
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By 2030, Morocco aims to generate 52 per cent of its electricity from renewables, including 2 giga watts each from solar, wind, and hydroelectric power… Meeting Morocco’s ambitious renewable energy targets will require international investment and sharing of global best practices...
of its power from renewables by 2020. Morocco has also recentlyannounced its goal to generate more than half of its electricity from renewables by 2030 presenting strong business opportunities. Currently Morocco’ is the Middle East’s largest energy importer, at more than 97 per cent of its total, according to the World Bank. Egypt, for its part, will need to add about 8 gigawatts, foreseen to be split between 5.5 gigawatts of wind power, and 2.5 gigawatts of solar power according to EFG Hermes, one of the leading investment banks in the Arab World. As a result, EFG Hermes predicts a debt and equity investment opportunity of approximately USD 6 to 7 billion for Egypt’s feed-in-tariff renewable energy program to 2018. In these challenging times, renewable energy is increasingly serving as an innovative solution for Middle East and North Africa countries, especially Egypt, to rebuild, reconstruct, and drive diversified economic growth. Renewable energy’s low cost of production, reduced environmental impact, and ease of implementation in rugged and demanding situations make renewables the best power source for Egypt’s future. Whether developed
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by governments, the private sector, or NGOs, renewable energy can transform the key development pillars of power, health, infrastructure, education, and people. “We are bullish in the short- to medium-term on Egypt’s renewable energy projects. But it’s a matter of properly executing the first feed-in-tariff wave. The Government’s implementation of the regulatory framework is one of the biggest challenges. Once the right implementation plan is in place, then it will be easy for international lenders to be fully comfortable with Egypt’s renewables sector,” said Bakr Abdel-Wahab, Managing Director of Infrastructure Private Equity at EFG Hermes. “There is a lot of focus on investors and developers, but we have to remember that 60 to 75 per cent of the funding will be via debt from international and multilateral institutions. All the necessary structural changes need to be in place to assist aggressive debt financing,” added Bakr Abdel-Wahab. Bakr Abdel-Wahab addressed the issue of financing renewables at both the Egypt Energy Forum and the World Future Energy Summit 2016, hosted by Masdar and part of Abu Dhabi Sustainability Week. Currently, Egypt is deploying several different development models for renewable energy projects. These include bilateral agreements between the government and private developers, feed-in-tariff where the government pays set tariffs for renewable energy, and Build-Own-Operate and Build-Operate-Transfer tenders for more competitive bidding by developers. Egypt is working on a range of measures to make opportunities more accessible to equity investors and
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lenders alike, including ensuring currency stability for settling renewable energy tariffs and funding the capital expenditure requirements of power projects, EFG Hermes said. Moreover, many of Egypt’s renewable energy projects under the feed-in-tariff regime are split into 50 megawatt contracts, which has created a fragmented renewable sector that lends itself to further aggregation and consolidation of opportunities by larger developers and investors. “Egypt’s renewable energy sector is very promising and will become substantially more so as roadblocks including currency convertibility are cleared. To be able to raise equity for these projects, for example via a dedicated renewable energy fund, investment managers require immediate tangible opportunities for investment. Investors do not prefer to hold commitments without disbursements for excessing periods,” added Bakr Abdel-Wahab. “We would also expect that larger developers will consolidate projects and develop strategic partnerships within the sector, resulting in the acceleration of renewable energy development,” concluded Bakr Abdel-Wahab. EFG Hermes is presently considering establishing a USD 200 million renewable energy fund to spur wind and solar projects in Egypt and the wider region.
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The firm led the acquisition of a 49% stake last year in a 330 megawatt portfolio of wind assets owned by EDPR in France. By 2030, Morocco aims to generate 52 per cent of its electricity from renewables, including 2 giga watts each from solar, wind, and hydroelectric power, Morocco announced at the recent COP 21 United Nations Climate Change Conference. Demonstrating the strong investment and business potential, the Moroccan Agency for Solar Energy (MASEN)’s Solar Integrated Projects call for USD 9 billion in investment by 2020, according to a recent report by the World Future Council. Meeting Morocco’s ambitious renewable energy targets will require international investment and sharing of global best practices, as the country flips the equation from being an energy importer to potential exporter, Morocco-watchers agreed. Encouraging new business opportunities and innovation in the solar markets of Morocco and the region is the WFES Solar Expo. More than 150 solar exhibitors interacted with innovators, project developers, and buyers to experience the latest solar innovations, learn about solar trends, and network with solar experts at the WFES conference. Morocco’s signature solar project is Noor, which is set to be the largest concentrated solar power plant in the world, with a capacity of more than 500 megawatts and set to power 1.1 million homes by 2018, according to the World Bank. Supporting Morocco’s renewables, the World Bank has joined the European Bank for Reconstruction and Development, BMCE Ban, and Clean Technology Fund in investing in solar plants and wind farms in Morocco. Morocco will also host COP 22 in 2016. Masdar and the Moroccan government recently announced a partnership to install solar home systems in more than 17,000 homes in rural Morocco. Furthermore, Masdar recently announced that Morocco is one of three key markets in the Middle East and North Africa for renewable energy investment over the next 10 years. l
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Key agencies to collaborate on Waste to Energy initiatives Masdar, Abu Dhabi’s renewable energy company and Bee’ah, Sharjah’s environment company have formalized a strategic partnership agreement to develop the UAE’s waste to energy sector. They are joining forces to co-develop Waste to Energy initiatives in Sharjah, the UAE and elsewhere in the region. This partnership will help contribute to the UAE Government’s Vision 2021, which targets, among other goals, diverting waste from landfills up to 75% by 2021.
