INFRA MENA 1 by GDS International

COVER MENA INFRA v2:feb09 11/02/2009 15:16 Page 1

www.menainfra.com • Q1 2009

MEGAPROJECTS Saudi Arabia’s grand economic vision Page 126

SUSTAINABLE CITY Is Masdar the blueprint for the 21st Century? Page 62

THE MAN WITH THE PLAN Hydra Properties’ SULAIMAN AL FAHIM Page 40

REBUILDING PROJECTS DELAYED. WORKERS LAID OFF. PROPERTY SALES STALLING. Can infrastructure investment save the Middle East’s construction sector? Page 30

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EDITORS NOTE :feb09 11/02/2009 14:52 Page 5

FROM THE EDITOR

TEMPESTUOUS TIMES So now we know: the Middle East is not immune to the effects of the global financial whirlwind after all. The question is, can we ride out the storm?

“Renewable energy continues to make absolute sense, even in difficult times” – Sultan Al Jaber, CEO, Masdar (page 62)

“Some development projects will be frozen, although infrastructure projects such as power plants must go through because the region needs them” – Mishal Kanoo, Deputy Chairman, Kanoo Group (page 78)

‘Sustainability is going to become more and more central to every single thing we do”

ith the benefit of hindsight, we probably should have seen it coming. As Mishal Kanoo says elsewhere in this issue, you can’t watch some of the largest financial institutions in the world go to the wall and not expect there to be repercussions at some point for your own business, no matter how well insulated you think you are. The global recession has finally hit the Middle East with a bang, and companies everywhere are feeling the effects. For the region’s previously booming construction sector, this has meant job cuts, project delays and a slump in the property market. It has meant capital investment is now harder to find. And it has also meant that developments that at one time looked like having cast-iron returns have now been shelved until the market picks up again. From suppliers to contractors to developers to investors, the entire construction value chain has taken a hit as the region takes stock. It’s not all doom and gloom, however. Demand for essential infrastructure works remains strong, and local leaders are willing to spend big money to meet those needs. High oil prices over recent years mean regional governments have accrued significant cash reserves, which they are ready to use to stimulate their economies by reinvesting in infrastructure work. For example, National Bank of Kuwait estimates that some US$1.1 trillion worth of projects are either now underway or in the advanced stages of planning, with GCC countries expected to shell out close to $70 billion on energy projects this year alone. Demand for roads, bridges, hospitals and schools remains high. Chronic housing shortages for middle and lower income customers across the region could also provide opportunities for developers struggling in the over-supplied luxury property markets. Meanwhile falling raw materials costs should ease supply constraints and could even see some previously mothballed projects rematerialise. Accordingly, although the pace of implementation is likely to slow significantly, major infrastructure and capital expenditure projects should still form the backbone of the GCC economy for the foreseeable future, at least. So what does this mean for the construction industry as a whole? Firstly, that developers will need to rethink their plans and assess whether or not they meet current market needs. And secondly, that with the contraction in project financing, gaining access to government-backed projects will be a key survival strategy for many firms. More importantly, it could provide the opportunity to develop much-needed social infrastructure that, in the rush to build the next iconic tourist destination, has often been overlooked. If that is the case, then there might be a silver lining to those storm clouds after all.

– Mike Barker, Managing Director, Buildings and Structures, Mott MacDonald (page 48) Ben Thompson Senior Editor

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CONTENTS Mena Infra1:jan09

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CONTENTS FEATURES

Crunch time The Gulf has been a magnet for developers attracted by the prospect of big returns. But with a global economic downturn starting to bite, the region’s construction sector needs to reevaluate its spending priorities

40 Set for success Hydra Properties has blazed a trail of landmark projects across continents in just three years. So what’s next? CEO Dr Sulaiman Al Fahim tells all

62 Energy sustainability in the desert Abu Dhabi’s Masdar development looks set to transform the way developers look at the issue of sustainable development

Fighting back As the Middle East’s largest supplier of plant machinery, the Kanoo Group has been a big beneﬁciary of the region’s recent construction boom. Can Mishal Kanoo continue his success story?

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CONTENTS www.menainfra.com

108

Douglas Spragg

ASK THE EXPERT 60 Klaus Meissner, Terex Cranes 73 Dr Andrew Green, International Zinc Association 100 Johan Öhgren, Acquiris IT HB 110 Jim Starry, Starrport Corporation 130 Anna Squires, Etherstack

86 Driving force The RTA’s Mattar Al Tayer outlines Dubai’s transportation vision

90 Eastern promise With Emaar Properties’ Issam Galadari

92 Up and away A look at Dubai International Airport’s new Terminal 3 development

48 It’s not easy being green

96 Optimising air space

Can the Gulf’s buildings really go green?

Alexander ter Kuile shares his thoughts on the role of management in a uniﬁed air space

50 Building on growth VINCI’s John Stanion explains why the Middle East is so important for the global giant

98 Improving the industry Roberto Kobeh González outlines the prospects and issues of global civil aviation

68 Steel volatility hits Gulf Can the recent demand for regional steel be sustainable?

102 Improving ATC security

74 Nano from nature

108 Why proper planning matters

The beneﬁts of natural nano-structured ﬁllers

Douglas Spragg reveals the challenges facing the Middle East’s aviation authorities

HEAD TO HEAD 70 Raw materials 84 Roads 104 Aviation

With Ricochet’s Jorn Rod-Larsen

76 Painting a picture of success Birgit Genn reveals how the paints and coatings industry is evolving

132

112 No smoke without fire Fighting ﬁres at the region’s airports

ROUNDTABLES 54 Construction 116 Fire safety

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CONTENTS www.menainfra.com

114 The burning issue A look at ﬁre detection technologies

122 Sustainability in fire protection With Project Fire’s David O’Riley

124 Green thinking Robert Schomaker looks at the role of climate separation in building design

126 Grand designs How Saudi Arabia is planning an economic revolution in the desert

130 Modern communications Anna Squires explains the importance of wireless technologies

132 Game on A look at the region’s rush to build sporting infrastructures

144

IN THE BACK

116

136 Status report: Dubai 138 On the up: FXFOWLE 140 On the shelf: Book reviews 142 Column: A ray of light 144 Final word: Welcome to Dubai

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CREDITS MENA INFRA:feb09 11/02/2009 14:08 Page 12

27-29 October 2009 The Ritz-Carlton, Sharq Village, Doha, Qatar

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UPFRONT ANALYSIS

REMAKING MECCA Why plans to redevelop Islam’s holiest site are causing outrage in Saudi Arabia. EVERY YEAR MILLIONS of Muslims flock to Mecca, home to the largest mosque in the world, on the Hajj – the annual pilgrimage that every adult Muslim must undertake at least once in their life if they can afford it and are physically able. Last December, over three million converged on the city, crowding its streets and filling the central Haram mosque to bursting, and each year the number of visitors gets bigger.

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The city has, in recent years, struggled to deal with the massive logistical and safety issues surrounding the inﬂux of so many people. However, redevelopment plans announced in November could dramatically improve the holy site’s ability to cope. At present, the Haram mosque can hold up to 900,000 worshippers at any one time, but the new plans envisage creating space for 1.5 million people in the main part of the complex, with the intention of expanding capacity still further in the future to allow up to three million people to congregate. The scheme would make it the highest occupancy building in the world. However, the project is not without controversy. The plans are being backed by King Abdullah ben Abdulaziz of Saudi Arabia who, according

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UPFRONT ANALYSIS

to The Architects’ Journal, has asked a hand-picked collection of so-called starchitects to ‘establish a new architectural vision’ for the 356,800 square-metre mosque complex. World famous designers such as Sir Norman Foster and Zaha Hadid are in the frame to take on the redevelopment, but the selection of international architects for this most high-profile of Islamic sites is causing consternation in the Arab world. For starters, non-Muslims are forbidden from even entering Mecca, which presents considerable logistical challenges to many of the King’s handpicked team of experts, regardless of their pedigree. And while there is a precedent for foreign involvement (10 years ago American firm United Automation was given the job of redesigning the sound system in Mecca’s central mosque, and successfully planned and built the entire system without those in charge in attendance), opponents argue that a project of this importance will require hands-on management. There is also resentment at the insinuation that there is no one from the Arab world qualified to undertake the work. “You cannot redesign such a place without a deep feeling and knowledge of it,” said Sami Angawi, a renowned Saudi architect who has devoted much of his life to preserving Islamic architecture in Mecca and Medina. “There is a lot of expertise right here in Saudi Arabia. It is not 50 years ago. We have the knowledge to do this ourselves.” It is a culturally loaded situation. On the one hand, the selection of the finest architects for one of the world’s most important development projects seems logical, and promises to bring a forward-looking, truly international dimension to the project. On the other, there is a sense that as an inherently Muslim site it should have the benefit of an Islamic design team able to invest the requisite love, care and knowledge of the faith such a significant location demands. Either way, it will be interesting to see how the architects in question – international or otherwise – respond.

MECCA IN PICTURES

In December The Architect’s Journal uncovered this remarkable picture, believed to be an early visualisation of plans for the northern extension of the Haram Mosque in Mecca. While unconfirmed, the design sparked indignation throughout the Arab world and provoked debate in the architecture community about the attention given to the sensitivities of urban planning.

A Muslim pilgrim prays on the outskirts of Mecca. Around three million make the annual journey to the Holy City, which in recent years has struggled to cope with the high numbers of people; two years ago, overcrowding killed more than 300 people during the ritual known as the stoning of the devil. Authorities argue that further expansion of the site is urgent.

The city has undergone extensive redevelopment over the past few years, but work has angered conservationists; the building boom has seen the house of Khadija, Mohammed’s first wife, where Muslims believe he received some of the first revelations of the Koran, lost under the construction, as well as the Dar al-Arqam, the first Islamic school, where Mohammed taught.

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INTERNATIONAL NEWS

GCC STATISTICS

US$200 BILLION NEEDED FOR WATER INFRASTRUCTURE

Current and active civil engineering projects in GCC

US$1.3 trillion Value of current telecommunication projects

US$375 billion

THE ISLAMIC DEVELOPMENT Bank estimates suggest Arab countries may need to invest up to US$200 billion in water-related infrastructure over the next 10 years in order to meet the rapidly growing demand for water and sani-

Arab countries need to invest up to

$200 billion

tation services. It is estimated that as many as 50 million people still do not have access to safe drinking water in the Arab world, with a further 97 million lacking access to adequate sanitation, according to IDB’s website.

Value of current power and water utilities projects

US$217 billion Value of energy projects required between now and 2030

US$1.9 trillion Transportation projects will be around

US$200 billion 16

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CEMENT SECTOR BOOMING THE CEMENT SECTOR is booming in Qatar, as expectations say that 25,000 tons are required each day to cover the demand from projects worth US$35 billion expected over the next five years. The gulf region produces between 70-80 million tons of cement per year, which are entirely going to the local market. The General Manager of the Gulf Cement Company, Omar Yaji, said that the cement sector has a bright future with the rapid real estate growth that Qatar is witnessing.

EXPANSION DRIVE WITH FIVE MEGACITIES set to start construction in Saudi Arabia this year, Rajhi Steel plans to expand its production facilities by building a new plant in Jeddah. “The new plant in Jeddah will offer a convenient location, with a one-million-tonne production capacity per year,” said Ahmad Nazzal, Marketing Manager of the Saudibased company. The GCC steel market is expected to grow by five percent and get back to its normal momentum by the fourth quarter of 2009.

INFRASTRUCTURE SPENDING FOR KSA Authority, told Bloomberg that: SAUDI ARABIA PLANS to spend “We are talking now about US$400 billion on infrastrucIt will much less construction cost cost us today ture projects in the next because of the drop in the five years as it seeks to prices of steel, cement and benefit from lower conless for infraother building materials. It struction costs amid the structure projects will cost us today 30 to 40 global financial crunch. Amr percent less for infrastructure al Dabbagh, Governor of the projects than six months back.” Saudi Arabian General Investment

30-40%

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INTERNATIONAL NEWS MIDDLE EASTERN CITIES PLAYING CATCH UP EUROPEAN CITIES DOMINATE the MIDDLE EAST SNAPSHOT worldwide rankings of locations with Quality of living regional rankings the best quality of living, according to Rank City/Country Mercer’s 2008 Quality of Living Survey. Zurich retains its 2007 title as the highest ranked city, followed Dubai 80 jointly by Vienna and Geneva, then (UAE) Vancouver and Auckland. Only two Middle Eastern cities make the top Abu Dhabi 100. The quality of living survey cov88 (UAE) ers 215 cities and is conducted to help governments and major compaManama nies place employees on internation122 (Bahrain) al assignments. The survey identiﬁes those cities with the highest personal safety ranking based on internal staKuwait City 133 (Kuwait) bility, crime, effectiveness of law enforcement and relationships with other countries. Jeddah Dubai (80) and Abu Dhabi (88) 160 (Saudi Arabia) are the Middle Eastern cities with the best quality of living followed by Manama (122) and Kuwait City 163 Riyadh (133). Out of the 25 lowest ranking (Saudi Arabia) cities, two are from the Middle East: Sanaa (207) and Baghdad (215), the city with the world’s lowest 173 Damascus quality of living and lowest levels of (Syria) personal safety. “Several regions of the Middle 176 Tehran East have beneﬁted enormously from (Iran) government investment in infrastructure, health and sanitation and are risSanaa ing up the rankings,” says Slagin 207 (Yemen) Parakatil, senior researcher at Mercer. “However, personal safety and political tensions remain stumbling blocks 215 Baghdad and account for the low ranking of (Iraq) many of the region’s cities.”

MIDDLE EAST UTILITIES NEED US$1 TRILLION THE UTILITIES SECTOR in the Middle East will require more than US$1 trillion in the next few years to finance both the growth of the sector, as well as boost its efficiency and sustainability, according to a recent study. Utilities compete in a worldwide investment market and must attract funds globally, according to leading consulting firm AT Kearney, and the development and funding of the utilities sector needs to be stimulated by appropriate regulation.

AROUND THE WORLD IN 80 DAYS

Our guide to the last quarter’s global events – and their impact on your business.

CLIMATE CHANGE

CONSTRUCTION COOLS

AUSTRALIA has insisted that climate change is a priority, despite the ﬁnancial crisis, and predicts a boom in the renewable energy sector. Whatever happens, expect climate change to continue to be a key driver in the years ahead. MEI impact rating: ***

EXPANSION in the Euro-region slowed for the ﬁrst time in a decade in 2008, led by Germany, the region’s largest economy, and Spain, where a 14-year real estate boom has collapsed. Expect further slowdown in 2009. MEI impact rating: ***

CASH INJECTION

JOB LOSSES

COLOMBIA has announced infrastructure spending will rise 22 percent this year as the government and private companies invest US$24.66 billion. The plan will minimise the impact of the global slowdown and help create new jobs. Will other countries follow suit?

AS THE JOB MARKET comes under pressure in the UAE, workers would inevitably be forced to leave the country. While there is no ofﬁcial data on the current labour market in the region, this could have serious consequences for the economy.

MEI impact rating: *****

MEI impact rating: ***

CLEAN ENERGY OBAMA’S PROMISE AS BARACK OBAMA was inaugurated as the 44th President of the US, he promised a new economic stimulus package of close to a trillion dollars to be spent on decaying infrastructure, building roads, bridges, electric grids and digital lines. Watch this space. MEI impact rating: ****

CONSTRUCTION of the world’s longest natural gas pipeline has started. The West-East pipeline is said to be China’s most expensive energy project in decades. It is hoped the project will help China increase clean energy consumption.

MEI impact rating: ***

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PROJECT UPDATE

OMAN Project: Seven dams will be built at intervals across the length of the Wadi Adai gorge as part of a phased project designed to secure Qurum, Al Amerat and the surrounding areas from severe flooding. Seven local and international construction firms have prequalified to bid for the government’s contract to build the first of the dams at Al Amerat Heights. The dam will be 20 metres high and six kilometers across, built at the entrance to the Wadi gorge. Cost: Unknown Status: Due to start construction on the first dam in first quarter 2009 Completion: All seven dams expected to be completed by 2014

YEMEN Project: The Yemen-Djibouti Bridge will be almost 30 kilometres long, carrying a six-lane highway and four light rail lines as well as water and oil pipelines, from the Bab AlMandab Strait in Yemen to Djibouti on the horn of Africa. There will also be two new industrial and tourism-based cities built on either side of the bridge. Cost: The bridge alone is an estimated US$14 billion Construction: Began in Summer 2008 Completion: 2015-2017

Project: Seven dams will be built at intervals across the length of the Wadi Adai gorge as part of a phased project designed to secure Qurum, Al Amerat and the surrounding areas from severe flooding. Seven local and international construction firms have prequalified to bid for the government’s contract to build the first of the dams at Al Amerat Heights. The dam will be 20 metres high and six kilometers across, built at the entrance to the Wadi gorge. Cost: Unknown Status: Due to start construction on the first dam in first quarter 2009 Completion: All seven dams expected to be completed by 2014

UAE 18

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OMAN

QATAR Project: The Qatar-Bahrain Causeway, also known as the Friendship Bridge, will be a dual carriageway motorway between the two island states. It will run over a total of 18km of embankments and 22km of viaducts and bridges, including two 400m cable stayed bridges over shipping channels. It will reduce the journey time between Qatar and Bahrain from ﬁve hours to 30 minutes. Cost: US$3 billion Status: Survey work currently underway Completion: 2013

Project: The Qatar-Bahrain Causeway, also known as the Friendship Bridge, will be a dual carriageway motorway between the two island states. It will run over a total of 18km of embankments and 22km of viaducts and bridges, including two 400m cable stayed bridges over shipping channels. It will reduce the journey time between Qatar and Bahrain from ﬁve hours to 30 minutes. Cost: US$3 billion Status: Survey work currently underway Completion: 2013

QATAR

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PROJECT UPDATE

UAE

KUWAIT

Project: The Burj Dubai Tower in Dubai is an 818 metre high, 189-storey building – the tallest in the world. Cost: US$875 million Status: The tower is now at 818 metres high, cladding work is in completion and work has started on the interiors Completion: September 2009 Project: The Abu Dhabi Guggenheim Museum will be the only Guggenheim in the region and larger than any existing worldwide. The dramatic setting, on Saadiyat Island just off the coast of Abu Dhabi, has played a part in the design using the water, sky, sand and sun to great effect.

Project: The City of Silk, or Madinat al-Hareer, is a proposed 250 square kilometer planned urban area in Subiya, Kuwait. The main attraction, the Burj Mubarak al-Kabir, will stand at 1001 metres tall, almost three times the height of the Empire State Building. The city will be built in individual phases with total completion within 25 years. Cost: An estimated US$88 billion Status: Construction started in 2008 Completion: Around 2033

Cost: An estimated US$88 billion Status: Construction started in 2008

KUWAIT

Project: Limitless is planning on building the tallest building, the Limitless Towers. The towers will be the ﬁrst green building in Jordan, adopting a host of eco-friendly initiatives in its design, construction and maintenance, including energy-saving techniques and water recycling systems. It will consist of 60 stories with around 600 residential units. There will also be an indoor plaza, with retail, entertainment and leisure facilities and extensive outside space as well as the world’s highest suspended swimming pool at 125 metres connecting the two towers.The glass-bottomed pool with be accessed from the 40th storey of each tower. Cost: US$300 million Status: Construction started in July 2008 Completion: Estimated Summer 2011

Cost: US$200 million Status: Underway Completion: 2012 Project: The City of Silk or Madinat al-Hareer is a proposed 250 square kilometer planned urban area in Subiya, Kuwait. The main attraction, the Burj Mubarak al-Kabir, will stand at 1001 metres tall, almost three times the height of the Empire State Building. The city will be built in individual phases with total completion within 25 years.

JORDAN

Project: The Yemen-Djibouti Bridge will be almost 30 kilometres long, carrying a six-lane highway, four light rail lines as well as water and oil pipelines, from the Bab Al-Mandab Strait in Yemen to Djibouti on the horn of Africa. There will also be two new industrial and tourism-based cities built on both sides of the bridge. Cost: The bridge alone is an estimated US$14 billion Construction: Began in Summer 2008 Completion: 2015-2017

YEMEN

JORDAN

SAUDI ARABIA Project: The King Abdul Aziz International Airport in Jeddah is undergoing a huge expansion, including two new terminals, a new concourse with 25 gates, three connector buildings and an extensive upgrade of infrastructure facilities. The airport’s passenger capacity is expected to have increased from 13 million to 21 million by the end of the project. Cost: US$1.5 billion Status: On schedule Completion: 2010 Project: The King Abdullah International Gardens in Riyadh is a vast futuristic botanical garden and leisure complex just outside the Saudi capital in the desert. The garden will be enclosed by two interceding crescent shaped domes that, along with the related infrastructure will not only have to maintain and control the environment but collect rainwater, solar power and use wind turbines. Cost: US$170 million Status: Construction started in 2008 Completion: 2010 Project: The King Abdul Aziz International Airport in Jeddah is undergoing a huge expansion, including two new terminals, a new concourse with 25 gates, three connector buildings and an extensive upgrade of infrastructure facilities. The airport’s passenger capacity is expected to have increased from 13 million to 21 mil-

SAUDI ARABIA www.menainfra.com

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MARKET ROUNDUP

MARKETWATCH GLOBAL CEMENT PRODUCTION in 2007 was an estimated 2.69 billion tonnes, up from 2.54 billion tonnes in 2006, and by 2012 it is forecast to reach 3.37 billion. Another 648 million tonnes of production capacity is already scheduled to come on line by 2010, to meet the anticipated growth in demand. Much of this additional capacity is designated for China, but a signiﬁcant proportion, 15 percent, will be installed in the Middle East. Cement consumption in the Arab Union countries was an estimated Another 144 million tonnes in 2007, tonnes of production which is capacity is already predicted scheduled to come on line by 2010 to rise to 180 million tonnes by 2010. Egypt is the largest cement producer in the Middle East region, with production of 37.1 million tonnes in 2006, followed by Iran with a production level of 35.8 million tonnes. The cement industry has undergone tremendous changes in its structure over the last decade, with signiﬁcant consolidation and vertical integration. The global leaders in the industry include Lafarge (France), Holcim (Switzerland), Cemex (Mexico), HeidelbergCement (Germany) and Italcementi (Italy). In the drive towards vertical integration, a number of large cement manufacturers have acquired construction companies that produce ready mixed concrete; one such example is the purchase in 2007 of the UK-based construction company Hanson by the German cement producer HeidelbergCement.

648 million

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CAMERA INSPECTION IN TRAFFIC CONTROL TRAFFIC CONTROL IS ONE OF THE MOST CURRENT ISSUES in the infrastructure industry. Two important subjects are rail inspection and license plate recognition. The current developments in rail inspection outline the complexity of these subjects. Dutch Railways still inspects its rails manually. This method might sound outdated, but it is still the most reliable. There’s only one reason: the alternative, Automatic Camera Inspection, is extremely complex. Only the most experienced and technically grounded lighting professionals are able to develop a system that equals the quality of manual inspection. Vision Light Tech (VLT) is momentarily working on the most complex part of the camera inspection system: the illumination. A constant amount of light is required for automatic inspection. It should (preferably) resemble the natural light on a sunny day. Illumination does not revolve around light on its own, it also encompasses the use of ﬁlters and lenses. Only an optimised combination of these three elements enables a high and constant light quality, which is necessary to reach similar or even better results.

The challenge for VLT is to achieve a high as possible contrast – the higher the contrast, he clearer the image. For example in license plate recognition there are several organisations with various reasons for checking out vehicles. The government does not just check speed, but is also interested in country of origin, truck loads and other information that can be traced by codes on vehicles. Naturally these codes and license plates come in all sorts of colours and shapes. Recognition is also hampered by influences such as speed, weather conditions and pollution. Moreover it is not in the driver’s best interest to distract him with sudden light flashes, therefore the control devices require certain invisibility. So there are many factors that need to be considered. VLT’s key focus is to offer an optimised combination of light, lens and filter offering the highest contrast for every situation imaginable. If you are interested in your own customised optical solution, contact Vision Light at www.visionlighttech.com.

Vision Light Tech, Phone: +31 413 260067, Fax: +31 413 260938, Sales contact: Marco de Roder, info@vlt.nl

NEW PARKING RULES THE URBAN PLANNING COUNCIL has announced that new guidelines are to be introduced in Abu Dhabi to ensure adequate parking is provided alongside new construction projects. Previously, buildings have been constructed with inadequate parking, which means that drivers are often forced to park cars in po-

tentially obstructive and dangerous places. One of the requirements of the Abu Dhabi 2030 Plan, launched in 2007, was getting parked cars off the street to make the city more pedestrian-friendly and reduce congestion. The design review branch of the planning council said it would now refuse projects if it believed they would contribute to parking problems.

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MARKET ROUNDUP HIGH-TECH ROAD BUILDING WINS COST AND ENERGY SAVINGS SPECIFICATIONS FOR HIGH-TECH ROAD BUILDING are becoming increasingly sophisticated. Faced with the challenges of lower government spending, higher energy costs and tougher environmental protection, contractors need to be sure about the quality of their work. Avoidance of premature road failure due to insufﬁcient compaction and implementation of lower-cost compaction are twin goals where intelligent technology is becoming indispensable. Measuring technology is synonymous with efﬁciency and quality control in compaction. BOMAG’s measuring and documentation system optimises the compaction process and documents results, number of passes, amplitude, frequency and working speed, and even detects and stores material stiffness values. The EVIB value is the only measured value based on MN/m2 offering reliable compaction control as a physical value for all soil-based and most asphaltbased applications. The advantage for the contractor is that he can monitor the compaction of all layers from sub-base to asphalt, using the VARIOCONTROL – a standard on all single drum rollers with polygonal drum

same measurement value so the entire project has comprehensive and consistent documentation. State-of-the-art BOMAG rollers can be equipped with an automatic compaction control system namely ASPHALT MANAGER, single drum rollers with VARIOCONTROL, a standard already on single drum rollers with a polygonal drum. These systems dispense with guesswork. Unnecessary passes are avoided, saving time and money. With each pass, the driver sees a surface picture of the site and the level of compaction achieved on a display screen. The EVIB value in MN/m² is continuously calculated and indicates the achieved level of stiffness. The compaction force is regulated to the load bearing capacity of the sub-base. Drivers use automatic mode for approximately 90 percent of all applications, but a manual setting for jobs in a sensitive environment, for example, close to buildings, is available. This technology offers the contractor the highest detail in the way in which it documents the quality of work for each compaction site.

AN INDUSTRY LEADER HEADQUARTERED IN TULSA, OK, USA, The Crosby Group, Inc., with manufacturing and sales ofﬁces around the world, has been manufacturing quality end connections and accessories for the material handling industry for more than 100 years. With a product offering focused on applications utilising wire rope, chain and synthetics, Crosby is the world’s premier supplier of material handling hardware. The Crosby line is made of several industry leading brands. These brands were the industry leaders when they were acquired by Crosby, and through the test of time and millions of uses, they remain the market leaders. These leading brands include:

2 3 4 5

CROSBY LAUGHLIN Wire rope clips, shackles and turnbuckles

McKissick Lifting tackle and sheaves. McKissick is API Q1 certified, API-8A (#0023) and API-8C (#0021)

LEBUS Shackles, hooks, turnbuckles, load binders and tail chains

NATIONAL Swaged terminations and dies

CROSBY IP Vertical and horizontal plate clamps

Each of these time tested brands are still the market leaders. There are six main areas that differentiate Crosby from its competitors. These areas are quality manufacturing, risk management and training, research and development, a complete broad based product line, customer service, and engineering. Other companies may do one, or even two things close to what Crosby achieves, but nobody does all six as well. The synergy surrounding the six segments is very strong. For instance, Crosby's successful training programme is part of risk management, but it could easily be part of our customer service. Although all the categories listed above are critical to the company’s success, perhaps the most important attribute is that all Crosby employees are focused on customer service. Crosby’s full-time, fully staffed, fully trained customer service department has over 250 years of industry experience. That experience, coupled with an extensive computer support system, makes for an industry leading team capable of handling any situation. Crosby has an extensive website that contains a complete integrated catalogue. Crosby also has warehouses situated in major cities around the world, as well as a network of over 1600 distributors worldwide.

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FIVE-MINUTE EXECUTIVE

GROWING AMBITIONS Adel Ali, CEO of Air Arabia, explains how the global economic crisis is affecting business and reveals the reasons for further expansion Open-skies policies are generating a range of significant benefits for the region. Effectively the market has been freed up – a trend that looks set to improve further. More competition has naturally led to lower prices, creating opportunities for more people to travel than ever before. The challenge remains to expand further upon current open-skies initiatives to fully liberalise and open up the aviation markets in the Middle East, cutting red tape and incentivising private-sector participation in the sector. Times have undoubtedly changed over the past 12 months. The financial turbulence currently impacting the international economy is a testament to this fact. Throughout this period Air Arabia has witnessed a sustained growth in its passenger traffic, passing the 10 million-passenger mark and posting high growth rates. The current recession is putting additional pressure on everyone in the transport sector. We are no different. However, it is the characteristics of our business model combined with the dynamics of this region that allow us to maintain good figures. While it would be imprudent to suggest that the region will be totally insulated from the global crisis, the IMF has forecast economic growth of 6.6 percent for the Gulf in 2009, compared to its previous forecast of 7.1 percent for 2008. Passenger convenience is Air Arabia’s focus, and every expansion that we embark upon is a result of this focus. Air Arabia’s growth over the past five years has been immense and filled with challenges and success. We couldn’t have reached where we are today if we didn’t come across many challenges, but we look at each challenge as an opportunity that we take advantage of. Air Arabia Maroc will be the latest member to join the Air Arabia family. It’s a new low-cost carrier based in Casablanca that will service North Africa and Europe. We intend to copy the success of Air Arabia business model into Air Arabia Maroc and right now work is on full gear to have the airlines launched by the end of the first quarter of 2009. Expanding the fleet size is an operational need. As we enhance our network across the Middle East, North Africa, the Indian subcontinent, Eastern Europe and Central Asia, we will require additional aircraft to service these sectors. To this effect, we have recently signed a contract with Airbus for 10 additional A320 aircraft, following an earlier agreement for 34 Airbus A320 aircraft signed at the end of 2007.

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FRONTLINE

IN MY VIEW ABDALLAH S. JUM’AH, President & CEO, Saudi Aramco Petroleum matters to everyone on the planet, because it is present in every facet of our societies and our economies. It allows us to transport people and materials, it helps us grow our food, heal the sick, manufacture goods, and make our surroundings safer, more vibrant and more comfortable. Energy and economic activity are inextricably linked. Because petroleum empowers just about every other industry on Earth, it fuels the growth and development of our economies, powers the prosperity of our societies, and helps raise the living standards of billions of our fellow human beings. The first area requiring investment is research and technology development. I believe that technological advancements in upstream applications and operations will enable us to find and produce more oil more efficiently, and to effectively prolong the productive life of our reservoirs even as they open up new frontiers for exploration and development. To my mind, principle in business comes down to one thing. Identify your responsibilities as an organisation or a company and make only those commitments that you are confident you can keep in an ethical manner. The issue of defining your organisation’s responsibilities is one that fascinates me and that has played an important role in my time as head of Saudi Aramco. Innovation is the motor that keeps an organisation moving forward through both choppy seas and still. Insight is the ability to look all around and make sense of those waters, charting dangerous rocks and reefs and identifying where the passage will be smoothest. For me, petroleum is still primarily about people. Our industry is currently facing a number of human resource challenges, however, and many companies find themselves caught between a retirement bulge which will see the departure of many of their most experienced personnel and a very young workforce that is not yet sufficiently experienced. Early in the years I became president, I was asked what I wanted to be known for at the time of my retirement. My answer was, ‘I want to be known as the one who let the genie out of the bottle’. That meant encouraging and capturing the ideas and initiatives of our people, and then applying them to our work and our operations.

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CONSTRUCTION FOCUS HIGH-RISE BUILDINGS

TOPPING OUT THE BURJ DUBAI has reached its ﬁnal height of 818 metres. The ﬁnal height had been kept secret until late-January, presumably in an effort to keep competitors on their toes; however, given that all of the possible competition for the title of world’s tallest tower has now been cancelled courtesy of the credit crunch, Burj Dubai looks set to retain its status for the next few years at least. The building is set to open in September, to coincide with the launch of the Dubai Metro.

