INFRA MENA 2 by GDS International

KEEPING THE www.menainfra.com â&#x20AC;˘ Q3 2009

FAITH Despite the downturn, the Gulf is forging ahead with its ambitious development plans. But can it marry modernisation with sustainability? PAGE 28

PLUS Richard Russell, CEO, Blue City Khaldoun Tabari, CEO, Drake & Scull Selim El Zyr, CEO, Rotana COVER.indd 1

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EDITORS NOTE infra2:mar09

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FROM THE EDITOR

Biting back As the downturn deepens, can a focus on quality and sustainability help the region’s contractor community beat the construction crunch?

“There needs to be more emphasis on energy-generating ideas, such as geothermal and other renewable energy technologies” Sudhir Jambhekar, Senior Partner, FXFOWLE (p64)

“We see it as our responsibility to recommend the most appropriate green technologies and we do this by ensuring we are abreast of the latest developments” Khaldoun Tabari, CEO of Drake & Scull International (p92)

ithout doubt, the global credit crisis has had a sobering impact on the Gulf economies. The collapse of the property market has seen some US$1.9 trillion worth of construction projects suspended across the region since last October, and left major parts of the industry in turmoil. “We are faced with a dramatically different scenario and a whole set of new management challenges,” conceded Graham McCraig, General Manager at Dutco Balfour Beatty, at a recent conference in Abu Dhabi. “The reality is that there is not the volume of work. We have got to focus on quality turnover and quality clients – we have to take a reality pill and understand that the volume isn’t there.” But while the region’s contractors certainly face some difficult challenges in dealing with the fallout from the nosedive in Dubai’s speculative property developments, the mood in the Gulf is surprisingly upbeat. For one thing, growth in markets such as Qatar, Abu Dhabi and the investors’ current favourite, Saudi Arabia, is strong and offers significant opportunities for developers. And whereas Dubai’s real estate boom relied on international rather than local customers wanting luxury developments, developments in Abu Dhabi and Saudi Arabia in particular are based on local demand for more affordable housing – making them a safer long-term bet in the eyes of many industry insiders. “Private financed projects were leading the game in 2008 until the financial crunch,” Fatima Obaid Al Jaber, Chief Operating Officer of Al Jaber Group, recently told delegates at the Arabian World Construction Summit. “Now is the time for the government to stimulate the economy.” The good news is that all three markets are committed to significant government-funded infrastructure development programmes over the next few years. Saudi Arabia alone has pledged a whopping US$400 billion to develop its transportation, education and health networks, and it is a similar story elsewhere around the Gulf, with both Qatar and Abu Dhabi looking to invest heavily in infrastructure. The key for architects, developers and contractors will be to focus not only on building quality into each project, but also to think more about the long-term future of the projects they design and build. Sustainability must be the watchword, as Stephen Oehme, Head of Sustainability at international advisory and design firm Hyder Consulting Middle East explains: “Sustainability is the best approach to access real quality, reduce appropriate costs and provide a hedge against the effects of the global financial crisis.” That’s something we can all see the value in.

“Sustainability is high on our agenda and is absolutely non-negotiable” Michel Noblet, CEO of Hospitality Management Holdings (p128)

Ben Thompson, Editor

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CONTENTS:may09 11/05/2009 11:01 Page 7

CONTENTS FEATURES

Culture clash As the construction bubble bursts in Dubai, Saudi Arabia has emerged as the Gulf’s most attractive investment destination. But can the kingdom avoid some of the challenges faced by its regional rival? By Tom Benson

92 Raising the profile Drake & Scull International CEO Khaldoun Tabari is bullish on his company’s prospects for the next 18 months. MENA Infrastructure caught up with him to ﬁnd out why.

102

34 Tales from the Blue City Safety in numbers For all the wrong reasons, Dubai’s labour camps hit the headlines in April. Since then, the region has gone into overdrive, hitting back to prove that living and working conditions are a number one priority for the industry. By Rebecca Goozee

Richard Russell, the man behind Phase One of the Al Madina A’Zarqa development, explains how Oman’s ﬂagship city planning project is back on schedule after a challenging 12 months.

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CONTENTS www.menainfra.com

Going with the flow

ASK THE EXPERT 23 Hazel Young 42 Thomas Elberskirch, Case Construction 56 Hans-Josef Kloubert, BOMAG 126 Emile van Essen, StarrPort Corp.

Turning vision into reality

67 Construction going green? The majority of construction professionals believe 60 percent of their projects will be green within the next ﬁve years

73 Changing the world for the better Dr Isa Hoffman explains how innovation is essential to a sustainable future

74 Metals in a sustainable society 44 Turning vision into reality Despite the downturn, developments across the region continue apace

58 Investment climate looking up Abu Dhabi looks set to be the strongest performing MENA real estate market over the next two years

Metals remain as vital today as the bronze and iron ages, says Dr Peter Cutler

124

Douglas Spragg

76 The changing power industry

The importance of suitable infrastructure and sustainable land administration

Phil Burns reveals why rental equipment is an attractive option in difﬁcult times

84 Going with the flow

78 Intelligent images

Will congestion charging improve inner city trafﬁc?

By David Critchley

60 Optimising drilling efficiency Adam Minatre explains how innovative approaches are impacting the drilling sector

62 Market strength Younis Haidar reveals the challenges of the rapidly growing steel industry

64 Bigger, better, greener Why buildings in the Middle East must become more environmentally friendly

96 To automate, or not to automate 80 Linking technology to land management

ROUNDTABLES 70 Sustainability 88 Bitumen 98 Security

Bill Carlyle suggests distribution automation could beneﬁt utilities and customers

108 No smoke without fire How aspirating smoke detection technologies give the earliest ﬁre warning possible

110 A trip down memory lane Barry R. Bell details the history of ﬁre engineering in the UAE

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CONTENTS www.menainfra.com

112 The importance of passive fire protection

130

Why passive ﬁre protection needs tougher enforcement

114 Why protective coatings matter By Nick Crowther

116 Feeling the heat What do stringent ﬁre and safety prevention standards mean for ﬁrms in the region?

118 Lift off MENA Infrastructure investigates what was involved to get Terminal 3 at Abu Dhabi International Airport up to scratch