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r. Sultan Ahmed Al-Jaber, UAE Minister of State and Chairman of Masdar, and Salim Al Owais, Chairman of Bee’ah, signed the agreement at the World Future Energy Summit in Abu Dhabi, in the presence of Khaled Al Huraimel, Group CEO of Bee’ah and Dr. Ahmad Belhoul, CEO of Masdar, as well as Bee’ah and Masdar senior management. The partnership announced during Abu Dhabi Sustainability Week, also establishes a platform to develop similar future projects across the Middle East. Under the agreement, a Centre of Excellence in Waste Management will also be set up in Sharjah to advance education, innovation and capacity building in waste to energy. Dr. Ahmad Belhoul, CEO of Masdar, said, “When people think of sustainability they tend to focus on
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“This agreement allows Masdar to deploy its extensive expertise and experience in clean energy project structuring, financing, asset management and project delivery, which we have gained over the past 10 years, while at the same time helping the UAE reduce carbon emissions and meet its renewable energy targets.” the water-energy-food nexus, but waste is a critical part of the equation. Dumping waste in landfills is not desirable, so finding innovative ways to release the embodied energy in waste is crucial if we are to address the sustainability challenges of increased urbanisation and consumerism. “This agreement allows Masdar to deploy its extensive expertise and experience in clean energy project structuring, financing, asset management and project delivery, which we have gained over the past 10 years, while at the same time helping the UAE reduce carbon emissions and meet its renewable energy targets.” Established in 2007, Bee’ah collects about 2.3 million tonnes of waste from nearly 1 million households in Sharjah each year, while diverting 70% of its collected waste. Salim Al Owais noted the importance of the agreement by saying, “This high profile agreement with Masdar gives the green light for an innovative approach to environmental solutions and energy, and will radically improve our efforts to preserve the wonders of our natural habitat for tomorrow’s generation. Central to this agreement is placing our cutting-edge recycling technologies along with Masdar’s distinguished energy knowhows, at the disposal of our community. “Through our partnership with Masdar, we will bring the industry’s best minds and technology to ensuring our waste-to-energy methodologies are world class and consolidate the UAE’s position as a leader in sustainable thinking and innovation,” he said.
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Khaled Al-Huraimel, Group CEO of Bee’ah said, “We are delighted to have come together and combine both Bee’ah’s and Masdar’s industry leading know-how to develop energy projects in the MENA region. The UAE has long been at the forefront of pioneering sustainable energy solutions and this agreement with Masdar further proves that commitment. The partnership will develop future waste to energy facilities in UAE and the MENA region. Environmental consciousness, clean energy and sustainable entrepreneurship are nothing new to either Bee’ah or Masdar, but the agreement at hand will further propel our efforts towards an ever more sustainable future.” Al Huraimel added that the partnership formed a consortium to participate in the tender process for the announced Integrated Waste Management: Northern Emirates project managed by the Ministry of Environment and Water, which, if successful, will see two additional waste-to-energy plants constructed in the UAE by about 2021. l
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For more than three decades Dewan Architects & Engineers has been one of the region’s leading lights guiding, driving and catalysing the extraordinary evolution of the Middle East’s architecture and engineering design industry.
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SUSTAINABILITY
Philip Rice: “Working with PA one of the world’s largest aerospace and defence firms delivered massively reduced energy consumption cost, identified reduction potentials of 200,000 tons of CO2 emissions and optimised investment of more than €450 million.”
MIDDLE EAST INDUSTRY GIANTS TOLD ‘GO GREEN’
Investment in low emission technologies can make huge savings, create competitive business edge, says PA Consulting Group.