BUILDING TIMELINE

September 2009

Burj Dubai expected to be completed and ready for occupation

January 2009

Topped out at 818 metres

September 2008

Height tops 688 metres, making it the tallest manmade structure ever built (surpassing the Warsaw Radio Mast in Poland, which collapsed in 1991)

April 2008

At 629 metres, surpasses the KVLY-TV Mast to become the tallest manmade structure

September 2007

At 555.3 metres, becomes the world's tallest freestanding structure on land, surpassing CN Tower in Toronto

August 2007

Surpasses the Sears Tower antenna, which stands at 527.3 metres

July 2007

Surpasses Taipei 101, whose height of 509.2 metres made it the world’s tallest building

May 2007

Sets record for vertical concrete pumping on any building, surpassing the 449.2 metres to which concrete was pumped during the construction of Taipei 101

February 2007

Surpasses the Sears Tower as the building with the most floors

September 2004

Emaar contractors begin construction

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The Burj Dubai has reached its final height of

818 metres

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CONSTRUCTION FOCUS HIGH-RISE BUILDINGS

SUCCESS STOREYS

LOCATION

ONE IS IN RUSSIA, two are in the US, seven are in the Far East and a whopping 10 are in the Middle East. They are the 20 tallest buildings in 2020, as predicted by the Chicago-based Council on Tall Buildings and Urban Habitation (CTBUH). Only buildings that are fully in the public domain and that are either a) completed, b) under construction or c) considered real proposals are included on the list. Thanks to the current economic climate, the list throws up some contentious choices, as some buildings on the list have recently slowed construction or been put ‘on hold’. CTBUH works on the assumption,

however, that all projects on the list will be completed by their stated dates (although does acknowledge that this may change in the coming months/years). The most immediately striking thing about the list is the sheer scale of the proposed projects: the current tallest building, Taipei’s 101 Tower, only just makes it onto the list in last place at a relatively ground-hugging 509 metres, while the top three (Dubai’s Nakheel Tower, Saudi Arabia’s Kingdom Tower and Kuwait’s Burj Mubarak Al Kabir) are all slated to be over double that height – a gravity-defying one kilometre above sidewalk level.

Middle East (50%) Asia (35%) North America (10%) Europe (5%)

USE Multiple (70%) Office (15%) Residential (10%) Hotel (5%)

STATUS

LOCATIONS: The tallest 20 in 2020

Under Construction (55%) Proposed (40%) Completed (5%)

STRUCTURAL MATERIAL Composite (70%) Mixed (20%) Concrete (10%) Steel (0%)

TALLEST 20 BY 2020

1 2 3 4 5 6 7

1000m

Nakheel Tower (Dubai) Kingdom Tower (Jeddah) Burj Mubarak Al Kabir (Madinat Al Hareer) Burj Tower (Dubai) Shanghai Tower (Shanghai) Russia Tower (Moscow) Chicago Spire (Chicago)

8 9 10 11 12 13 14

151 Incheon Tower (Incheon) Anara Tower (Dubai) Goldin Finance 117 (Tianjin) Makkah Clock Royal Tower (Makkah) Lotte Super Tower (Seoul) Doha Convention Center Tower (Doha) World Business Center Solomon Tower (Busan)

15 16 17 18 19 20

Dubai Towers, Tower 4 (Dubai) World Trade Center One (New York) Pentominium (Dubai) Busan Lotte World Tower (Busan) Burj Al Alam (Dubai) Taipei 101 (Taipei)

Source: CTBUH

900m 800m 700m 600m 500m 400m 300m 200m 100m 0m 1

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MARKET ROUNDUP

ONE-STOP-SHOP FOR AIRPORT SERVICES AIRPORT CONSULTING VIENNA (ACV) is one of the few companies in the industry that fully integrates marketing, commercial, technical and financial airport know how as a one-stop-shop to provide real tailor made solutions. This individuality has been significantly shaped by experiences gained in more than 250 projects, through long-standing cooperations with several international airports, and with a highly efficient network of experts that spreads across the globe. Only basic corporate functions are fulfilled with own personnel. Specific or individual project requirements are met by ACV partners and associates: freelancers, affiliated cooperation partners, aviation experts, and network companies. This ensures a high degree of flexibility and the availability of highly qualified personnel to best meet client and local interests.

ACV’s success as a leading private sector industrial expert can be attributed to the many multi-faceted functions the company has fulﬁlled. Having been a principal operator, a shareholder, a strategic investment partner, an airport manager and a consultant on numerous occasions, ACV understands both sides of the coin: that of the operator and that of the investor. ACV often sets future trends and provides those services that best complement daily management tasks. Consulting and training services are spot-on and individually designed to meet client needs. Founded in 1992, ACV is a private and independent company, managed by the equal shareholders Wolfgang Edelmann and Johann Frank. It is the only Austrian company of its kind to successfully market the complex range of international airport management and operations know how on a worldwide level.

Airport Consulting Vienna GmbH, Atelier Belvedere Top 8, Landstrasser Guertel 3, A-1030 Vienna, Austria, Tel: +43 1 236-7007, Fax: +43 1 253-3033-7399, Web: www.a-c-v.aero, Email: office@a-c-v.aero, Managing Directors: Wolfgang Edelmann, Johann Frank

ACV is a partner for airports facing the challenges of the 21st century:

1 2 3 4 5 6 7

Enhancing efficiency Increasing revenues

THE TOWER CRANE SPECIALIST FOR MORE THAN 40 YEARS we have been dealing with the distribution of cranes. Cranes are the centre of all activities of the Mohr-Company. Our claim is to offer the perfect crane to our customers according to their requirements. To meet these claims we operate an extensive rental-ﬂeet of top and bottom slewing cranes from all manufacturers and of all sizes. As an experienced dealer for cranes we can offer brand new top-class crane technology and we also buy and sell used cranes worldwide. 40 years of experience, specialised in cranes for two generations, our family owned company offers you the know-how of a highly motivated team. Next time you need a crane, trust in our company. The tower crane is the heart and soul of your building site and we’re the specialists for all things concerning tower cranes. It doesn’t matter if you need pre-job planning, erection, dismantling, purchasing or full-service; we’re

your competent partners – your ambition is our challenge. The alternative to renting or buying a new crane is to think about a used crane. We can offer a huge variety of used cranes. In our current used crane stock you will find a lot of different models from all manufacturers. We’re searching worldwide for your desired crane. You just order it and we organise everything from the transport to the erection or dismantling. In our huge rental fleet you will find the tailormade crane for your specifications. As an experienced dealer for cranes we’re able to offer top-class crane technology too. In our used crane storage you will find technically faultless cranes from all manufacturers and performances, which we are able to ship overseas. Or if you want to sell your crane we’ll make you an attractive offer. Just send us the basic facts about your crane and we’ll contact you immediately.

We’re looking forward to replying to your enquiry, visit www.mohr-gmbh.de for more information.

VALUE OF CONSTRUCTION DEALS IN UAE FALLS 85% Achieving profitability Boosting traffic volumes Optimising capacity Improving quality Gaining customer satisfaction

THE VALUE OF CONSTRUCTION CONTRACTS awarded in the UAE fell by 85 percent in the fourth quarter compared to the same period last year, according to the Middle East Economic Digest. Contract awards worth US$14.4 billion were made during the fourth quarter of 2008, down from US$98.1 billion during the same period in 2007 as the global credit crisis rendered project ﬁnancing a struggle. Around US$23.2 billion worth of projects have been put on hold, almost 10 percent of the US$249.7 billion of projects under construction in the UAE. Projects hit by delays include Nakheel Properties’ Palm Deira project in Dubai, Dubai Waterfront and Dubailand. In total, US$191.8 billion of contract awards were made in 2008, a 60 percent drop from the US$482.5 billion of awards made in 2007.

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MARKET ROUNDUP

FIGHTING THE FIRE TIMCO, DESIGNERS AND BUILDERS OF COMamong others accounts and finance procedures, MERCIAL VEHICLES including fire engines and leave applications and so forth. And as part of its ambulances, has been demonstrating comcommitment to the environment, it followed the mitment to, and the evolution of manageISO 14001:2004 standards covering enment systems in its operations for vironmental aspects of its operamany years. tions, and gained that This intergrated Having gained ISO 9001 cercertification in November management system tification in June 1995, detailed 2005, again by BVQI. The is run on a full-time procedures covering all facets internal quality managebasis by a dedicated of the operation have been folment systems were then lowed since, and, with the develmodified to combine the opment of the company’s two into an integrated manin this field products and services, procedures agement system. were updated and amended on a regular TIMCO, with over 150 staff membasis. It has since followed the change of the bers from different nationalities, has always prioriinternational standards for this quality mantised the health and safety of its employees. It was agement system to the ISO 9001:2000, getting therefore natural, having followed OHSAS requirecertified to this by BVQI in 2003. ments for many years, that TIMCO incorporated The TIMCO management system covered this aspect into its system in full. Accordingly, certiand continues to cover more than just the basic fication by BVQI to OHSAS18001:1999 was requirements of the standard, including, achieved in December 2007, with changes afoot

specialist

now to incorporate the recently introduced new standards into the integrated management system of the company. Again, the integrated management system was changed to cover quality management, environmental management and health and safety management. This integrated management system is run on a full time basis by a dedicated specialist in this ﬁeld reporting to the company’s general manager. It should be noted, also, that where a particular ‘job’ requires the following of speciﬁc international standards, this requirement is incorporated into the design planning and job management procedures for the job.

COMPANY INDEX Q1 2009 Companies in this issue are indexed to the first page of the article in which each is mentioned. 100 Acquris IT HB 28, 101 Airport Consulting Vienna 48 Al-Husseini Group 48 Amelio Solar 124, 125 Biddle BV 21 53 BOMAG 62 BP 43 Butterley Limited 96 CANSO 11 Case 62 Credit Suisse 21 141 Crosby Group 104, 107 CS Soft 30 Damac Holding 95 Deerns 48 Doha Bank 92 Dubai Airports 114 Dubai Civil Defence 112 Dubai International Airport Dubai Roads and 86 Transport Authority (RTA) 48 El-Sewedy Cables 144 Emaar 46 EMC

92 Emirates 30 Eric Kuhne Associates 30 Ernst & Young 130, 131 Etherstack 62 Foster + Partners 138 FXFOWLE 30 Global Banking Corporation Global System 116, 121 Technology PLC 76, 77 Heubach GmbH 6, 74, 75 Hoffmann Mineral 91 HSI Fire & Safety 48 Hyder Consulting 40 Hydra Properties 78 Hydroturf 67 IIR Conferencing International Civil Aviation 98 Organisation (ICAO) 89 International Road Dynamics International Zinc Association 70, 73 114 Intersec 78 Kanoo Group 116, 119 Lubrizol 48 M. Torres Olvega

62 Masdar Massachusetts Institute of 62 Technology (MIT) 2, 54 Michelin Middle East Centre for 48 Sustainable Development 28, 129 MOHR 32 Morris Material Handling 48 Mott MacDonald 30 Nakheel 38 Nalco 70, 71 Nickel Institute 35 Oil & Steel SPA 30 Omniyat 30 PricewaterhouseCoopers 122, 123 Project Fire 84 Q-free ASA 8, 102 Ricochet 62 Rio Tinto 30 Rockwell Group 4 Sahko Jokinen 108, 109 SAL Consultants 13 Securiton IFC, 84 Siemens

54, 57 Skyjack 110, 111 Starrport Corp 30 Tameer Holding Investment 60, 61, IBC Terex Corporation 104, 105 Terma Ltd 29, 115 Timco Transportation Security 100 Administration 50 VINCI 20, 25 Vision Light Tech 113 VNE 54, 59, OBC Volvo 83 Varmekable Teknik 23 Wagner 116, 117 Watantia Group 73 World Health Organisation

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MARKET ANALYSIS

In recent years, the Gulf has been a magnet for developers attracted by the prospect of big returns. But with a global economic downturn starting to bite, the region’s construction sector might need to re-evaluate its spending priorities, argues Senior Editor Ben Thompson.

t was supposed to be the glittering jewel in Dubai’s crown, a 62storey, $600 million tower of steel and glass that would provide the centrepiece to the emirate’s high-profile Palm Jumeirah development. It had the backing of the region’s most successful building firm and carried the name of one of the world’s most recognised business tycoons. Most importantly, work was already underway. But late last year, in an announcement that sent ripples of fear throughout the Gulf’s booming construction sector, government-backed property developer Nakheel pulled the plug on its landmark Trump International Hotel and Tower, citing the current global downturn as the deciding factor. “Nakheel is delaying long-dated infrastructure work on some of our projects in order to ensure that our business model is aligned to meet market demand,” the company said in a statement. “We have a responsibility to adjust our short-term business plans to accommodate the current global environment.” Around 15 percent of the company’s workforce was laid off, with further work postponed indefinitely. And while the company was at pains to stress this didn’t signal the end for the prestigious project, it’s hard not to feel that the development’s tagline “Believing is Seeing” may have been misjudged. Up until that point, most observers had been bullish on the outlook for the region’s construction sector and its ability to weather the global financial downturn. Sure, projects still at the design stage would be put on the backburner, but the assumption was that those in the actual development phase would carry on as planned. Not anymore. Work has also slowed on Dubai’s Waterfront and Palm Jebel Ali developments, while a number of other real estate developers have since announced layoffs, including Damac Holding, Omniyat and Tameer Holding Investment. The message to contractors and consultants working in the region is clear: no project is safe from the economic slowdown.

TIME

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To date, Dubai – which is seen as the most heavily dependent on the property development business and has been the centre of the real estate boom – has borne the brunt of the economic backlash as access to credit has tightened, but other Gulf states are also looking nervously at the markets for signs of a slowdown in their own backyards. There’s no doubt that private sector projects are drying up fast as investors and speculators beat a hasty retreat from the market, and it’s now a case of survival of the fittest, according to Chuck Wood, Managing Director of Rockwell Group’s Middle East office in Dubai. “The projects that have strong financials are going to move forward, and the more indeFAST FACTS pendent developers with less secure financings may have trouble,” he acknowledges.

•

Time to take stock

And they need to. According to a report from the United Nations Conference on Trade and Development, infrastructure development in GCC countries has not kept pace with the rapid economic and population growth in many cases, and the future investment needs of developing countries for infrastructure development far exceed the amount currently planned by governments, the private sectors and other stakeholders. “Whether it is electricity black-outs in Kuwait due to a lack of peak load capacity, water shortages in Jeddah because of water losses in the pipeline system and insufﬁcient desalination plants, or trucks queuing up in front of Dubai’s overloaded sewage plant, the GCC countries are in dire need of modernising their infrastructure,” explains Dr Eckart Woertz, Programme Manager for Economics at the Gulf The infrastructure sector Research Centre. saw record deal volumes In that respect, a change in focus from property development to social infrastructure last year, with a total value provision could be just what is needed – and of $221 billion unlike Western nations, the oil-rich Gulf states are in a good position to proceed withThe industry also witnessed out resorting to huge borrowing. “Surplus a 90% increase in the revenues generated over the past few years through robust oil prices and investment inaverage deal size come have produced massive current account surpluses and these are still available OECD estimates that by to fund major state infrastructure projects,” 2030, around $71 trillion will conﬁrms Mark Hanson, Chief Executive of the be required to meet global Bahrain-based Islamic investment bank, Global Banking Corporation. investment needs in roads,

But is it all bad news? A growing number of commentators believe a correction in the market has been long overdue, with Wood chief among them. “At least it will shake out the spec• ulation that’s been in the market that’s been fuelling unrealistic growth,” he says. Architect Eric Kuhne agrees. “The biggest threat is when a piece of property becomes more of an investment and less of a place for • people to work and live; this is what has happened in the Gulf. Developers have been more interested in making money than in building harmonised communities,” says Kuhne, whose firm Eric Kuhne Associates has been inrail, telecommunications, volved in the Middle East for over a decade. He Infrastructure gets a boost electricity and water believes Dubai, the region’s hub, will actually So while most analysts forecast a coolbenefit from an economic slowdown. “It will ing-off period in the real estate sector, new give the industry time to take stock and give and existing plans to build more roads, railways, everyone a breather,” he says. “If there was schools and hospitals are all expected to conless appetite for development in the region, it tinue. “The governments have said that they’re may be quite good. At this point, a little introgoing to stay the course on these projects,” says spection will work.” Abraham Akkawi, Middle East Leader of Such soul-searching is leading the reInfrastructure at Ernst & Young. “The only imgion’s governments to re-evaluate their spendpact might be a delay on a few projects here and ing priorities – with infrastructure being the there, but we haven’t seen any announcements main beneficiary. As with Barack Obama’s ecoof major delays or cancellation of infrastructure nomic stimulus package for the US, many see projects that are specifically geared to provide the funding of public works as key to job creservices to the public in general, such as transation and economic stability; Gulf leaders are portation and environmental projects, water, pouring more than $1.4 trillion into a series of electricity or social housing projects.” grand schemes (including the economic cities Take Saudi Arabia, for example. As part in Saudi Arabia, the Doha Convention Centre and Tower, and Dubai’s Metro of its 2009 budget, the kingdom is ploughing $32.6 billion into education, transport system) in an attempt to boost economic growth. The hope is that including the construction of 1500 new schools, a new female university a spending spree may jumpstart their faltering domestic economies. As a campus in Riyadh and the Medical City for King Saud University. In terms of result, Saudi Arabia, Qatar, Dubai and Oman have all announced huge caphealth and social services, $13.9 billion will be spent on building 86 new ital expenditure plans for major infrastructure projects this year, and the hospitals with a total capacity of 11, 750 beds. And in the transport sector, deep pockets of regional governments mean they are well placed to press the government has set aside $10.5 billion for the development of 5400km ahead with public works programmes. of new roads, intersections and bridges.

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NEW HORIZONS? As the global credit crisis hits the Gulf, could other parts of the Middle East be set for their own construction renaissance? The recent frenzy of activity in the Gulf means most contractors have full order books for 2009 – but prospects for 2010 are less certain. As major projects are completed, resources will need to be redeployed, but the slowdown in the region’s project markets means that there is concern about a lack of opportunities. Iraq could offer the region’s contractors the best prospects. In 2003, international contractors were poised to undertake the rebuilding of Iraq – potentially the world’s largest construction project – but that potential seemingly evaporated as the security situation in the country continued to deteriorate. Now, however, contractors will have to search for new opportunities. One option is to pursue contracts in the infrastructure and oil and gas sectors, which are more secure. But the volume of work there is limited and closely guarded by existing players. Another option is to expand geographically. For many, Saudi Arabia looks promising: with a large population, its real estate market is relatively insulated from global economic shocks, although falling oil prices could stifle any major surge in activity. And in the longer term, markets such as Libya could also become more attractive. But it is Iraq that perhaps offers the best opportunities for the region’s construction firms – provided it is able to keep a lid on its security problems. It will take years for this potential to be fulfilled, but the promise of early 2003 could yet be revived.

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The UAE, and Dubai in particular, has announced a similar expansionary budget aimed at reducing the shortfall in private investments. Public spending is expected to reach $10.3 billion in 2009, up 42 percent from last year, with infrastructure funding of around $3.3 billion. Transport will provide the focus, with money generated from the sale of naming rights for Metro stations being used to part-fund construction costs on the $4.2 billion two-line system, scheduled to open in September this year. The social sector will also benefit, with $2.3 billion earmarked for the development of health services, education and public housing. And in Qatar, thanks in large part to its huge natural gas reserves, the government is planning its largest ever budget for 2009, with an increase in spending on development projects. “The two main areas of focus at present are building infrastructure and developing policy and regulations,” says Ali Abdulla Al Abdulla, DirectorGeneral of Qatar’s Urban Planning and Development Authority. “With regard to infrastructure, we are looking five to twenty years out.” One report suggested investment could hit a staggering $222 billion as the country aims to move away from its dependence on energy and focuses more on its goal of becoming a knowledge economy. “We will see less emphasis on projects that have higher revenue risk or commercial risk, and more emphasis on projects that have cash flow predictability,” confirms Akkawi. “The projects we’ll see getting the green light are the ones that are backed by government, directly or indirectly, such as public infrastructure.”

Meeting the shortfall Nonetheless, in the face of strong population growth and increased economic diversification, even the well-stocked coffers of the GCC nations may struggle to meet the growing demand for infrastructure services over the long-term. A recent Ernst & Young study indicates that rising construction costs and dramatic economic growth mean infrastructure needs are rapidly outstripping the region’s public resources – record exports of oil in recent years notwithstanding – and that despite current civil engineering projects in the six GCC countries totalling US$1.3 trillion in value, more investment will be required. For example, despite the Middle East boasting two-thirds of the world’s desalinisation plants, the World Bank has predicted that the amount of water available per person in the region will halve by 2050 as a result of population and economic growth and climate change. This suggests that a significant capital investment will soon be needed to meet demand, and that government funding alone will not be enough to make up the investment shortfall. “Even with the large amount of revenue generated from oil exports in the region, governments are having to find alternate means of funding the expansive infrastructure development plans required to meet rapidly growing demand,” says Akkawi. He believes public-private partnerships (PPPs) could hold the key to solving the funding challenge. Middle East governments traditionally have contracted with regional or international companies to design and build infrastructure such as airports, ports or roads, with government agencies

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“Such soul-searching is leading the region’s governments to re-evaluate their spending priorities – with infrastructure being the main beneficiary”

usually operating the infrastructure. While that is still true today, Akkawi feels governments will increasingly need to look at forming PPPs with the private sector to build and operate these projects. Such partnerships provide private investors and contractors with new business opportunities in the Middle East, and enable governments to share the risks of project development, draw on the knowledge and experience of the private sector and leverage public investment in infrastructure with private capital. The market for such projects is huge, and Akkawi suggests that as much as $100 billion of PPP investments in the Middle East and North Africa region will be required over the next ﬁve years to supplement government funding. “Most Middle Eastern countries are still in the early days of looking at PPP, but the indication is that they are taking it very seriously as a ﬁnancing model,” he says. “PPP offers certainty of price and certainty of delivery, and as a result we expect the current trend towards continued greater private sector participation in infrastructure in the Middle East to continue over the long-term.” Over the last few years PPP has started to take shape across several industries in GCC countries such as Saudi Arabia, Oman and Egypt, and Akkawi insists this upward curve needs to continue if modernisation programmes are to be fully realised. Expansion of the PP model will help cre-

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ate jobs in the private sector, provide quality services and facilities for citizens and stakeholders, and lift much of the burden of development from the already overloaded shoulders of the public sector.

The great escape? Of course, in the short-term there is a global financial crisis to be dealt with first, and Akkawi is quick to acknowledge that the credit crunch will take its toll. “I think it will have an impact, especially on projects that are not necessarily part of a government concession,” he explains. “More commercial projects are likely to suffer – I think there will be some discussion about delaying some of these and re-looking at them. But at the end of the day, money goes wherever the projects are, wherever there is a need for them.” And it is for this reason that the future looks promising for the region’s construction sector, despite the property slump. There is a clear and pressing need for such infrastructure modernisation programmes. Investment levels are high. And the proposed projects have the backing of the various governments concerned. “We are very bullish about the outlook,” confirms Akkawi. “As long as the price of oil stays around its current figure or higher, that’s going to be a

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major driver; we feel that, for the next couple of years at least, most countries in the GCC countries have enough reserves to withstand even a prolonged international recession.” And with the cost of materials continuing to decline in light of the downturn, the second half of 2009 may be a good time to start building in the Middle East, at least for developers that have the resources to do so. if a developer can be sure there is a market for what it is building, more projects will become economically viable; for major infrastructure projects backed by government money, it could act as a catalyst, encouraging clients to build faster to take advantage of the cheaper prices. “No doubt the global credit crisis will have some effect on regional project ﬁnance pricing, terms and time-to-close, but it is too early to determine the magnitude,” concludes Phil Gandier, a colleague of Akkawi’s and head of Transaction Advisory Services at Ernst & Young. “There are billions of dollars of announced infrastructure projects in the pipeline that have been planned on the assumption of varying levels of private sector participation. These projects are critical to the economic growth of the countries in the region, especially GCC countries.” They might also hold the key to the region’s ability to withstand, and recover from, the current global recession.

“Infrastructure finance has shown itself to be more resilient to the credit crunch than many other markets, boasting a good track record of well-structured deals supported by stable assets,” argues Richard Abadie, Global Head of PricewaterhouseCoopers’ Infrastructure Finance Advisory business. “Fundamentally, the appetite for infrastructure finance remains strong, especially for core, stable operating infrastructure.” As evidence of this trend, he points to a growing pipeline of new projects and a rise in the number of infrastructure funds. Nonetheless, he concedes that the credit crunch and global economic slowdown will continue to dampen activity in all financial markets, and warns that the infrastructure sector will be no exception. “The financial risk of the infrastructure business is largely driven by the borrower; it is therefore reasonable to expect short-term reductions in profitability and possible debt restructuring where borrowers have overlaid excessive financial risk over the long-term fundamental business risk,” he says. The long-term health of the infrastructure finance markets is, he continues, dependent on the return of the institutional debt markets to the infrastructure sector. Until then, borrowers, and consequently users and taxpayers, will continue to pay higher prices for private finance. And while good deals with appropriate risk apportionment and strong commercial structures will continue to find finance, it is unreasonable to expect a quick return to the peaks of recent years. “While some borrowers as well as many government procurers refer to terms reverting back to the height of the market, it is a naïve notion to expect the markets to revert to the low pricing obtained in the first half of 2007,” concludes Abadie. “Such conditions are unlikely to be seen again, or at least not in the average career-span of most infrastructure financiers.”

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LEAD FEATURE

Iconic projects. Sustainable development. Innovative construction. Hydra Properties is the fastest growing real estate company in the Middle East, blazing a trail of landmark projects across continents in just three years. So what’s next? MENA Infrastructure’s Rebecca Goozee sat down with Dr Sulaiman Al Fahim to find out exactly what he has planned for the multibillion-dollar company and how he plans to weather the current financial storm.

stablished three years ago, Hydra Properties is one of the region’s fastest growing real estate companies, with many high profile projects underway both in the UAE and internationally. When the so-called Donald Trump of Arabian business, Dr Sulaiman Al Fahim, set up the business, it was with high expectations. “Through a mixture of distinctive leadership, comprehensive and constantly updated knowledge of the real estate sector, a dedication to excellence and an unwavering commitment to near-perfect customer satisfaction, we have covered all bases and are better equipped to provide not only high-profile real estate but also the whole, wonderful experience of property ownership,” he says with a winning smile. It was hardly surprising that Al Fahim grew up to be an entrepreneur when you take a look at his early life. Exposed to the business world at a young age he began working in his father’s pharmacy after school from age 11, and aged 14 he began investing in the stock market, using his mother’s name, before investing in the property market at just 15. When he hit 18 he founded the Sulaiman Al Fahim Group, which financed education and sports in the UAE. After a decade of experience in the real estate business and armed with a PhD in Real Estate Investment and an MBA in Finance and Real Estate from the Kogod School of Business in Washington DC, Hydra Properties was born. “Before I launched Hydra Properties, I worked out there were five key people I needed to hire,” explains Al Fahim, in his book Brand Builder. “And choosing these five people would be my five most important decisions. For each of the five key jobs, I interviewed 100 people. Yes, it took forever – around 250 solid hours of interviewing people.” And it is Al Fahim’s determined attitude that has led to the success he has enjoyed with the company. But as the effects of the global economic downturn hit the Middle East, how does he plan to get through these difficult times? “Well, one effect of the global financial downturn on the real estate sector is that property buyers and investors will become more and more discerning and more sophisticated in their choices,” explains Al Fhaim. “They will search the market for properties that will give them the best returns on their investment and ask for more value for their hard earned money.” Al Fahim believes that as Hydra Properties offers truly iconic projects, constructed to top-level industry standards, they will have no problem in continuing to attract investors. “With the highest regard to meet the dynamic demands of the customer’s lifestyle and strict attention to detail, property investors will continue to see this whether times are tough or not, and this is the distinct advantage of investing in real estate developed by Hydra Properties.”

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Set

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â&#x20AC;&#x153;One effect of the global financial downturn is that property buyers and investors will become more and more discerning and more sophisticated in their choices. They will ask for more value for their hard earned moneyâ&#x20AC;?

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Vision Innovation and sustainability In these current tough times, innovation becomes even more important to the design and construction process as investors become more meticulous in their choice of investment. Al Fahim believes that the importance of having constant innovation as an integral component of an overall business strategy cannot be emphasised enough. He says that presenting innovative designs and construction techniques to the market is one of the few ways to make a distinction and become recognised as an important player in the real estate market, rising above the competition. “If you are a property developer and you do not challenge yourself to present a unique value proposition to your customers, then what good have you done? If you do not innovate and exercise creativity and resourcefulness, you will just be one of many. If you want the market to know who you are and what you can accomplish, you have to show them exactly what you are capable of,” says Al Fahim. That said, he is keen to emphasise that Hydra Properties do not innovate simply for the sake of innovation. “We develop properties and we reform

THE CELEBRITY CEO 008 was a big year for Sulaiman Al Fahim, as he extended his global notoriety. Having brokered a US$312 million acquisition of Manchester City by Abu Dhabi’s United Group for Development and Investment in September, he spent the rest of the year being approached by A-list Hollywood executives looking for funding. And as his reality TV show, Hydra Executives, is currently being aired in the US it seems his public profile will increase making 2009 another huge year for the Emirati. The show features 16 candidates, eight from the US and eight from the UK, who are invited to Abu Dhabi to participate in a 16-week real estate competition. Al Fahim is the key player and host of the programme who judges the contestants on the many assignments they are given. Throughout the programme the contestants work on and develop an extensive personal business plan based on their idea for the real estate concept that won them a place on the show. At the end of the show the lucky winner will have their business venture funded to the tune of US$1 million.

A one billion pound note made by Manchester City fans following their club’s takeover by United Group

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Hydra Properties’ vision is focused on introducing an avant-garde definition to the concept of real estate development locally and around the world. Key to every project that Hydra Properties conceives of: • The importance of the location is emphasised to ensure that the development is accessible to residents and offers the availability of basic services • Every project’s design must reflect its identity, including its inhabitants, what it plans to do for the resident community and, finally, what place it will take in the general society • Consideration of the available infrastructure is valued thoroughly so as to ensure comfortable and convenient living standards • Strict deadlines and delivery times according to a publicly announced time schedule must be adhered to • Environmental considerations are primary to the approval of any project that Hydra green-lights what requires reforming to remain competitive,” he says. “We know the demands of the people and we try, to the best of our ability, to satisfy these demands. We are aware of what’s happening in other business sectors as well, and so we try to incorporate this knowledge into our project designs.” And indeed an important aspect of the firm’s approach to innovation is how it can integrate sustainability into its design and construction phases. All projects in the Hydra Properties portfolio consider the environmental impact in both the planning and construction stages, as Al Fahim maintains that sustainable development is an important consideration for the company. He believes that a combination of escalating energy prices, increased fear of inducing damage to the environment and the need to provide a healthy and comfortable setting where people can live have gained significant importance in recent years. “If there is a time to act on saving the environment and, at the same time, achieve progress without harming our natural surroundings, it is now. This is something that cannot be put on hold because sooner or later, the effects will come back to us,” he says. “A commitment to sustainable development is a significant investment that Hydra Properties makes with every project that it launches to ensure that we and many generations after us will have a bright future and a balanced eco-system.” Al Fahim is keen to point out the new Leadership in Energy and Environmental Design (LEED) certification, which encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria, is a key development. “If creating ‘green’ buildings and maintaining a sense of the environment is important in other parts of the world, it should be crucial for our area,” he says. “With the prevailing climatic conditions, energy saving becomes a must, as does proper heat insulation and the provision of green areas.” Al Fahim believes that as the region is (or rather was) in the midst of a construction boom, it is only right that the many buildings, towers and skyscrapers that have been constructed over the past few years, make logical consideration for new environmentally friendly construction standards – and make those considerations now, rather than years after the projects have been completed. “Green building standards should be integrated from as early as the planning phase of a project, so as to be spared from the added costs and inconvenience of dealing with it later.”