122 The only way is up Why change is essential for the aviation industry

124 Opportunity knocks

136

Douglas Spragg reveals why a decrease in growth equals an increase in opportunity for the airline industry

He who dares wins

128 A formula for success Michel Noblet explains why he is conﬁdently forging ahead despite the downturn

130 He who dares wins Smart city

Selim El Zyr on why it pays to take a risk

IN THE BACK

134 Vantage point: Going to waste 136 Smart city: Smart thinking 138 Finance focus: Islamic finance comes of age 140 On the shelf: Book reviews 142 Column: Crisis or opportunity 144 Final word: Dealing with the downturn Bigger, better, greener

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MENA INFRA 2 UPFRONT:nov08

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UPFRONT ANALYSIS

From boomtown to slowdown: after years of soaring prices fuelled by property speculation, the global economic downturn has caused something of a correction in Dubai’s previously rampant housing market. Many projects have now been put on hold

THE END OF THE BOOM Property prices have plunged in the UAE as economic conditions worsen. MENA Infrastructure reports on the unprecedented reversal in the sector’s fortune. IT WASN’T SO LONG AGO that property was considered one of the safest investments to make in the UAE. Demand for real estate outstripped supply and off-plan properties often tripled in value before a single brick had been laid. A con-

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cerned minority speculated that the country’s property bubble would eventually burst and that sky-high prices would crash once properties under construction were completed – but property experts were quick to silence the sceptics.

The CEO and President of press release issued by Emirates Omniyat Holdings and Omniyat Real Estate earlier in the year Properties, one of the claimed that “the growth UAE’s leading propof the real estate marIn October, Damac, one of the erty developers, ket in Dubai is proregion’s leading told reporters last tected from developers, made August that he bewhatever ﬂuctualieved demand for tions are taking property would conplace in oil prices redundant tinue to outstrip supbased on the short and ply for at least the next two medium-term. This trend will years, and that the market continue despite the fact that the would remain buoyant well into oil prices are expected to fall in the next decade. Meanwhile a the short and medium term.”

200 staff

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UPFRONT ANALYSIS

NEWS IN PICTURES

But late last year, the buyer’s market. According to a cracks in Dubai’s property marreport by Morgan Stanley, resiket began to show as oil prices dential property prices have went into freefall and the global fallen by 25 percent since economic downturn put the peaking last September. It brakes on foreign investment in found that real estate prices in the region. In October, Damac – Abu Dhabi had dropped by 20 one of the region’s leading pripercent on average, and prices vate developers – made 200 of villas and apartments in staff redundant. Then in Dubai had fallen by 26 percent December, Nakheel, developer and 25 percent respectively. of Dubai’s iconic Palm “Anecdotal evidence A report developments, laid suggests sharp falls released by off 500 of its workin transaction volProleads claimed force. Soon afterumes in the fourth wards, Tameer quarter due to demade 350 emteriorating ecoof the UAE’s 1289 conployees redunnomic conditions, struction projects have been put on hold dant. And Omniyat the disappearance – so confident about of speculative buying the market earlier in the year and the lack of financing,” – cut 69 jobs. said the report. News of project delays One of the worst hit propbegan to filter through, culmierties was Aldar’s Al Raha nating in a report released by Beach development, which exProleads in February that perienced a 30 percent drop in claimed an astounding 53 perprices. Prices had also fallen cent of the UAE’s 1289 construcin the rental market, according tion projects have been put on to the report, which found that hold. The report, which was obrents were down seven pertained by Arabianbusiness.com, cent in December and the cost claimed that of the $1.3 trillionof renting a villa had fallen by strong industry, only $698 bil10 percent. lion remained in operation on The report sums up the active construction projects; view of many property experts around 180 of the projects had when it says that as a whole been suspended completely; the UAE’s property sector had and projected cash flow for the suffered “a worse than expectindustry would drop by 43 pered” blow from the global financent in the first quarter of 2009. cial crisis. The correction in the And while the report bemarket that was expected once lieved the majority of the prolong-awaited projects were jects put on hold would be complete has happened far resumed when the market reearlier than expected. And it is covers, property prices in the impossible to predict whether meantime have plunged to unproperty prices will ever return foreseen lows – creating, to the boom-time levels of against all expectations, a early 2008.

Foreign labourers work at a construction site in front of Dubai’s landmark Burj alArab hotel. Thousands have already lost their jobs due to the global financial crisis, with reports suggesting 45 percent of the construction workforce could be laid off

53%

A typical four-bed villa at Palm Jumeirah costing Dh1.8 million in 2001 was valued at Dh18 million last September. But property prices in many of Dubai’s luxury developments have fallen by around 50 percent since their 2008 peak.

The global crisis has hit travel and tourism hard. The Atlantis Hotel on Palm Jumeirah, opened in a blaze of publicity last September, has been forced to slash prices by as much as 90 percent in an attempt to boost occupancy rates

The last few months have seen a number of high-profile projects cancelled, while others have slowed as developers struggle with credit. An estimated US$260 billion of real estate projects are now reported to have been delayed or shelved

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UPFRONT NEWS AND NUMBERS

CONSTRUCTION OUTLOOK MEED’s Gulf Construction Outlook Survey 2009 provides an insight into the prospects for the industry over the coming 12 months

Staff numbers in the coming year Increase of 10% or more

Cut of 10% or more

Increase of 0-9%

8 4

No change

Cut of 0-9%

Size of Gulf construction industry over the next 12 months Growth of 10% or more

Reduction of 10% or more

4 28

28 Reduction of 0-9%

Value of construction firms’ order books compared with 2008 Growth of 10% or more

Growth of 0-9%

Reduction of 10% or more

17 9 13

No change

Reduction of 0-9% Source: MEED Gulf Construction Outlook Survey 2009

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ACCORDING TO A UNITED NATIONS EXshifting it in its entirety was a costly option. PERT, infrastructure developments along The UNISDR will be launching the ﬁrst coastal areas may be at risk due to a report on disaster risk reality in the MENA rapid sea level rise in the Middle East region in May. The report is the ﬁrst of its region. Speaking on the sidekind in the region and will explore lines of the Dubai the effect of urbanisation on Since 1980, Arab International climate, the eco system and economies have lost Humanitarian Aid and environmental risks in the Development region. “Following the devConference, Margereta astating tsunami, the cydue to droughts, Wahlstrom, UN’s clone Gonu in Oman in floods and storms Assistant Secretary2007 was a wakeup call for General for Disaster Risk the region,” said Wahlstrom, Reduction (UNISDR), said that who believes that setting up legal low lying areas may be heading for a dis- frameworks could lead to a sustainable fuaster due to a rise in sea levels caused ture. “The Gulf region has resources, wealth by climatic change. She went on to say and political determination; therefore, I that expert engineering skills could help think this region can play a major role in the infrastructure remain intact since sustaining natural resources.”