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ome of the Middle East’s biggest industrial firms facing up to massive increases in energy costs in the wake of subsidy reforms are being advised to reduce their carbon footprint to make multi-million dollar savings. The problem of rising energy spend has been highlighted by Saudi Arabian dairy firm Almarai which says that utility price increases combined with new crop-growing restrictions will increase its costs by 500 million riyals (AED489 million) this year. Immediately following its recent statement in response to the reduction of government subsidies, the company’s shares fell by 8%, but PA Consulting Group says companies like Almarai can make huge savings through investment in low emission technologies. “The exploding cost of energy drives up the cost base of manufacturers significantly, and the energy subsidies issue in this region has increased the burden,” said Philip Rice, energy and utilities expert at PA’s regional headquarters in Abu Dhabi. “In the past ten years the global manufacturing industry has been investing in optimizing its carbon footprint, and reduction targets of 50% less emission and 35% less energy consumption are common. “Working with PA, one of the world’s largest aerospace and defence companies delivered massively reduced energy consumption cost, identified reduction potentials of 200,000 tons of CO2 emissions and optimised investment of more
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than €450 million across 25 sites in several countries.” Added Rice: “Investing in low emission technologies and implementing new behaviours to reduce consumption is no longer a cost position only, but can offer other major business opportunities. But only a few companies are aware of how to exploit this.” Rice says PA helps big industrial firms save millions of dollars by sending in teams of experts to develop a customised energy efficiency roadmap. “Solar and photovoltaic systems, combined heat and power plants, wind power and heat recovery can all reduce carbon footprint significantly and cut costs by millions of dollars, but there is no single solution,” he points out. “Companies need to understand that to succeed in going green, many local factors have to be taken into account, such as sunshine hours, wind intensity and availability of subsidies. But a detailed analysis of each manufacturer’s operations and local conditions will produce a customised energy roadmap that can make a massive difference in terms of cutting costs.” A study among more than 500 marketing experts underlined why the significance of “going green” is increasing, and how it gives companies a competitive advantage. Almarai’s recent statement on rising energy costs was in response to a Saudi government announcement on reforms to energy subsidies as part of the kingdom’s annual budget, prompting many firms to announce the likely impact of these changes on their costs. l
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sustainability
“Solar and photovoltaic systems, combined heat and power plants, wind power and heat recovery can all reduce carbon footprint significantly and cut costs by millions of dollars, but there is no single solution.�
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smart technology
Digitization to see $100 trillion in benefits for Society and Business by 2025 “Combinatorial” effects of digital technologies – mobile, cloud, artificial intelligence, sensors and analytics, among others – are accelerating progress exponentially, but the full potential will not be achieved without effective collaboration between businesses, policy-makers and NGOs.
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ne of the defining characteristics of the digital revolution is the plummeting cost of advanced technologies (a drone cost $100,000 in 2007; a similar model is going for $700 in 2015). Cheaper and better technology is creating a more connected world: Today, there are roughly 9 billion devices connected to the Internet; by 2030 it is forecast that there will be 1 trillion. And the ‘combinatorial’ effects of technologies, such as mobile, cloud, sensors, analytics and the Internet of Things, are accelerating progress exponentially. The astonishing pace of technological advances is making it difficult to clearly understand digitalization and fully grasp its implications. Consequently, a number of influential myths have sprung up. A common perception is that digital disruption is bankrupting incumbents and that there is no way back for them in the digital economy. Another myth we encountered is that digital is just a back-office issue focused on achieving operational efficiencies. A third misconception is the belief that companies can implement a successful digital transformation simply by launching a digital business unit and hiring a Chief Digital Officer. However, to realize digital dividends companies will need to search for new business models, fundamentally rethink their operating models, revamp how they attract and foster digital talent, and consider afresh how they measure the success of their business. The “combined value” to society and industry of the digitization that is already occurring in every industry could generate upwards of $100 trillion over the next 10 years, with society set to gain more than business. However, this transformation also brings with it risk, according to new research by the World Economic Forum. With digitization affecting every industry and creating new ways of capturing and creating value, the research, which is part of the