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The Hydra Twin Towers project at Jumeirah Village, Dubai was launched in July 2008. The towers, of 32 storeys each, will be in between Meadows and Emirates Hills on one side and Jumeirah Golf Estates on the other. One tower will be an exclusive residential tower while the other will have luxurious hotel apartments, offering unrivalled facilities. The project will include shops, spas, gyms, cafes and restaurants. Completion is expected by early 2010.

Projects With a dedicated approach to sustainable and environmentally friendly practices helping the real estate giant carve quite a niche for itself as a socially committed company, it was only a matter of time before Al Fahim took his ideas to the global market. The first international development, Hydra Waves in Mexico, was a landmark in Hydra Properties’ transformation from a local UAE company into an international player in the area of real estate development. Launching Hydra Waves took considerable effort from the Hydra teams, both at the UAE headquarters and on the ground in Mexico. “Unveiling Hydra Waves was part of our strategy for expansion at the international level,” explains Al Fahim. “After accomplishing all we did in the UAE, which at the time was going through a real estate boom, it was time for the company to expand internationally.” For Al Fahim,

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Designed in two phases the Golf Walk project will be home to 27 low-rise residential buildings looking on to a world-class, 18-hole golf course designed to PGA standards. Golf Walk will offer lust, verdant expanses, airy French-style courtyards and sprawling gardens. Smart home technology plus recreation areas and 24-hour security complement the architectural fusion of traditional Arabic and futuristic design.

Hydra Heights, Abu Dhabi

Hydra Twin Towers, Dubai

Golf Walk, Abu Dhabi

Located in Abu Dhabi’s most desirable waterfront city, the City of Lights on Reem Island is a breathtaking community set amidst a waterfront oasis. The project consists of three towers, each rising to 30 floors with eco-friendly concepts and smart home technologies. Along with apartments are a range of shops and other outlets. Construction has already begun on the project.

business considerations dictated that property was developed outside the UAE. “Capital, as you know, will be attracted to areas where stability, security and growth potential exists. Business should be ready to exploit every possible opportunity. That’s why we see investments by big names in the Levant, North Africa, other GCC states, the Indian sub-continent and elsewhere.” Mexico is the second largest foreign direct investment recipient among developing countries. Foreign direct investment in Mexico surpassed US$119 billion between 1995 and 2002. “Mexico has a strategic geographical location with direct ‘just in time’ access to the North American market, with access to world-class input and technology. Mexico also benefits from the largest network of Free Trade Agreements, which grant preferential access to markets in North America, Western Europe and to 10 emerging markets in Latin America.

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Tripoli Tower, Libya

The Hydra Tripoli Tower is in the heart of Libya’s capital. The mixed-use development will offer the comfort of discrete and opulent hospitality services, state-of-theart modern offices and incomparable leisure facilities. 30 of the 45 floors are dedicated to commercial and office space, while the remaining 15 are dedicated to a hospitality facility. The ground floor will feature a variety of retail stores, restaurants and cafes.

Hydra Waves, Mexico

Surrounded by the picturesque Sierra Madre Mountains, the sunny palm-lined beach city of Mazatlan on the North Pacific Coast of Mexico is now home to Hydra Properties first international project, Hydra Waves. The development will feature a 26-floor five-star hotel with 500 rooms a group of 18-storey apartment buildings with 1000 apartments, each with a sea view, as well as a 1000-seat conference centre, shopping centre and ballroom. It was announced that 40 percent of the pillar work was completed in July 2008.

It also boasts a skilled and competitive labour force. For us, it turned out that the best investments in Mexico are in hotels and real estate development, on naturally attractive areas that are considered major tourist destinations.”

Investment Al Fahim sees foreign investment as a vital component of Hydra’s continued success. He believes that as an individual investor you should never put all your eggs in one basket because all free markets will experience a cycle of boom and bust. “You need to diversify your portfolio so that it can withstand any unforeseen circumstances, which is similar to Hydra Properties’ approach to real estate and property investment in that if a downturn hits one market, our developments in other places will remain safe and unscathed.

“We launch projects abroad because we acknowledge the fact that, apart from the UAE, there are other destinations that can offer strong investment returns for us and our clients. This is ultimately what we are after – for our customers to grow as we grow.” In terms of the future, Al Fahim is optimistic that growth will continue for the company. Embarking on global expansion and crossing continental borders in Mexico, as well as in Libya, with the Hydra Tripoli Tower, which is set to become the jewel in Tripoli’s skyline, Al Fahim is set for success. “This is just the beginning,” beams Al Fahim. “We are geared for success and we will maintain our status as an international property developer by launching more developments abroad, but at the same time revolutionising the development of our own country.” And I have no doubt that he will succeed in everything he puts his mind to. n

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SUSTAINABILITY

IT’S NOT EASY BEING GREEN Construction companies are under pressure to think more about sustainability when they are designing their developments. But given the harsh desert climates, can the Middle East’s buildings really go green?

he UAE is one of the least energy efﬁcient nations in the world, and the rest of the region is not far behind. The long summers, a desert environment, low rainfall levels and temperatures regularly reaching the mid to late-40s or more mean there is a high reliance on energyburning applications such as air conditioning. The tough terrain has resulted in a preponderance of petrol-guzzling 4x4s. And the fact that all water must be desalinated makes it easy to see why the region has such a poor energy rating. Of course, it doesn’t help that the region loves its lush, green, water-hungry golf courses, either. Nonetheless, there is now a growing movement towards greener, more sustainable ways of living – and the building industry is positioning itself right at the forefront of this development. Dubai’s impending Green Building Regulations, the Abu Dhabi 2030 plan and a noticeable shift towards holistic sustainability from designers and developers reﬂect the growing importance placed on achieving environmental sustainability.

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“In these days of increased environmental awareness and global financial crises, sustainability makes great business sense,” explains Stephen Oehme, Head of Sustainability at international advisory and design firm Hyder Consulting Middle East. “The financial, social and environmental outcomes of sustainability are not only desirable, but also essential from a business perspective.” Oehme feels that developments that do not pay proper attention to sustainability risk exposing themselves to dire financial consequences. “Such developments not only result in unnecessary costs and lesser quality, but also lose out in terms of value when compared with sustainable buildings,” he says. “Sustainability is the best approach to access real quality and value, reduce appropriate costs and provide a hedge against the effects of the global financial crisis.” And there is growing evidence that others in the region agree with him. Last year, engineering consultant Mott MacDonald and the Environment Agency of Abu Dhabi (EAD) launched a sustain-

able buildings and communities programme for the emirate, the ﬁrst of its kind in the Middle East. Called Estidama (which means sustainability in Arabic), the scheme aims to help Abu Dhabi reduce its high consumption rates of energy and materials and encourage world-class practices for sustainable development. Most importantly, the tool takes into account local factors affecting the development of green buildings in the emirate – such as high temperatures, lack of groundwater resources, high solar radiation and humidity – and suggests simple measures that can make a big difference to the build. “Considering the aspect, elevation and use of materials at the design stage makes comfortable temperatures achievable within a building without the need for air conditioning, even in the Middle East,” explains Gordon Hudson, Mott MacDonald’s Technical Team Leader. “At the same time, solar collectors can be included in designs to meet the buildings’ energy requirements and power any ancillary cooling systems.”

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Putting in such measures – and gaining the all-important LEED (Leadership in Energy and Environmental Design) green building rating – doesn’t have to be expensive, either. Installing more efﬁcient air conditioning units or better quality glass will go a long way to making a building more sustainable. Equally, thinking about the orientation or ensuring that grey water (from washing machines, showers and so on) can be recycled and used to water gardens will help.

“Sustainability is going to become more and more central to every single thing we do” Among those buildings that are touted as being particularly green are the new Bahrain World Trade Centre and the planned Lighthouse building in the ﬁnancial district in Dubai. The Bahrain development includes three wind turbines that will generate 15 percent of the building’s energy needs, while the Dubai Lighthouse is considered even more energy efﬁcient, having attained Platinum LEED status for its plans to use glass panels with integrated photovoltaic cells. In addition to harnessing renewable energy technologies, conserving resources is a corner-

Middle East sustainable development projects Dubai: Finalising a tiered green building certification system. The emirate is also building the Burj al-Taqa tower, which will generate all of its electricity from a solar photovoltaic shell and wind turbines. Abu Dhabi: Building Masdar City, a walled enclave that will draw its power from renewable resources and produce zero net CO2 emissions. The emirate and the United Kingdom recently created a US$350 million low-carbon investment fund. Saudi Arabia: Building King Abdullah Economic City, a Red Sea port that would get its energy from renewable resources and create approximately one million jobs. Israel: Planning to build the Ashalim energy project in the Negev Desert. The project will include two solar thermal power plants, each with the capacity to generate up to 110 megawatts. Egypt: El-Sewedy Cables is planning to sell wind turbine parts in Africa and the Middle East after buying a 30 percent stake in the Spanish company M. Torres Olvega. Jordan: The Al-Husseini Group, an Amman-based real estate and trading conglomerate, is partnering with New Jersey-based Amelio Solar to build a 1GW solar power plant in Jordan. Qatar: Doha Bank is planning to launch a Middle East greenhouse gas exchange. The governments of the United Kingdom and Qatar recently pledged to create a US$400 million fund to invest in clean-energy companies. Oman: Considering the construction of a 750MW wind farm and solar thermal power plants.

stone of green building techniques. There are many ways to conserve resources during the building process. For example, selecting materials that have at least some recycled content can conserve natural resources and virgin materials. Minimising construction waste can ease the impact on landfills and resources. Installing water and energy-efficient products can conserve resources while reducing operating costs. And choosing a green (plant-covered) roof can reduce energy use, cool urban heat islands and prevent stormwater runoff, as well as contributing to wildlife habitat and air quality. And while a green building may cost more upfront, it saves through lower operating costs over the life of the building. The green building approach applies a project lifecycle cost analysis for determining the appropriate upfront expenditure. The Middle East Centre for Sustainable Development defines this approach as an analytical method that calculates costs over the useful life of the asset. These and other cost savings can only be fully realised when they are incorporated at the project’s conceptual design phase with the assistance of an integrated team of professionals. The integrated systems approach ensures that the building is designed as one system rather than a collection of standalone systems. Mott MacDonald has years of experience in designing and building greener projects. “As much as possible, we try to build sustainability into our designs from the beginning,” continues Mike Barker, Managing Director of the firm’s Buildings and Structures division. “It’s much easier to do this from the beginning than it is to try and add sustainable features or greener practices halfway through the build. You’ve got to have them in right from the outset, because they affect the whole aspect of the building and the way it’s put together.” It’s an area that has increasingly moved up the corporate agenda for everyone involved in the infrastructure sector over the last few years, but Barker sees it as much more than just a fashionable buzzword. “In a couple of years’ time I think that we’ll start to see less of a focus on sustainability and environmental issues – not because they’ll become any less important, but because they’ll become so ingrained into everything we do,” he says. “Sustainability is going to become second nature, because it has to. It’s going to become more and more central to every single thing we do, and is going to be totally embedded in the very fabric of our culture as an industry.” n

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EXECUTIVE PERSPECTIVE

Last year, VINCI’s order book stood at an impressive US$27 billion – enough to make it the world’s largest concession and construction company. And, as Senior Editor Ben Thompson found out, the Middle East is an important area of focus for the firm.

ohn Stanion is not one to mince his words. In fact, the CEO of the construction arm of the world’s largest engineering firm has a no-nonsense approach to interviews that is completely appropriate given that the projects his company are involved in are fundamental to the way modern society operates. Transport, energy, waste disposal, sanitation: providing such infrastructural building blocks is second nature to a firm such as VINCI, and something the company’s business-like chief executive is passionate about developing.

And despite the downturn, business is booming. “Our order book is the highest it’s ever been,” he acknowledges. Revenue results for 2007 show growth of 16.8 percent to US$39.4 billion, with a large proportion of that growth coming from international business, which increased by 21 percent. “We are a business of choice for customers. They’ll come to us because we are a benchmark for major project capabilities around the world,” said Stanion. One of those projects is the design and construction of the so-called causeway between Qatar and Bahrain that consists of 44km of road over water, the longest stretch of bridge in the world. Elsewhere in the Middle

BUILDING ON

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East, VINCI is involved in the building of two huge dams – the Naga Hammadi dam in Egypt, and the Wadi Dayqah dam in the Sultanate of Oman – that aim to make a significant contribution to better management of the region’s water resources. The company is also involved in the compaction works on the Palm Jebel Ali in Dubai. “Projects like this are hugely complex,” he says. “Not only do you have to build them, you have to design them, you have to work out the impact on the environment, you have to finance them and you have to do it all within a framework that’s agreed upon upfront. So they’re very, very complex.” One of the ways the industry, and VINCI in particular, is addressing this concern is through so-called early contractor involvement. Rather than going through the traditional process of designing everything upfront with a designer, getting a series of contractors to put a price on the work, awarding the contract, having someone build it and then somebody else operate and maintain the finished build, early contractor involvement uses a sys-

tem whereby a number of preferred contractors are ‘pre-qualified’ for participation. “This pre-qualification process allows project managers to identify and choose a preferred contractor who then becomes involved in the concept development right at the beginning, long before anything gets designed – the idea being that as a team you design it more efficiently so you can build it more efficiently,” explains Stanion. Another challenge is the sheer size of the projects currently being undertaken. The Qatar-Bahrain causeway project, for instance, is worth over US$2.57 billion – a sizeable piece of business. “The Middle East is really exciting because there’s a huge amount of money being spent, and there are almost no limits to what these countries are prepared to do from a construction perspective,” he says. “Many of these projects are now being managed as a single contract, where if you go back a few years there would be countless contracts involved. And so it’s not just the financial size but the actual scope of the construction work itself that is growing. The projects

Construction has started on Oman’s Wadi Dayqah dam project, and is due for completion next year

The Qatar-Bahrain causeway project, the longest sketch of bridge in the world, is worth over US$2.5 billion

The Naga Hammadi dam in Egypt is of crucial importance to the development of the Nile Valley water infrastructure

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are getting bigger, we’re getting involved earlier and we’re taking greater responsibility for the ﬁnancial side of things as well.” In terms of advantages, Stanion sees this offering a number of key business beneﬁts from a project management perspective. “I think it brings the opportunity to better manage risk,” he says. “The greatest issue is when you have the whole project divided up between different parties and something goes wrong in one section and it has a knock-on effect on everything else. That’s the way these projects used to be run, with no real sense of control, whereas now we can hold all the different elements in one hand – coming up with a concept, designing it, working out how to construct it, industrialising the process to improve the productivity, building in lifecycle costs to the design process, and working out what the best ways are to ensure that the costs of the use are minimised. “I think having that managed as a single contract brings greater certainty to the process,” he continues. “It gives you an opportunity to manage risk better, and I think customers at large institutions realise that. It does bring complexity, and it does mean you have to have a very high level of skill, but at least you are able to trust your own competencies.” And it is here that Stanion’s real passion shines through – his belief in the importance of doing things right. Stanion himself oversaw the produc-

tion of the company’s ﬁrst corporate social responsibility report earlier this year, and the value of sustainable development that encompasses environmental and social considerations as well as economic and engineering ones remains a subject close to his heart. “This is a huge area for us,” he says. “VINCI already has a policy of sustainability that measures all sorts of areas of activity. We’re measuring our waste production, we’re measuring our power consumption, our fuel consumption, and we’re setting targets to reduce in every area.” For Stanion, such an approach is critical given the societal impact of the projects his ﬁrm undertakes. “I think this whole question of infrastructure in the wider sense – not just the construction of it, but the funding of it, the operation of it, the choices of what we do – involves big issues that concern everyone, not just the construction industry,” he concludes. “They impact the man on the street. They’re going to have a dramatic effect on the way people live in the future, and the revolution we face today is just as great as the revolution they faced 200 years ago with the invention of the steam engine. Now we have to re-engineer our whole infrastructure for the future and get away from our dependence on fossil fuels. I think it’s really fundamental. I think it’s the most important issue we face as a race.”

IN HIS OWN WORDS John Stanion provides his thoughts on current industry hot topics. On the downturn: “I don’t think it is going to have a long-term effect on the funding of infrastructure. However, I do think that a world economic downturn will affect everybody. It doesn’t matter what industry you are in. But we’re not that susceptible to market sentiments. Our projects are long-term so we’re pretty robust.” On responsible development: “There are economic benefits, and there are human benefits. CSR is not just about the environment. It’s about the whole social agenda – health and safety, human resources and training. It’s about the environment. It’s about energy use, carbon footprints. There’s a whole series of things.” On climate change: “Industrialisation is about power production and energy, and the key to solving the carbon dioxide problem is the way that we use our energy. That’s the thing that we have to change. We are going in the right direction – the question is whether we’re going in the right direction quickly enough.” On talent recruitment: “As an industry we have not attracted enough of the best graduate talent to construction, and there’s a general shortage of young people coming forward in technical disciplines such as civil engineering. It’s important to raise the profile of the industry, because it’s actually a really exciting industry to work in.”

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ROUNDTABLE DISCUSSION

Getting to grips with

going green

MENA Infrastructure asks a panel of experts for their thoughts on environmental sustainability in the construction sector. THE PANEL OLIVIER HEYRENDT, Market Manager for Truck Tyres, Michelin KEN MCDOUGALL, President, Skyjack JONAS GARDETUN, Regional Vice President, Volvo Construction Equipment

Demand for construction machinery in the Middle East is predicted to increase by up to 20 percent over the next ďŹ ve years as the region forges ahead with an unprecedented level of development. How is your company capitalising on this growth? Olivier Heyrendt. Michelin has been participating in the development of construction in the Emirates for several years: Michelin sales in truck tyres

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have increased approximately 50 percent in the last four years, with in excess of 70 percent dedicated to construction usages. Ken McDougall. We recognise the rapid, seemingly perpendicular growth taking place in this region and are committed to supporting it. Skyjack already has dedicated sales and service representatives servicing this region and is also collaborating with local sales and service providers to increase pre and post sales support. Skyjack is also continually investing in product development to further expand our product offering. This includes plans for expanding our line of diesel powered boom lifts. We have also acquired two full lines of telehandler product lines giving us one of the industries widest offerings, with models ranging in capacities from 6000lbs to 32,000lbs. All in addition to our already comprehensive line of scissor lifts. Finally, Skyjack has strong relationships with large multinational rental companies who are also investigating and developing plans to expand into this region.

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Jonas Gardetun. We are confident that we are well placed to maximise our market share, which is consistently growing year on year. We have a very well established distributor network throughout the Middle East and offer a high level of support, both in terms of training and spare parts, through our Regional Parts Distribution & Competence Development Centre in Dubai. We also plan to further increase our capability in the region by expanding the centre. Performance is obviously critical for any piece of construction equipment. Does the Middle East offer any particular or unique challenges in terms of its performance requirements? And how is your firm addressing these needs? KM. Two come to mind: extreme temperature ranges and the fact that there is a developing but small support infrastructure and knowledge base for this type of equipment. Temperature and climatic conditions are obviously major factors for any type of equipment. Skyjack’s robust design philosophies ensure the equipment can predictably operate in these conditions. Standard features such as analogue-based controls and axle-based 4WD, in addition to optional equipment such as hydraulic oil coolers ensure optimum performance. When as much growth occurs as we have in this region, it is often difficult to co-ordinate the implementation of necessary equipment and sup-

port infrastructure in parallel. Skyjack is a global leader in the design and manufacture of aerial equipment a position earned as a result of providing robust, reliable and easy to service aerial lifts. Acceptance of aerial lift equipment in new markets is also part of this challenge. End users as well as equipment owners must have an understanding of how this equipment works and the resulting beneﬁts. Skyjack has a number of training programmes available and can even perform instructor training so that the trainee can become the trainer. Skyjack’s design philosophies result in equipment that is easy to service and uses as many common service and maintenance parts as possible. JG. One of the main reasons for the success of Volvo Construction Equipment in the Middle East is its proven reliability and capability in some of the world’s most demanding operating conditions, particularly the extreme heat and high amount of dust – this results in minimised down time and enhanced overall productivity. The addition of the road machinery range also means that Volvo Construction Equipment now offers the most complete range. OH. In the Gulf area, the conditions of use are among the most demanding in the world for truck tyres: this situation is explained by the extreme temperature and with the loads carried for the construction sites like The Palm or the

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Arabian Canal: the GVW of an articulated (tractor head plus semi trailer) is more than 100 tons in reality. Michelin has developed specific products, adapted to meet these challenges. For example the Cool Runner series, combines both specifically designed casing construction and rubber compounds. But quality is nothing without economic efficiency for the users: Michelin guarantee the best CPK (cost per kilometer) if the truck tyres are properly maintained, especially including regrooving, which increases the grip potential of the tyre, by recreating brand new edges and a tread depth of up to 6 mm. There has also been a growing focus on sustainability and greener construction evident in the sector over the last few years. What impact has this trend had on the construction equipment market? JG. Clearly there is far greater awareness and concern towards the environmental impact of construction, both in terms of materials and equipment. Volvo has a long heritage of being at the forefront of sustainability and environmental friendliness. As one of the world’s biggest manufacturers of heavy commercial vehicles and construction equipment, we bear a clear responsibility for reducing the environmental impact of our products, and we are wholeheartedly committed to the continued development of technology that minimises any impact on the environment. Our long history of proactive environmental responsibility has also enabled us to strengthen both our own and our customers competitiveness, while contributing to positive societal development. OH. Michelin have been engaged in sustainable development for many years. Michelin promotes the most respectful solutions for environment: retreading truck tyres with the Michelin Retreading Technologies solution, allows the tyre to cover in excess of 80 percent of the mileage potential of a new tyre. Retreading is an environmentally friendly solution. The natural re-

“Clearly there is far greater awareness and concern towards the environmental impact of construction, both in terms of materials and equipment” JONAS GARDETUN

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“When as much growth occurs as we have in this region, it is often difficult to co-ordinate the implementation of necessary equipment and support infrastructure in parallel” KEN MCDOUGALL sources required i.e. quantity of rubber for this operation are only 20 to 30 percent of new. Besides this raw material saving, retreading also drastically decreases the amount of tyres to be recycled at life end. In Europe today Michelin are the leaders regarding the recycling of worn truck tyres. Michelin would like to replicate this position in the Gulf region and become a reference for environmental respect issues, in the area of truck tyre recycling. KM. The green revolution has been driving up demand for green options or features on construction equipment. Skyjack offers fuel efficient engines, bio-degradable hydraulic oil, bio-diesel capabilities and exhaust gas purifiers and our equipment are 85 percent recyclable, produce less noise levels and their compact dimensions reduce transportation requirements and costs. Greener construction now often means that the builder or contractor is more conscious of their construction project’s impact to the environment. This results in demand for green equipment. Skyjack offers some of the most fuel efﬁcient rough terrain aerial work platforms available and a wide range of electric drive models are also available. As a manufacturer Skyjack is also committed to the environment and is one of the few manufactures in its industry that is ISO 14001 certiﬁed. Skyjack is committed to developing green technologies and features through an advanced research and development programme. How do you see technology within the construction industry driving the business in terms of environmental responsibility? What developments and improvements do you see relating to environmental considerations for reducing emissions, noise levels and carbon intensity? OH. Michelin is really focusing the resources of its three Centres of Technology all around the world to participate in fuel saving and gas emissions reduction. Since 1995 Michelin have promoted low rolling resistance tyres in the truck business. Michelin has just launched the third generation of energy tyres called energy saver green; the use of the energy fuel saving truck tyres range leads to three percent i.e. approximately 1 litre per 100 km fuel consumption decrease in comparison with traditional solutions for a three axle trailer. It is true that those tyres are more long haulage use dedicated, but generally speaking Michelin is working hard to reduce the impact of

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tyres in fuel consumption. Regarding noise, Michelin already satisfies the rules at 76 dB and will be ready for 74 dB compliance after 2012. KM. Changes in legislation globally require both engine manufacturers and OEM’s to develop equipment with lower emissions. Skyjack’s product development and advanced research and development teams are committed these projects that reduce the impact to the environment. JG. As the construction industry focuses on environmental responsibility, there will clearly be pressure, in many cases backed up by legislation, for equipment and materials to meet ever more demanding ‘green’ criteria. Volvo is already well advanced in producing engines that significantly reduce emissions without any adverse effect on performance and developing machinery that operates at low noise levels. We have also made considerable progress in hybrid solutions that combine diesel and electrical power for heavy vehicles, which can accelerate with the help of an electric engine, reducing fuel consumption, emissions and noise levels. Calculations indicate that fuel consumption can be reduced by as much as 35 percent – with an equivalent reduction in environmental impact. The Volvo L220F Hybrid is our, and probably the industry’s, first commercially available wheel loader, with deliveries due to begin in late 2009. This first-generation machine will spearhead a sea change in the industry, highlighting to customers that buying hybrids offers much more than ‘just’ environmental benefits. The key advantages of the Volvo Hybrid system is that of much lower fuel costs combined with improved performance. What are the key challenges/opportunities on the horizon for manufacturers of construction equipment over the next 12-18 months?

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KM. Current global economic conditions are a challenge to all manufacturers. During these times it is important for the leading manufactures to act responsibly in order to sustain the industry that we supply. It is the strong that survive, which is another reason why Skyjack is a supplier of choice. JG. As always, the challenge is to understand and meet the ever-evolving needs and demands of our customers, who are always looking to maximise productivity and operating efficiency. Our commitment is to continue to deliver a range of products that offer consistently higher efficiency, reduced fuel consumption and reduced impact on the envi-

“Quality is nothing without economic efficiency for the users” OLIVIER HEYRENDT

ronment while staying true to our core values of quality, safety and environmental care. OH. It is difficult to predict how the economy in the Gulf, and more generally in the world will evolve. During these uncertain times, it becomes even more important to consider operational costs. Michelin will continue to develop its tyre management system in the Gulf Region, based on the principle of the sale of a service replacing the sale of a product. The market for this type of offer has to be developed, as transportation companies strive to focus resources on their core business.

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ASK THE EXPERT

Lift off Klaus Meissner, Director for Terex Cranes Product Integrity, explains how various applications are driving the demand for heavy lifting cranes. erected close to the shoreline in several countries. They benefit from higher wind speeds and a wind profile over open water, which has less disturbance, and are therefore more efficient. These wind turbines require large cranes to erect the tower and lift the nacelle and rotor blades. A typical lift these days might be up to 300t at 30m radius, to a height of up to 140m. For off-shore locations, Terex Cranes provides engineering support where special solutions are needed. For example, two Terex Demag crawler cranes are set up on towers on Danish ships that are being used to transport and erect wind turbines in off-shore locations.

Have you noticed significant changes in the market for your heavy lifting segment? Klaus Meissner. As a crane manufacturer we have witnessed a growing demand for our products. Increasing global wealth and population growth has led to much new investment in infrastructure construction in many parts of the world. How far are you affected by these developments? KM. The energy sector, for example, is a major area of operation for our large crawler cranes. The activities we have noticed recently include the building of new plants in order to extend the supply base, as well as the replacement or refurbishment of existing plants, in order to make them more efficient and to reduce emissions. We have also seen the development of renewable energy sources, such as wind, in many different locations. In order to cope with the lifting challenges involved in these construction projects, very efficient and powerful machines are needed, which incur minimal downtime and work cost effectively. This is where the experience of Terex Cranes comes into play.

Klaus Meissner standard configuration cranes are provided with additional equipment. Wind turbines are getting larger and larger, and they are sometimes erected in areas where the terrain is rough and access is difﬁcult. For example, there may be width restrictions on access roads for environmental reasons. The knowledgeable Terex Cranes team has helped our customers deal with these speciﬁc challenges in various ways, for example by devel-

“In order to cope with the lifting challenges involved in these construction projects, very efficient and powerful machines are needed, which incur minimal downtime and work cost effectively” What is the special lifting challenge for your cranes in the erection of wind turbines? KM. Wind turbines may be located on-shore, near-shore or off-shore. Each location has its own speciﬁc requirements: To erect wind turbines on-shore, heavy loads have to be lifted to a great height on a relatively short radius (e.g. loads of 100t at 100m height and 20m radius). In order to meet these specific job requirements, our

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oping a special mid-section of the undercarriage for our 600t crawler crane, Terex Demag CC 28001. This ‘narrow track’ setup allows the crane to travel on narrow construction roads (5m width) from one wind turbine erection site to another and even to travel fully erected in quite hilly areas. What are the special requirements for wind turbine erection near- and off-shore? KM. Very large wind turbines are currently being

What heavy-lift challenges do you face in other construction areas? KM. Other application areas include the erection and refurbishment of nuclear and conventional thermal power plants, the erection of gas condensation reactors and general construction. As far as general construction is concerned, our big crawler cranes are used in a wide array of applications, such as lifting-in prefabricated highway parts or bridges. One recent example is a Terex Demag CC 6800, which was used to replace an old railway bridge in Nyköping, Sweden. Using conventional methods, the railway line would have been closed for more than a month. The use of our Terex Demag CC 6800 lattice boom crane with 1250 t lifting capacity reduced this period to less than a week. How is Terex Cranes positioned in the heavy-lifting market? KM. Terex Cranes offers a full line of lifting equipment tailored to a broad range of lifting needs. As far as big crawler cranes are concerned, Terex Cranes offers highly efﬁcient equipment that provide a great return on investment and can carry out particularly large lifts in infrastructure development. Through its engineering support, Terex facilitates continuous improvement as well as special solutions that are developed to meet clients’ needs.

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ENERGY SUSTAINABILITY IN THE DESERT Against the backdrop of the UAE’s extraordinary oil and gas reserves and some of the world’s highest per-capita energy consumption and waste generation, the Masdar development looks set to transform the way developers look at the issue of sustainable development.

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bu Dhabi has a bold plan: to transform itself into a world leader in sustainability and newer, cleaner energy technologies. At the forefront of this vision is the construction of a city of 40,000 inhabitants with a zero-carbon footprint that will be powered entirely by renewable energy – a surprising goal, given that the emirate sits atop nearly one-tenth of the world’s oil reserves. Why is a nation so rich in hydrocarbons focusing on developing alternative energy sources? “The answer is simple,” says Sultan Al Jaber, Chief Executive Officer of Masdar, the developers planning the city. “Number one, because we can. Number two, because we should. And because this is a logical step and a natural extension for our involvement in the energy markets.” Masdar promotes a long-term commitment to meeting the world’s growing energy needs in an environmentally sustainable manner, through the development of innovative and sustainable technologies. Throughout the world, leading universities, research centres and manufacturers are making great strides in the advancement of renewable energies and systems. The Masdar development will bring all these together in one ambitious plan. For starters, the city will be car-free, powered by renewable energy with services digitally managed and providing real-time information. With a maximum distance of 200 metres to the nearest transport link and amenities, the compact network of streets will encourage walking and is complemented by a personalised rapid transport system. Shaded walkways and narrow streets will create a pedestrian friendly environment, while surrounding land will contain wind, photovoltaic farms, research fields and plantations, enabling the city to be entirely self-sustaining. “There is nothing like this in the world,” explains Al Jaber. “We are creating a synergetic environment; it is a true alternative energy cluster. Here you will find researchers, students, scientists, business investment professionals and policymakers all within the same community. It will be a living example of sustainable development that will position Abu Dhabi and Masdar at the forefront of intelligent resource utilisation. And it will combine the talent, expertise and resources to enable the technological breakthroughs necessary for truly sustainable development.” It’s a sizeable undertaking. The masterplan sets out a vision for a compact campus-style research and development infrastructure that provides a blueprint for a sustainable, socially vibrant mixed-use community. Special economic zones will attract the best in the fields of manufacturing and provide employment for the emerging students. The creation of new production facilities will help the region become an exporter of new technologies and a positive engineering base. The blueprint documents encompass waste, energy, water and transport infrastructures as well as other aspects such as lifestyle, cultural heritage, climate and biodiversity. “We believe that a blueprint for sustainable urban development on the Masdar site is possible by combining innovative energy and environmental technologies with traditional principles of climatic and culturally responsive city planning in compact settlements throughout Arabia and other parts of the world,” says Al Jaber. “For the first time in history, more than half of the world’s population now lives in cities, with their traditional energy inefficiencies, waste and pollution,” he says. “We must fundamentally re-think how cities can conserve energy and other resources. We must heavily employ new technologies and even create new urban models, as we are doing in Masdar City. Abu Dhabi recognises that a range of solutions are required to meet future energy needs, and Masdar reflects our leadership’s strategic vision to continue its role as a global energy leader.”