US$19 billion

Growth of 0-9%

RISING SEA LEVELS RISK TO WATERFRONT PROJECTS

INFRASTRUCTURE FOCUS FOR DUBAI DESPITE THE ECONOMIC CRISIS,multi-billion dollar infrastructure projects are still underway in Dubai. At the beginning of the year the Dubai government announced a 42 percent increase in its infrastructure spending for 2009, and all works are on schedule. The Dubai Roads and Transport Authority (RTA) projects include upgrades of Al Wasl Road, Al Khail Road and Umm Suqeim Road. New underpasses will be built on Al Wasl Road and the number of lanes on Al Khail Road will be increased from the existing four to six in each direction, in addition to roundabouts being replaced by interchanges. Work has also begun to expand the combined passenger capacity at Dubai’s two airports, Dubai International and Dubai World Central. Dubai International Airport’s concourse 3, the last major project at the region’s biggest aviation hub, will be completed by the end of 2011, which will increase capacity to 80 million. And the ﬁrst phase of Dubai World Central is due for completion in June 2010, although the ﬁnal completion date may be pushed back beyond 2015.

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UPFRONT NEWS AND NUMBERS

AROUND THE WORLD IN 80 DAYS

SURVEY RESULTS Best performing construction sectors in 2009

22% 21%

Public sector building Power Water and wastewater Roads and bridges Private sector real estate Industry Airports Rail Ports and harbours

14% 13% 10%

6% 6% 4% 3%

Source: MEED Gulf Construction Outlook Survey

MAJORITY OF FIRMS TO SCRAP PROJECTS A MAJORITY OF THE COMPAon the performance of compaNIES in the Middle East have nies during financial crisis, 62 plans to scrap projects and cut percent said they were cutting budgets because of projects and budgets the ongoing finanwhile 38 percent According to cial crisis. showed their Nevertheless, willingness to many are still exploit the opof the conference considering portunity by acaudience, the prevailing the opportuniquiring assets. credit conditions will continue in the ty to acquire asAccording to 91 long term sets. The findings percent of the audiwere revealed during ence, the prevailing an audience poll at a two-day credit conditions will continue in conference organised by the long-term, six percent said Financial Training Services the situation will ease soon company EuroFinance. while only three percent think In response to a question that it would get worse.

91%

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

POWER GAMES

CASH INJECTION

The Wall Street Journal has reported that China and Russia has inﬁltrated the US electric grid and left behind software that could be used to disrupt operations, although parties deny it. Watch this space. MEI impact rating: ***

Australian federal and state governments signed a US$23 billion funding accord in April on road and rail infrastructure to protect jobs and stimulate business in the recession. Will other countries follow suit? MEI impact rating: ***

SMART ENERGY?

HEATING UP

European politicians have voted to roll out smart meters in every building across the continent by 2022. The technology relays information about household electricity use to consumers who can then cut energy bills by 50 percent. Going green in Europe. MEI impact rating: ***

The Government of Canada is investing C$36 million in the ecoENERGY for Renewable Heat initiative that will provide a signiﬁcant boost to the growing clean energy industry in Canada. Expect green initiatives to continue playing a big part in the years ahead. MEI impact rating: **

OIL SHOCK

FUNDS FALL

A steep decline in oil prices has severely impacted Middle Eastern economies, with growth for the region projected to fall from six percent in 2008 to 2.5 percent in 2009. Our prediction? Expect further slowdown through 2009. MEI impact rating: *****

India is struggling to rapidly build the infrastructure plans it set out in 2007, as private sector funding has fallen and the full extent of the global economic crisis kicks in. Things currently look bleak for the country. MEI impact rating: ****

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UPFRONT PROJECT UPDATE

SAUDI ARABIA Project: The North-South Railway will link the Kingdom’s northern mineral belt with Riyadh and the industrial city of Jubail. The railway will be ready for freight in 2010 although it will be another 10 years before passengers can use the railway. It has been thought that the railway will later be linked with neighbouring countries. Cost: SR512.87 million Status: Underway Completion: 2012

Project: Jeddah Gate is located in the heart of Jeddah, positioned over two sites, comprising of 6000 residential units. 230,000 square metres of commercial space and 75,000 square metres of retail space. Cost: US$1.6 billion Status: Under construction and on schedule Completion: Due to complete in 2020

BAHRAIN Project: The landmark waterfront community, known as the Bahrain Bay Development, is an island connected by two bridges that form an inner harbour located in the heart of Manama’s growing business district. Cost: US$2.5 billion Status: On track Completion: 2011

Project: On the west coast of Bahrain lies the Marina West offering a unique beachfront lifestyle. Rising above thousands of date palms fringing the coastline will be 10 ingeniously designed residential towers, ranging from 20 to 32 ﬂoors, as a gated community. An 11th tower will be a 5-star hotel. Cost: US$700 million Status: On schedule Completion: End of 2009

THE PROPOSED US$7 BILLION SAUDI LANDBRIDGE rail link between the Red Sea and the Gulf has finalised its route. It includes a railway station at the Jeddah Islamic Port and another in the city that would serve as a junction linking King Abdullah Aziz International Airport with the Makkah-Madinah and Dammam lines. It will also be connected with Yanbu and Jubail. The project involves the construction of 950km of new railway tracks between Riyadh and Jeddah, and another 115km line between Dammam and Jubail. The project is expected to be completed in four years. 16

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QATAR Project: The New Doha International Airport will be one of the largest airports in the world and will have two parallel runways when it takes over the old Doha International Airport. Upon final completion the airport is expected to be able to handle 50 million passengers per year on final completion. Cost: US$ 11 billion Status: The first two phases are expected to open in 2009 Completion: The third and final phase is scheduled for 2015