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Forum’s Digital Transformation of Industries (DTI) project, focuses on the “combinatorial” effects of digital technologies – mobile, cloud, artificial intelligence, sensors and analytics, among others. Examples of societal value generated by digitization include mass adoption of autonomous vehicles and usage-based car insurance, which could save up to 1 million lives a year worldwide by 2025. In the electricity sector, a cumulative reduction in carbon emissions worth $867 billion by 2025 could be achieved through the adoption of digital technologies, principally through smarter asset planning. The pace of innovation can be illustrated by the fact that, while it used to take Fortune 500 companies an average of 20 years to reach a billion-dollar valuation, digital start-ups are reaching the same milestone in just four years. The research suggests that, once limitations preventing the massmarket commercialization of enabling technologies such as battery storage and wireless charging are overcome, the pace of change could accelerate. However, the digital transformation of industries comes with risks attached that will require careful management by all stakeholder groups. One such risk is inequality, which could be exacerbated if access to digital skills is not made available to all. Another is
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trust, which has been eroded by growing concerns over data privacy and security. This will only be overcome with improved norms of ethical behaviour. When it comes to business, benefits are by no means guaranteed. Conservative corporate cultures and short-termism combine, for example, to discourage many businesses from taking radical steps to disrupt their own industry by embracing new technologies. One example is electricity distribution, where few utilities have actively embarked on cannibalizing their legacy businesses by offering subsidized renewable technologies such as solar. This represents a missed opportunity, according to the DTI research – produced in collaboration with Accenture – as the pace and scale of societal gains from digital could be greater if driven by the innovation of incumbents than by the disruption introduced by new entrants “Society and the environment stand to gain the greatest share of the rewards from digitization through improvements to welfare, health and other means. To capitalize fully, however, policy-makers must put in place an agile regulatory environment and incentive mechanisms that unlock investment, while businesses must fully embrace sustainable business practices. There is a win win for business and society if we can look beyond immediate commercial gain in favour of long term value creation,” said Mark Spelman, CoHead, Future of the Internet Initiative, World Economic Forum. Digital Transformation of Industries The DTI initiative serves as the focal point for new opportunities and themes arising from digitization. It has been informed by over 230 expert interviews from business, government and academia and engagement with more than 100 of the Forum’s Partner organizations. In 2015, the DTI project had two areas of focus. It developed detailed perspectives on the impact of digital technologies across six sectors – automotive, consumer industries, electricity, health, logistics and media – to identify key digital drivers and trends, outline industry-specific opportunities and risks, and calculate the sectorspecific value-at-stake for business and society. The project also identified common digital patterns across industries and investigated key questions about them. The four cross-industry themes identified were Digital Consumption, Digital Enterprise, Societal Implications and Platform Governance. In 2016, the initiative will focus on the impact of digital transformation on an additional 10 industries, further deep-dives into industries from this year’s project, and examine a number of crossindustry topics such as platform governance, societal impact, and policy and regulation. l
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ngineering
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REZA SHAHSANA
Architectural & Engineering Consultants
ADNAN ABTAH
Head of Supervision
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ISSAM EZZEDDINE
Interior Designer
RAZAN NAJEE
Business Development
CHRISTIAN VASQUEZ
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AT NATIONAL ENGINEERING BUREAU, WE BELIEVE IN INNOVATION, EXCELLENCE LEADERSHIP, STAYING PRODUCTIVE & STANDING ACCOUNTABLE.
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smart technology
applications that leverage the IoT in some small or large aspect of their work. As a result, business analysts and developers of information-centric processes need to have the expertise and the tools to implement IoT aspects that play a role in their systems."
challenges facing IOT as use of the technology grows
Gartner Says By 2020, More Than Half of Major New Business Processes and Systems Will Incorporate Some Element of the Internet of Things. Analysts Reveal Unexpected Implications Arising From the Internet of Things.
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ore than half of major new business processes and systems will incorporate some element of the Internet of Things (IoT) by 2020, according to Gartner, Inc. The impact of the IoT on consumers' lives and corporate business models is rapidly increasing as the cost of "instrumenting" physical things with sensors and connecting them to other things — devices, systems and people — continues to drop. "Uses of the IoT that were previously impractical will increasingly become practical," said W. Roy Schulte, vice president and distinguished analyst at Gartner. "The IoT is relevant in virtually every industry, although not in every application. There will be no purely 'IoT applications.' Rather, there will be many