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FUTURE VISIONS

It is a compelling, if somewhat ambitious, vision of the future. But even with the backing of the Abu Dhabi government and an increased public appetite for greener, more environmentally friendly projects, the development faces some significant challenges – not least of which is the global economic slowdown. For one thing, the price of oil – Abu Dhabi’s most valuable resource – has plummeted to less than a third of its peak value last summer. In addition, the investment climate has slowed significantly as access to the credit markets has tightened. “We cannot ignore that 2008 has been a difficult year,” admits Al Jaber. “The scale of the world’s financial challenges has had an impact on nearly every sector in the global economy, including renewable energy. The lack of available capital and lower oil prices has certainly created some doubts about the renewable energy sector and whether it can maintain its relevance and continue attracting investment in these difficult times. However, we should not accept this perspective. Renewable energy continues to make absolute sense, even in difficult times such as these.”

Indeed, he points out that for those who are capable of looking beyond the current economic downturn, there are many signs that point to the renewable energy sector’s undeniable momentum and long-term viability. “There are national policy commitments and signiﬁcant investments in renewable energy taking place all over the world,” he explains. “In the United States, President Obama has pledged to invest US$150 billion dollars in clean energy over the next 10 years. In the European Union, the European Parliament recently signed into law a series of measures designed to reduce carbon emissions by 20 percent by the year 2020. And in Australia, the federal government has just established a multibillion-dollar renewable energy investment fund.” More importantly for the UAE and the region as a whole, signiﬁcant progress is now being made closer to home, too. “Abu Dhabi has announced it will publish a comprehensive energy policy that includes a commitment that, by 2020, renewable energy sources will account for at least seven percent of the emirate’s total power generation capacity,” says Al Jaber. “This is a bold statement from an OPEC

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Masdar is comprised of six strategically designed and focused units: MASDAR INSTITUTE OF SCIENCE AND TECHNOLOGY In partnership with the MIT, will offer Masters and PhD programmes in science and engineering focused on advanced energy and sustainable technologies MASDAR RESEARCH NETWORK A unique collaborative network of world-class scientists and post-doctoral researchers linking the Masdar Institute and seven leading global scientific research institutions in three continents INNOVATION & INVESTMENT The investment and commercialisation vehicle for advanced energy and sustainability technologies SPECIAL PROJECTS Develops capital-intensive projects including large-scale manufacturing and deployment of new energy technologies and systems CARBON MANAGEMENT Spearheads the development of multi-sector greenhouse gas reduction projects MASDAR ZONE DEVELOPMENT A unique, integrated Green Community in the heart of Abu Dhabi that will invest, develop and commercialise advanced energy technologies

member-state with an economy that is dominated by oil and gas. It is a testament to the environmental commitment of Abu Dhabi’s leadership, and should raise confidence in the long-term viability of renewable energy in this part of the world.” It’s a decision that will also have positive economic impacts. It is estimated that Abu Dhabi’s seven percent renewable energy target will create a market that is worth US$6-8 billion dollars over the next 10 years. This represents a significant business opportunity for many local and international companies. The city will provide up to 1500 companies with an attractive package of incentives, including a one-stop-shop programme of government services, transparent laws, 100 percent foreign ownership, a tax-free environment, intellectual property protection and proximity to nearby manufactures, suppliers and markets. In addition, some commentators believe that the current global financial difficulties could actually provide something of a blessing in disguise for Masdar. Company officials have revealed that offers

Sultan Al Jaber

“Renewable energy continues to make absolute sense, even in difficult times such as these” have come ﬂooding in from ﬁrms looking to set up their units at the new city development due to the lack of opportunities elsewhere for those in the green industry. Investment costs have also come down because of the fall in the prices of items like photovoltaics, steel and other commodities.

A leadership role According to official estimates, Masdar will contribute two percent to the GDP of Abu Dhabi when the project is completed, through massive employment generation, savings on oil costs, the development of intellectual property and other economic factors. But the developers hope that the city can contribute much more to future generations. “The world today faces two major challenges: global warming and the need to meet the ever-growing demand for energy,” says Al Jaber. “Leadership in both areas is needed. In Masdar we believe we can deliver practical leadership by showing what can be done, and by demonstrating how to do it. It is an ambitious aim, but one we are confident we can deliver. Our initiatives include substantial investment in innovative and renewable energy technologies; the fostering of talent, expertise and knowledge sharing in renewable energy disciplines; the construction of local and regional green power production facilities that complement and balance fossil fuel production; the reduction of carbon emissions through active participation in carbon markets; and the creation of a model, zerocarbon, zero-waste city that demonstrates the practical viability and appeal of living in alternative energy environments.” And despite the current economic conditions, the initiative is beginning to build momentum. The recently built Masdar Institute of Science and Technology (MIST) will admit its first students next year, while the first phase of the city is already under construction. Masdar has built up a big portfolio of renewable-energy investments, including a stake in an offshore wind farm in Britain and three

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solar-thermal power plants in Spain, and has placed an order for machinery for two solar-panel plants: one that is already under construction in Germany, and another that is to be built in Abu Dhabi itself. It is also attracting interest from some of the biggest names in business. MIT is helping MIST with the recruitment and training of its faculty. Credit Suisse has invested $100 million in the initiative’s clean-tech fund (the same amount as Masdar itself). Foster + Partners, the renowned British architecture firm, has come up with the masterplan for the city. And BP and mining giant Rio Tinto will collaborate on a carbon-capture and storage scheme. Masdar is working with such partners not because it lacks capital, says Al Jaber, but because it wants to take advantage of foreign expertise and have its ideas independently scrutinised. “Looking at recent local and international commitments, it is our view that the world has reached a tipping point in the acceptance of renewable energy,” he affirms. “We have a long, challenging journey ahead of us, but we are heading in the right direction and the progress we are making is irreversible.” Cynics have suggested that it is in its own best interests for Abu Dhabi to diversify away from a carbon economy – so that when the oil runs out (which it eventually will), the emirate will be handily placed to sell the world solar, wind or whatever renewable technologies will be needed to supply people’s energy needs. But this is missing the point. “The development of clean sources of energy is a global responsibility with benefi ts for every aspect of life on our planet,” agrees Al Jaber. “We recognise that, to achieve our aspiration to play a leading role in fulfilling this responsibility, we need to collaborate with a broad range of partners who share our vision and commitment to a cleaner future. We are investing considerable resources to create a groundbreaking global network that fosters creativity and encourages innovation. “This is just the beginning of a long story,” he concludes. “Our aspirations are broad and our ambitions global. It is going to take time for Abu Dhabi to become a truly global centre of excellence, but we are committed to making that happen.”

THE MASTERPLAN

low-rise, high-density approach allows the buildings to be more sustainable in terms of their energy usage and enables them to make better use of energy and recycling systems. Perhaps more importantly, it is also key to the creation of communities and neighbourhoods. High densities not only achieve the benefits of a more concentrated urban form in terms of energy efficiency, but also represent a more effective way to provide urban vitality and quality of life for the population. Inspired by the culturally and climatically responsive traditional cities of the Arab region, the guiding principle of the masterplan proposal is to create a sense of community and shared commitment to social and environmental responsibility. The Masdar development also fundamentally changes the most unsustainable aspect of contemporary cities: the reliance on motorised private transport. Instead, it promotes pedestrianised routes to satisfy a basic quality of life in an urban environment. The necessary precondition for walkable, pedestrian-friendly urban environments requires a balanced programme of mixed-uses that will complement a dense urban population. Shaded walkways and narrow streets aligned with cooling breezes make walking a reality even in this extreme climate. In addition, personalised rapid transport systems allow easy access to all areas of the city without the need for cars. A maximum distance of 200m to the nearest transport link has been imposed to ensure a flexible and efficient system. The clearly demarcated external wall of the development mirrors the tightly planned, compact “The guiding principle of the nature of traditional fortified or walled cities throughout masterplan proposal is to the ages. It also has the added benefit of controlling create a sense of community urban sprawl. A phased approach to the expansion and shared commitment to of the city allows growth and expansion without the social and environmental responsibility” negative effects of sporadic development. It also set limits for the city in terms of its zero carbon credentials and its ability to sustain itself. The requirement for the surrounding land is also essential in allowing the city to farm it’s own energy and research. It consists of a series of energy-creating measures such as wind and photovoltaic farms that are manufactured in specially built factories outside the wall zones generating energy for the construction phases. The support land also houses testing fields, research centres, plantations and recreation facilities, as well as being home to the water management and desalination facilities that will recycle water for the inhabitants and grey water for the irrigation systems. The support land forms the basis of the city’s future by providing the capacity to generate and manufacture fuel and energy with potential for export.

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MARKET WATCH

The construction boom across the region has led to good times for regional steel producers. But is the demand seen in recent years sustainable?

he demand for steel in the GCC has been surging over the past few years, with around 20 million metric tonnes consumed in 2007 and even higher ﬁgures expected for 2008. The UAE’s booming construction sector has been a key driver in this increase, with several large-scale development projects – including Burj Dubai, Dubailand, Business Bay, Palm Islands, Dubai Festival City, The World development and Dubai Waterfront – keeping contractors busy and ensuring prices have stayed high. However, the global slowdown and the subsequent bursting of the region’s real estate bubble is beginning to take its toll. After ﬁve years of strong growth, the collapse in global commodity prices in the second half of 2008 have cast long shadows over the regional steel industry, according to Middle East Steel 2009, a report published in January by MEED Insight. And demand for reinforcement steel used in construction, or rebar, in the

Gulf is expected to fall by at least 30 percent in 2009, according to officials from some of the Middle East’s leading steel firms. “It will be a very challenging year,” concedes Ali Hassan al-Muraikhi, manager at the commercial division of Qatar Steel, a unit of Industries Qatar. “Demand will start declining and the decline will be in the range 30 percent for 2009, considering all the global financial problems and falling oil prices.” Infrastructure and construction demand had pushed rebar prices to above US$1500 per tonne in July, but falling demand since then has pushed them to a current value of around US$500 per tonne. “The mills in this region have to consider cutting production,” says al-Maraikhi. “They have to consider the worst-case scenario to cut their costs.” Ezz Steel, Egypt’s largest steel producer, is one company that has already reduced output. George Matta, Chief Marketing Officer at Ezz, said the company was adjusting production to match weaker consumption.

Steel volatility hits Gulf

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Steel intensity (global consumption volumes relative to global GDP1); index: steel intensity in 1992 = 100

118 “Our export business has been afLikely trend 116 fected, so we are producing less than pre-Sept 2008 114 normal,” he said. “The steel industry 112 is without doubt going through turbuProjected Urbanisation, building of 110 lent times.” Rebar, billet and scrap outlook after infrastructure in China, 108 Sept 2008 India, Middle East prices are likely to remain depressed 106 until the first quarter of 2009, he adds. 104 Maturing of markets in Europe, 102 Despite the slowdown, however, North America 100 there are still positive signs and many 98 are still bullish on the prospects for the 96 coming year. State-owned Emirates 94 Steel Industries, for instance, is going 92 ahead with its expansion plans despite 90 the economic climate and aims to boost 88 0 output to 1.85 million tonnes this year. “We believe there will be sufficient de1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 mand to absorb that production,” says Adjusted for purchasing-power parity Sridhar Krishnamoorthy, Deputy Chief Executive at Emirates Steel. In September, the company suspended production for three weeks in tonnes in 2007, and recently told Reuters that the firm’s plan to increase an effort to curb falling prices, but nevertheless Krishnamoorthy expects production to around three million tonnes by 2011 was still on target. output to reach just below one million tonnes this year, up from 770,000 According to Middle East Steel 2009, the longer-term outlook for the region’s steel market is promising. “Given an expected rebound in the oil price in 2010, fuelling economic growth and capital investment, steel demand is set to rise over the next five years,” says the report. “Major government-backed players in the regional steel industry appear to be well insulated from the effects of the global slowdown.” • Total steel production in the GCC region In addition, while a number of high-profile building projects have been reached 15.65 million tonnes in 2006 put on hold, recent announcements from GCC governments regarding their while that in the UAE touched 1.7 million intention to plough billions of dollars into infrastructure projects suggests tonnes during the same year and is the appetite for construction work remains high. New and ongoing develexpected to grow 235 percent by 2012 opment projects will continue to contribute to the growing demand for steel, cement and other construction materials, while a number of analysts • Steel consumption of the UAE is highly cite the chronic lack of housing within the region as evidence of a potential influenced by the recent boom in resurgence in demand for steel products. construction and infrastructure development 1

STEEL INDUSTRY IN NUMBERS

• The value of construction contracts awarded by the end of 2007 is estimated at US$32.8 billion as compared to US$16.1 billion at the end of 2005 • There is huge capacity expansion in pipelines in the UAE steel industry, which will result in economies of scale for steel producers in the country • Economic growth and energy resources (oil and gas) are also helping the UAE steel industry to grow rapidly Source: The UAE Steel Industry Analysis 2008

“Major government-backed players in the regional steel industry appear to be well insulated from the effects of the global slowdown” For instance, at the end of December 2008, Abu Dhabi contractors were reporting a fall in materials costs of up to 15 percent. The consensus among industry watchers is that this is the start of a series of price falls, and that rates for diesel, steel, cement and labour will continue to drop over the course of this year – great news for quantity surveyors in a position to capitalise on cheaper construction costs. And with the cost of materials continuing to decline, the second half of 2009 may be a good time to start building in the Middle East – at least for developers that have the resources to do so.

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RAW MATERIALS H2H:Feb08 11/02/2009 14:23 Page 70

HEAD TO HEAD

Sustainability in construction MENA Infrastructure asks Stephen Barnett, President of the Nickel Institute, and Stephen Wilkinson, Executive Director of the International Zinc Association about the importance of raw materials in sustainable building. The deﬁnition of what constitutes sustainability within the construction sector is constantly changing. In your opinion, what are the fundamental principles of sustainable building? And how and why should developers be focusing on sustainable building and materials? Stephen Barnett. The evolution and improvement of sustainable project rating systems is transforming construction. Ultimately, the most sustainable structures are designed to avoid obsolescence and for long service – 50 years or longer. Materials should be selected so that minimal replacement occurs over the structure’s life. Products should have a high recycling ratio, avoid toxic run-off and outgassing, and provide sustainable resource utilisation through reduced energy consumption and minimised potable water use.

“The environmental impact should be evaluated over the whole lifetime of the project” Stephen Barnett Stephen Wilkinson. Developers benefit through reduced building operating costs and resource requirements, increased worker productivity and health improvements, and projection of a positive corporate image. Sustainable building is the application of the ‘sustainable development’ concept that takes the idea of ‘green’ or ‘environmentally friendly’ building techniques a step further. It applies the principles of sustainable development – the integration and consideration of environmental impacts, economic considerations and social implications – to the ways buildings are designed, constructed and managed to help people make better decisions about the buildings we live and work in. Thus, the focus is on using sustainable materials such as zinc (e.g. recyclable, low energy footprint, durable) with designs and practices that result in lower environmental impacts with lower energy costs to build and maintain over the lifetime of the structure. Developers should focus on sustainable building to respond to the changing market and societal needs and requirements, with an ever in-

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creasing focus on being ‘green’ and sustainable. There are numerous international and regional sources developers can use for guidance on sustainable building including the US Green Building Council’s LEED programme. What part can the selection of the right raw materials play in reducing the environmental impact of large infrastructure projects? Stephen Barnett. The environmental impact should be evaluated over the whole lifetime of the project – construction, operation, renovation and demolition. The use of special materials in buildings may reduce energy requirements and carbon dioxide emissions. For example, stainless steel solar screens and high solar reflectance roofs can reduce air conditioning requirements. Stainless steel water lines can facilitate condensate and grey water capture and reuse, thus minimising potable water requirements. Durable, high strength materials can help to reduce structure weight. For example, duplex stainless steels have been used for structural components in buildings and in bridges, like the Stonecutters Bridge under construction in Hong Kong. Durable materials can reduce maintenance. In high chloride (salt) environments, using a stainless steel reinforcing bar instead of some of the carbon steel in bridges and seawalls can eliminate repairs caused by corrosion. Indicative analyses show that the material intensity of a bridge can be halved over its full life cycle by using nickel-containing stainless steels. This estimate considers the energy associated with the production, use and final disposal of materials from paint to asphalt, and the higher percentage of material recycled at end-of-life. There will be a corresponding reduction in carbon dioxide emissions. The financial resources and labour which is saved can be made available for other societal needs, at the same time as the environmental impact of the structure is reduced.

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Stephen Wilkinson. A project’s environmental impact starts with the environmental footprint of the raw materials used to create the project. But this is just the start; how a project performs in service, its ongoing energy proﬁle, its maintenance requirements and ultimately its useful life are all critical factors making up the project’s overall environmental impact. The primary application for zinc is as a thin coating on steel that provides long-term corrosion resistance. This small amount of zinc greatly extends both the life of the steel and reduces the maintenance costs, thus eliminating additional material and energy consumption for the project. Steel is a versatile, low cost and sustainable building material. Zinc coatings protect steel, allowing infrastructure projects to make even fuller use of steel’s excellent properties. Can you outline the benefits that highergrade materials offer over mid-grade? Do you have any examples where the choice of higher-grade materials has had a positive impact on a construction project? Stephen Barnett. First and foremost, performance and durability: stainless steel has provided exceptional performance of buildings with minimal maintenance in aggressive marine environments. Lower grade materials may require more maintenance, or even premature replacement. Lightweight stainless steel water distribution systems have been used in prestigious high-rise buildings, like Taipei 101, where the ability to withstand the high water pressure and earthquakes is essential. Higher-grade materials can retain more value at the end of the project life. That is the case with stainless steel, which is 100 percent recyclable. Recycling not only conserves resources and energy but also reduces carbon dioxide emissions. Furthermore, the aesthetic benefits of using higher-grade materials improve the perceived ‘quality’ of a building. Elimination of products that outgas can improve both the health and productivity of building occupants. Sustainability is not just about resources and economics.

A good example of the positive impact of higher-grade materials is the selection of hot dip galvanised coatings for structural steel rather than paint coatings. Paint is in many cases the default corrosion protection system, often due to the lack of awareness of zinc’s performance and sustainability of galvanised coatings. In the corrosive Middle East environment hot dip galvanising will almost always provide superior protection performance over paint coatings, at little or no extra cost. Do you think enough is being done across the Middle East to promote the use of high-grade materials and sustainable building practices? What can be done to increase awareness as to their importance? Stephen Barnett. Many architects and clients involved in prestigious projects in this region are already aware of the benefits of sustainable building materials like stainless steel and with the green building rating systems already established in the UAE, Japan, Europe and the US. The 50, 100 or even 150-year building design lives required by some Middle Eastern clients are providing a significant incentive for sustainable material selection and design. Stephen Wilkinson. The rapid infrastructure development in the Middle East has created some outstanding examples of engineering design and architecture. However, environmental impact is often underestimated. We can only hope that the material selection and design of these structures will stand up to the corrosive climate of the region. There appears to be a high awareness and visibility of the sustainable building concept in the Middle East, but like anywhere, theory and actual practice can differ. The commitment to and implementation of sustainable construction must come from the structure owners, government and private developers. Government needs to develop and implement building codes and green construction guidelines and mandate contractors to follow these regulations. Sustainable construction does not need to cost more, but it may require doing things differently and more formalised quality assurance programmes to ensure that design and construction practices are followed as prescribed. The International Zinc Association (IZA) has helped fund a ‘Galvanising and Sustainable Construction’ specifiers’ guide, that was prepared by Professor Tom Woolley. IZA will continue to promote the technical and sustainability advantages to key decision-makers and specifiers. n

“The rapid infrastructure development in the Middle East has created some outstanding examples of engineering design and architecture” Stephen Wilkinson

Stephen Wilkinson. For all zinc applications such as coatings on steel, castings for building hardware or zinc sheet for cladding and roofing applications, zinc chemistry is tightly controlled to ensure final product quality. For zinc the issue is not about different zinc grades but rather whether zinc is used versus competing materials; for example, cast zinc parts for building hardware versus plastic components, or zinc sheet versus concrete or glass building cladding.

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ASK THE EXPERT

Zinc in a sustainable society Dr Andrew Green, Director of Environment and Sustainability for the International Zinc Association, explains the advantages of using zinc.

Hot zinc coating process

ustainable development as a guiding principle has become a societal, regulatory and market driver. Markets are increasingly shifting toward high-performing and environmentally responsible products. Thus the environmental and social attributes of materials and products are now influencing design and purchasing decisions. The zinc industry welcomes this new paradigm because zinc – both as a raw material and in the final product form – has the characteristics that sustainable development demands. The International Zinc Association (IZA) has been working hard over the last few years to develop a Life Cycle Inventory (LCI) database for zinc and zinc containing products that provides end users with the data they need to assess the sustainability of zinc and its final products. Zinc is a versatile material that is an integral part of the building products and construction industries. Zinc coatings stop steel from corroding, vastly extending the durability and life expectancy of the galvanised steel products. With low cost and energy consumption zinc castings produce strong, precision building products that are used everywhere, from door handles and locks to plumbing fixtures and window hardware. Zinc sheet, used in roofing and siding, provides a beautiful and protective covering that lasts for generations. And, all of these zinc prod-

ucts, when they do reach the end of life, are 100 percent recyclable, over and over again without any loss of metal quality. Zinc has another attribute that is arguably the most important of all, zinc is essential for life. Every living organism – humans, animals, plants and the smallest micro organisms – need zinc. Zinc is an essential trace element (the adult body contains two to three grams of zinc) that is present in organs, tissues, bones, fluids and cells. Zinc is essential for proper functioning of the immune systems, enzymes and the perpetuation of genetic material. Zinc deficiency is recognised by the World Health Organisation as a leading cause of illness and disease in developing countries. Zinc deficiency in agricultural soils impairs crop yield and quality, as well as reduces zinc content in the crops themselves. The international zinc industry actively supports diThe International Zinc Association (IZA) is a non-profit organization based in Brussels, Belgium and Durham, North Carolina, USA. IZA’s team of internationally recognised experts conduct programmes in environment and sustainable development, technology and market development and communications. For more information, please visit www.zincworld.org

etary and agricultural zinc enhancement programmes to address these major human health concerns, primarily in the developing world. But how does zinc improve the sustainability of construction projects? Let’s look at one zinc end use application – hot dip galvanising of fabricated steel structures. The galvanising process produces a tough, tenacious corrosion resistant zinc coating that is an impervious barrier between the steel and the corrosive atmosphere. These excellent mechanical properties combined with zinc’s low corrosion rate ensure that in most environments, galvanising will provide a maintenance free coating life. Without this level of protection, which is most often the case with other protective coating systems, financial resources are consumed through repeated maintenance operations, either painting or repairs. In addition to the financial costs, maintenance is often a hazardous procedure on elevated steel structures and causes disruptions to the public. Maintenance also has a direct life cycle energy cost. A German study has shown that 57 tonnes of carbon dioxide would be saved if 500 tonnes of steel used in a car park were galvanised rather than painted. Similar analysis can be performed on other zinc containing products and the zinc industry encourages architects and building engineers to conduct these studies and IZA is available to assist. The zinc industry through IZA’s Zinc for Life programme (www.zincforlife.org) provides LCI data on primary zinc production as well as on downstream transformation industries that produce the final product. The zinc industry is committed to providing stakeholders with the facts and figures they need to make environmentally and socially responsible choices on the building products and construction designs that are used. Zinc is durable, recyclable and essentiality well positioned as a material of choice for a sustainable society. n

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INDUSTRY INSIGHT

Nano from nature Neuburg Siliceous Earth is a naturally occurring nanostructured filler material, whose specific particle structure imparts coatings with very good mechanical and chemical resistances, while being easy to incorporate into the formulation.

Figure 1 A Scanning Electron Microscope (SEM) photograph of Sillitin Z 86

he extraction of natural mineral fillers has been pursued for more than 200 years. During this period, the requirements placed on such fillers, and consequently the products themselves, have changed considerably. With respect to product consistency, purity and functional properties, functional fillers have to respond to ever higher and more stringent demands. In connection with innovations in paints and coatings, there is often reference made to ‘nanotechnology’. In this context, quite frequently, products and materials are proposed which – in view of a missing, generally accepted definition – do not really deserve this designation. In theory, an ultrafine natural mineral filler with a mean grain size <1 μm could be called a nano filler, which would mean ‘nano from nature’. Neuburg Siliceous Earth, with primary particles of way below 500 nm, would easily fit into this category. There do not exist uniform rules yet, but from scientific publications it can be concluded that only products with grain size distributions <100 nm should be considered as nano materials. The majority of natural mineral fillers do not meet such a requirement. However, from a technical application standpoint, it is often not of critical importance whether or not a material can be called a nano filler. It is rather the total (eventually composite) particle structure observed on the nanometer scale which gives rise to specific technical application effects in coatings. This refers not only to dispersion, stability and rheology, but also to flattening, elasticity, hardness, wear resistance and corrosion protection. The particle structure of Neuburg Siliceous Earth offers an outstanding example of such a sit-

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Figure 2 Wood flooring uation (see Figure 1). The image covers an area about 12 μm wide. Distinctly visible is the natural fusion of the kaolinite particles of rather conventional appearance with a corpuscular quartz. The particular character of Neuburg Siliceous Earth lies in the fact that the corpuscular quartz consists of a high number of aggregated, partly dispersible primary particles which rarely exceed a size of 200 nm. On the other hand, in this functional filler the kaolinite is found in a state that indicates it has already been subjected to extensive delamination. The combination of these two particle phenomena as created by nature gives rise to a number of beneficial properties in paint and coatings systems which very often cannot be matched the same way by other natural or synthetic fillers, including the so-called nano fillers – and this is without including costs. Another advantage: because of its fine particle size and the rounded grain shape of the quartz portion, Neuburg Siliceous Earth only exhibits very low abrasivity vis-à-vis dispersion aggregates and processing equipment. In view of the mineral hardness of the quartz, the coatings formulated with Neuburg Siliceous Earth offer outstanding abrasion and scratch resistance (see Figure 2, wood fl ooring). These are important reasons for Sillitin and the surface-treated Aktisil to be used in wear resistant parquet floor coatings. In addition, the flattening action of Neuburg Siliceous Earth allows for the elimination of additives otherwise intended for such effects. The fine particle quartz also has a positive influence on the resistance against chemicals, which is why the siliceous earth is eminently suitable as a functional filler for use in chemically resistant and anti-corrosion coatings.

Figure 3 Sedimentation The natural combination of corpuscular quartz and lamellar kaolinite ensures rapid incorporation and excellent dispersion – in particular, in aqueous systems – along with a basically low sedimentation tendency (Figure 3, sedimentation). Plus, if a sediment is formed, it will be easily redispersed. This way, Neuburg Siliceous Earth can also serve as a functional filler to ‘stabilise’ coarser particle size fillers. The good integration of the filler into the polymer network leads to excellent mechanical properties. This effect of good ‘integration’ into the polymer network can be further enhanced by a surface treatment (e.g., with silanes). By modifying the filler surface, the compatibility with the polymer is increased, which leads to outstanding rheological properties as well as good mechanical characteristics and excellent resistance against abrasion and chemicals. The effects enumerated confirm that the properties of coatings cannot be improved with synthetic nanofillers only. In fact, nature has developed some ‘natural nano-structured fillers’ that make it possible to develop high quality coating formulations with very good performance. Hoffmann Mineral is an innovative filler specialist whose products are based on Neuburg Siliceous Earth, which the company extracts, improves and distributes. The company’s know-how and production plant are also used for third-party toll conversion. The company prides itself on a century of supplying Siliceous Earth products, while continuously developing materials for a variety of applications. Customer orientation, innovation and strict quality management are key factors in Hoffmann’s market position. Distribution is worldwide, with 36 agents in 31 countries representing the company. Sales have increased during the last 10 years in the European and CEE market. Find out more: www.hoffmann-mineral.com

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EXECUTIVE INTERVIEW

Painting a picture of success In an exclusive interview Birgit Genn, Head of Global Marketing and Business Development at Heubach GmbH, reveals how the paints and coatings industry is evolving. For greater efficiency standards it is essential that the correct raw materials are utilised. How do Heubach see their ‘smart’ pigmentation aiding the MENA region? Birgit Genn. Paints and coatings consist of pigments, additives, fillers, resins etc. All of these components are capable, at least partly, of absorbing electromagnetic radiation, which is able to heat up the coating of the facade or the roof of a building, for decorative and protection purposes. The solar energy is absorbed and heat is captured, which intensifies the heat in the house due to the black roof tiles used, for example. The utilisation of NIR-reflecting pigments in the roof or facade coating is able to reduce the heat in the building. The advantage we can get from this approach is not only a reduction of the heat build-up that can be correlated with decreased energy consumption. The benefit is also an enhanced shelf life of the coating. Due to the significant reduction in surface temperature, thermal degradation of the roofing components, for example, is reduced. In addition, temperature differences between day and night, direct sunlight and shadowed areas will also be evened out. As a consequence, thermal warping becomes less pronounced. What are the advantages of using superior colouristic and processing properties of lead and cadmium replacement pigments as opposed to the traditionally used titanium dioxide blends? BG. Chrome and cadmium pigments were the preferred choice for full shade coatings that called for brilliant yellow, orange, red, brown and green colours in all kinds of coatings applications but particularly in transportation and industrial coatings. Our replacement allows the coating formulator to develop the same brilliant colours, while the pigment concentration will be lower compared to the titanium dioxide and organic pigment blends, which is a result of the superior colouristic properties, such as higher colour saturation, opacity and excellent tinting strength. This contributes considerable value in use with respect to the improved cost to performance ratio than any of the traditional options. While the inorganic part of the traditional blends allow themselves to be incorporated much more easily into the coating systems, the organic counterpart needs a much higher shear force and much more time to be homogenously distributed in the coating. The new technology resolves this problem, and cuts in half the incorporation time as compared to the traditional blends. Moreover the tendency for dusting is significantly reduced. How much emphasis do Heubach place in the research and development of pigments and what processes do you adopt to make sure your clients receive the best end products? BG. In today’s world of globalisation, production sites located in the key markets along with technical and logistical global service networks are nec-

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essary to meet the speciﬁc regional demands. Heubach avails of R & D centres and extensive application laboratory facilities in Europe, USA and Asia to combine our resources and continue the strong commitment to provide value-added products and a high level of innovation in pigment technology for a wide variety of applications. All of our R&D projects are conducted under a project management process in order to optimise the use of resources and the network of activities. Once management, triggered by internal portfolio management or market research for example, has decided to develop a new product, time to market becomes the crucial success factor.

“The advantage is a reduction of the heat build-up that can be correlated with decreased energy consumption” Heubach prides itself on providing the best corrosion protection solutions and colour competencies. What are the key benefits that you can bring to the mega projects currently being undertaken within the region? BG. The major beneﬁt is our comprehensive product portfolio backed by outstanding expertise, high quality, innovation and know-how, built up over 200 years. Based on that Heubach is able to provide colour and corrosion protection solutions for the coatings, plastic, building and ink industry. For instance, corrosion of metallic structures has a signiﬁcant impact on the economy, including infrastructure, transportation, utilities, production and manufacturing. The cost of corrosion in the US alone is an estimated $300 billion/year. Our anti-corrosives protect aircrafts, ships, bridges and many other metal structures. Heubach initiated the replacement of carcinogenic chrome-based anticorrosives by introducing zinc phosphates, the first chrome-free anticorrosive pigment, followed by orthophosphates which set new standards in the industry by doubling the performance efficiency of conventional zinc phosphates. The polyphosphate line for high performance applications such as coil coatings and aircraft primer represent the technically most sophisticated anticorrosive inhibitors in today’s market and are the preferred option wherever ultimate protection is required. n

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LEAD STORY

s one of the most publicly outspoken Arab business leaders in the region, Mishal Kanoo’s views on the impact of the global credit crunch on the Middle East are well known. With predictions of a stock market crash in the Gulf and the collapse of the region’s property market, you would be forgiven for thinking that Kanoo has a rather pessimistic outlook on the economy. “I’ve been criticised for my negative point of view,” says Kanoo, “but I’m simply looking at all the factors. As far as ﬁnance is concerned, when you’ve seen the biggest insurance company in the world be bailed out by the US government and the fourth largest investment bank, Lehman Brothers, go under, how can you be surprised to see this affect business all over the world?” Kanoo’s realistic, if gloomy, outlook on the future economy of the region is surprising considering that his own firm has enjoyed over a century of success. The Kanoo Group is one of the largest family-owned firms in the Gulf and spans industries ranging from machinery, oil, gas and industrial chemicals to shipping and travel. Established in Bahrain in 1890 by Haki Yusuf Bin Ahmed Kanoo, the company grew from its early trading and shipping concerns to become one of the most diversified and highly regarded businesses in the Middle East region, and is now a multibillion-dollar company. While he admits that the ﬁrm has fared well extremely well over its 119-year history, Kanoo, mastermind of the group’s operational division,

is keen to point out that with international companies falling faster than ever before, now is a worrying time for each and every business – regardless of their size or the length of time they have been around. He cites other international companies that are teetering on the brink of collapse, including Costain, a large British construction company that has been operating for over 100 years, as a warning. “There are situations in Europe and the US with companies closing down and going bankrupt, and we’ve had a few in the Middle East – the same thing is undoubtedly happening here. It would be unacceptable and reprehensible for anyone to say that those things are happening in isolation and it has nothing to do with us, that we will not be affected.” For one thing, capital is not as readily available as it has been in recent years. “You’re not going to get the free ﬂowing money that there was in the past,” he continues. “Just try getting a loan and you’ll see that banks are becoming very stringent and fearful of what’s going to happen in the future, and while that is right – that’s their line of business, after all – there will undoubtedly be a huge impact on economic activity everywhere.”