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UPFRONT PROJECT UPDATE

OMAN Project: The Al Madina Azarqa, or Blue City, in Oman is a 34,000 square kilometre waterfront residential development that will accommodate around 200,000 residents, located on a natural peninsula 60 minutes from Muscat, built along 16 kilometres of shoreline adjacent to the Gulf of Oman. Cost: US$20 billion Status: Construction on schedule Completion: Final completion expected in 2020

JORDAN Project: Jordan has unveiled plans to build a 995-mile long railway line to connect the capital Amman with Syria in the north and the port city Aqaba at the Red Sea. It is expected that the project will have positive social and economic effects on the country. Cost: An estimated US$6.44 billion Status: Construction is due to start in 2010 Completion: Estimated completion date is 2013

UAE Project: City of Arabia is a spectacular entertainment destination located at the gateway to Dubailand. The four key elements are Mall of Arabia, one of the word’s largest shopping malls; Restless Planet, a theme park with earth science museum and planetarium; Wadi Walk, a waterfront community with apartments, cafes and retail outlets; and Elite Towers, a group of 34 commercial and residential buildings. Cost: US$5 billion Status: Although it has been delayed, City of Arabia’s roundthe-clock construction work is in full swing Completion: First phase 2010 with ﬁnal completion expected in 2020

Project: Stretched over 11 kilometres of Abu Dhabi’s sheltered coastline will be the Al Raha Beach resort, one of the largest waterfront cities in the world. Eleven precincts will emerge within one waterfront development, each with its own distinct personality. Cost: US$18 billion Status: Under construction Completion: 2018

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UPFRONT MARKET ROUNDUP

SAFETY – AN INTEGRAL PART OF CONSTRUCTION SAFETY IS NO LONGER AN OPTIONAL extra when it comes to construction equipment design. Every component – and all of them in unison – comes under the safety microscope. Volvo’s head of Product Portfolio Development and Advanced Engineering Lorenzo Terreno explains. “Over its long history Volvo has established a reputation as being both an innovator and a pioneer of safer machines – and both attributes are still central to the company today, evidenced in Volvo Construction Equipment’s corporate motto ‘More Care. Built In’.” When it comes to designing new construction equipment, all manufacturers have to be safety conscious. New legislation and rules are regularly being introduced that manufacturers have to comply with if they are to sell their machines in the countries affected. But Volvo’s aim isn’t just to meet the minimum requirements; instead it wants to raise the expectations of the whole industry and develop working environments that are as safe as possible for the operator, the service technician and anyone likely to be close by. Providing safe machines involves designing a package of fea-

tures, rather than relying on being good in one area. Seat belts, effective lighting, eradicating blind spots, reducing vibration and noise, clear view of the work area and comfortable working conditions all help contribute to a safer basic package. Even more mundane things such as window wipers and swing out radiators for easier access to service points have a part to play. Where the operator’s vision is unavoidably impaired, then alarms can be ﬁtted, or proximity sensors – or even video cameras that feed ‘blind spot’ information to a monitor in the cab. Good design isn’t restricted to the machines, but also extends to producing clear and informative manuals that explain how to prepare, operate and maintain the equipment safely. It also includes thinking from the user’s and service engineer’s viewpoints. This not only protects the operator and engineers from accidents, it increases the likelihood that the equipment will be used properly and serviced correctly – meaning the machine will work according to its design, and reduce the potential for harm.

Saudi Arabia has said that it will spend

QUICK FACT

US$400 billion on infrastructure projects over the next five years to stimulate the economy

INDUSTRY LEADER COMMITTED TO THE REGION MORRIS MATERIAL HANDLING LIMITED benefits from 125 years of experience delivering overhead crane and hoist solutions from its headquarters in Loughborough in the United Kingdom. For several decades, Morris has been improving overhead lifting efficiency for clients in the Middle East across the whole spectrum of industry. During the 1990s, Morris confirmed its long-term commitment to undertaking business in the region by forming a joint venture with the Zamil Group in the Kingdom of Saudi Arabia, creating Eastern Morris Crane Company. With its base in Dammam, Eastern Morris Crane Company has comprehensive crane manufacturing, sales and after sales support facilities offering world-class service to its clients. Morris also has strong, competent and reputable sales and service partners offering unsurpassed support to customers across all GCC countries. Industries within the Middle East region where Morris is particularly active and has significant experience in delivering cost effective overhead lifting solutions include:

2 3 4 5

POWER DISTRIBUTION Substations and power station cranes WATER Handling equipment for water treatment and pumping stations PRE-CAST CONCRETE Moulding, stripping and loading cranes METAL PROCESSING Rebar, steel stock and heavy fabrication handling GENERAL MANUFACTURING Process, workshop and maintenance solutions

Morris adds further value to their client relationships though their dedicated training division. The training institute offers a comprehensive range of job speciﬁc training in all areas of crane operation, material handling, maintenance and inspection, health and safety topics. Training can be delivered at clients’ premises worldwide. Morris’ world-leading portfolio of products, unrivalled engineering competence and ethos of developing long-term partnerships with clients sets it apart from its competitors. 18

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UPFRONT MARKET ROUNDUP

NEW DEVELOPMENTS IN RADAR GUNS SPEEDAR LIMITED (formerly Ottery Electronics) were the original UK designers of the distance/time measuring system known as Vascar. This system has been widely used in police vehicles as a means of computing the average speed of a vehicle over a pre-determined or measured distance. New from Speedar is the hand-held version – Vascar 21. In its standard format, text information is displayed on the screen of the handheld control unit. On activation the screen displays time and distance since activation and the speed of the police vehicle computed from inputs received from the vehicle. On completion it displays the distance travelled,

elapsed time, average speed of the target vehicle and the date and time that the reading was completed. This hand-held controller is also equipped with positive ‘feel’ switches and audible indication that the switch has been activated. This system is designed for easy retrofit into existing vehicles. When coupled with an in-car video system the information is overlaid onto the video display and recording. The Vascar 21 is capable of being integrated with any in-car video system and Speedar is already integrating the Vascar 21 with the systems of two UK

manufacturers. Interest has also been received from video system manufacturers outside the UK. Some clever design features ensure that this unit meets the stringent requirements of the UK Home Office HOSDB specification.