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Gartner has made more predictions for the IoT: Through 2018, 75 per cent of IoT projects will take up to twice as long as planned. Gartner expects three out of four IoT projects to face schedule extensions of up to 100 per cent with the consequent cost overruns. The more ambitious and complicated the project, the greater the schedule overruns. For some projects, compromises will be made to keep them on-schedule, leading to significant weaknesses in performance, security or integration into existing processes. In the mid-to-long term, these compromises will require that the IoT project be refactored and perhaps even recalled and redeployed. "Product-centred enterprises will be the worst affected," said Alfonso Velosa, research vice president at Gartner. "They will seek to launch smarter, connected products, although this will often be a reactive, tactical approach that seeks to address their competition's IoT product. However, even for enterprises conducting internally centred projects that may focus on cost reductions, there will be people issues. Most of these issues will centre on the normal introduction of a new technology model. It will be complicated by emerging business models that will require process and cultural change. Addressing both of these will lead to projects going over schedule." By 2020, a black market exceeding $5 billion will exist to sell fake sensor and video data for enabling criminal activity and protecting personal privacy. The nature of IoT solutions, how they are deployed, and the types of data they generate and consume are giving rise to new security and privacy implications that organizations must begin to address. This is a rapidly escalating risk to the organization, bringing complexity unfamiliar to most IT and business leaders. "The IoT has enormous potential to collect continuous data about our environment," said Ted Friedman, vice president and distinguished analyst at Gartner. "The integrity of this data will be important in making personal and business decisions, from medical diagnoses to environmental protection, from commands to modify actions of machinery to identification and authorization of physical access. A
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smart technology
black market for fake or corrupted sensor and video data will mean that data can be compromised or substituted with inaccurate or deliberately manipulated data. This scenario will spur the growth of privacy products and services, resulting in an extensive public discussion regarding the future of privacy, the means to protect individual privacy, and the role of technology and government in privacy protection." By 2020, addressing compromises in IoT security will have increased security costs to 20 per cent of annual security budgets, from less than one per cent in 2015. As use of IoT devices grows, however, the unique requirements of IoT architecture, design and implementation over multiple industry segments and scenarios will also grow. As a result, Gartner believes that the average security budget for IT, operational technology (OT) and IoT security requirements will respond to the growth of IoT
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devices across all business segments and scenarios, rising from less than one percent of annual security budgets in 2015 to 20 per cent in 2020. "Major cyber security vendors and service providers are already delivering roadmaps and architecture of IoT security, in anticipation of market opportunity," said Earl Perkins, research vice president at Gartner. "Small startups delivering niche IoT security in areas such as network segmentation, device-to-device authentication and simple data encryption are offering first-generation products and services, including cloud-based solutions where applicable. Large security vendors have already begun acquiring some of these IoT startups to support their early roadmaps and fill niches in their portfolios." l
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TRANSPORT
Dubai Public transport facilities D continue to see growth in 2015
public transport in Dubai now comprises the metro, tram, buses and marine transit modes (abras, ferry, water taxi, water bus). In addition, there are the taxis (Dubai Taxi and franchise companies), which have lifted about 539.558 million riders in 2015 compared with 531.350 million riders in 2014, according to information gathered by RTA’s Statistics Section. ecember recorded the highest ridership rate of mass transit means with more than 48 million riders using public transport means. The breakdown of this number shows that 17.1 million riders used the Dubai Metro, 17.3 million riders used taxicabs, 11.8 million riders used buses, 1.4 million riders used marine transit modes, and 460,000 riders used the Dubai Tram. December 31st, the eve of the New Year’s day, recorded the highest number
The Red Line of the Dubai Metro saw a growing number of riders last year recording 112.7 million riders last year, compared with 104 million riders in 2014 and 89 million riders back in 2013.
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transport
of daily riders recording 1,859,320 riders according to HE Mattar Al Tayer, DirectorGeneral and Chairman of the Board of Executive Directors of Roads and Transport Authority (RTA). Record Numbers “The metro Red and Green lines lifted 178.647 million riders last year compared with 164.307 million riders in 2014 and about 137.759 million riders back in 2013. The Red Line of the Dubai Metro saw a growing number of riders last year recording 112.7 million riders last year, compared with 104 million riders in 2014 and 89 million riders back in 2013. The Green Line lifted 65.942 million riders last year, compared with 60.289 million riders in 2014, and 48.873 million riders back in 2013. Last year, Dubai tram lifted 4.07 million riders,” explained Al Tayer. “Public bus users clocked 134.775 million riders last year compared with 148.108 million riders in 2014, and 130.541 million riders back in 2013. Public bus routes services accounted for the lion’s share in the number of bus riders served last year recording 88.632 million riders, followed by Metro Stations Feeder Service recording 28.3 million riders, inter-city service reporting about 12 million riders, and bus rental service lifting about 5.9 million riders. “The ridership of marine transit modes (comprising abras, water bus, water taxi, and ferry) recorded 14.426