Slow down And it’s not just about future business either. Kanoo points out the effect that the ﬁnancial crisis has already had on the economy, highlighting a signiﬁcant slowdown on expansion plans and on international business entering the region. As one of the Middle East’s biggest suppliers of plant

FIGHTING KCAB As the Middle East’s largest supplier of plant machinery, the Kanoo Group has been one of the biggest beneficiaries of the region’s recent construction boom. Even now, in the face of the global credit crisis, Mishal Kanoo – Deputy Chairman of the multibillion-dollar business – is confidently forging ahead with plans for strategic growth. Can he continue his success story?

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machinery, the group has beneﬁted from the region’s recent construction boom. So, as the global credit crunch continues, how does Kanoo expect the region’s infrastructure sector to react? “I think some property development projects will be frozen or stretched out, although infrastructure projects such as power or desalination plants must go through no matter what happens because the region needs and is expecting both. I would say depending on what kinds of units a company provides, certain types of project will be in demand while others will have to wait out the next few months and see if demand starts to pick up again,” he says. Indeed, repercussions from the burst in the real estate bubble since the fourth quarter of 2008 have put the brakes on the region’s infrastructure boom as investors become more cautious. The ﬁnancial strain has meant that projects, particularly in Dubai, are either being put on hold, such as the Trump International Hotel and Tower, and the Universe; or being cancelled, such as Bahrain’s US$1 billion Salam resort and the Falcon City of Wonders project within the Dubailand development. A recent report claims that US$75 billion worth of construction projects in the UAE alone have been suspended or cancelled, with most being high-end residential and commercial projects. However, despite the growing number of delays and cancellations there are pockets of activity, including the Concourse Three award at Dubai International airport and tenders for Nakheel’s Tall Tower, together with other tenders for projects by Meraas and the Dubai International Financial Centre. It suggests that a number of projects will go ahead despite the downturn.

While Kanoo believes that there is undoubtedly a credit issue in the Middle East, he explains that before making any decisions to cut back or switch outlook, the Kanoo Group works hard to understand the factors that inﬂuence the market. “If the market factors demonstrate that there is a huge decline, then obviously we would have to cut back on things that would not sell,” he explains. “But if the market, for some strange reason, ends up being robust and actually continues to grow, then it would be mad to curtail what’s really beneﬁting you.”

“Some property development projects will be frozen or stretched out, although infrastructure projects such as power or desalination plants must go through because the region needs and is expecting both” Expansion To that end, the Kanoo Group is forging ahead with steady regional growth despite fears created by the global credit crisis. Kanoo Machinery, for example, is strengthening its presence in the UAE by building two new

CHALLENGES anoo foresees the biggest infrastructure challenges facing the machinery and construction industry revolving around finance and liquidity. “If banks don’t supply the cash through financing or lending, both short and long-term, then the industry cannot provide equipment needed for the projects. Most banks are wary about lending money to companies who will default and this is stopping them from properly assessing the opportunities that they will have to make money. The credit crunch is slowly beginning to ease as banks start to realise that they are in the business of lending and must start lending to credible companies. As this thought sinks in, they will lend to companies with good track records and that will ease the situation further. As for the Kanoo Group, we are fortunate to have great banks working with us. It takes years to build up a reputation and just seconds to destroy it.”

Secondly, Kanoo believes that the continuing issues around recruiting and retaining staff are a huge problem, and will remain so as long as people are willing to pay ridiculous wages. “If people are willing to pay silly money then you will see people bounce from one job to another. In order to retain people you need a couple of things: one, you have to be fair and just with them; and two, you have to be open with them. However, being fair and just is a two-way street, and if they are not fair and just with you, you don’t really want them working with you. “If I want to be fair and just with my employees, I want to give them a fair salary and a good livelihood for them and their families. I also want to make sure they have an environment where they are treated fairly and properly, and it’s not, as in some cases I have seen, where one nationality wins out over the others.”

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purpose-built office, warehouse and product support facilities in Dubai’s Jebel Ali Free Zone and Mussaffah, Abu Dhabi. This follows the recent opening of new branches in Sharjah and Ras Al Khaimah, catering to the growing activity in the northern emirates. “For us, expansion is not an issue,” says Kanoo. “We look at the longterm outlook versus the short-term. We identify the companies that we can best partner with in strategic outlook and make sure the partnership is a good fit for both parties. In other words, while we acknowledge that there are short-term difficulties, we are confident that, inshallah, the long-term outlook is better, so we look toward that.” The Kanoo Group spans many business lines, and while Kanoo is certain that the company will not be diversifying any further, he does acknowledge that the firm operates in many areas of expertise and that perhaps the group could expand further along the lines of existing businesses rather than setting up whole new entities. “What we’ve managed to do so far is to piggyback off our expertise, so we’ve expanded into areas that are part and parcel of our core business,” he says. Kanoo is keen to highlight the group’s focus on Kanoo Machinery the industrial side of the business. “One of the main Since its inception over 40 years ago, reasons we focus on the industrial side of things is Kanoo Machinery has grown to that it is one of the hardest types of businesses to get become one of the foremost materials up and running,” he explains. “When it’s up and runhandling equipment distributors in the ning with the right partner it is very rewarding, not Gulf, offering a cross-border service. only financially but socially – when you help create Kanoo Machinery provides its services something that you can pinpoint and say that we’ve to all sectors of the industry, offering a helped to do this for the company, there is a fantastirange of equipment and consumables cally rewarding aspect to it.” from the world’s leading manufacturers And in that vein the Kanoo Group has acquired a 50 of welding, grinding, materials handling percent majority share in the Dubai-based golf course and maintenance products. In addition, and landscaping product and service supplier Hydroturf. Kanoo Machinery offers a full afterHydroturf represents a number of landscape-related sales service through a network of brands, including Toro Irrigation and Turfcare equipworkshops, parts and mobile service ment, and it also has an in-house landscape contractfacilities throughout the Gulf and ing business, and nurseries in the UAE and Saudi Arabia. Arabian Peninsula. The company has worked on numerous projects including the Emirates Palace Hotel and Abu Dhabi Golf Club, and Dubai Municipality and Arabian Ranches elsewhere in the UAE. Kanoo believes the company will provide a good fit with the group’s portfolio. “We think that industrial landscaping is going to blossom, pardon the pun,” laughs Kanoo. “The governments of Dubai and Abu Dhabi, for example, are focusing on beautifying the city, and therefore this move makes sense to us.”

Infrastructure drivers Indeed, despite the slowdown, it seems that the plant, machinery and vehicles industry may be poised for unprecedented success over the next few years – more good news for Kanoo. The recent boom has seen the cost of materials increase dramatically, with cement soaring by 50 percent and steel surging up to 70 percent. In addition, 250,000 illegal labourers left the country in 2007 to take advantage of a government amnesty programme, leaving the construction industry facing labour shortages throughout 2008. As a result, contractors are looking for more efﬁcient practices and approaches to the building process – particularly given the

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standards in partnership with Dubai Industrial City. The Dubai Quality Mark speciﬁes the requirements for implementing the integrated management system framework. The model is based on international quality, health and safety and environment management standards and applicable manufacturing best practices. “The Dubai Quality Mark will push us to go further, which will beneﬁt our customers,” says Kanoo. As the company and its many divisions grow, Kanoo feels it becomes increasingly important to assess operations correctly to ensure the firm continues to grow well and in the right

“When you’ve seen the biggest insurance company in the world be bailed out by the US government how can you be surprised to see this affect business all over the world?” way. In 2008, Julian Knott was appointed as Divisional Manager of Development and Re-Engineering, to conduct an overview of the way business was run. “An organisation becomes content with itself to a certain degree,” explains Kanoo. “But if you bring eyes in from outside, in this case Julian, that have seen it from a different aspect, they can have a better assessment as to whether we are moving in the right direction. This will benefit our customers, and at the end of the day, we live and die by our customers.” n

DUBAI INDUSTRIAL CITY Dubai Industrial City (DI), a member of Tatweer, was set up on 560 million square feet of land with the aim of catalysing the growth and expansion of the industrial sector in Dubai, particularly in high value-added manufacturing and production in the light and medium industry sector.

fact that the construction sector is now cooling off and more projects are being postponed or cancelled. Achieving maximum returns in a slowing economy is now paramount, which means more contractors are revisiting their machinery and technology choices in order to ensure operations are as efficient as possible. “This is a normal reaction to what’s happening,” explains Kanoo, playing down the potential significance for the group’s machinery business. “The days of excess are over, and companies are simply assessing what’s in their best interest.” And as the industry begins to evolve and looks to become more efficient, the Kanoo Group recently took steps to improve the quality of its own work, having applied to be assessed for the use of the Dubai Quality Mark

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DI features six dedicated manufacturing sectors for machinery and mechanical equipment, transport equipment and parts, base metal, chemicals, food and beverage, and mineral products. Considered the emirate’s first dedicated and comprehensive industrial destination designed as a custom-built one-stop shop for industries on a work, live and play model, DI provides one of the region’s finest business environments as it offers world-class facilities for industries and related sectors, such as logistics, assembly and warehousing, vocational training and staff accommodation.

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HEAD TO HEAD

The road to success Rising traffic levels and over-stressed transportation infrastructures are creating a number of issues in major cities across the Middle East. MENA Infrastructure speaks to Oliver Skisland, Regional Director of Central Europe, Middle East & Africa at Q-Free ASA and Peer Fischer, VP for the Middle East and Asia at Siemens Traffic Solutions, to find out what the future of transport infrastructure looks like. The next decade will see exponential growth of freight transport and a strong increase in passenger transportation. What challenges do these trends present to road transport agencies and managers in the region? Oliver Skisland. The keyword here is ‘mobility’. It is all about motivating changes of behaviour through demand management. For this to happen, it must be made adequately worthwhile to use public transport and equally more expensive to use the private car. The reason why a road is blocked is that too many people are driving at the same time. A smart implementation of a congestion charging system will motivate people to drive at different times and then release the peaks of the traffic. The prerequisite is of course that there is a well functioning public transport system in place. If this is not the case, people can still only rely on their private vehicle and any extra charges for the private vehicles will only be seen as an extra tax. So, by increasing the availability of public transport services and controlling the demand for road services, citizens will find that mobility is improved. Peer Fischer. Traffic volumes continue to skyrocket. Every year, over one million people die in traffic accidents and 700,000 of those deaths can be linked to traffic-generated air pollution. The main challenge is to optimise the system to tackle problems like safety, the environment and mobility at the same time. Another positive impact can be achieved by exploiting synergies through a combination of different mass transport systems like public transport, urban transport and railway transport systems. It is clear that new traffic management solutions are needed alongside development of the region’s transport infrastructure. What role can technology play in helping transport management agencies address some of these issues? OS. Intelligent Transport Systems (ITS) are the key to obtaining a successful traffic management system. By using DSRC electronic transponders and Automatic License Plate Recognition systems for instance, the authorities get precise information about demand for road transport services. This information can in turn be used for several purposes, such as planning of new road corridors, definition of congestion charging fees and planning of public transport services. A congestion charging system, such as the system deployed in Stockholm, can also be used to feed information to the general public about the traffic situation.

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PF. Since even relatively small disturbances can have massive effects on traffic flow, detectors need to be deployed at as many traffic-relevant spots as possible in order to record all pertinent traffic and weather data. Modern detection methods like floating car data (FCD) can deliver an area-covering clear view to optimise traffic flows. What criteria should road traffic agencies in the region consider when selecting an ITS solution to help manage congestion, reduce pollution and improve safety and security? OS. ITS solutions will be constantly evolving. Keeping this in mind, it is vital to base all system designs on standardised products with proven

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performance and to require open and standardised system interfaces. Going for the global standards also means high competition at a later stage – you are not bound to one supplier for the rest of the system’s lifetime. Any expansion can be tendered for and the best supplier will win. An excellent example of this is found in Norway where the road authorities are operating over 30 different systems where all systems comply with the same standard and are supplied by four different suppliers. Improving safety and security can be done in many ways, but one extremely interesting solution that is coming to the market in the next few years is called CALM. This is a vehicle-to-vehicle technology that will make vehicles ‘aware’ of each other. One of the identified applications is ‘trailing brake lights’ where the first vehicle in a line transmits a signal back making the other vehicles aware that the first vehicle is panic braking. Another application is ‘active red lights’ where the traffic lights transmit a signal to the vehicle making it ‘aware’ of the colour of the light.

PF. Expending awareness is an important prerequisite. Putting the available and possibly already existing solutions together into an overall system to optimise for all criteria is a deciding challenge. But some cities already follow this approach, like Dubai through its EC3 (Enterprise Command & Crisis Management Centre) project where Siemens also submitted a bid.

“It is vital to base all system designs on standardised products with proven performance and to require open and standardised system interfaces” Oliver Skisland

PF. Managing the balance of these requirements is ambitious, therefore suppliers should be selected, who have proven success in building trafﬁc management centres and the most suitable also have operators experience. As effective solutions can only be engineered by integrating all transportation modes, the solution provider has to be experienced in the different modes. “Readily available solutions already exist to help combat the issues of traffic management and safety in the Middle East; the key challenge is in expanding awareness as to the benefits of such solutions.” To what extent do you agree with this sentiment? OS. There are definitely readily available solutions. The example from Stockholm clearly proves this. But remember that the challenge is not only about raising awareness; it is also concerning a viable application of the solutions. An electronic toll collection system based on proprietary technology will for instance carry out the task of toll collection nicely but will offer no further opportunities for enhancement or integration with other information systems.

“Sound forward planning is mandatory and best done together with a reliable and globally experienced partner” Peer Fischer

The Middle East provides some interesting case studies in the development of ITS, such as Saudi Arabia’s King Abdullah Economic City, where no expense is being spared to enhance motorist and pedestrian safety and ensure traffic moves smoothly. What are the most interesting initiatives you are currently witnessing with regards to ITS? OS. The King Abdullah Economic City represents one of the few cases where the formation of a city is planned all the way. Thus, this Saudi initiative could constitute a reference model for other cities needing to reshape their transport systems. Most of the world’s cities are less fortunate than King Abdullah Economic City as they have to struggle with an infrastructure that has developed over hundreds of years. Still, a city like Stockholm, where traffic has been reduced by over 20 percent following the congestion charging system, also clearly demonstrates that the use of ITS gives advantages to all cities. What is special and the most interesting with the King Abdullah Economic City is the fact that they are building the city and planning the infrastructure from scratch – something no other existing city authority is able to do. PF. Number one is integrating management and information of all transportation modes to come to an overall optimum. Second is ensuring effective traffic management by reliable area-wide detection. In general it is important to have the bigger picture and an overall concept in mind when making investment decisions regarding traffic management. However since budget constraints usually lead to a situation where not everything can be done at once. It can make sense to follow a modular step-by-step approach. Therefore sound forward planning is mandatory and best done together with a reliable and globally experienced partner. n

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TRANSPORT FOCUS

DRIVING FORCE The transport sector is critically important in boosting the economies of Arab countries. Nonetheless, significant challenges remain. t’s an item that often gets buried beneath the many column inches generated by the region’s landmark property developments, but the fact remains that the modernisation of much of the Gulf’s transport infrastructure over the past few years is a success story in its own right. And nowhere is this more apparent than in the epicentre of the Middle East’s rise to global signiﬁcance, Dubai. The rate of progress is impressive. The number of lanes constructed by Dubai’s Roads and Transport Authority (RTA) across Dubai Creek jumped by 250 percent from 19 in 2006 to 48 in 2008, with plans for more – including the graceful Rashid Bin Saeed Bridge (the Sixth Crossing), one of the biggest road projects ever undertaken by the RTA at a cost of around AED3 billion – in the pipeline. Innovative techniques and projects have been introduced, such as the Salik road toll system, air-conditioned bus shelters and a state-of-the-art taxi ﬂeet.

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Bold initiatives include the world’s biggest ever bus procurement deal, where RTA contracted to acquire 1616 buses in various sizes and designs, ﬁtted with the latest technologies and highest security and safety standards. Several new mass transit stations have been designed and approved. And of course there’s the AED15.5 billion Dubai Metro, the world’s longest driverless, fully automated metro line implemented as a single project, the initial phase of which is set for completion in September. In charge of the planning and development process is His Excellency Mattar Al-Tayer, Chairman of the Board and Executive Director of the RTA and chief among his concerns is how to meet the transport needs of a rapidly expanding population in a sustainable and socially responsible manner. “RTA has got to meet the requirements of fastmoving urbanisation and economic growth in the emirate of Dubai,”

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he says. “We are not striving to deliver standard-level services to customers, but rather aspiring to achieve excellence.”

Rising traffic volumes One of the most pressing challenges facing Al-Tayer and his team in this regard is traffic congestion, which he claims costs around AED4.6 billion per annum in terms of time wasted. And more cars on the road bring with them greater challenges in terms of road safety; the fatality rate in Dubai is 17 cases per 100,000 of population, compared with fi ve or six cases in countries such as the UK and Sweden, and the RTA estimates the associated economic loss in excess of AED800 million per annum. In response, the RTA has been working on a number of plans to overcome these issues. “In the field of traffic safety, an integrated programme is now in place aiming to reduce traffic accident fatalities to five per 100,000 of population by 2020,” explains Al-Tayer. “As far as conserving the environment, the plan envisages implementation of Euro 4 standards to vehicle emissions, and applying environmental standards as a precondition for all new buses. As to traffic congestion, the plan involves construction of roads extending 500km, with 120 multi-level interchanges scheduled for construction by 2020 at a cost of around AED44 billion. The plan calls for expanded use of intelligent traffic systems and the introduction of policies and legislation to curb the increase in the number of vehicles. These include bus-dedicated lanes, toll systems, exclusive pedestrians and cyclists zones, and drafting legislation related to vehicle registration and driver licensing.”

Moving people en masse He also concedes that there is currently limited use of mass transit modes. Usage in Dubai rarely exceeds a figure of six percent, whereas countries with more advanced transportation infrastructures can expect to see rates of anywhere between 40 and 80 percent. This, however, is something Al-Tayer plans on changing. “Our plan aims to upgrade the mass transit sector and increase the percentage of person-trips by mass transit modes to 30 percent, which we envisage being achieved through massive expansions in public transport systems that span 380km of rail lines, and 270km of tram lines,” he says. “In the first stage of the Dubai Metro, for instance, RTA embarked on the 75km Red and Green Lines. As to tram lines, work is in hand to construct the Sufouh Tram which will extend 14km along Al Sufouh Road. Phase I envisages construction of a 9.5km-long track starting from Dubai Marina up to Mall of the Emirates Station. The Tram network includes 19 passenger stations spread across activity and population density areas along the tram route.” Dubai’s bus network is also set to undergo something of an overhaul. “The Master Bus Plan up to 2020 features plans to boost the bus fleet to 3000 buses operating in lines extending 3000km, carrying around 4.5 million passengers per day. The plan envisages construction of about 1000 air-conditioned bus shelters for public transport passengers, and launching initiatives to encourage mass transit such as Sharekni and Awselni.” The present rate of private car ownership in Dubai is as high as 541 cars for each 1000 people with an average passenger occupancy

DUBAI METRO ike all modern cities, Dubai’s transportation needs are growing rapidly due to increasing demand from international business relocations, a swell in commercial activities, the rise of tourism and a fast-growing increasing population. As part of its modernisation programme, the Dubai Government commissioned studies to evaluate the most efficient and cost-effective solution to combat traffic congestion and pollution; the result was the creation and development of a Metro for Dubai City. The aims of the project are to provide an alternative mode of transport to ease congestion, cut down on passenger travelling time, reduce traffic pollution (thus improving environmental quality), improve mobility within the city, provide a connection to Dubai International Airport, and deliver modern, comfortable and reliable services to users. The Dubai Metro is intended to provide transport coverage and reach to all strategic areas of the city, and develop the network to branch out into the suburbs with future extensions. The Dubai Metro is the RTA’s flagship project. It has a sizeable budget (approximately AED15.5 billion total investment, inclusive of project management fees and utility diversions); involves state-of-the-art engineering and technological challenges; has visibility throughout the city; is an architectural showpiece; and has a direct role in providing social benefits. In addition, it will be a catalyst for improving real estate value, economic development and urban regeneration along its main route and arteries. Dubai Metro will create an additional source of employment opportunities for both local population as well as the region. It is worth noting that the Dubai Metro will be a watershed in the Arabian Peninsula, as it will be the first railway system of its kind to be introduced in the region.

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RTA’s grand vision Construction of

roads extending 500km (including 120 multilevel interchanges) by 2020 at a cost of around

Expanded use of intelligent traffic systems and introducing policies and legislations to curb the increase in the number of vehicles

44 billion dirham Allocation of busdedicated lanes, toll gates system, exclusive pedestrians and cyclists zones

Increase the bus fleet to 3000 buses operating in lines extending 3000km and expected to carry around one million

His Excellency Mattar Al-Tayer Massive expansions in public transport systems that span 380km of rail lines and 270km of tram lines between 2009 and 2011

Draft legislations related to vehicle registration and driver licensing

passengers per day Launch initiatives to encourage mass transit such as Sharekni and Awselni

Upgrade marine transport modes includes operation of Creek lines, coastal lines extending along Jumeirah beaches, and the vital artificial islands projects. Main marine transport network will expand from 20km to more than 450km to serve all waterfront projects and property islands

rate as low as 1.3 people per car. By promoting carpooling through the Sharekni system, in which neighbours travel together to save costs, reduce driving stress and ease congestion and parking issues, Al-Tayer hopes to alleviate bottlenecks and reduce the number of cars on the road. Similarly, the Awselni scheme aims to encourage ﬁrms to offer mass transit services to their employees to and from their homes. With Dubai’s population expected to increase 296 percent by the year 2020, bringing the expected number of private cars in the emirate to 1.5 million, such measures will be increasingly important.

Offshore development And it’s not just on dry land that the organisation has been busy. RTA also plans to upgrade marine transport modes including operation of Creek lines, coastal lines extending along Jumeirah beaches, and the vital artificial islands projects. As Al-Tayer explains, it’s a massive undertaking. “The main marine transport network will expand from 20km to more than 450km to serve all waterfront projects and property islands,” he says. “RTA is currently undertaking implementation of two superb projects encompassing operation of 20 ferries and 10 water taxis each capable of accommodating seven passengers.” RTA is proceeding with field visits and meetings with developers operating in Dubai to explore means of boosting relations between the transport authority, property developers and their strategic partners. “This should facilitate the mobility of inhabitants and visitors to multiple destinations such as Palm Deira, Palm Jumeirah, Palm Jebel Ali, The World and other waterfront projects. Such a network will minimise road traffic congestion and contribute to realising RTA’s strategic objective of expanding the geographical coverage of public transport in Dubai, and delivering such services at rates affordable to all. “The UAE in general and Dubai in particular is experiencing massive development involving an influx of peoples and businesses. This has merited a sweeping overhaul of the infrastructure involving roads and the wider transport network – such as rail, marine, bus, taxi and other modes – to cope with the rising growth rates of population, projects and urban development,” he concludes.

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In the past five years, the construction sector has grown 37 percent. In addition, the real estate sector contribution to Dubai’s GDP grew 86 percent at an annual rate of 16.7 percent. Property construction is now a key part of Dubai’s continued economic growth. The aim is to evolve as a global lifestyle provider and contribute to the various non-oil growth sectors of the economy. The company has already diversified its business interests to six key sectors including property, healthcare, education, malls, hospitality and leisure, and finance. The Dubai property market has evolved as a direct response to market demand. The population of the city is growing, both in terms of residents and tourists. The additional residential units that are being added on can only meet part of the burgeoning demand. We have unveiled several prestigious properties. Our flagship project, being completed on schedule, is the US$20 billion Downtown Burj Dubai. This is a mixed-use, 22 million square foot development spread over 500 acres. The project combines commercial, residential, hotel, entertainment, shopping and leisure outlets in open green spaces dotted with lakes and other water features. Located at its centre is the Burj Dubai, the tallest freestanding structure in the world. This will stand at well over 700 metres once completed in 2009. Housing office space, luxury accommodation, restaurants, shopping and one of the first Giorgio Armani hotels, it is a clear symbol of Dubai’s new found confidence.

Eastern promise Across the Middle East, construction is booming, and nowhere is this more evident than in Dubai. Issam Galadari, Emaar Properties’ Managing Director, explains the region’s ongoing transformation.

Burj Dubai is a successful result of international teamwork, where over 5000 professionals from around the world worked together. Our projects push the conventional architectural and engineering parameters, but the bottom line of our development philosophy is to have worldclass residences and commercial space that enhances the lifestyles of our customers. Emaar’s portfolio features landmark architecture developments. Projects such as Burj Dubai are also a proclamation to the world about the capabilities of Dubai and the global climate of growth the city provides.

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The performance of the property market will be in direct correlation to demand. Dubai has several ambitious growth plans that consolidate its position as a global investment hub, and although there are several projects in the pipeline, a stronger demand for residential and commercial space is anticipated. We are also widening our focus. Replicating the successful business model in Dubai, Emaar is extending its expertise in creating masterplanned communities to international markets. The company’s diversification initiatives have been evolved from its integrated approach to customer service and property development. n

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AVIATION FOCUS

UP AND

AWAY

Entrance on Dubai Terminal 3

Terminal 3 at Dubai International Airport is one of the biggest and most ambitious projects in the history of civil aviation, aiming to boost annual capacity at the airport to around 65 million passengers. MENA Infrastructure investigates exactly what was involved to get the new terminal up to scratch. he exclusive Emirates airline terminal at Dubai International Airport opened its doors on the 14th October 2008 with flights to and from the GCC and the Americas. It was a historic moment for the airport, which was unsurprising considering that the mega project required the excavation of over 10 million cubic metres of earth (enough to fill 4000 olympic swimming pools), 2.4 million cubic metres of concrete and 483,000 tonnes of steel. The US$4.5 billion facility is huge, with movement around the airport’s six floors, most of them underground, facilitated by 157 lifts, 97 escalators, 82 moving walkways, 27 truck lifts and eight ‘sky trains’ that can handle 47 people each. The car park is equivalent to 33 football fields, while the departures area at level three is more than 515,000 square metres – the size of 94 football fields. As the world’s fastest growing airport, the new terminal is the latest impressive transport infrastructure in the region, and is a stateof-the-art facility for Emirates airline. “Emirates Terminal 3 offers our passengers an even better travel experience than Terminal 1,” explains Sheikh Ahmed bin Saeed Al Maktoum, Emirates CEO. “There is a greater choice of restaurants and retail outlets, larger seating areas and larger lounges with a greater range of amenities for our Premium passengers, plus other facilities including spas and hotels.”

A hotel is located centrally within the airport and features a wide range of dining options as well as a health club including a gym, jacuzzi and swimming pool. The concourse features 14 restaurants, premium airport lounges, shops and a spa. There is also a huge duty free area covering 8000 square metres, including departures, arrivals and landside shops. Although the terminal is currently up and running, it won’t be until Concourse 3 is built that the project will be completely ﬁnished; currently it is scheduled to come on stream in 2011. The concourse will be purpose-built for Airbus A380 operations, with a total of 18 gates serving the super jumbos, each with a double decker air bridge, so that passengers can board directly onto the upper and lower levels of the aircraft.

Design So from 2011, the terminal is expected to cater for around 43 million passengers annually and Dubai International Airport as a whole is expected to see around 65 million passengers per year. But what has gone on behind the scenes to make this impressive new infrastructure possible? “An additional facility was necessary to accommodate the increasing number of passengers travelling through Dubai Interna-

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Business class lounge

Check- in hall

tional and our desire to continuously improve the levels of service to our customers,” explains Paul Griffiths, CEO of Dubai Airports. “The design was based on the demands of growth and this was prepared in close consultation with Emirates. The layout of the concourse was influenced by the limited footprint of the site and the close proximity of runways and taxiways, which had to be kept open during the construction phase.” Terminal 3 is currently the largest underground passenger terminal in the world, with its roof forming the apron and taxiways for the planes. With the design came enormous structural challenges due to the deep excavation and high water table. Management played a key role in the timely supply of ready-mix concrete that had to be maintained, as well as dealing with the structural steel that to be fabricated off site as well as on site in order to cope with the demands of the plan. “A grid work of pumps was retained to maintain the water table at a low level and permit the construction activities below the level of the natural water table. A sacrificial diaphragm wall has to be maintained to permit the execution of the massive retaining wall and permit regular airport operations beyond the construction boundaries,” explains Griffiths. “And of course, all this had to take place in the midst of a fully operational, 24/7 international airport.” And with rising passenger numbers comes an the challenge of how to implement an increasingly rigorous and effective security focus, without extending the intrusiveness of the security process to the customer. “Technology certainly plays a major part in this”, says Griffiths, who has sought to combine a number of individual proc-

Elevators opposite waterfall feature

PASSENGER NUMBERS UP DESPITE SLUMP Despite the global economic downturn, the number of passengers passing though Dubai International Airport increased nine percent in 2008 compared to the previous year. August was the busiest month in terms of passenger traffic with 3.36 million passengers, while February recorded the highest growth rate at 18.83 percent.

esses, such as check-in, baggage handling, security screening and immigration processing into an integrated customer facing single process. “This process will help speed customers through the formalities of air travel in the minimum of time, whilst still completing all the necessary procedures to an even higher standard than today. We are working with technology integration partners to ﬁnd ways of learning from other industries how this might be best achieved, and we will be trialling some of these new techniques in the near future.”

Technology In order to ensure that the technologies the airport is integrating dovetail with the technologies the airlines themselves are integrating, detailed co-ordination meetings were held with all the end-users, who were involved from the beginning of the design process–choosing everything from the technologies to the equipment.

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The exchange of information took place on a regular basis in order a big difference to the overall customer satisfaction levels. “There to ensure compatibility between the two, and a series of exhaustive is always room for improvement and, as other airports work hard to tests were also conducted under the simulated operating conditions improve their customer satisfaction scores, we must try even harder to ensure that everything worked together exactly as intended. if we want to keep pace with the best examples of passenger service “We relied on close consultation with the airlines to ensure that the enhancement.” technical architecture was compatible with both legacy systems and future technologies that were likely to be used within the aviation Economic conditions industry,” says Griffiths. While Terminal 3 has been up and running for some time now For anyone planning to build or upgrade an airport, co-ordinating there is no doubt that the economic conditions will affect the airport operations and simplifying processes as a whole. “Whilst this is a challenging while delivering better service is a huge environment, demand for our services reBY NUMBERS challenge, and in no project was this mains strong,” says Sheikh Ahmed. “Levels more true than at Terminal 3–particularly of demand do of course vary from route to US$4.5 billion to build considering the high numbers of passenroute and we are addressing this by moving 20 million extra passengers annually gers. “A robust plan is essential,” says different sized aircraft between routes to Griffiths, “as is an open, highly commuensure we operate as efficiently as possible. 10 million cubic metres of soil nicative environment where everyone is We are already a highly efficient, profitable 2.4 million cubic metres of concrete prepared to share information and adapt carrier, with a lean, robust business model, 33,000 tonnes of structural steel their plans accordingly. We had to make and a young fleet (with an average age of certain compromises during the conjust 67 months) of fuel efficient, eco-friendly 8000 square metres of retail space struction to both the programme and the aircraft. As such, we are in a good position to 450 tonnes of reinforcement operation, but at all times we made sure weather the current difficulties in the global that we maintained the highest levels of economy.” 157 lifts safety and security and minimised the As for the future, it has been revealed 97 escalators impact to the customer.” that planning has begun to bring a fourth 82 moving walkways Griffiths goes on to explain that the terminal to Dubai International Airport. number of staff were also increased to “We are currently preparing a master plan 30 self-check in counters assist passengers in moving through the for Dubai Airports to ensure that we make 27 truck lifts existing facilities, as a record number of the best use of the available space we have passengers were accommodated during within the airport perimeter,” explains Grif8 ‘sky trains’ the summer of 2008. At the same time fiths. “Several schemes are under consid3 fully-equipped spa facilities Griffiths managed to improve levels of eration, which include the possibility of a ‘on time’ performance and eased the fourth terminal, but these are all undergoing 2 indoor Zen gardens journey through the airport, which made a detailed review.”