FIGURES UP IN LEBANON

LEEA GETS NEW CHIEF EXEC GEOFF HOLDEN has taken up the post of chief executive at the Lifting Equipment Engineers Association (LEEA). Geoff has worked in the overhead lifting industry since 1976, and joined the LEEA as chief executive designate six months ago. He replaces Derrick Bailes who, after 30 years service, will continue to work for the association as a part-time technical consultant. Setting out his priorities, Holden said: “2009 is going to be a difﬁcult year for many of our members. We will be increasing efforts to raise the proﬁle of the association, and awareness of the range of services offered by our members.

The rapid growth in international membership continues and we must make sure these new members are fully supported by the association. A major part of this will be the development of our range of online and onsite training services for members, and we also plan a number of new initiatives that will be launched during 2009.” Geoff joined the LEEA from Spanset UK Limited, where he was sales manager for height safety products. His career also includes a number of senior research, sales and business management roles, for companies that include Certex, Liftex and Bridon Ropes. Membership of the LEEA

has grown rapidly in recent years, and now numbers 247 companies in over 500 locations worldwide. The range of services offered to these members has also developed considerably, and includes access to a both theoretical and practical training courses, as well as expert advice and regular audits by the LEEA’s team of technical ofﬁcers. Having stepped down as chief executive, Derrick Bailes’ new role as technical consultant will include work on national and international standards, providing technical advice to members, and helping to develop the LEEA’s new online examination system.

WHILE CONSTRUCTION IS SLOWING and grinding to a halt all over the Gulf region, Lebanon is bucking global trends. In the ﬁrst two months of 2009, construction permits were up 1.7 percent relative to the same period of the previous year, according to Bank Audi’s Weekly Monitor. While the increase is small, Audi believe that it is signiﬁcant given that construction and property markets all over the world are stagnating, particularly in the Middle East.

BOTTOM LINE Aldar Properties, Abu Dhabi’s largest property developer, saw profits drop by

35% in the first three months of the year

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UPFRONT MARKET ROUNDUP

SOLAR POWER POTENTIAL THE OMANI GOVERNMENT has demonstrated its commitment to pursuing renewables to supplement the nation’s energy needs by unveiling a major solar power plant, inviting international consultants to compete for tender. According to the Authority for Electricity Regulation Oman, the

country enjoys one of the highest levels of solar energy density in the world. A recent study noted that it would be theoretically possible to supply all of Oman’s present electricity consumption by utilising about 280 square kilometres of desert area for solar collectors, corresponding to 0.1 percent of the land area.

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choice. Working as a trainer in tanAIRPORT CONSULTING VIENNA dem with leading airport partners, (ACV) is the only Austrian compaACV builds-up the required local ny of its kind to successfully marhuman resources through a wellket the full range of airport structured skills development promanagement and operations gramme. Over a period of three to know-how worldwide through effective know-how transfers. These six months future airport managers and key staff are trained in were sparked in the early 1990s ACV workshops and on site of the with a number commercialisation airport partner. Language and privatisation projects. and cultural differences However, a From are thus minimised know-how transproject planning right from the start. fer carried out to implementation Attention is quickfar from one’s ly directed to own backyard is added achieving functionhas to overcome for everyone al, swift, safe and major hurdles: concerned secure airport operae.g. foreign traditions. From project plantions, different business ning to implementation real value climates, inter-cultural and lanis added for everyone concerned. guage barriers. Experts will agree And, throughout the process, that the typical expatriate models ACV and partner airport experts used to fulfil management conare available on-request to guide tracts often cause more problems than they solve. They are quite ex- the local team. A major success factor though pensive, and local owners have is the ability to identify those areas few opportunities to intervene. where efficiency can be improved Least of all, expatriate managers to optimise the airport operation cannot make themselves effectively heard among local staff. The as a commercial business: minimum project costs, lowered budalternative: when in Rome, do as gets, traffic growth, revenue and the Romans do. profitability increases, and new On more than one occasion quality targets. Finally, regular has ACV’s less problematic and monitoring ensures sustained cuscost effective Technical Services tomer satisfaction. Agreement model been the better

real value

RAISING THE ALARM DIVA8M RESPONDS to public address requirements and Voice Alarm EN 60849/BS 5839/EN54-16, for small to medium installations. The DIVA8M module unit houses: audio digital signal processing (DSP), a matrix, a digital message player, a fully monitored fireman microphone, amplifiers monitoring with switchover to backup amplifier and loudspeaker lines monitoring. It can process and route one PSSDT ‘Microphone and Music Control Touch Screen’ security microphone console or up to eight cascaded PSM paging microphones and two 0 dB audio inputs into two different channels (music and voice). Each input is fitted with volume controls and equalisers. The two audio inputs feature contact and VOX activation, which is ideal when using the cordless microphone, for example. Up to 16 digital messages can be downloaded and recorded as WAV files directly from a computer into DIVA8M. Two messages can be

UNIQUE AIRPORT MANAGEMENT KNOW-HOW

played simultaneously in different zones. One of the messages can be used as a chime for the PSSDT microphone. Nine monitored alarm inputs make it possible to obtain the pre-programmed routings. From the front panels, the user can manually route the ﬁreman microphone signal and three digital messages into the selected zones, adjust the audio level and switch the music on or off in each zone separately. In case of evacuation, the zones attenuators are automatically bypassed. One output contact per zone (eight per unit) can be activated each time the zone is occupied with a source having a higher priority than the music. As an EN 60849 / EN54-16 / BS5839-8 security system, all DIVA components and peripherals are constantly monitored without music interruption. All incidents are recorded into a data ﬁle that can be consulted on the DIVA display or on a PC. Also any detected faults and alarm status are signalled by general fault and alarm output contacts. A local loudspeaker enables selective listening to all the sources and the system’s output signals.

Contact details: 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

GLOBAL DOWNTURN HITS ARABIAN CANAL DUBAI-BASED DEVELOPER LIMITLESS has laid off Limitless has seven percent of its workforce and delayed a key conlaid off tract on its proposed $61 billion Arabian Canal project as a result of the global downturn. The 38 redundancies follow the thousands that have already been in slashed in Dubai’s real estate sector as property of its workforce prices fall and projects are slowed or cancelled.