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million riders last year, compared with 13.26 million riders in 2014, and 13.223 million riders back in 2013. Abras accounted for the largest portion of users of marine transit modes ferrying about 13.783 million riders, and the remaining number was shared by the water bus, water taxi and ferry. Dubai Taxicabs (Dubai Taxi, Hala Taxi and franchise company taxis) made 103.789 million trips lifting about 207.578 million riders compared with 217.751 million riders in 2014, and 174.018 million riders back in 2013,” added Al Tayer. Backbone “Comprising a full range of integrated services, the public transport network in Dubai has become the backbone of people’s mobility in various parts of the Emirate of Dubai. RTA’s efforts in this regard contributed to raising the numbers of public transport ridership across the board. The share of public transport in the mobility of people has leapfrogged from 6% in 2006 to 15% in 2015 and RTA is endeavouring to push it to as much as 20% by
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TRANSPORT
2020, and 30% by 2030. Equally important, RTA has managed to transform the culture of various segments of the community and their attitudes towards using public transport. People have started to grasp and feel the benefits associated with the use of mass transit means such as the physical relief, peace of mind, financial saving, high safety, lower expenses of car usage in terms of fuel and maintenance among others,” noted Al Tayer. Massive Projects “RTA is proceeding with efforts to make public transport systems the first choice in the mobility of peoples, be it citizens, residents or visitors, in their daily movement to work, home or just to have a time out. RTA has ambitious plans for upgrading roads infrastructure and mass transit systems, besides improving the efficiency of public transport, and broadening the delivery of smart services to the public. There are more than 35 mega projects the most important of them are designing and constructing public transport services for hosting Expo 2020 including the extension of the Red Line of the Dubai metro, upgrading roads and junctions leading to the site of Expo. In addition, RTA are going to procure new trains to keep up with the sustained growth in the number of metro users in the lead up to 2020 such that passengers can have better services. RTA is also planning to broaden the coverage of the public transport network to reach 16 new districts and improving the service in 19 others by 2020. It will also be focusing on upgrading marine transit modes, which are set to witness a breakthrough improvement in operations with the opening of the Dubai Water Canal linking the Business Bay with the Arabian Gulf. In implementation of the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President, Prime Minister of the UAE and Ruler of Dubai, to start construction works in a series of projects and transportation systems endorsed by His Highness during a recent visit, the RTA has awarded a contract for Improving Al Awir Road and Entrances of International City (First Stage) Project, costing AED191 million. HE Mattar Al Tayer, DirectorGeneral and Chairman of the Board of Executive Directors of RTA said:
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Abras accounted for the largest portion of users of marine transit modes ferrying about 13.783 million riders, and the remaining number was shared by the water bus, water taxi and ferry. “This project is undertaken in collaboration with Nakheel Company, the main developer of the International City. This project is in the light of findings of the Traffic Impacts Study of the International City and the Dragon Mart area, especially after the opening of the Dragon Mart extension, and the anticipated snarls in the area. “Currently there is a single main entrance shared by residents of the International City and visitors of the Dragon Mart, which often results in tailbacks during the morning and evening peak times. Over the past years, RTA provided an additional signalized entry/exit point at Al Manama Road that has eased the traffic flow at the Main Entrance off Al Awir Road. This improvement project, which covers Al Awir Road, Nouakchott Road, and the International City at Al Warsan in Dubai, would enhance the intake of roads network, and ease the flow of traffic within the International City,” confirmed Al Tayer. “The project comprises improving Al Awir Road in a sector extending from the intersection of the Sheikh Mohammed bin Zayed Road up to the R/A of the International City. A 2-lane flyover will be constructed at the juncture of Nouakchott & Al Awir Roads to ensure a free traffic movement for the traffic inbound from Nouakchott Road and outbound to Al Awir Road westward (in the direction of Dubai city). It will also provide a turning point for motorists coming from Al Awir Road heading to the Sheikh Mohammed bin Zayed Road. The project also includes the construction of a service road in both directions of Al Awir Road to ensure a smooth traffic movement running separately from the International City, Dragon Mart and Al Warqaa District. “The project works comprise the construction of a pedestrian and cycling bridge to ease the mobility between Al Warqaa & the International City, and offer access to the Business District such as the Dragon Mart and the Fruits & Vegetables Market. The existing main four R/As in the International City (Street 414) would be transformed into signalized junctions, and the existing lane would be widened by adding one or two lanes in certain sectors,” explained Al Tayer. “The project also encompasses the widening of Nouakchott Road in both directions from one to two lanes, including modifications of junctions along Nouakchott Road. A signalized junction would be added to provide a perfect access to the International City, besides transforming the existing Treatment Plant R/A into a junction including providing a turn to the Treatment Plant,” concluded Al Tayer. l
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Health & Community
UAE’s year of reading gets fillip with new library Sheikh Mohammed Bin Rashid launches cultural Arabic initiative by means of a one billion dollar library encompassing 4.5 million books.