ENVIRONMENTAL CONSIDERATIONS A primary consideration for operators of infrastructure projects, regardless of their size, is to mitigate any impacts on the local environment. Terminal 3 was no exception. The design and construction of the passenger terminal and concourse was executed with a high level of environmental awareness demonstrated by a number of initiatives, including: • The use of energy efficient lighting control systems to minimise electricity consumption throughout the building • The use of occupation sensors to switch off lighting when areas of the terminal are not occupied • Standby power systems making use of sealed DC batteries, which minimise the impact on the environment

• The elimination of diesel powered systems such as pumps and generators • The use of non-hazardous refrigerant products in all air conditioning and chilling plants • The use of clean agent fire protection systems such as FM200 • The prevention of any chemical discharge into the public sewerage network • The filtering of kitchen waste and other areas such as car parks to prevent substances such as oils and fats from being discharged into the public sewerage network • The prevention of hot air and gases being discharged from the terminal into the open air.

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AVIATION FOCUS

OPTIMISING

AIR SPACE As air space reaches optimal levels in the Middle East it is imperative that, both regionally and globally, air traffic control becomes unified. In an exclusive interview with MENA Infrastructure, Alexander ter Kuile shares his thoughts on the importance of management to create a unified air space. arge portions of airspace in the Middle East are devoted to military services, and this, combined with individual states controlling individual air traffic services and the growth in air traffic, means that the region needs to change track. Alexander ter Kuile, Secretary General for the Civil Air Navigation Services Organisation (CANSO) believes that there is already a clear realisation in the Middle East that things must change and that a more collaborative regional approach need to be adopted in order to optimise air space design. “There is an increasing recognition that these issues must be addressed through a combined and cooperative approach between the civil and the military authorities for everybody’s benefit,” he says. There are already initiatives in place for civil and military sites to co-operate more closely. While some states have had greater success than others, it very much depends on the ability of the state to release airspace to a civil flight. “The bigger the airspace served by an air traffic control organisation, the more optimised the solutions can become,” explains ter Kuile. “In an area where there are many small states, the area will see greater fragmentation than when you have a few larger blocks where airspace can be optimised more easily. Australia and

Canada, for example, have a more optimised service level than say Europe, where many small states cause high fragmentation.” Within this challenge is a further difﬁculty. In a region like the Middle East it is important that individual states avoid investing in their own unique system as a pure standalone solution, without taking careful consideration of the entire region. The best possible solution is a more collaborative approach. “Think globally, act locally when it comes to system implementation and avoid isolation,” advises ter Kuile. As growth rates and plans for expansion continue to rocket, parts of the Middle East are running out of capacity and the pressure is on for states to seek a collaborative solution for the region. In the Gulf region for example, there are plans for extremely large airports in Dubai and Abu Dhabi, which will be packed tightly together, placing a huge demand on airspace capacity and efﬁciency.

“In the Gulf region large airports in Dubai and Abu Dhabi, will be packed tightly together, placing a huge demand on airspace capacity and efficiency”

Investment As states become more collaborative, it is important to integrate systems in such a manner that they can communicate and exchange data effectively. The exchange and availability of data is key so that a provider knows that an aircraft is arriving rather than it appearing on the radar unannounced. Ter Kuile believes that the Middle East

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AN INTERNATIONAL FORUM CANSO creates an international forum for discussion of air traffic management related issues, where all aviation stakeholders unite to develop and exchange ideas in support of global air navigation services. CANSO represents the views and interests of members at the relevant international institutions, and sets itself the following objectives: • The voice of air navigation service providers • Support the improvement for global air navigation service performance • Optimise the effectiveness of the organisation

region should be looking at technology that links various systems together so that they can talk to each other rather than use a standalone technology. “Providers will have to look at integration into a true network,” he says. He also believes that automatic dependent surveillance-broadcast (ADS-B) offers great possibilities for parts of the Middle East region. The co-operative technique means that an equipped aircraft can determine its own position using a global navigation satellite system, periodically broadcasting this position and other relevant information to potential ground stations and other aircraft. ADS-B provides accurate information and frequent updates to airspace users and controllers, hence supporting improved use of airspace and enhanced safety. “We need more visibility of the volumes of air traffic around the world, including the Middle East,” says ter Kuile. “The introduction of ADS-B would greatly benefit the region and I’m sure that local providers are currently working on its implementation.” As well as investing in new technology, ter Kuile believes that an investment needs to be made into the infrastructure. Although there has undoubtedly been a lot of investment in the physical side, such as the mega airport complexes, runways and aircraft, there is a lack of investment in air traffic management. “Air traffic management is going to be the weak link in the Middle East. And it is vital that this area is paid attention to in order to see a more efficient airspace design, accommodate all of the aircraft and use all of the runways that are being built,” explains ter Kuile. He goes on to say that it is imperative that all these parties work together in investing and raising air traffic management to the same degree as they have in aircraft and airports. “The aviation community consists of at least three elements: airlines, airports and air traffic management,” he says. “And investing in just two of the elements is simply not good enough. You have to take a systems approach and look at all aspects of aviation and invest in all of those aspects.”

The global air traffic management community has an urgent need to develop harmonious and seamless service and systems, rather than continue in the current state of affairs where each state has its own unique system that can be quite different to what is seen next door. “You have to remember that any aircraft taking off from, say, London and flying via the Middle East to Australia has to receive an identical service in every airspace that it passes through. If that is not available then air traffic management needs to work together to ensure that the service provided is seamless around the world rather than broken down into disparate and fragmented units of varying qualities of service,” says ter Kuile. So, are we seeing changes for the better? Absolutely, says ter Kuile: at least the thinking is changing. The acknowledgment that air traffic management is a global system is now well established, although it may well be some time before we see any results. “Investing in new technology and implementing new technology is something that takes decades at a time so this is not something that we expect to change overnight. This will take a long time to implement and we need to start now if we are to be ready for the air traffic volume that the Middle East foresees in fi ve to 10 years from now.” An optimist, ter Kuile believes that the signs are positive for the future of air traffic management, but is keen to stress that it will be important to work together and ensure everybody is onboard or there will be holes in the airspace. “It is imperative that everybody participates, otherwise we will see pockets or islands of lower service that would be avoided.”

Alexander ter Kuile

Unity Just as it is important that the Middle East region work together, it is vital that air trafﬁc management as a whole works together, globally.

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GLOBAL OUTLOOK

IMPROVING THE INDUSTRY Roberto Kobeh González, President of the International Civil Aviation Organisation, outlines the prospects and issues of global civil aviation.

loss for 2008 and profits in 2009 and 2010. In relation to passenger traffic, growth will be lower than anticipated in earlier forecasts but recover in 2010. This outlook reaffirms the often proven resilience of the air transport industry and the fact that our overall challenge will be growth. hile tackling challenges has been the focus of our ongoing efforts to strengthen all aspects of air transport operations, recent events have shifted our focus dealing with more immediate issues. For example in 2007, the airline industry recorded its first profit since 2000, as a result of a 19 percent improvement in fuel efficiency and an 18 percent reduction in nonfuel costs. The future looked promising. Then came the global financial crisis and higher fuel prices, pushing the industry back into the red. Many airlines have taken steps to counter the rapid increase in oil prices, reducing the workforce and contemplating mergers. Fortunately, fuel prices have begun to ease, but volatility in the marketplace and uncertainty around the health of the global economy make it difficult to predict what will happen. However, the International Civil Aviation Organisation (ICAO) has formulated a medium-term forecast that points to an industry recovery in 2010. Financially airlines of ICAO member states post an operating

Safety For the ICAO, finding new and innovative ways to further improve safety will remain our first priority. As the operational and regulatory context evolves, we will pursue a more comprehensive approach, which takes into account economic, social and geopolitical realities. It is a results and performance-driven strategy. We will tackle safety issues in an integrated fashion, going to the root of the problem and investing precious time and money where they are most effective in coming up with concrete and lasting results. Our overall strategy is contained in the ICAO Global Aviation Safety Plan (GASP). The GASP is a global strategy for aviation safety and provides a common frame of reference for all stakeholders, both government and industry. The GASP reflects an extraordinarily high level of co-operation with all major stakeholders, by incorporating the Global Aviation Safety Roadmap developed by the air transport industry, in co-operation with ICAO. The GASP, in conjunction with the

Safety Roadmap, can guide national or regional safety teams on the implementation of best safety practices as well as a process to assess their current status at a national or regional level and identify gaps that need to be addressed. It is a performance-based approach that focuses energies and resources on activities that provide the highest return for increasing safety.

Security Aviation security is another dimension of safety. Unlike safety, however, it is more difficult to manage. Persons can commit acts of unlawful interference anytime, anywhere, and for any reason. Governments have the difficult and unenviable task of balancing the need for maintaining and encouraging anti-terrorist vigilance, while putting in place workable security measures that do not compromise the efficiency of the air transport sector. The delicate nature of this exercise is compounded by the fact that considerable economic damage can occur even when terrorist plans are foiled. ICAO’s Aviation Security Plan of Action adopted in February 2002, in wake of the events of 9/11, provides a series of programmes and activities designed to help states comply with ICAO security standards and procedures. The issuance of ICAO standard machine readable travel documents, especially ePassports enhanced with bio-

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metric identiﬁcation, is an effective way of increasing the security of air travel. In the long-term, we must diligently assess new and emerging threats, such as bacteriological and chemical weapons, manportable air defence systems (MANPADS) and the misuse of civil aircraft themselves as weapons of destruction. Our objection is to continually monitor and upgrade existing security processes to ensure that they are commensurate with the level of threat identiﬁed, while expediting the clearance of passengers and cargo at airports.

Air navigation Again, while it has become more difficult to forecast traffi c growth over the next few years, we can certainly expect an increase in the number of aircraft flying the skies of the world. There will be a corresponding need for high performance air navigation systems to cope with the anticipated airspace congestion that will result. In some regions, congestion has already reached critical levels, affecting en route, terminal and aerodrome operations. ICAO is actively supporting states implementation of initiatives described in the Global Air Navigation Plan that contribute to ensuring the safe, efficient and sustainable operation of the aviation system. Initiatives (PBN) provide tremendous benefits in terms of reduction in fuel use and CO2 emissions. Our vision is for an interoperable and seamless global air traffic management (ATM) system, that applies to all users, during all phases of flight, and that meets agreed levels of safety, provides for optimum economic operations, is environmentally sustainable and meets national security requirements. In September 2008, ICAO hosted the ‘Forum on Integration and Harmonisation of NextGen and SASAR into the Global ATM Framework’, in an effort to allow all stakeholders an opportunity to share knowledge about the future of ATM systems. NextGen, the programme being developed by the United States and SESAR, Europe’s programme to meet its future aviation needs, along with initiatives underway in other states must evolve within the framework provided by ICAO’s Global Air

Trafﬁc Management Operational Concept and Global Air Navigation Plan.

Environment Perhaps the most daunting challenge we face is helping to protect the environment. The fourth report of the Intergovernmental Panel on Climate Change (IPCC), confirms that climate change is real, much of it likely due to an increase in greenhouse gas concentration from human activity. Aviation is estimate to account for about two percent of human produced CO2, the major greenhouse gas. Although aircraft today are about 70 percent more fuel efficient than they were 30 years ago and newer models like the Airbus 380 and Boeing 787 are even more efficient, projected increases in traffic will outpace our capacity to bring down greenhouse gas emissions from aviation. The solution lies in the development of a combination of technical, operational and market-based measures, under the leadership of ICAO as stipulated in Assembly Resolution A36-22.

STRATEGIC OBJECTIVES The ICAO works to achieve its vision of safe, secure and sustainable development of civil aviation through co-operation amongst its member states. To implement this vision, the organisation has established the following strategic objectives for the period 2005-2010: Environmental protection Security Safety Efficiency Continuity Rule of law

In 2009, the ICAO will hold a number of important meetings on environmental protection, including two groundbreaking

events on alternative fuels – a preparatory workshop in February and a full-ﬂedged conference in November. This latest initiative, based on conclusive scientiﬁc research, underscores the view that the ultimate goal must be the elimination of carbon emission from aviation. Long-term, the world aviation community will continue to develop the full range of options currently available – improved operational and technological measures and various market-based measures, such as emissions trading and carbon offsets.

Personnel To address all of these individual challenges effectively, and others that may later appear on the horizon, will require a corresponding highly skilled aviation workforce. The problem is that in the next few years, there will be a massive wave of retirements from the current workforce. The growth of the industry in certain regions is not consistent with current training and capacity. Moreover, an increasingly automated, dynamic and complex working environment is fundamentally reshaping the nature and relationships of safety-critical jobs. Pilots are becoming information managers in an extremely sophisticated glass cockpit; air traffic controllers who were used to an essentially manual activity have to adapt to a fully automated series of procedures; and mechanics identified with tool boxes are now involved in trend analysis and predictive maintenance. That is not all. The quest for optimum safety goes beyond the men and women involved in the operational dimension of aviation, it also encompasses the equally complex discipline of aviation management. Managers largely define, promote and help sustain the safety culture of their respective organisations. This has become increasingly challenging with the rapid and sustained growth in traffic and the no less rapid evolution of high technology and its transformation of all aspects of the workplace. In the transition between the old and the new way of doing business, whether in operations or in management, a delicate balance must be achieved between the current set of skills and those that will be needed in the future.

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ASK THE EXPERT

ll who pass through an airport security checkpoint today are forced to remove jackets, coats, computers from their cases and sometimes belts, shoes, etc. In general, it’s painstakingly slow and is privacy intrusive; but it’s for the greater good and helps us keep safe. However, one of the problems with the traditional techniques like the X-ray machine and the metal detector arches in security check points, is that it’s virtually impossible to detect non-metallic items like sharp plastic and ceramic items that could also be used as weapons. The current way to combat this is to set the detector to go off after a slightly randomised number of people passing the arch, regardless of if they carry any metal items or not. The object is to keep officers on their toes and pat people down. The aim is to discourage terrorists or criminals to try to sneak something through. In a perfect world, this makes it impossible to carry on any hazardous items onboard aircrafts. Unfortunately, as we all know, we do not live in a perfect world. Contrary to popular belief, it’s quite easy to get through with weapons, explosives, Tazers and other dangerous items. To keep up some kind of pace in the security checks, the officers never, or at least rarely, stop anyone passing the metal detector if it hasn’t given off an alarm. This is the Achilles heel; we don’t get checked for what we hide under our clothes unless the alarm sounds. As a matter of fact, even when the detector gives off an alarm, the officer sometimes misses obvious items due to the intimidation factor, charm or plain laziness. These facts allowed for undercover agents working for the Transportation Security Administration to cross the checkpoint at several

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US airports with guns, knives and improved explosive devices. In fact, when tests were carried out at Denver International Airport in 2007, in 10 percent of the cases the items were detected but the remaining 90 percent passed the checkpoints without being found.

Johan Öhgren is the owner of Acquris IT HB. Acquris is one of a few companies that handle the complete chain, from developing to fabrication and installation of both overt and covert camera surveillance systems. Öhgren is the Swedish National Co-ordinator in the IMATERA project.

In 2006, the Department of Homeland Security's Ofﬁce of Inspector General and the US Government Accountability Ofﬁce (GAO) found widespread failures in US airports. According to the GAO, at 15 tested airports, security screeners only found 10 percent of the guns and explosives the undercover agent tried to sneak past.

through clothes using on ultra-high radio waves named THz. This is the reason behind the IMATERA project – IMAging in the TERAherz domain. This European research project, under the PEDEA+ umbrella is part of EUREKA within the EU and aims to address this problem. The difference in the IMATERA projects, compared to other ‘naked cameras’, is that we work in higher frequency, in real time and in room temperature. All of this together gives a higher resolution image of what is hidden underneath the clothes a person is wearing, down to a size of some mm. With all this power, the IMATERA projects have also addressed the invasion of privacy issues, which many other projects forget. Instead the system will automatically detect a suspicious object and present the outline on top of a normal video image on the monitor. This way, the machine could also be used in orthodox Muslim countries since the device won’t cause any religious or integrity problems. With this approach the machine can not only work in assisting screeners, but it also allows for auto-

“The machine can not only work in assisting screeners, but it also allows for automated security checkpoints at lower security areas like a sports arena” This is why there is extensive research throughout Europe and the US in new technologies to aid the security screeners in combating terrorists, insurgence and criminals. One of the more promising technologies has been nicknamed ‘naked camera’ due to its ability to see

mated security checkpoints at lower security areas like a sports arena. The research part in the IMATERA project stretches until 2011 and a device based on this technology will probably be available on the market around 2012-2015.

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INDUSTRY INSIGHT

Improving ATC security and safety Jorn Rod-Larsen explains the importance of unified recording and air traffic safety – from voice logging to the big picture.

or many years the Air Trafﬁc Services Safety Regulations has required ATC units to record audio (both groundto-air, ground-to-ground and telephony), and more recently record radar in order to support incident and accident investigations. New regulations requiring the recording of even more communication sources are underway and ATC customers should evaluate whether their existing or new recording equipment is compliant and what extra costs the new regulations will impose for them.

Security and safety Air trafﬁc security and passenger safety are paramount and only achieved through a multitude of hi-tech systems working together. One small but critical part of this big picture are record and replay systems. Traditionally, these were voice-logging systems recorded on tape. In the event of an accident, incident or threat, tapes would be replayed and analysed, but their basic, manual nature meant their use was often limited and time consuming. New technology and demands for speedy retrieval saw the introduction of digital recording and a new era in voice logging. Technological advancement in other areas of

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air traffic control, however, means that today’s decisions are based on greater available information from more individual sources than ever before. The sheer magnitude of air traffic also means that these decisions have to be made more quickly and accurately than previously. The smallest error can be fatal. Air traffic controllers are dependent on a system that eases and assists their daily task and decision-making process, giving them the big picture at any one time, as well as simple, reliable tools to check and document it. The work of investigating officers would also be greatly assisted if it were possible to see exactly what was presented to the controller, to hear what was said and to reconstruct the actions taken at the time of the incident under investigation.

Voice logging to the big picture Jorn Rod-Larsen joined Ricochet in 2007 and has acquired experience with most fields within the company, especially focusing on sales and marketing. Rod-Larsen has been in management roles with companies such as Hewlett-Packard, Tieto and EDB Business Partner. He holds a BSc in Business Administration from the University of South Carolina and Management Studies at IMD in Lausanne, Switzerland.

New regulations concerning the recording of background communications and screens are underway. The International Civil Aviation Organisation (ICAO) stipulates that “Air trafﬁc control units be equipped with devices that record background communication and the aural environment at controller work stations from 1 January 2010”. The UK’s Civil Aviation Authority’s Safety Regulation Group (CAA SRG) has a consultation process where it is proposing that every airport or ATC centre that uses surveillance data or supports the operation of an air trafﬁc service from that unit shall record screen shots of the surveil-

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lance data presented at each operational ATC position. The recorded data shall be retained for the ICAO minimum requirement of 30 days. A recording solution that captures analogue audio, digital audio, VoIP, composite CCTV, IP-Cameras, LAN radars, asynchronous and synchronous serial radars, and other serial data in a single system that can play back all data synchronously will not only assist investigatory work and search and rescue operations, but also be of huge beneﬁt to air trafﬁc controllers, supervisors and management for training and quality improvement purposes.

The big picture gets better Accident and incident investigators have expressed that their work would be greatly assisted if it were possible to see exactly what was presented to the controller, to hear what was said and to reconstruct the actions taken at the time of incident under investigation. There are two main technologies in capturing CWP screens: Through The Wall (TTW) and At The Glass (ATG). Capturing screens with TTW means tapping raw, unprocessed and processed data feeds from the sources, in real-time, directly from the copper carrying the data. Data is at playback fed into the CWP for reconstruction during analysis of the scenario. One of the challenges with this technology is to recreate the exact picture of the Controller Working Position’s display at any time, due to the mix between generic recorded data and vendor speciﬁc data. There also exists a challenge in including messages generated by the underlying operating system like error messages and warnings. Capturing screens with ATG can be divided into three categories. One where the display memory is continuously read and stored, the second which records use X-11 commands and the third technology where one taps into the DVI/RGB signal and captures the screen’s image as it is displayed on the CWP screens. This method is completely non-intrusive and recreates the exact picture. The technology will interface to any system and is not vendor-speciﬁc. The user may also keep the same way of recording screens even if the ATM system and CWP positions are upgraded or replaced. During replay, the screen images are recreated in full synchrony with, for example, position communication or other types of data. To make sure no data is lost between screen captures the screen is typically captured four to eight times per second.

Recording solution Ricochet’s multi-flexible ATC solution is specifically designed for the ATC arena, with its particular needs in mind. Whilst setting a new, higher standard and changing the way the industry approached data logging a few years ago, today it is a proven system that has been serving satisfied customer all over the world since the year 2000. Ricochet is fully in line with all industry requirements, including newly adopted amendments to the ICAO standards. It is now possible to experience instant and dependable synchronous replay of audio, radar, screens and video data with a simple touch of a button. This is what we call unified recording and replay.

FULFILLING THE REQUIREMENTS Superior performance made simple Ricochet offers superior performance in a simple configuration, with great emphasis being placed on speed, reliability and simplicity of use. It not only accurately records voice conversations, it also simultaneously records CCTV, radar and screen images, enables efficient replay access and control and guarantees perfect synchronisation of data. Hence it i is not only possible to hear what w is said both prior to and following f an incident, but also to visualise v and analyse all relevant information i surrounding it, at the drop d of a hat. U User-friendly R Ricochet ATC is also a vital tool i daily operations, not simply in a data-logging device. Not only can controllers see the big o picture at all times, Ricochet’s p unique user interface means u tthat they can speedily perform a number of tasks with simple ssteps. Whether quickly checking a voice message that was unclear, attaching data needed for further investigations to an email, or burning it on a USB thumb drive for a speedy and secure analysis, controllers can always rely on complete accuracy and authenticity, through Ricochet’s advanced security software. Safe investment A modular structure makes Ricochet ATC fully expandable. As controllers’ tasks increase or operations grow, Ricochet can be easily expanded with them, making it the system of choice for over 200 airports of all sizes across the world, including Glasgow International Airport, Orly Airport, Singapore Changi Airport and Abu Dhabi ACC and EACC. Tomorrow’s technology available today Ricochet is a young, dynamic company that is well positioned for the future. We see things differently and translate our thoughts into innovative ideas. Our vision is to make air traffic security simple and secure. We do this by working closely with our customers to develop solutions in line with their real needs, and the way they work, both today and in the future.

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HEAD TO HEAD

What are the main challenges currently faced by air traffic management (ATM) in the Middle East region? Lubomir Janda. We believe that the Middle East region can increase its airspace capacity by implementing the ATM systems with mutual conformance, in other words, systems of defined and implemented interoperability. In some Middle East countries the traffic is significantly growing annually but ATM systems are not upgraded accordingly. However, this is not typical for this region only. We expect that transiting traffic figures will not only grow but that inbound and outbound traffic originated in regional airports will soon reach figures that will call for efficient but not overly expensive regional ATM systems. These systems will also be capable of seamless data exchange with a ‘mother’ ATM system, mastering the whole area. We are aware of the fact that all this depends very much on the strategy of local governments and offers of the ATM industry. We hope that Middle East countries will co-ordinate their systems upgrading activities and will achieve results leading to more uniformity of the systems. Søren Robenhagen. The main challenge currently faced by air traffic management in the Middle East and Gulf region is caused by a shortage of controllers and late introduction of modern ATC procedures and separation standards. Better training and management is required generally in the region and better co-operation between the Flight Information Regions (FIR) (with emphasis on the single sky concept), as well as co-operation between civil and military operators, also ensuring that the industry build systems that are able to work together. The real increase in airspace capacity comes when different systems are in line with the same airspace concept.

SAFE LANDING In August 2008, a quick-thinking air traffic controller’s texting saved an aircraft with five people on board, which had lost all communications and electrical power. The light aircraft had taken off from Kerry airport in Ireland on a flight to Jersey in the English Channel when it had a complete electrical failure. The pilot tried to contact Kerry airport and air traffic control in Cork on his mobile phone, and briefly made contact with Cork, to tell them the problem. He then received a text message on his mobile from the controller at Cork advising him that he was on radar and that he was allowed to land the plane at Cork airport. He followed the controller’s instruction given by text. The undercarriage gear had to be lowered manually, and the aircraft did a flyby of the control tower so that controllers could check that the wheels were down. The aircraft landed safely.

These problems present great expense if they aren’t solved, and in the Asia Paciﬁc region alone, potential savings to airlines of some US$30-40 million were identiﬁed in 2007. What role does performance-based navigation play in increasing airspace capacity? LJ. The rules leading to the increase of airspace capacity are the same irrespective of the region concerned. A reliable ATM system has high data processing performance, functionalities enabling well-balanced executive and

FLYING HIGH Lubomir Janda, Business Director for CS Soft and Søren Robenhagen, Director Sales and Marketing, AIR – Integrated Systems for Terma, discuss the current challenges and concerns of the air traffic control industry. 104

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planning controllers loading, available tools like seamless data exchange within the system and with neighbours and faithful safety nets. SR. Performance-based navigation (PBN) has the potential to play a signiﬁcant role in increasing the airspace capacity; provided that it is utilised by the ATM systems working on top of the Communication Navigation and Surveillance (CNS) systems. Another very important advantage is reduction in fuel consumption and greenhouse gas emissions.

“Performance-based navigation has the potential to play a significant role in increasing the airspace capacity” SØREN ROBENHAGEN

In the Middle East and Gulf region PBN is lagging behind in most FIRs, and there is a signiﬁcant increase in capacity to gain by introducing PBN in the region.

Cells (AMCs) to conduct day-to-day airspace allocation and management in close co-operation with the Central Flow Management Unit (CFMU) in Bruxelles. Amongst others this means common use of airspace co-ordinated between civil and military controllers, temporary segregated areas only being activated when used and military aircraft flying according to General Air Traffic (GAT) rules, when in such airspace. Another expression for this concept is Flexible Use of Airspace (FUA). When implementing this service function demanding the same qualifications for civil and military controllers, many Eurocontrol countries overcame previous problems, which is why this could be a strategy to follow in the Middle East region in order to gain the same benefits. Can you explain some of the new strategies and tools that are being employed to ensure optimal use of airspace? What role does your technology play in this? LJ. The basic strategic tool ensuring optimal use of airspace should be FUA implementation tailored to local conditions. Tactical tools should be based on efficient sharing of air traffic data and data exchanged between all airspace users, mainly between civil and military, one common data source of aircraft positions and seamless and effective co-ordination of the flight progress.

Amid the region’s economic boom, the UAE’s aviaLUBOMIR JANDA tion industry has grown exponentially and concerns have been raised that flights over the Gulf would begin to be funnelled into increasingly crowded air corridors. How real is the problem of air congestion for the Middle East and how is this problem being tackled? “Tactical tools should be based LJ. The congestion of ATS routes in this region can on efficient sharing of air traffic be seen from two main perspectives – operational solutions and ATM system architecture. We prodata and data exchanged vide a system enabling a high standard of route between all airspace users” flexibility in terms of free flying between any LUBOMIR JANDA points known to the ATM system. Thus irrespective of a more or less fixed route structure you can split the air traffic in the free airspace, bringing less complex traffic situations over route juncSR. The CNS supporting systems have to be impletions, a fewer number of potential conflicts and mented, but the ATM systems have to utilise the CNS SØREN ROBENHAGEN lower ATCO loading, and additionally it brings a systems in an intelligent way. One of the new tools fuel saving. But, on the other hand, this demands being employed is Controller Pilot Data Link a certain degree of civil and military co-ordination in terms of flexible use Communication (CPDLC). Terma’s DataLink Flex is a platform for data link appliof the airspace. cations with Departure Clearance (DCL), Digital ATIS and VOLMET running on top. DCL has a particularly important role to play in increasing airspace capaciSR. Air congestion and bottlenecks in the Middle East and Gulf region are huge ty. DCL refers to the automated service through data link for requesting and deproblems and the biggest FIRs are currently redesigning their airspace to crelivering departure information and clearance that adheres to ICAO’s ate adequate feeding into major airports. This means that ATM is an extremerecommendations on read-back procedures between the pilot and the controller. ly important factor in the area, with big demands in personnel, technical Terma’s DCL solutions have been implemented at major international equipment, education, skills and experience plus good co-operation between airports in Europe and Asia that have already testified to the efficiency and civil/military service providers and civil/military air operators. benefits from their operational use. They unanimously prove that these sysCentral and Northern Europe previously had a big problem with a lack tems increase operational efficiency, reduce flight delays, boost airport regof civil/military co-operation, until Eurocontrol recommended that member ularity and enhance safety including reduction in fuel consumption and states established and authorised joint civil/military Airspace Management thereby greenhouse gas emissions.

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EXECUTIVE INSIGHT

Why proper planning matters Douglas Spragg, CEO of airport planning and air traffic management firm SAL Consultants, reveals the challenges facing the Middle East’s aviation authorities. The Middle East has undergone a major makeover in recent years. What factors do authorities planning the expansion or modernisation of their airport facilities need to take into consideration before embarking on such a project? Douglas Scragg. One of the problems in the Gulf area is the compression of the air space. There’s obviously going to be a very high traffic requirement for transport in the region, given that it is a major route to and from Europe, and also to the Middle and Far East. So any modernisation or new airfields must take into account the probable limiting factor of the air space itself. I think the Gulf states need to get together as a regional authority to try to make their rules and regulations more common, their separation standards more easy to cope with, and to better define the intersections between the air space of one country and the air space of another. We had a similar problem in Europe in the early 1990s; a typical example is the air space from southern Spain and Portugal to the Canary Islands. At the time there were four-hour delays on that route. We discovered that they were using the wrong separation standards, which meant that instead of being able to run an aircraft every 10 minutes, they were running at 15minute intervals instead. So we redesigned all the air space into parallel routes, which is how it is now. Since then there’s not been too much of a problem with capacity. And this is something that has yet to be done in the Middle East region? DS. Yes, and that’s where I think we can provide some very useful input: being able to talk to the various people involved about the different issues. The biggest problem is how to balance the wish to increase the capacity of all the airports in the region with the actual airspace available. You’ve got Sharjah. Just 10 miles further south you’ve got the existing Dubai airport, and then about 40 miles further south you’ve got the new Jebel Ali airport. Then you come down to Abu Dhabi. It’s quite a crowded piece of air space.