Speedar Ad.indd 21

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UPFRONT FIVE MINUTE EXECUTIVE PLANNING FOR GROWTH With Sheikha Hanadi Nasser Bin Khaled Al Thani, founder and Chief Executive Officer of the $3.2 billion Al Wa’ab City – one of Qatar’s largest private sector real estate projects Qatar is experiencing exponential growth on all fronts. Indeed, the Qatari economy is more vibrant than ever and represents a significant Middle Eastern success story. Our future outlook is focused on the region: to enhance our local knowledge with regional presence driven by international best practices. The speed of development does bring challenges, though. The main difficulty lies in the shift in the demand and supply curves. However, such challenges are a natural consequence of any business development or rapid economic growth. The important thing is that these challenges are managed with sound economic policies. Al Wa’ab City will be a striking cohesion of Arabic heritage and modern technology. The development will not only introduce a higher standard of living to Qatar, but will also provide Doha with a family-oriented community that will harmoniously combine state-of-the-art technology with a celebration of Islamic culture through architecture and landscaping. When we set out to create the city, we did so with every intention of creating more than just a development: we wanted to build a community with a heart. Innovation involves the successful development and application of new forms of knowledge – such as new ideas, business practices, skills and technologies – in order to create greater value for clients. It begins with invention and design, but proves its value to business in commercialisation, customer satisfaction and profit. It is also significant when it comes to creating knowledge and in applying this knowledge to generate wealth, create jobs, nurture talent and promote economic growth. Qatar’s achievements have been the result of visionary planning, hard work and persistence. I would very much like to see future generations continuing to believe in those values and the importance of education and continuous self-improvement. As Qatar makes its way towards a knowledge-based economy, we need to look further into ways to nurture and empower our local talent.

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UPFRONT MARKET ROUNDUP

NEXT GENERATION NETWORKING

Africa and the provision of budget accommodation in Japan. Young has demonstrated her credentials in the network and gained the where a business opportunity trust of major fund holders, and is exists. In 2005, Young found hernow in a position to bring the key self with a need to change her elements of projects together. way of working, and instead of The current physical and podownsizing, she took to the litical development in the Middle global market using the power East, with the appointment of the World Wide Web– truly of the first female minworldwide in this case. ister in the Kingdom Young has been The importance of Saudi Arabia working with a sigof implementing government, nificant network in adds a new Europe, the US technologies in flavour to the and the Middle traditional energy mix. As an examEast to bring major industries is ple of a woman players – innovators, critical building an entrepreentrepreneurs and fund neurial network, Young is exholders, a ‘golden triangle’ of ploring the possibilities that now resources – needed to bring proexist for discussion about female jects to life, impacting on the fuentrepreneurship and new busiture of clean and sustainable ness incubation, both of which energy production for the entire she is committed to, building on population. the regeneration and enterprise Young’s interests currently support strategy adopted by the include the development of oil reWelsh Assembly Government in fineries, major construction proresponse to the changing busijects, and solar energy ness landscape in Europe. production on an unprecedented Based in Cardiff in the scale. Smaller projects are also Principality of Wales, 150 miles under discussion, including the west of London, Young has built a creation of a new health resort in reputation of trust in the network. Turkey, an English school in North

Why networking is becoming increasingly important in the world of clean and sustainable energy production.

roblems are challenges to be seized and opportunities for innovation and progress, and this must surely be true of the issues facing the world’s ecology in the 21st century. Not a day goes by without a report somewhere being issued about pollution, global warming and related issues, and the views of governments and pressure groups on the causes and likely solutions. The importance of implementing new and existing technologies in traditional energy industries is critical, and include the treatment of polluted water generated by the oil production process, and solar energy generation on a much larger scale, including harnessing mankind’s developing ability to put larger installations into orbit around the earth. Hazel Young has a passion for networking – on a global scale. With a background in accountancy and enterprise development, Young has always had a ﬂair for bringing people together

new & existing

Acting as a broker and a catalyst, Young operates within open networks such as LinkedIn and Ecademy, and closed, exclusive networks. These extensive relationships have developed over three years and bring CEOs, decision- makers, government representatives, education institutions and entrepreneurs together. One of the things Young brings to the group is the ability to draw on the experience of the aftermath of a polluting industry in the valleys of South Wales – a 100-year-old legacy of coal mining and the visible scars of the waste products on the landscape. Seeing the investment needed from the UK and the European Union to mitigate the inheritance of 19th and 20th century wealth generating industries, Young has powerful reason to promote the newer, cleaner, technology – enhanced opportunities to create energy and prosperity. Young is seeking new opportunities for partnership working, from projects that need funding to joint ventures, as well as investors who are looking for major projects with long-term beneﬁts based on clean and ethical technology.

Hazel Young has extraordinary vision, with a passion for networking on a global scale, a background in accountancy and enterprise development, and a flair for bringing people together where opportunities exist.

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UPFRONT CONSTRUCTION FOCUS

DESERT BLOOM Compared with typical mixedTHE MASDAR HEADQUARTERS, use buildings of the same size, currently under construction in Masdar HQ will consume 70 the sands outside Abu Dhabi, percent less water. will go beyond zero net energy: “The Masdar Headquarters it will be the world’s first mixedwill set a new paradigm for the use, large-scale positive energy way buildings are designed, building. And it will utilise pioneering, never-before-seen tech- constructed and inhabited,” says Gordon Gill, partner at arnology to get there. The design takes it cue from chitecture firm AS+GG, the company behind the design. centuries of indigenous “The project reprearchitecture, marryThe project sents the perfect ing historically represents the integration of arsuccessful chitecture and building strateengineering, regies for the cliintegration of architecture and sulting in a dymate with the engineering namic, inviting latest technology building that outperand innovative buildforms any other structure of its ing systems – including some developed especially for the pro- type in the world.” “As a positive energy comject. The design includes numerous systems that will generate a plex, the project will have a farreaching influence on the surplus of the building’s energy, buildings of tomorrow,” adds eliminate carbon emissions and AS+GG’s Adrian Smith. reduce liquid and solid waste. Masdar City will be conThe complex will utilise sustainstructed over seven phases and able materials and feature inteis due to be completed by 2016. grated wind turbines, outdoor The headquarters building is air quality monitors and one of the world’s largest building-inte- part of phase one and will be completed by the end of 2010. grated solar energy arrays.

perfect

The personal rapid transit system, consisting of 3000 electric cars operating on a recyclable lithiumcadmium battery, will transport people around the car-free city. Most of the roadways are housed in underground tunnels.