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The Sheikh Mohammed Bin Rashid Library to open in 2017: One billion Dirham investment More than 4.5 million books across one million square feet 8 specialized libraries with 1.5 million printed books, 2 million electronic books and 1 million audio books Expected to receive 9 million visitors each year 42 million annual beneficiaries A specialized center for the conservation and restoration of old manuscripts restoring historical manuscripts Museum section to display rare artefacts from the Maktoum family collection Library will be home to the Arab Reading Challenge which includes 2.5 million students from 20,00 schools within the Arab world Library will print and distribute 10 million books in the next few years Dubai never does anything less than mega. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has proudly announced that the Emirate is embarking on the largest ever cultural project in the Arab World, the Sheikh Mohammed Bin Rashid Library. The library, designed in the shape of an open book, is set to launch in 2017 and will be the largest cultural center in the region, with an investment of approximately one billion Dirhams. Set in Al Jaddaf, in the heart of Dubai and close to the Dubai Culture Village, the seven-storey, one million square feet property will house more than 4.5 million books and include several areas for interaction, events, activities, educational and cultural festivals. There will also be venues for arts and literary exhibitions, heritage preservation initiatives and a 500-seat theatre for lectures, seminars and presentations on best practice. The library will also serve as a platform for hosting and launching the most significant intellectual and cultural initiatives regionally and globally. His Highness Sheikh Mohammed bin Rashid Al Maktoum stressed that the Arab world is facing a learning gap which explicates the need of projects the size of this historic cultural challenge. His Highness said, “We are the leaders of civilization, duty and culture, and so we need to revive the spirit of learning
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health & Community
Sheikh Mohammed Bin Rashid: “The Arab world is facing a learning gap which explicates the need of projects the size of this historic cultural challenge”
and curiosity within our culture through innovative initiatives that push our boundaries. This is why we decided to start the Year of Reading by launching this state-of-the-art library and to let everyone know that we will transform the UAE into an Arab and global cultural and learning center while strongly establishing reading as a societal norm. We want a dynamic library which will reach you before you reach it, visit you before you visit it, and which encourages you to start reading from childhood, while supporting you as a scientist, researcher or specialist, when older. The library will be a compound for books, a community for readers and writers, and an association for content, culture and thought owners.” His Highness concluded by saying, “The human mind is the center of development and the book is the tool used to renew the mind. A nation can never grow without a renewed mind and a lively, knowledgeable spirit.” The Mohammed bin Rashid Library goes beyond the limits of a typical public library and acts as the headquarter of the most important cultural and cognitive initiatives, such as the 2.4 million Dirham ‘Arabic Language Award’, launched by His Highness Sheikh Mohammed bin Rashid to help people embrace their Arab identity. Placing literature at the forefront of Dubai and the Arab World’s future, the Sheikh Mohammed Bin Rashid Library will form a museum to celebrate heritage and the history of human civilization, in addition to being the largest book warehouse in the region, welcoming students, authors, translators, scholars and academics who share a passion for knowledge and wisdom. Equipped with 2,600 seats and the most advanced technologies and smart applications, it is expected to receive 9 million visitors annually. The Sheikh Mohammed bin Rashid Library rests on six pillars: the main library and eight specialized libraries (Children’s, Youth, Family, Business, Arabic, International, Popular and Multimedia); spreading content (e-library with over 2 billion titles, 1 billion audio books, and 10 million books disseminated around the Arab world); supporting authoring and translation (initiative to translate 25,000 titles into Arabic); protecting the Arabic language (host
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main headquarters of The International Council for the Arabic Language & publish the Mohammed bin Rashid Contemporary Arabic Language Dictionary); preserving cultural heritage; and encouraging reading (which includes The Arab Reading Challenge and over 100 planned annual cultural events). The Sheikh Mohammed bin Rashid Library encapsulates the intellectual and cultural vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, and reflects the crucial role of knowledge in fostering intellectual excellence; confronting regional challenges and paving the way for a new golden era for the Arab nation. “It’s our destiny as a region to be the centre of the world, and our destiny also is to be a convergence point of nations and a junction for all civilizations and cultures,” said His Highness Sheikh Mohammed bin Rashid Al Maktoum. l
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Food & Agriculture
QUINOA LABELLED ‘PERFECT CROP’ FOR UAE CLIMATE CONDITIONS Scientist at Abu Dhabi’s Global Forum for Innovations in Agriculture to support quinoa cultivation by UAE farmers.
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cientists have identified quinoa as an optimal crop for cultivation in the marginal climatic conditions of the UAE following years of extensive research. The International Center for Biosaline Agriculture (ICBA) has worked in partnership with Abu Dhabi’s Ministry of Environment and Water and the Abu Dhabi Farmer Service Centre in the UAE since 2010 to test selected quinoa varieties and learn about their potential to be grown in saline environments.