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look at the existing road network around the Gulf, it is probably less than perfect for the sheer number of people that use it. But in order to have efficient air transport you also need to have efficient surface transport systems as well. It may well be that in certain areas a rail link between two major centres could be more efficient than a road network. So there’s that aspect to consider. And then of course you’ve got to take shipping into account, again an important transport alternative. Is shipping the best method of linking up within the Gulf, or is that more efficient for linking with centres outside of the Gulf? So I think it’s calling for a really big overview of the total problem there, and that total problem is related to ground, air and sea. You’ve also got sensitive issues on the other side of the Gulf regarding military aviation. So a major issue is going to be how best to co-ordinate between all those different airport authorities, as well as between the civil aviation bodies and the military. Presumably this is something that needs to be tackled fairly quickly given the rate at which the Middle Eastern states are pursuing their expansion plans… DS. I think if you’re going to expand it’s essential to have a bird’s eye view of the transport systems that are already there. For instance, if you

Do you have any plans in terms of further activities within the Middle East? DS. We’d like to try to reintroduce this idea of developing a global transport solution for the Gulf rather than just air or road or sea. Take a much more holistic view. We’re not going to get very far without taking and grasping the idea of having a total transport review for the Gulf area. It is so important for the region’s future development, and I think that is where we can come in – just introducing some of the ideas. We’ve got an awful lot of experienced people that have been there and done it all before. n

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ASK THE EXPERT

A GREENER AIRPORT The Starrport airport concept could drastically reduce noise and pollution. Jim Starry, who came up with the model, and Freed Schmitter, non-executive Director of StarrportCorp.com, explain how in an exclusive interview. Considering the constant growth of air traffic, particularly in the Middle East region, what are the most relevant points of the StarrPort airport? Jim Starry. A free-flowing airport experience. You arrive at the airport that is in the close vicinity of agglomerations. The extremely compact design of a Starrport uses one-third the land of a comparable airport. Passengers park under the terminal, which is designed to the highest security standards. Security checks can be done in the elevators, shuttling travellers directly to the gate 10 floors above. Boarding becomes quick, reliable and enjoyable. A compact megastructure means less cost, less personnel, fewer facilities for airport owners. How can such a small footprint be attained? JS. The terminal is built over the runway. Landing is on a smooth incline, and take-off on a decline – there is no need for taxiing and penalty box. This makes a total fuel reduction of about 48 percent possible. Extra spacious corridors provide safety zones. 123 patent(-pending) details make the Starrport the safest, greenest, most efficient and most cost-effective airport by far. A much better air quality for airport employees and passengers is the immediate result. Less exposure to extremely toxic fumes reduce cancer and asthma by 40 percent for all those within a 100-mile radius (compare with EPA Cancer Studies for Minneapolis, at www.areco.org). What are the other advantages of using a Starrport? JS. 10 Starrport floors, resulting in many square kilometres of commercial opportunities, provide enormous space for parking, ticketing, handling and commerce. A sophisticated convention centre, highgrade multicultural hospitality, first class shopping and recreation areas with spacious hotel rooms allow rapid payback of the initial building investment. This is an airport city that allows a truly fulfilling and healthy experience. Who should consider building a Starrport? JS. A Starrport has numerous advantages for small and middle air-

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ports, but especially weighs in for mega size airports. A small African country is considering a Starrport, for 10 flights a week – they figured out that even for them it will be profitable. Calculating the savings in real estate, building costs, passenger time, in addition to the fuel and maintenance savings for the airlines and the extra income for quality commercial space, the benefits are staggering. Freed Schmitter. Just imagine an eco-friendly Starrport in Abu Dhabi’s eco-city Masdar, or near Kuwait’s Silk City, in Dubai, Doha, Saudi Arabia, Oman, Tabuk, Libya, Baghdad, Bahrain, Cairo, Khartoum, and so on. The Middle East will spearhead the world by choosing a more environmentally friendly and humane Starrport. Will leadership come from the Middle East and African regions? FS. The challenge is taken up by Masdar in the United Arab Emirates as the first zero-emission city in the world. Masdar can become a magnificent showcase for advanced solutions and the most daring perspectives. A unique opportunity concerns financing in Muslim countries. As I understand, Islamic interest-free money systems offer a sound basis for real ventures compared to a faltering virtual economy in most Western civilizations. Any final remarks? FS. The ultimate challenge for humanity in the very near future is to develop more intelligent ways to use technology. Planet Earth is a self-supporting eco-system, in awe-inspiring perfection. Each process in nature supports and brings forth other reliant processes. Energy is reused, excess material is recycled. A similar economy can be applied everywhere. JS. Are we all connected through breathing the same atmosphere? It’s not that we are running out of oil – we are running out of air. We now have a clean choice. Phone consultations, $1000 per hour, contact: EARTH WISE Design Company – Creating a Better LIFE for all the World! Tel: +1 719-256-4322, or e-mail: starrport2live@aol.com

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FIRE SAFETY:Feb08 11/02/2009 14:09 Page 112

FIRE PROTECTION FOCUS

There’s no smoke without fire MENA Infrastructure investigates the importance of fire detection technologies.

irports run to a tight schedule and any disruption to airport operations is costly to operators, airlines and customers. The most dangerous disruption is caused by fire, a tragic example being the 1996 outbreak at Düsseldorf Airport in Germany, which caused the loss of 17 lives and injury to 62 people, and estimated losses were put between US$200600 million. Airport design has changed significantly over the past few years. As airports increase the number of facilities available, such as business lounges, restaurants and retail outlets and improve the amount of open areas it becomes more difficult to detect a fire. Conventional fire detection technology requires a certain concentration of smoke before it sounds an alarm, typically around two to four percent over one linear metre. These alarms are installed at government or international standards so it is assumed that they will sound an alarm when there is enough smoke. However, as smoke is affected by incidental air movement, loses buoyancy or becomes affected by warmer thermal air layers, the result is that traditional detection systems generally only register enough smoke once a fire is already advanced, quickly causing chaos and disruption to airport operations. Smoke is also difficult to detect in areas such as baggage handling and hangars where spaces feature large voids, quickly diluted or removed by air conditioning systems.

New technology Dubai International Airport, the busiest in the Middle East, currently serves around 40 million passengers per year. Dubai’s brand new Terminal 3 is home to one of the most advanced baggage handling systems in the world, with 50 kilometres of conveyor belts running over the 160,000 square metre terminal. Effective baggage handling is critical to operations as well as the safety of people and luggage.

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Project managers decided on a system that is capable of detecting low levels of highly diluted smoke by constantly sampling air for smoke particles via a network of sample pipes distributed in the area. The early detection means a small ﬁre can easily be detected before it develops into major incident. This early smoke detection apparatus is a technology that is already widely accepted in many public buildings or areas, including shopping malls and warehouses, and is currently being introduced in to other international airports including London Heathrow Terminal 4, Chep Lap Kok airport passenger terminal in Hong Kong and the Amiri ﬂight hangars in Qatar. An active Aspirating Smoke Detection (ASD) system continually draws air into a highly sensitive, flexible detector through a network of pipes located throughout a building or location. Advanced ASD systems allow operators to make informed decisions about a potential fire situation. The advanced systems use laser technology to report the density of smoke in an area, the obscuration per metre and is also capable of detecting an early stage smouldering fire. The systems are also capable of providing multiple alarms so that the operator can make a quick decision about how to

“Advanced ASD systems allow operators to make informed decisions about a potential fire situation” react to the fire depending on the type of fire and what stage it is at. Advanced ASD technology can be further enhanced by using a performance-based design approach. While pipes are installed where smoke is likely to travel, at the same time the system complies with international standards and codes providing reliable detection. While the potential benefits are easy to identify, it is vital that the user clearly specifies their demands in order to make sure their product achieves each and every one. Not all ASD systems are able to deliver the full advantages of the technology, for example, some are sensitive to smoke within a limited range either being extremely sensitive or totally insensitive, and unable to live up to an operators specifications. If the demands of the system are clearly identified and met then the life and revenue saving benefits are readily achievable through an advanced ASD system. n

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SAFETY FOCUS

The burning issue Major General Rashid Thani Al Matrooshi explains how fire prevention strategies are evolving, with an insight into Dubai Civil Defence’s strategic plans. ire protection and rescue measurements are top of the agenda for local governments, civil defence and private developers in the UAE, reports Intersec. According to Sheikh Faisai Khaled Al Qasimi, Chairman of the Emirates Insurance Association: “The UAE has seen more than 14,000 fire accidents from 2002 to September 2008, a sky-scraping figure, which calls for finding adequate methods of full-proof safety against fire, protecting human lives and properties, as well as the environment.” Over the past 18 months there have been a number of fire accidents in Dubai as the pace of construction takes its toll. CEO of Epoc Messe Frankfurt, Eckhard Pruy, claims that worldwide more than 80,000 deaths per year can be attributed to fire, and consequently the market for fire protection and prevention in the UAE is increasing by more than six percent per year. In December 2008, Major General Rashid Thani Al Matrooshi, announced the Dubai Civil Defence (DCD) strategic plan for the period 2009-1015. He admitted that the strategic plans had been updated after studying the previous year’s plan, after considering its compatibility with the specific targets and the need to develop an updated plan that complied with the objectives of the Federal Government and the Government of Dubai. “The plan came out as a result of continuous hard work of the teams entrusted with the study of the previous strategic plan 20072008. DCD’s various administrative and occupational heads of departments at all professional levels, from individuals and the executive staff members to the assistant directors, department directors and the heads of internal sections, participated in the formulation of the strategy,” explains Al Matrooshi. “To finalise the strategy formulation, we held 22 meetings and workshops, ending up with a final two day long workshop held under my supervision with the participation of all department directors.” Al Matrooshi maintains that the six main strategic goals and the specified objectives will be achieved through effective timetables and the professional use of all available possibilities through functional projects and operational plans prepared for the purpose. He stresses the importance of upgrading skills, capabilities and competencies, citing the implementation of the ‘safety first’ project over the past three months as helping reduce fires in Dubai by 80 percent.

The first strategic objective is about implementing best practices and the latest technologies to provide excellent rescue and fire fighting services. Specified objectives include achieving and maintaining the highest response rates, improving fire station readiness to achieve full stand-by situation and developing aviation fire and rescue services. The second strategic objective is improving the co-operation, support and distinguished performance in responding to crises and disasters. This includes participating with concerned departments, readiness to provide international aid and support in responding to crisis and disaster situations and partaking in restoring life back tonormalcy in the affected areas. Thirdly, Al Matrooshi believes that prevention is key in protecting against fire hazards and disasters, with specified objectives including preparing, implementing, regulating and monitoring safety measures. The fourth objective involves spreading safety and preventative awareness across society, inviting volunteers from the society, preparing and organising them, enhancing the confidence of community in the Civil Defence Authority and improving private sector fire fighting capabilities. Fifth on Al Matrooshi’s list is developing the DCD’s human resources, by training employees, providing a healthy working environment, building up capabilities and developing HR services. Sixth is establishing institutional excellence through adoption of a quality culture, achieving professional governance and managing hazards.

“Over the past 18 months there have been a number of fire accidents in Dubai as the pace of construction takes its toll”

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SAFETY FIRST In June 2008, the Dubai Civil Defence launched the ‘Safety First’ campaign, focusing on inspecting all areas that had factories and warehouses. The campaign involved 18 teams carrying out a strict inspection of the international safety standards at Deira and Bur Dubai; of the 7816 premises visited during the period, 3319 sites weve found to be violating safety. Since the start of the campaign, fire-related accidents dropped 22 percent in the last six months of 2008 to 300.

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Local Vehicles for Local Emergencies TIMCO designs, builds and supplies Emergency Vehicles in the Middle East, to serve the Middle East’s particular operational requirements and applications. Whether it is a simple 4x4 Ambulance, a fully fitted EN standard unit, or the popular Type II Ambulances, a TIMCO Ambulance is your reliable solution. Our firefighting units serve Municipal, Oil & Gas and Airport applications, in an unmatched range of diverse specifications. Each unit is custom designed, built and fitted out to the highest international standards and to suit the client’s specific needs and budget. Timco’s Emergency Vehicles are today trusted and used throughout the region. Visit us at www.timco.ae

Contact:info@timco.ae Tel: +971 3 7215848 • Fax: +971 3 7210652

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ROUNDTABLE DISCUSSION

Feeling the

HEAT MENA Infrastructure asks a panel of experts for their opinions on fire protection in the region.

What are the key challenges in managing ﬁre protection systems in a mega project environment? Does the scale of such projects provide any unique challenges? Lee Dunn. The main challenges in mega project environments need to be managed by design. British, European and American standards all address the fundamentals of design; these designs need to be upheld and implemented by the designer. Most design engineers have good practical skills when it comes to standard risks; however, with mega projects it is essential that the designer looks deeply at detection response time. Apart from detecting the ﬁre, one of the most critical roles is to evacuate the building in the least possible time without creating panic. Voice alarm is now a standard solution for most buildings and provides an excellent means to safely evacuate a building. People are subjected to all sorts of daily sounds and a simple sounder or bell operating is often ignored and even if the occupant understands the meaning they often wait to see if it is a false alarm. These delays greatly affect the safe evacuation of the building. Voice alarm systems can provide clear unambiguous

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multi-lingual instructions to evacuate the building or to wait for further instructions. Gary Johnson. As basic as it sounds, one of the greatest challenges faced when installing a ﬁre protection system today – especially in larger projects – is properly sizing the ﬁre sprinkler pipe. Light hazard, ordinary hazard and extra hazard areas all have different pipe

“New standards assure the initiation of the process of the design, ensure the device’s performance and the resting and maintenance procedures of the system are effective” Sherif Shaker schedules. In addition, there is inconsistency in establishing pipe size between the various countries, as many areas in the Middle East are still using the outdated pipe schedule

system. The National Fire Protection Association (NFPA) stopped using the pipe schedule system in the early 90s because it had proved inefficient. The organisation has since aggressively promoted the use of a hydraulically calculated system, which determines the size of the pipe based on the NFPA density required as a result of the available water supply. This newer, more efficient method takes into account water flow, sprinkler head specifications, static pressure, pressure loss through friction, and many other factors in order to calculate a given density of water necessary to meet the NFPA-determined fuel load. The end result is a properly sized system that delivers just the right amount of water to extinguish the fire. Sherif Shaker. The key challenges include: co-ordination with the contractors–examples include conflicts between tender drawing and workshop drawing and actual execution; the availability of technicians and skilled labour, including labour safety, where it is very hard for some cultures to be able to adapt and be educated about safety, as it wastes time and costs money; time frame and cost effective-

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THE PANEL

Sherif Shaker, Chairman, Watania Group

Gary Johnson, Global Business Development Manager, Lubrizol

Lee Dunn, Commercial Director of Global Systems Technology PLC

ness, where unfavourable changes in plans or schedules cause delay in the process; and, price factor versus quality.

the pipeline networks – for example new light UPVC pipes and ﬁttings – were developed for an easier and faster installation instead of the heavy and long time process of yielding, grooving and threading. Secondly: mode and control of protection systems, for example ASFR and EXLO are available now at a high quality manufacturer like Reliable, which means less sprinklers and less interference in the civil area. Fairbanks introduced new pumps with high discharge ﬂow that exceeds 26 bars, which

quality detectors have their own on board processor that stores algorithms with thousands of test ﬁres. The detector refers to these algorithms and quickly makes a decision. This speeds up the time for the device to respond as the detector is no longer reliant on the control panel to make the decision. In addition, most high quality systems have drift compensation. This feature is an excellent solution to avoiding unwanted alarms. The drift feature changes the alarm curve, which is set under factory conditions, and adjusts this curve linearly as and when the device becomes contaminated by dust and particles present in everyday environments. This keeps the detector’s response at an optimum level; when the device has come to the limit of its compensation it will notify the panel that it is in need of maintenance. This feature alone can avoid thousands of unwanted alarms.

The Middle East region has numerous such mega projects currently under development. How are the latest technologies helping to protect such developments from the risks associated with fire? GJ. Fortunately, there are many newer technologies that have improved the overall performance, as well as lowered the costs, of today’s fire sprinkler systems. For example, specially listed heads today have better throw characteristics, which result in fewer heads being required. There are now also specially listed products, such as CPVC, that have 150 C factors (compared to the 120 C factor of steel pipe). This translates into fewer heads and much smaller pipe to yield a significant material and labour cost saving. Since CPVC is immune to the effects of pitting, scaling and corrosion (including microbiologically influenced corrosion/MIC), it also offers a reliable method of protecting even the largest projects against the risk of fire damage. As a specialty listed product, CPVC piping systems have undergone more rigorous testing and been subject to more scrutiny than many other traditional piping products. SS.Developments in mega project construction based mainly are two divisions. Firstly:

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“The majority of Civil Defense Departments within the region are also insisting that the products installed must have been certified and tested by a recognised independent testing laboratory” Lee Dunn facilitates the pump stations usage better than before, as it used to cost money, time and effort for the whole building process. Notiﬁer has also developed a whole system for supervision and control, which grants full access even from home. LD. Fire detection systems have greatly improved over the years and now most high

Typically the last system to be installed on a job site, the ﬁre protection system often has to meet tight installation timeframes. How can project managers ensure that the functionality, reliability and cost-effectiveness of their chosen solution are not compromised by the need to meet tough installation deadlines? SS. Back again to the point of co-ordination and clear vision of the supplier and the contractor of the site needing to be exact on the process schedule. The existence of the materials and the suppliers in the right time in accordance

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FIRE PROTECTION

peed of installation was a priority on the fire protection installation in the Emirates hangars situated north of Dubai International Airport. The US$353 million Emirates facility sits on 55 hectares and its freight hangars together form the largest free-spanned structure in the Middle East. The roofs are supported by 110 metre-long single spans and the construction has meant that the facility now ranks as one of the world’s largest civil aviation engineering centres. During construction, the main contractors, Emirates Trading Agency (ETA), which designed and installed the entire fire protection main loop and deluge system for the hangars, were faced with a range of challenges because of the size of the installation. Fire protection systems traditionally use 2 inch/305mm pipes, but due to the size of the job, 32 inch/813mm diameter pipes had to be used throughout the main loop. One hundred and fifty valves were installed to enable maximum coverage throughout the hangars, and the larger pipe diameter and increased proximity of deluge valves ensured that the volume of water required for such an expansion could be dispersed through the system within seconds if required. Thanks to sophisticated forecasting and planning procedures at Victaulic, the deluge valves were onsite only four days after the order was placed.

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to each other. Managing the right number of qualified engineer foremen and labour to support each task stage in the job. Tools availability to ensure the installation and erection process mechanism. Using/choosing the right testing procedures in accordance to the manufacturer manual and international codes. LD. Fire protection and detection systems are chosen unfortunately at the end of the mechanical and electrical procurement. The main reason for this is that they are not really regarded as an enhancement to the building environment. Choosing your fire protection system provider is critical to the quality of the systems that are to be installed. There are many new companies emerging within the industry and often they have little expertise in fire. It is essential to choose a company that has a local technical support team with factory-trained engineers. This support can be called upon to assist the installer with the technical aspects of completing the project professionally. Choosing a system that has international approvals is fundamental when choosing your manufacturer. Most leading companies can provide you with certificates for both LPCB and UL. These two independent approval bodies are considered the leading approval bodies. Companies complying with these requirements have spent thousands of dollars ensuring that the product being produced meets the highest standards and can be relied upon. GJ. Tough installation deadlines are not a problem when utilising newer labour-saving technologies, such as CPVC, which drastically reduce installation time by eliminating the need for soldering for copper and shop fab or welding for steel. A fast and easy solvent cement joining system allows CPVC fire sprinkler systems to be installed in nearly half the time, while also removing the mess, cumbersome equipment and fire risks associated with soldering welding or steel fabrication equipment on the job site. How are new standards and regulations improving approaches to fire protection in the Middle East region? LD. The MENA region is definitely improving, over the last few years Civil Defense Departments throughout the region have cracked

down on design and approval standards and are now in general insisting that systems are designed, supplied and installed in conformity with either BS/EN or NFPA design standards. The majority of Civil Defense Departments within the region are also insisting that the products installed must have been certiﬁed and tested by a recognised independent testing laboratory. GJ. The NFPA is currently in the process of expanding its guidelines to more countries around the globe. This includes its recommendations to only use a hydraulically calculated system. Dubai is an example of a region undergoing this conversion. It is estimated that, today, more than 50 percent of the systems are still being installed using the outdated pipe schedule method that requires larger pipe and more costly pipe size changes. As owners dis-

“Tough installation deadlines are not a problem when utilising newer laboursaving technologies, such as CPVC, which drastically reduce installation time” Gary Johnson cover the potential cost savings, specifiers will feel the pressure to utilise the more efficient hydraulically calculated systems. Since all ULlisted CPVC fire sprinkler systems are hydraulically calculated, this trend will also ensure the increased use of CPVC pipe and fittings. As a result, owners and facility managers will benefit from a system that is not only more cost and time-efficient, but also highly reliable against the effects of corrosion. SS. New standards assure the initiation of the process of the design, and ensure the device’s performance and the resting and maintenance procedures of the system are effective. An example are the NFPA rules, which are the most common association of setting codes from design to system performance as they are a result of experience and tests that ensure the results and quality for such projects.

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EXECUTIVE INTERVIEW

Sustainability in fire protection David O’Riley, Development Manager for Project Fire, explains how he is working to minimise the impact of fire sprinkler systems on the environment. water required; in some instances adopting an alternative sprinkler head, and changing the operating pressure, can achieve impressive results. This approach has the added advantage of also reducing the size of the distribution pipework and fittings, which in turn reduces cost and the system’s overall carbon footprint, making it more sustainable. Are there any issues in using desalinated water in a fire sprinkler system? DO. Since most sprinkler systems use ferrous materials, any water that contains oxygen will promote corrosion in the pipework and fittings. The water is also acidic then it would be fair to say that the rate of corrosion would be accelerated. There is: however, another factor to take into account, if no fresh water is How did you go about improving the sustainability of a fire sprinkler system? DO. Sustainability is primarily about reducing water wastage, reducing energy consumption and minimising the carbon footprint, so we simply applied these very simple principles to the design of a fire sprinkler system. How did you manage to address the environmental issue of using water? DO. There are two issues with respect to sprinkler systems, water usage and water storage. A sprinkler system wastes water every time its primary active elements are tested: pumps, flow-switches and alarm valves, etc. The tests are required by the industry’s standards authorities to ensure that the system remains ‘fit for purpose’. What Project Fire has been able to do is develop a simple cost-effective system that enables a compliant test to be carried out whilst minimising water wastage. The volume of stored water required by a fire sprinkler system is determined by the risk. For some risk classifications optimising the design will minimise the volume of

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is to do with the testing of alarm valves and zone flow-switches. Every time one of these devices is tested through the release of water, the fire pumps operate. In a building with just a few zones this would only consume a small amount of energy, but in large buildings with many hundreds of fire zones, such as the Burj Dubai, the fire pumps would be operating continuously for nearly 200 hours every three months, just because of the alarm valve and flow-switch tests. Using Project Fire’s remote testing devices, we reduce this to almost zero. With regard to the size of the pumps, much depends on the risk classification and the actual building being protected. The largest pumps are usually found in high-

“A sprinkler system wastes water every time its primary active elements are tested: pumps, flow-switches and alarm valves” introduced into the system, then the oxygen and acid will soon become a spent force and corrosion will all but cease, so there is yet another reason for not expelling water from the system. How will your solutions reduce energy consumption? DO. Once installed, a sprinkler system only has one primary consumer of energy, and that is the ﬁre pumps. The two things that govern energy consumption are the rating of the pump’s size and the number of hours of operation, so quite naturally we looked at addressing both. The hours of operation are in part determined by the standards authority requiring a weekly test. There is, however, another reason why the ﬁre pumps operate, and this

rise buildings where they are required to overcome the force of gravity. Project Fire has developed a novel approach to this particular problem that results in a considerable reduction in pump sizing, with the attendant reduction in energy consumption and carbon footprint. Are there any other areas where sustainability can be improved? DO. Once a ﬁre sprinkler system has been installed, it must be maintained ‘ﬁt for purpose’ for the rest of its working life, and that requires the commitment of resources, which in turn has a cost and carbon footprint. Project Fire has developed a sprinkler management system that is online 24/7 providing comprehensive support whilst reducing cost and the life cycle carbon footprint.

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INDUSTRY INSIGHT

Climate separation supports green thinking Robert Schomaker, Managing Director of Biddle Export Worldwide, looks at the important role climate separation plays in today’s building designs.

ising energy costs and demands for higher standards of comfort indoors have forced designers to come up with new construction methods and materials for modern buildings. These innovations have made it possible to house people in extreme climates with a high level of comfort. Unfortunately a lot of energy is still lost where people enter these buildings. Many years ago blowing a strong flow of air with an air curtain was thought to be sufficient to stop the hot outside air from entering the building but actually these curtains often make the situation worse. Each door opening is different and requires a specific solution. New insights into the problems and techniques for optimum and efficient climate separation are now available and they contribute substantially to the green building concept.

Convection When two areas with different temperatures are connected by means of a door opening there will most probably be a temperature difference between these rooms. As a consequence of this, colder air will creep over the lower parts towards the warmer area and warmer air (which is lighter) will lift through the upper part of the opening towards the colder room. This temperature or energy exchange is called convection and this effect occurs as soon as there is a temperature difference, no matter how small or big. Often this effect is underestimated. A three by three meter door opening between a conditioned space of 20°C and an outside space with a temperature of 40°C causes a constant ﬂow of lost energy of around 60 KW. This is a common situation in many areas of the MENA region. The energy losses boost the energy bill and affect the energy label of the building. In addition, the temperature inside the building rises and causes discomfort. The moisture that is drawn with the warm air into these cold rooms causes mist and icing on walls, ceilings, refrigeration equipment and also on products. Penetration of warm and humid air (especially

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“By including climate separation in the energy calculations of tomorrow’s buildings in an early design stage, real working solutions can be developed and substantial savings become reality” Robert Schomaker in coastal areas) into conditioned areas cause an extra problem; in order to cool down this humid air, much more energy needs to be used to ‘dry’ the air and to take measures to eliminate condensation.

New technology That the effect of convection is not really understood yet can be seen in the solutions that have been installed in many (old and new) buildings so far: cheap, simple, too small and often fast-blowing, noisy air curtains or something similar that blows air. But effective climate separation is more than just blowing air down a doorway and starts with understanding the effect of convection and moving air. As every door is different and as the strength or impulse of the curtain needs to be adjusted to the situation around the door (temperatures, location etc.) real climate separation has become a specialist’s job. Governments have supported the development of new and innovative techniques and solutions. With subsidies on the most effective equipment, they push shop owners to invest in these solutions and to save energy. It is therefore no surprise that the technology to

achieve real climate separation with over 90 percent efficiency, thanks to a patented laminar air stream technology, is widely available and now also slowly reaching the MENA region. Modern fully automatic controls bring the equipment to life and add intelligence to the units. Air velocity, impulse and heating capacity can automatically be adjusted to the need, day and night, summer and winter, and even remote monitoring of the unit’s functioning can be done via internet telemetry.

Looking ahead True climate separation plays an important role in the building climate system, far more than what is often seen in today’s designs. Future ‘green’ designs should therefore consider applying these new techniques, and investors should understand that spending a little more on proper equipment pays off immediately in a much better climate with lower energy usage. By including climate separation in the energy calculations of tomorrow’s buildings in an early design stage, real working solutions can be developed and substantial savings become reality.

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MEGAPROJECTS

Grand designs

If you build it, they will come. That’s the belief of the Saudi Government as it embarks upon one of the largest city planning initiatives ever seen.

mr al-Dabbagh has big ambitions. The Governor of the Saudi Arabian General Investment Authority (SAGIA) plans to add US$150 billion to the kingdom’s gross domestic product, create more than 1.3 million direct jobs and ease the burden on the nation’s main centres of Riyadh, Jeddah and Dammam, where infrastructure is severely strained. How? By building a series of megacities designed to ease social pressures and develop the economy. It’s a project staggering in its size and scope. Rising out of the desert sands at six strategic locations, the so-called ‘economic cities’ at Madina, Hail, Tabuk, Jizan, Ras Az Zour and Rabigh are designed to accelerate major regional development, become magnets for foreign investment and ensure Saudi Arabia is one of the most competitive nations in the world. Work is already underway, and progressing at a furious pace: at the ﬂagship project of King Abdullah Economic City (KAEC) at Rabigh, for example, construction is proceeding round-the-clock with over 13,500 professionals and skilled workers employed on site.

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The main driver is undoubtedly the desire to capitalise on the kingdom’s vast wealth and huge oil and gas reserves, and establish Saudi Arabia as a global economic power commensurate with its abundant natural resources and key geographic location as the gateway to Europe, Asia and Africa. “SAGIA has targeted three sectors in which to invest the bulk of our resources: these are energy, transportation and knowledge-based industries (KBIs) – in our case, life sciences, healthcare, education and IT,” says al-Dabbagh. “This enables us to leverage our natural competitive advantages of energy and location, and the combination of ﬁnancial and human capital.” As a result, the government is establishing an integrated system of economic cities that can create a competitive environment able to provide everything, including commercial and residential land, visas, work permits, labour force, entertainment, as well as offering quality of life for the inhabitants and investors. He hopes that the megacities will help address the disparity between Saudi Arabia’s potential and its current position on the global stage. “We have a quarter of the world’s energy resources, yet host only 2.5 percent of

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FIT FOR A KING hen complete, King Abdullah Economic City (KAEC) will be the size of Washington DC and have a projected population of two million people. Located just north of Jeddah, the US$26 billion city development offers a chance to model a community from scratch, avoiding the problems found elsewhere in a country of 25 million that has expanded rapidly since the first oil boom of the 1970s transformed its fortunes overnight. KAEC will be built over 55 million square metres and feature a major seaport on the scale of Rotterdam, a major industrial area, an integrated high-speed transport system as well as a dedicated financial district containing hotels, exhibition and convention centres in addition to educational establishments, hospitals and residential areas. According to Fahd Al-Rasheed, CEO of lead developer Emaar, the strength of Saudi Arabia’s economy coupled with its stable investment environment have helped to ensure that the first phase of KAEC will be delivered according to schedule at the beginning of 2009, despite the global economic downturn. The plans are that by 2010 up to 10,000 housing units will be completed, with around 500 of them inhabited, and 10 percent of the city – a mix of industrial zone, financial centre, residential quarters and beachside resort – constructed. When completed by 2020, the City will have two million inhabitants and could overshadow the capital Riyadh and second city Jeddah as the kingdom’s economic centre. “We are committed to working on developing various areas within KAEC to meet the requirements of different strata of society including low and middle-income people,” says Al-Rasheed.

the global energy intensive industries, which doesn’t make sense given that we are the most cost-efficient place on earth for those industries,” he explains. “Our goal now is to increase our market share in these industries to 7.5 percent by 2015, and to become one of the top one or two in approximately 10 energy intensive industries by 2020. Plastics is another example. We are again the most cost-efficient place on earth for finished plastics products, yet have only one percent of the global market share. Our goal is to increase that to 15 percent by 2020.” But these aren’t just industrial centres; like other developments such as the City of Silk project in Kuwait, Dubailand in Dubai and Masdar in Abu Dhabi, Saudi Arabia’s economic cities also aim to integrate working with living, too. Wealthier residents will have waterside villas, complete with berths for large yachts. Middle-income residents will have high-rise apartments. Other family-friendly features being promised are hospitals, a university and sports stadia. At KAEC, a full-scale port will handle not only freight but also some 300,000 pilgrims arriving by sea for the annual Hajj, while a highspeed railway link between Mecca and Medina will stop at the city.

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KNOWLEDGE IS POWER Fahd Al-Rasheed, CEO of the KAEC project, points out that Saudi Arabia also needs to build six million residential units in the next 12 years in order to tackle the twin issues of massive housing scarcity and a huge population of young people that will come of age in the next five years. To put that into perspective, the country has only built five million units over the past six decades. The first phase of integrated city living in KAEC will feature homes, offices, hospitals, schools and retail outlets. In addition to providing housing, KAEC and the other new cities are also meant to create millions of jobs. A recent study prepared by the Center for Studies and Research at the Eastern Province Chamber of Commerce and Industry suggests that while 675,000 jobs available at the new economic cities would require moderate to high levels of skill, the remaining jobs would be highly skilled. It’s all part of SAGIA’s plan to encourage, attract and develop the very best workers, investors and industries. “In 2007 we surpassed our target of SR300 billion in the value of investment licenses issued and the economic cities represents a good share of that number,” explains al-Dabbagh. “We are not surprised because they are the result of careful planning and strategic thinking. We examined our value proposition and determined it was energy and location. We then revisited one of our strategic initiatives at SAGIA, which is regional development, and decided to create a product that didn’t yet exist, which was integrated into the global marketplace, which would enable us to capitalise on our competitive advantages, help us to achieve our 10x10 objective and be the ultimate living and investment destinations. “Our economic cities aren’t free zones, they aren’t special economic zones, they aren’t free trade zones; they are all of the above, plus something extra,” concludes al-Dabbagh. “We are creating cities with the ultimate in living environments and service provision. And we are right on track in terms of development.”