The layer of glass that covers the building’s exterior reﬂects the heat of the sun whilst allowing for natural light. The north-south orientation of the structure also helps protect inhabitants from the glare of the sun.

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UPFRONT CONSTRUCTION FOCUS

The building will use its own wastewater to irrigate several lush gardens situated throughout the complex. In turn, the plants and trees help provide shade, keep the building cool and absorb carbon dioxide.

Wind towers – one of the building’s references to traditional Islamic architecture – exhaust warm air, help naturally ventilate the building, and bring cool air up through the subterranean levels of the city below.

At 75,000 square feet, the onepiece roof – made up of a steel trellis covered with photovoltaic cells – represents one of the largest solar arrays in the world and will provide enough power to build the rest of the building.

Narrow, canopied streets provide shade and funnel cooling breezes, reducing the temperature to a manageable 20˚C. Meanwhile, the network of subterranean tunnels serve as passenger walkways to the underground transit system.

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UPFRONT www.menainfra.com JOIN THE DEBATE

EDITOR’S CHOICE

CRUNCH TIME Does the construction sector need to re-evaluate its spending priorities?www.menainfra.com/article/Issue-1/ Construction/Crunch-time/

SET FOR SUCCESS Why Hydra Properties is the fastest growing real estate company in the Gulf www.menainfra.com/article/Issue-1/ Construction/Set-for-success/

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. 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 provide opportunities. Meanwhile falling raw materials costs should ease supply constraints and could even see previously mothballed projects re-materialise.

So does the downturn offer an opportunity to develop much-needed social infrastructure that, in the rush to build the next iconic tourist destination, has too often been overlooked?

Couldn’t agree more. What this region needs more than anything else is a sound infrastructure to support its growth, rather than yet another glitzy skyscraper or seven-star hotel.

Who says that these infrastructure projects have to be boring? Surely it's time for the Middle East to do what it does best and start glamourising infrastructure – companies will be jumping over each other to win these contracts! Expect to see some 7-star waste disposal plants coming soon.

I’m unsure whether there’s the appetite to build it. The Gulf’s development up to now has been fuelled by glamour construction, as developers tried to outdo each other with their next magniﬁcent erection.

The bubble has burst. What’s needed is proper assurance of rate of return on investments and more transparency.

SAMJED TALFOUR UAE

ALI AL-NEEL KSA

MOST POPULAR

ON THE MENA INFRASTRUCTURE website (www.menainfra.com) we asked: what’s your most pressing concern so far in 2009?

Fluctuating energy costs DRIVING FORCE Can the transport sector help boost Arab economies? www.menainfra.com/article/ Issue-1/Roads/Driving-force/

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Talent availability Access to capital

JOACHIM GETZ Bahrain In the short-term we need to evaluate the damage of the credit crisis before we can move on to re-evaluating which infrastructure projects should continue. The region will resemble a building site for some years to come.

KELLY TAYLOR Abu Dhabi

THE RESULTS ARE IN…

Materials/ commodities prices

JAIME WISNIAK Dubai

18% 21% 57%

OUR STORY on sustainable construction ‘It’s not easy being green’ proved the biggets hit with site visitors this month. Read more at www.menainfra.com/article/ Issue-1/Construction/Its-noteasy-being-green/

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UPFRONT CONSTRUCTION FOCUS RAIL SAFETY AND RELIABILITY IN ORDER FOR HIGH-SPEED TRAINS travelling over continents to compete with air traffic in terms of moving people and cargo, safety and reliability are essential. High-speed trains need long switchpoints to maintain speed passing switchpoints. In 1998, a group of railway companies and suppliers in Europe initiated a cooperation to reduce power consumption and improve materials and methods of switchpoint heating. Switchpoint Heating AB has been a part of this group since that time and has contributed to several new products made to ensure traffic in any weather. Combining strong functionality with sufficient power – fixed where it is most useful – is the optimal way of providing pro-

DUBAI DENIES EXODUS

tection against ice and snow. Switchpoint Heating AB’s system is based on self-limiting and constant wattage flexible elements, making it possible to deliver length up to 25 metres with a power up to 360W/m rail with only one feeding point. Double insulated elements (without braiding) covered with one-metre-long stainless steel profiles fitted to

rails with spring steel clips, gives a reliable application with good heat transfer and insurance against signal errors and electrical shock. Combined with switchgear rod heaters connected at stock-rail elements end Switchpoint Heating AB’s systems are a ﬂexible easy-to-design and use product. The system has a four-way power distributor with quick connectors at leads connecting heating elements moulded in neoprene rubber for waterproof easy installation and service (IP68). Combined with Origo Megapoint computercontrolled power distribution, heating can be maintained and supervised from distant locations. For more information, visit www.vkts.se or contact thomas.thorin@thorin.se

COMPANY INDEX Q3 2009 Companies in this issue are indexed to the ﬁrst page of the article in which each is mentioned. Abu Dhabi Airports Company 118 Abu Dhabi International Airport 118 Abu Dhabi Tourism Authority (ADTA) 44 Aggreko 76, 77 Airport Consulting Vienna 20, 121 AkzoNobel 114, 115 Aldar 102 Arab Iron & Steel Union 62 Arthur D. Little 138 ATEIS Middle East 20, 98, 117, OBC Bay Shore Systems 60,61 Birdair 2, 68, 70 Bodycote Warrington Fire 112 BOMAG 56,57 BRAAF Global Nettrade Ltd Liab. 105 Build Safe UAE 102 CASE 42,43 City of Arabia 44 Civil Air Navigation Services Organisation (CANSO) 122 ComAP 66 Coral International Hotels, Resorts and Spas 128 Corp Executive Hotels 128 Drake & Scull International 92 Dubai Civil Defence 116 Dubai Roads and Transport Authority (RTA) 84

Dubailand ECOS Hotels Emaar Etihad Airways Euroskilt EWA Hotel Apartments Hazel Young Ltd HSI Hospitality Management Holdings Hydro Mobile IHOFMANN Ilyas and Mustafa Galadari Group International Air Transport Association (IATA) International Civil Aviation Organisation (ICAO) International Federation of Surveyors (FIG) International Protective Coatings Kanoo Group L1 Identity Solutions Lucy Switchgear McLanahan Meettheboss.com Morris Material Handling Nickel Institute Passive Fire Protection Federation