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Dr Nanduri K. Rao, Plant Genetic Resources Scientist at International Center for Biosaline Agriculture, confirmed that quinoa has exceptional adaptation qualities for marginal environments such as the UAE. Speaking ahead of his participation in the Global Forum for Innovations in Agriculture (GFIA) at the Abu Dhabi National Exhibition Centre, he said: “Trials in the UAE resulted in the identification of four quinoa genotypes that are suitable for sandy soils such as those in the Arabian Peninsula.” “They also matched highest yields reported from countries where quinoa is cultivated traditionally such as Bolivia, the crop’s homeland. This makes quinoa a crop of choice for marginal environments and I encourage farmers to plant it in their fields.”
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Food & Agriculture
“I strongly believe that public-private sector partnerships are essential to finding innovative solutions to water scarcity in agricultural sector and to ensure that scientific innovations become valuable tools for farmers.”
Tested quinoa varieties produced impressive results of 10.5 tons/ha, even with high salinity (EC) when planted in abandoned saline farms and where traditional crops could not grow properly. Besides its stress tolerance, quinoa is one of the most nutritious food crops currently known. The grain has high nutritional quality, and according to Dr Rao, “It is far superior to the commonly grown staple food crops, such as wheat, rice, and corn.” His presentation at the Global Forum for Innovations in Agriculture on Wednesday 17 February in the event’s Innovations Theatre will discuss quinoa as a future-proof crop for climate smart agriculture. Dr Rao is confident that the crop’s eco-versatility combined with its high nutritional value makes quinoa a prominent opportunity to address the future global food demand. “I strongly believe that publicprivate sector partnerships are essential to finding innovative solutions to water scarcity in agricultural sector and to ensure that scientific innovations become valuable tools for farmers.”
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According to Dr Rao’s report there are more than 15,000 accessions of quinoa conserved in the genebanks, most of them in the Andes region and whose potential and nutritional value has not been investigated outside South America. The GFIA exhibition and conference, held under the patronage of H.H. Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister of the UAE, Minister of Presidential Affairs and Chairman of Abu Dhabi Food Control Authority, and in strategic partnership with ADFCA, features more than 300 next-generation agricultural solutions that could shape the future of sustainable farming around the world. Co-located alongside VIV MEA, the two events hosted more than 500 exhibitors of innovative technology, making Abu Dhabi home to the largest agricultural event in the region. The organisers also expect to build upon last year’s 4,550 visitors from 85 countries. GFIA is sponsored by the UAE Ministry of Presidential Affairs, Khalifa International Award for Date Palm & Agricultural Innovation, Abu Dhabi Farmers Serviww ces Centre, Emirates Food Industries, Koppert Biological Systems, AGCO, GODAN and CoolFarm and staged with the support of Masdar Institute, University of Arizona, Kingdom of The Netherlands, Clinton Climate Initiative, CTA, GlobalG.A.P, CGIAR, SAI Platform, Wageningen UR and the Abu Dhabi Convention Bureau. l
BENEFITS OF QUINOA Quinoa is a light, fluffy, edible seed that feels and tastes more like a grain. This “mother grain” is also valued for its tremendous nutritional content. Nutritionally, quinoa is considered a whole grain. Whole grains include the entire intact grain seed without removing any of its parts. In contrast, when grains are milled or refined like white breads, white rice, and white pasta, they have been processed to create a finer, lighter texture. Unfortunately, most of the fiber and important nutrients are also removed during this process. Among the wholesome attributes that make quinoa grain special are: 12% to 18% protein, more than any grain, all nine essential amino acids, gluten-free, high in dietary fiber, good source of phosphorous, magnesium and iron. No wonder Incan warriors highly valued the crop for the energy and stamina it gave them ! The most common versions available in stores are white, red and black quinoa. Whole grains like quinoa provide essential vitamins, minerals and fiber, which help to regulate the digestive system and to keep you fuller and more satisfied. White pastas, white rice and white breads essentially provide us with simple carbohydrates that are quickly digested but little else in the way of nutritional value. Quinoa is naturally gluten-free and contains iron, B-vitamins, magnesium, phosphorus, potassium, calcium, vitamin E and fiber. It is one of only a few plant foods that are considered a complete protein and comprised of all pernine essential amino acids. Incidentally, it was proposed by NASA to be an ideal food for long duration space flights.
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DESIGN REVOLUTION DESIGN TransformingREVOLUTION the future of learning
Transforming the future of learning
With more than 60 years of progressive design and architecture experience, B+H Architects’ wide-ranging international work encompasses higher education, commercial, mixed-use, healthcare, hospitality, sports facilities, master planning & landscape architecture, corporate workplace and residential projects. Our clients like the Arab Center for Research and Policy Studies understand that successful buildings are more than bricks and mortar, more than steel and glass. Well-designed buildings can elevate the lifestyle of people who choose to learn, live, work, stay, shop and socialize in these environments, and in the engaging outdoor spaces that connect them. DESIGN MATTERS.
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