Medina was the cradle for Islamic civilisation. Now it looks set to become the centre for Saudi Arabia’s new knowledge economy. The US$8 billion Medina-based Knowledge Economic City (KEC) project is considered by many to be the most important of Saudi Arabia’s economic cities because of its proximity to the Holy Mosque. KEC was designed to attract knowledge-based intellectuals and entrepreneurs from around the world. The city will comprise various zones designed to complement each other: a technology and KBI zone; an advanced IT studies institute; an interactive museum on the life of Prophet Mohammad; a centre for Islamic civilisation studies; a campus for medical research and life sciences; an integrated medical services zone; a retail zone; a business district; residential zones including high-rises, houses and fully-serviced apartments; shopping malls; and a mosque with a 10,000 worshipper capacity. Transportation within KEC will be facilitated via a ring road above which rises a monorail connecting the city to the neighbouring Grand Mosque of Medina within minutes. This monorail will be tethered to the planned train station thus tapping into the railway access to Makkah, Yanbou, the King Abdullah Economic City as well as the port city of Jeddah. The 4.8 million square-metre development will incorporate eight million square metres of built space, creating 20,000 new job opportunities. The development will include 30,000 residences, housing an estimated 150,000 residents and accommodating up to 10,000 visitors. The knowledge-based component of the KEC site has been allocated 600,000 square metres. KEC’s Centre for Medical Sciences & Biotechnology will help to develop regional solutions to common illnesses and provide medical resources and rehabilitation for residents and visitors, while the biotechnology ventures will conduct medical and environmental research into water conservation and waste management, as well as genetic engineering and development.

A TRANSPORTATION HUB The city’s got a big name, and an even bigger ambition: to become the largest transportation and logistics hub in the Middle East. The second in a series of new economic cities in the Kingdom of Saudi Arabia being planned by the Saudi Arabian General Investment Authority (SAGIA), the Prince AbdulAziz Bin Mousaed Economic City is a key element in Saudi Arabia’s efforts to further develop its economy, generate regional growth and create employment opportunities for its youthful population. Covering an area of over 150 million square metres, the city will incorporate a cluster-based development comprising transportation, logistics and supply chain centres; educational services; agricultural and food processing services; mining and commerce services; housing; and infrastructure. In the area of transportation, an international airport is expected to capture three million passengers per year, while a railway station will cater

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for some two million passengers annually. Dry ports and operation centres will be capable of handling over 1.5 million tons of cargo annually. The region will also benefit from a new international airport and a major expansion of the Kingdom’s railway system, which will connect the main regions. In addition, major new highways are being constructed to link the Kingdom through Hail with Jordan, Iraq and also Madinah. Sheikh Sleiman Bin Abdul Aziz Al-Majed, Chairman of major investors Tanmiyat Group, said: “Located in the heart of the Kingdom, Hail is equidistant from Jeddah, Riyadh and the Eastern province, and provides the perfect ‘northern gateway’ to the Kingdom, linking a number of key trade routes. It can be accessed by 12 Arab capitals in only one hour by plane and this we are sure would immensely add to the attractiveness of the project and enhance both shareholder value and returns.”

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ASK THE EXPERT

Modern communications hinge on software design Anna Squires, Product Development Director at Etherstack, explains the importance of wireless technologies to improve security, data and efficiency for radio devices.

odern wireless communications rely on ever more extensive software to improve interoperability, security, data rates and spectral efficiency. Indeed, as radio technology evolves from analogue to digital, software has surpassed hardware as the most complex element in a radio device. The investment made by radio manufacturers in software has consequently increased dramatically. It will continue to do so. It is therefore urgent that software is designed correctly to derive maximum value from this investment and to capitalise properly on the benefits of software based systems. The evolution of the ETSI TETRA standards from Release 1 to Release 2 highlights the importance of investing carefully in protocol software development. The first generation of TETRA radios to reach the market are now approaching end of life and users are anticipating the advanced features and higher data rates offered by TEDS and TETRA Release 2. However, many manufacturers are struggling to maintain their original TETRA protocol code and are finding that they can’t upgrade it or port it to next generation processors and hardware platforms. In order to offer a new Release 2 radio, these manufacturers are faced with two options. They can discard their existing code and begin again, with the attendant risk that the lifespan of the new software is also limited by its portability and maintainability. Or they can try and shoehorn their existing code from one processor or platform directly to another – investing additional money and time to extend the life of software that will still need to be abandoned at some point. Manufacturers can even find their choice of hardware for a next generation platform severely constrained by legacy software that is 10 years old. Commercial radio protocol stack software is extremely complex. It involves both signal-inspace and software co-ordination intelligence, as well as a carefully managed relationship between hardware and software to ensure that the code can be upgraded and reused on new platforms as

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technology evolves. Radio software design therefore needs to aim to maximise software portability, upgradability and performance – whilst minimising development costs. Completely decoupling protocol stack development and maintenance from a speciﬁc platform, operating system and user interface is key to this, as is using correct design practice and tools and procedures geared towards embedded hardware at each of the speciﬁcation, design, implementation, integration and maintenance phases.

“While commercial development tools are becoming more available, radio protocol stack development has yet to become a truly specialist enterprise within the wireless industries” However, most radio protocol stack developments today still involve cobbling together software design techniques and tools from other ﬁelds and different vendors, rather than offering an integrated approach geared for modern radio platforms. While commercial development tools are becoming more available, radio protocol stack development has yet to become a truly specialist enterprise within the wireless industries. Adherence to standards also remains an important consideration for radio software design. Interoperability is a hot topic in communications, and digital standards are central to digital interoperability. The beneﬁt of standards-based software is illustrated by comparing the digital Professional Mobile Radio (PMR) industries in Europe and North America. The European ETSI TETRA Release 1 air interface standard is well de-

fined, firmly enforced and widely adopted, encouraging independent handheld manufacturers to the market and driving down the cost of equipment. By contrast, in North America digital PMR radios have tended to use proprietary air interfaces only loosely based on APCO P25, the North American equivalent to TETRA, due to less stringent regulation and enforcement. However this has encouraged standardisation of the P25 network interfaces and as a consequence, multi-vendor options in the network and even solutions for air interface interoperability via the network look set to flourish. In each case, where standards have been followed communications flexibility has markedly improved.

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SPORTING INFRASTRUCTURE

“Sport today is a multitrillion dollar business, not only in terms of sponsorship, but also in terms of viewers” U Balasubramaniam, Dubai Sports City

DEVELOPING A WI Millions of dollars are pouring into sports infrastructure in the Middle East. Can staging high-level sporting events – and attracting international superstars to compete – provide the impetus needed to launch the region as a global superpower?

omething is happening out in the desert. Countries once foacross the region as countries compete to attract the investment dollars and cused on the economic opportunities presented by the rethe TV audiences that will help play a major part in raising the profile of the gion’s oil and gas reserves have now hit upon a way to strike Gulf region. “The vision is to bring sports to Dubai,” agrees Abdullah bin gold in fields of a different sort – those of international sports. Suwaidan, Deputy Director of Dubai’s Tourism Department. “After all, what And make no mistake: the sports business is big business. Not better way to get your name out as a brand than by showcasing your tiny only do such events bring in increased foreign money in terms of sponsorcountry to hundreds of millions of viewers around the globe?” ship and the tourist trade, they also serve to bring the region to the attenIndeed, the business of hosting sports is proving so popular that entire tion of a whole new audience and are helping to establish the Middle East cities are springing up out of the sand to cater for the increased demand. Take as a go-to destination for sports of every kind. As a branding exercise, stagthe US$8 billion Dubai Sports City development, for example, which claims ing such events is a major coup. to be the world’s first purpose-built sports metropolis. No wonder local leaders are pouring millions of Set on 50 million square feet of land within the dollars into developing the infrastructure to support Dubailand development, it will feature four world-class such high-profile tournaments. Dubai already plays stadiums, be the venue for Ernie Els’ inaugural golf host to a number of prestigious sporting events, such course design in the Middle East, and host the first puras golf’s Dubai Desert Classic, horseracing’s Dubai pose-built Manchester United Soccer Schools facility in World Cup – the richest purse in international racing – the world as well as the International Cricket Council’s and the Barclays Dubai Duty Free Tennis own Global Cricket Academy, a David Lloyd Tennis Emirates’ 2008 sports Championships, to name just a few. Qatar recently Academy and the Butch Harmon School of Golf. In admarketing budget played host to the Asian Games in 2006 and narrowly dition to the sporting facilities, Dubai Sports City will missed out on making the final cut for the 2016 also boast all of the residential and commercial develOlympics; not to be outdone, the country is now considering an audacious opments expected in a purpose-built city, including international schools, bid for the 2018 football world cup instead. And Bahrain is widely credited world-class medical facilities, hotels and leisure opportunities. with bringing the lucrative Formula One roadshow to the region – some“Sport today is a multi-trillion dollar business, not only in terms of thing for which Abu Dhabi, currently constructing the world’s largest persponsorship, but also in terms of viewers,” explains U Balasubramaniam, manent Formula One circuit (rumoured to cost in the region of US$1 billion) Chief Executive of the development. “One of the great attractions of hostin readiness for hosting its own Grand Prix, can certainly be thankful for. ing such events is the increased tourism they bring into the region. I re“We want to establish Doha as a sports hub for the Middle East,” claims member the first year Dubai hosted the international Rugby Sevens the Chair of Doha’s recent Olympic bid Hassan Ali Bin Ali, echoing a cry heard tournament, it only attracted around 7000 spectators; today, it brings in

US$100 MILLION

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NNING MENTALITY something like 50,000. People come from all over the world and make space in their calendars to come and watch this great spectacle. The same thing happens with tennis, and golf is another good example – over the five-day period of the Dubai Dessert Classic, we had something like 70,000 attend the event. The hotels benefit from it, the restaurants and other facilities benefit from it, tour operators benefit from it – there’s an elemental increase to the economic growth of Dubai through holding such events.”

in and growth of the sector,” he says, claiming that Doha’s recently rebranded Aspire Zone – formerly the Khalifa Sports City – plays an important socio-economic role. “It is not just a world-class sports facility for big tournaments. It is a place for people to have fun whether they want to go for a jog, have a picnic, enjoy a fashion show, get entertained by a band or see top class athletes in action. It also has a sporting academy to bring through the next generation of local talent.” It’s all part of the bigger picture – one that uses the raised global profile generEconomic engine ated by sport as a springboard for socioAnd this is no short-term gold rush, eieconomic transformation. “Our visionary “The success of the last two Grand Prix Emir, His Highness Sheikh Hamad Bin ther. Many believe the revenues generated in terms of increased tourism can provide events has done much to encourage the Khalifa, has sent the country on a monua significant engine of economic growth for mental modernisation programme to bebusiness community, not just in a region increasingly looking to diversify come a role model for economic, social Bahrain, but around the Gulf” away from dependence on oil and gas. As and political transformation in the reMartin Whitaker, CEO of the Bahrain such, considerable thought is going in to gion,” explains Hassan. “We have a plan how to make such ventures sustainable in for our infrastructure, our health, our edInternational Circuit the long-term. “We want to create someucation, and we are going to go ahead thing that is active and robust the whole with it even though we have been unsucyear round, not just for specific tournaments or events,” confirms cessful in our bid to host the Olympics. Sporting events are a great way of Balasubramaniam. “As a result we’ve integrated our facilities within a livraising the profile of the region and accelerating that development.” ing, thriving city to make sure they are utilised not only when the internaThere’s certainly no shortage of money available to help things move tional events are being hosted, but also at other times of the year too.” in the right direction. Emirates Airlines has seen its global sports marketHassan believes Qatar is taking a similar path. “What we want to do is ing budget mushroom from US$6 million in 1999 to US$100 million in 2008, really encourage our youth to take up sports, to concentrate on and develand Dubai Duty Free has been upping its sports sponsorship for years and op their talent, and that will give us athletes from within Qatar and from in 2007 spent about US$17 million on tennis, golf and horseracing. within the region as a whole – which in turn will stimulate further interest Elsewhere, British bank Barclays has splurged US$9 million to become title

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sponsor of the renamed Barclays Dubai Duty Free Tennis Championships through 2010 – its biggest such deal in the region – while watchmaker Omega and CNN have both been co-sponsors of the Dubai Desert Classic golf tournament since 2004. Such companies know that the eyes of the world are watching, and for the local economies this increased visibility also brings with it the promise of an increased influx of foreign investment as businesses witness firsthand the many benefits the region has to offer. “These events will show our culture to the wider world, and show that we are part of that wider world,” says Hassan. “They will show modern states bringing together people of all different religions, beliefs and backgrounds, creating dialogue, understanding and hope for the region. The opportunities are huge.”

Full throttle For instance, when F1 supremo Bernie Ecclestone awarded the Best Organised Grand Prix trophy to Bahrain International Circuit a few years back, his words were telling. “The great thing about doing business in

DUBAI SPORTS CITY TOTAL AREA: 50 million square feet STADIUMS: 60,000-seat multi-purpose outdoor stadium, a 25,000 capacity cricket stadium, a 10,000-seat multipurpose indoor arena, and a field hockey venue for 5000 spectators RETAIL SPACE: 3.8 million square feet ESTIMATED COST: US$8 billion COMPLETION DATE: 2010

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U Balasubramaniam Bahrain,” he said, “is that nothing is too much trouble.” It’s a perception that Martin Whitaker, CEO of the Bahrain International Circuit and one of the key figures in bringing Formula One to the region, has worked hard to reinforce. “Our Grand Prix is known throughout the world as the friendly race,” he says, backing his statement up with a confident smile. “Prior to the first race, the perception of many involved within the sport as to what the Middle East had to offer was unclear. However, the exponential growth of the race and the sell-out crowds and corporate lounges in the past two years has underlined the transformation that has occurred. Bahrain is now seen as a must-attend venue for many chairmen, CEOs, managing directors and corporate guests due almost entirely to the ease of access and the ability to do business in the country.” Indeed, hosting the Formula One Grand Prix has done much to promote the diverse range of business and leisure opportunities that exists within Bahrain and across the region as a whole. Formula One’s TV figures make the Gulf Air Bahrain Grand Prix the focal point of the sporting world for the weekend of the race, while a regular place on the international calendar ensures that the kingdom is part of an exclusive club of countries that stage

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the largest annual sporting event in the world. “A new long-term contract up to the end of the next decade ensures that the race will continue to be a catalyst for building awareness, while the economic impact from events of this nature are increasing year-on-year,” conﬁrms Whitaker. “In 2007, the value of the Gulf Air Bahrain Grand Prix in terms of direct and in-direct economic impact was US$548 million, while the V8 Supercars Championship in the same year delivered almost US$85 million.” Clearly, business is booming. During 2007 alone, Whitaker’s team organised 441 revenue-generating events and a further 120 community and charitable events. “The circuit is just a catalyst – a showcase, if you like – for people to get excited about the development of many new business ventures and developments such as the Bahrain Financial Harbour, Bahrain Bay and the new World Trade Centre,” says Whitaker. “Additionally, it has driven considerable interest in residential developments such as Durrat Al Bahrain, Amwaj and Riffa Views, where further sporting initiatives such as the Colin Montgomerie Golf Course and Boris Becker Tennis Academy have raised even more interest.” Most important of all, however, Whitaker believes the success of the Grand Prix has helped change perceptions so that the Middle East is now seen as a safe area, not only for tourism but also for business. “The organisation at the track has complemented the business-friendly approach of the country, and the economic impact year-on-year – as well as the number of events that are run at BIC – underlines the success that can be achieved with such a project. Let’s not forget that the Bahrain Government’s US$150 million investment has been repaid many times over within an incredibly short period of time.”

sion for building up a racing empire – in the UAE, and also on the international stage in Europe, Asia and North America. I think the growth of sports in the UAE region – not only in Dubai, but overall – has grown tremendously, and we’re a big part of that. It brings not only financial stability to a lot of the infrastructure, but it also brings exposure, and that exposure can lead to other benefits such as financial growth, more tourism, greater retail spending, and so on. I think it will really explode over the next few years.” Which brings us back to the new venue. Construction is moving at a furious pace ahead of the official opening in March 2010; the new venue is already half-built, although the economic downturn and a dispute with its major contractors, the Malaysian engineering company WCT and its partner Arabtec, over project delays does threaten to slow progress somewhat. Meydan Group, the master developer, terminated its US$1.3 billion agreement with the consortium in January, but insists the racecourse will be com-

Track star Another project that is indicative of the region’s love affair with sport is Dubai’s sparkling new Meydan racing complex. In 2007, Frank Gabriel Jnr, the CEO of the Dubai Racing Club, unveiled an ambitious plan to build a cuttingedge racecourse facility – just a stone’s throw from the world-famous Nad al Sheba track – that promised to take horseracing in the region to a whole new level. The landmark development is the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, and will span 76 million square feet and feature state-of-the-art dirt and turf tracks, while a world-class grandstand will boast a capacity of between 55,000-60,000. “The racing facilities will be outstanding,” enthuses Gabriel. “However, it’s not just about the racing season. We want to maximise entertainment all year around.” As part of this vision, Meydan will offer residential units, office blocks, retail space and leisure facilities as well as the huge new racecourse. There will be 17 building blocks offering 2.9 million square feet of office space to all types of businesses, while a tramline will connect the grandstand, business park and city. A large retail complex will cater to high-spending shoppers, and on completion in 2010 officials expect the city to have between 60,000 and 100,000 people living and working in it. And with millions of dollars pouring into sports infrastructure across the Middle East, it is no surprise to find that racing is proving to be an attractive investment. People in the region have a particular affinity with horses and horseracing, and attendances for events at the Dubai Racing Club’s current home at Nad Al Sheba are soaring. Gabriel agrees. “There’s obviously a financial driver for the growth of racing in the region, but it’s also cultural,” he says. “For many years, the Maktoum family has had a love of the sport, of the horse, and they’ve established a vi-

“It’s all about branding and exposure of the race, of the event and of Dubai in the UAE, and we continue to work on the growth of that. That’s our mission” Frank Gabriel, CEO of the Dubai Racing Club pleted on time. And with 2600 construction workers currently employed on site – a figure that will rise to 5000 at the height of the works – it’s easy to see why they are so confident. “It will be one of the most unique and iconic buildings in Dubai,” says Gabriel. Without doubt, the current global crisis in the credit markets provides challenges to those involved in the sports construction business. But it also provides immense opportunities. The revenues involved in the hosting and marketing of high-profile events (plus the added economic stimuli of increased tourism, greater consumer spending and higher foreign investment) make developing world-class sporting infrastructures an attractive proposition – in any economic climate. n

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STATUS REPORT Developing Dubai

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Dubai’s real estate master developer, Nakheel, recently made 15 percent of its workforce redundant as the market slump bit into the emirate’s real estate market. What will this mean for its landmark projects?

WATERFRONT

PALM JEBEL ALI

ARABIAN CANAL

What? Twice the size of Hong Kong, Dubai’s Waterfront development will transform 1.4 billion square feet of empty desert and sea into an international community for an estimated population of 1.5 million.

What? The second island in The Palm trilogy, Palm Jebel Ali is located in Waterfront and will feature an array of luxury hotels, beachside villas, shoreline apartments, dive sites and leisure activities.

What? The $11 billion project will create a 75-kilometre waterway that will flow inland from Dubai Waterfront, pass the new Dubai World Central International Airport before turning back towards Palm Jumeirah.

Status? Major civil works and infrastructure for the first phase is already underway. Work on Madinat Al Arab, Venetto, Badra and Canal District is ongoing as planned, but other phases may be delayed.

Status? Property prices have fallen by as much as 40 percent in the last two months, and infrastructural work on parts of Palm Jebel Ali not due to be populated until 2011 and 2012 are being scaled back.

Status? Phase one involves excavating 200 million m3 of earth for the canal; phase two involves a $50bn city covering 20,000 hectares. Limitless is reviewing timelines in response to market conditions.

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PALM JUMEIRAH

THE WORLD

PALM DEIRA

What? The project that started it all. Launched in 2001, the man-made island increased Dubai’s shoreline by 100 percent and created a destination of world-class hotels, homes, leisure and entertainment.

What? 300 islands in the shape of the world’s continents, offering a range of leisure, residential and tourist developments, it will add over 232 kilometres of new beachfront to Dubai’s coastline.

What? The final chapter in The Palm trilogy, Palm Deira is the biggest of the palm-shaped artificial islands in Dubai, a 42-squarekilometre project located between the mouth of Dubai Creek and Port Hamriya.

Status? Palm Jumeirah’s flagship Atlantis resort opened in September, but projects that will be delayed include Frond N villas, Gateway Towers and the Trump International Hotel and Tower.

Status? The first phase – land reclamation requiring 320 million m3 of sand dredged from the sea and the creation of a breakwater surrounding the 9km-wide and 7km-long island group – was completed last year.

Status? Completion of a detailed master plan has been pushed back from late-2008 to spring 2009, but developers insist it is still on track to welcome the first batch of residents in the next three years.

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PROJECT FOCUS On the up

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Sudhir Jambhekar, Senior Partner at FXFOWLE, gives an insight to the projects the firm is working on in the Middle East region.

here’s no question that the current economic climate is not good right now, and we can see this all over the world. Having said that, there are exceptions. In the Dubai area, for example, it has been publicly announced that the emirate has made a decision to move forward with infrastructure projects,

so we are still seeing many things happen on the infrastructure side of the practice in Dubai. Saudi Arabia is exactly the opposite in that it is in growth mode because there is a tremendous need for residential and commercial buildings, as well as infrastructure. The other optimistic regions are Qatar and Abu Dhabi; we are receiving

many proposals from these places as they continue to move forward with projects. The bright spots in the Middle East are undoubtedly Saudi Arabia, Qatar, Abu Dhabi and infrastructure work in Dubai. So, yes the economy is down but at the same time, there are many projects still moving forward, with many enquiries. We remain bullish and optimistic for the region.

Sheikh Rashid bin Saeed Crossing, Dubai “The bridge’s design was inspired by multiple sources, each evoking similar imagery – the rhythmic grace of Dubai Creek’s current, the elegant splendor of the sand dunes adjacent to the City, the lighting patterns of the lunar cycle and the design of the future Opera House. We believe that our bridge design is not merely to link the City’s cultural and commercial developments or ease congestion, but an opportunity to connect people – both physically and emotionally – by creating an iconic landmark, destination and gateway between the old, the new and the future Dubai.” Sudhir Jambhekar

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Waterfront, Canal District, Dubai

Maritime City

A dynamic 200-hectare urban centre connected by water canals and a network of public transportation in the Dubai Waterfront District. Estimated completion: 2012

Virtually an entire new city with maritime facilities, education, commercial, residential and retail complexes. Estimated completion: 2012

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IN REVIEW On the shelf

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From transport to waste management via climate change and sustainability, MENA Infrastructure reviews the best of this quarter’s business book releases.

The Big Necessity Adventures in the World of Human Waste, by Rose George Produced behind closed doors, disposed of discreetly, hidden by euphemism, human waste is rarely out in the open in ‘civilised’ society, but the world of waste is a rich one. This book takes the reader underground to the sewers of Paris and London, and overground to meet the heroes of India’s sanitation movement, the R&D lab-rats at the cutting edge of toilet technology and the owner of the world’s largest toilet paper collection. With a journalist’s nose for a story and a campaigner’s desire for change, Rose George also addresses the politics of this under-reported social and environmental efﬂuent, and the devastating humanitarian consequences of our reluctance to talk about it. MENA Infrastructure says: George provides an eye-opening tour through the world of sewage – the single biggest cause of death worldwide, and our last remaining taboo. Witty, serious and original, The Big Necessity proves that shit doesn’t have to be – and shouldn’t be – a dirty word.

Traffic Why We Drive the Way We Do, by Tom Vanderbilt Why does the other lane always seem to be moving faster? Why are people so different inside their cars than they are outside them? Is traffic a microcosm of society, or does the road make its own rules? Traffic speaks volumes: it brings together people from every walk of life and, in this hugely enjoyable, curiosity-filled book, Tom Vanderbilt explains why traffic problems are really people problems. Traffic shows that how we behave walking the streets, on our bikes and in our cars is actually an astonishing cultural indicator and a living, constantly surprising model of what physicists call ‘emergent collective behaviour’. MENA Infrastructure says: Vanderbilt chauffeurs us through why it’s so hard to pay attention in traffic, which bumper stickers can get you in trouble with the police, what factors make us more likely to honk our horns and a host of other eye-opening highway conundrums.

Hot, Flat and Crowded Why the World Needs a Green Revolution, by Thomas L. Friedman Thomas Friedman’s bestseller The World Is Flat has helped millions of readers to see globalisation in a new way. Now Friedman brings a fresh outlook to the crises of destabilising climate change and rising competition for energy – both of which could poison our world if we do not act quickly and collectively. Friedman proposes that an ambitious strategy (which he calls Geo-Greenism) is not only what we need to save the planet from overheating; it is what we need to make us all healthier, richer, more innovative, more productive and more secure. MENA Infrastructure says: Hot, Flat and Crowded is classic Friedman — fearless, incisive, forwardlooking and rich in surprising common sense about the world we live in today. Friedman assesses the state of the world environment and what we should be doing to stop it getting much, much worse.

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OPINION A ray of light

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Job cuts, redesigned projects, revoked contracts – all unthinkable six months ago, but now a reality and hitting the infrastructure sector hard.

ccording to the recent Ernst and Young report, Bridging the Gap: Private Investment in Middle East Infrastructure, more than US$100 billion public-private partnership (PPP) investments will be required over the next ﬁve years to supplement government funding. Infrastructure needs are rapidly outstripping the region’s public resources: for example, despite boasting two-thirds of the world’s desalination plants, the World Bank has predicted that the amount of water available per person will halve by 2050 as a result of population and

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economic growth as well as climate change. This suggests that a huge amount of investment will be needed to meet the infrastructure demands of the future. So, how are regional governments reacting to this? Earlier this year, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced the Government of Dubai’s budget for 2009. Approximately Dh37.7 billion has been set aside for public spending – a whopping 42 percent higher than last year. According to press, the Government of Dubai plan to boost public spending by 20 percent, with the extra finances going to the construction of the metro, Al Maktoum Airport at Dubai World Central, bridges, roads and various other infrastructure projects. It was also reported that other Gulf governments including Qatar, Oman and Saudi Arabia are following suit with deficits in place of budget cuts and secured investment for planned infrastructure projects. In December, the Saudi Arabia finance ministry announced that it expected to run a budget deficit in 2009, for the first time in seven years. Economists branded the finance plan essential to help boost deteriorating confidence in the sector and counteract the slowdown in the country. There is no doubt that these budget allocations will boost investor and market confidence, providing essential economic stimulus, enabling businesses to survive the current economic challenges. And, as well as ploughing more money into the region, the tough times are forcing the region to become more innovative and tap unusual revenue streams. Dubai’s Roads and Transport Agency announced in December that it raised US$490 million by selling the naming rights for stations on its metro light rail transport system. While the station’s names may well be confusing, it is steps like these that could ease the pressure on government finances and allow work to continue on the roads and bridges network in the emirate. With contractors battling for payments and design firms waiting to see if commercial products have any worth, the public spending initiatives from various governments are welcome news indeed. And while there will undoubtedly be a slowdown in commercial and residential projects as they encounter delays financial or otherwise, as long as the public infrastructure projects go ahead it is increasingly unlikely that the industry’s workload will grind to a complete halt.

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CATALOGUE PAGE MENA INFRA:feb09 11/02/2009 14:02 Page 143

Your World. Covered From the people you hire to the products you sell, if you’re in business, we’ve got it covered...

MENA Edition

Europe Edition

Infrastructure

Find out more: www.menainfra.com

Financial Services Technology

Infrastructure provides insight on how developers can achieve critical objectives by integrating leading-edge solutions across their operations – helping them to make informed decisions about technology and operations solutions for all of their areas of responsibility.

Also available for Europe

NextGen Power & Energy

Providing for its customer’s needs and demands is the goal of financial institutions now more than ever. But it is a tricky remit to fulfill. Your customers want it all – security, costefficiency, speed, added functionality and, most of all, convenience.

A poll of 4000 utility executives posed the simple question: what keeps you up at night? The answers were costs, new technologies, ageing infrastructure, congested transmission and distribution, viable renewables and inadequate generation capacity.

Can it be done? Read FST to find out…

NextGen P&E covers them all.

Available for: Europe, US

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Business Management

Executive Healthcare Management

What business processes work? What are the proven, successful strategies for taking advantage of domestic and international markets? Business Management is about real, daily management challenges. It is a targeted blend of leadership and learning for key decision makers in government and private enterprise. Available for: Middle East, US, Russia Find out more: www.busmanagementme.com

Oil & Gas Collaboration between Government and multinationals to ensure the energy supply is developing on two fronts. O&G is the definitive publication for stakeholders and service companies to read about the regional projects, technologies and strategies affecting their group. Available for: US, MENA, Russia Find out more: www.ngoilgasmena.com

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The healthcare industry is changing. Understanding how to improve clinical processes, meet industry standards and merge the maze of disparate systems is vital. EHM combines unbiased industry news with thought leadership from the most respected executives in healthcare, providing a platform for strategy and learning. Available for: US Find out more: www.executivehm.com

HRManagement HR needs three eyes: one on the past – don’t lose sight of the systems that generate value; one on the present – determine if current processes are efficient; and one on the future – be proactive in meeting new challenges. HRManagement concentrates on the development of HR strategies, directions and architectures. Available for: US, Europe Find out more: www.hrmreport.com

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FINAL WORD Welcome to Dubai

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Richard Riley, General Manager for Emaar Hospitality Group, provides his thoughts on the stratospheric growth of Dubai’s tourist infrastructure.

t has been argued that Dubai could have attracted more tourists over the past few years if there had been more hotel rooms. However, tourism in Dubai has evolved in the past few years through the concerted efforts of the government and various agencies in popularising the destination in new international markets. The number of hotel rooms does not seem to have been a constraint for tourism growth in the past; in fact, the increasing supply of hotel rooms has accommodated the ever-increasing demand of the tourist market to current levels.

Tourism arrivals to Dubai are estimated at 15 million visitors by 2015. This means it is important that Dubai enhance the number of hotel rooms to accommodate the increase in visitor inflow. Dubai currently has over US$354 billion worth of hotels, aviation and other hospitality infrastructure projects under development. The Dubai Department of Tourism and Commerce Marketing targets increase in room capacity of hotels and hotel apartments by 171.2 percent from 46,775 to 127,100 by 2016, with the number of hotels to increase to 414 and rooms to 112,000. Room rates are expected to rise significantly throughout the world this year, particularly in the luxury and business markets. Dubai has the highest hotel room occupancy in the region with average occupancy rates of 85 to 90 percent. Dubai also has the highest average room rate at US$282 and highest revenue per available room at US$237 in the region, according to estimates. These rates are reflective of the increased demand for rooms, driven by the growth in tourism and business. Room rates are an indication of demand and supply. The current infrastructure growth in the hospitality sector will equip the Middle East region to meet growing demand. Also, it must be realised that the luxury hospitality sector has traditionally been associated with a premium, which the discerning guests are willing to pay for the guest experience offered. Tourism has now become one of the prime drivers of the economies of most Middle East nations, especially those in the Gulf region. The UAE, Saudi Arabia, Oman, Bahrain, Qatar and Kuwait have all benefited from the inflow of business and leisure travellers. Today, tourism provides the lion’s share of the non-oil GDP of most of these nations.

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The Address, Downtown Burj Dubai For Emaar Hospitality Group, this presents a new growth opportunity. It drives us to expand geographically and build portfolios that meet market demand. This is reflected in the recent launch of The Address Hotels and Resorts by Emaar Hospitality Group, a homegrown fi ve-star hotel brand with global ambitions that will assure tourists a truly distinctive, benefitfocused guest experience. For business travellers, staying in a hotel can be one of the most costly and tiresome aspects of being on the road. Increasingly, this group is choosing an alternative that offers the feel of home with the luxury and amenities of a hotel – the serviced apartment. Serviced residences are a fast-growing segment in the region, and Emaar Hospitality Group has already launched Nuran Serviced Residences to meet this segment. However, we believe that serviced residences will not come to replace hotels and in line with this thinking, we are redefining the business hotel experience.

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