44 128 34 118 133 128 23 113 128 55, IBC 73 44 122 122 80 114, 115 144 98 96, 97 37 139 18, 41 70, 74, 75 112

Qfree 84 Refined Bitumen Association 88 Risk Insight, Strategy and Control Authority 112 Rotana Group 130 Saadiyat Island 44 SAL Consultants 124, 125 Shell 88, 143 Siemens 82 Sofia Trading 6, 107 Speedar 19, 21 Starrport Corp 126, 127 The Crosby Group 39 T.H.E. Integrated Systems (TIS) 98, 101 The Wave 44 Total IFC, 88, 91 Tourism Development and Investment Company (TDIC) 44 Transport for London 84 University of Nevada 99 Varmekabel Teknik 4, 27 Vision 9, 78, 79 Volvo 18, 33 Wagner Fire Safety 110, 111 Xtralis 108, 109 Yas Island 44

SPEAKING AT THE LAUNCH of the International Labour Organisation, Labour Minister Saqr Ghobash rejected claims that the population of Dubai will shrink by 17 percent in the coming year due to the mass departure of foreign workers.

Latest official figures show the UAE’s population stands at

6.4 million With just

14% nationals of the oil-rich state There are

4.1 million workers registered with Dubai’s labour ministry While an additional

15% of the working population are not registered

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COVER STORY

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As the construction bubble bursts in Dubai, Saudi Arabia has emerged as the Gulf’s most attractive investment destination. But with the rate of development increasing at a phenomenal rate, can the kingdom avoid some of the challenges faced by its regional rival? By Tom Benson

ubai is many things, but understated is not one of them. Everything about it is big. The emirate recently completed construction work on the world’s tallest building and is home to the world’s first seven-star hotel. It features some of the most ambitious land reclamation work in history in the shape of the Palm Islands, as well as the world’s largest man-made harbour. Indeed, in a place where it has been possible to build an artificially chilled ski slope on the edge of one of the world’s hottest deserts, and where one hotel chain recently announced it would construct the world’s first air-conditioned beach, nothing should surprise us when it comes to the scale and ambition of its construction projects. This is Dubai: Glamorous, brash and undeniably modern. But scratch beneath that shiny new surface and the emirate faces some very real challenges. For instance, there are accusations that developers have focused more on style than they have on substance, with much-needed infrastructure development receiving less attention than high-proﬁle skyscrapers and hotels. The emirate’s sewerage and waste disposal systems are hopelessly inadequate to meet the requirements of such a rapidly growing city. Its roads are amongst the most heavily congested in the region. And its public transport networks – despite millions of dollars of investment and the imminent arrival of the much-heralded metro system – are still very much a work in progress. Perhaps more importantly – at least as far as the indigenous Emirati people are concerned – is the perception that in the rush to become the biggest and the best, Dubai might have sacriﬁced something of its soul. The city is undoubtedly an architectural marvel, but in the headlong rush towards modernisation, precious little has been preserved in the way of history and tradition. Today, old Dubai – which includes Bastakiya, the grand market and al-Shindagha, a complex

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centred on the home of Sheikh Saeed al-Maktoum, grandfather of Dubai’s current ruler – represents less than one percent of the total area of urban sprawl. It’s a lesson that Saudi Arabia must learn if it is to successfully reconcile its own ambitious modernisation programme with the country’s rich cultural legacy. As custodian of the two holy mosques and numerous other sites of historical and religious signiﬁcance – both Islamic and otherwise – the Saudi government has a huge responsibility to not only provide the social and economic infrastructure required for current and future generations, but also to preserve the kingdom’s heritage in the face of rapid economic growth. In addition, the growing trend towards socially responsible construction means it must do so in an increasingly sustainable way.

Money magnet Many experts believe that Saudi Arabia will be the key region for construction activity going forward, along with Abu Dhabi and Qatar. “The Kingdom of Saudi Arabia has just announced its largest ever budget,” says Ali Kologhassi, Saudi Oger’s VP of Corporate Business Development. “The government will announce major infrastructure projects in the next few years, meaning there will be big opportunities for developers and contractors who are solid and not highly leveraged.” According to Kologhassi, Saudi Arabia’s young population means that the Kingdom’s demand for social housing has risen to around 1.5 million units – which many see as a much more sustainable form of development than the type of rampant property speculation

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INFRASTRUCTURE DEVELOPMENT Apart from cultural restrictions one of the largest impediments to tourism growth in Saudi Arabia is its infrastructure capacity. The country’s shortcomings are most evident during the Hajj, the annual pilgrimage of three million Muslims to Mecca, which creates so many problems due to overcrowding that the government is forced to restrict the number of visas for pilgrims. Recognising this, the Saudi government has approved a US$38 billion tourism programme aimed at improving infrastructure as part of an effort to boost tourism revenue and employment opportunities for its citizens. Under the new strategy, the kingdom is investing US$5.1 billion to upgrade its transport system. Five new airport construction projects are currently in development, including a US$1.5 billion terminal at Jeddah, which will help the city cope with the influx of religious visitors. The kingdom has also announced plans to build a 450km high-speed railway valued at US$1.8 billion that will link Jeddah, Mecca and Medina. Once completed, the travel time between Jeddah and Mecca will be less than 30 minutes, while journeys between Mecca and Medina are expected to take two hours. The railway line, which is scheduled to be completed in 2012, is expected to carry 72,000 passengers per hour at peak period and cut the five-hour car journey to just half-an-hour. The government said the railway will help increase the number of worshippers to the holy sites to 14 million per year by 2030.

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that has gripped its near neighbour in recent years. Luxury condos for the rich gering: A 60-floor, 2000-room hotel; a 1500-person convention centre; two and famous are out; houses for the masses are in. heliports; and a four-storey mall that will house, among 600 other outlets, Indeed, Saudi Arabia has been the world’s fastest growing country in Starbucks, The Body Shop and Tiffany & Co. En route to the Hajj, pilgrims terms of population over the past 10 years. As a result, it has a very young already have the opportunity to stop at cosmetic superstore MAC, perdemographic profile, with around 45 percent of the population currently fumery VaVaVoom and Claire’s Accessories. H&M and Cartier are on the aged below 20 years. This young age profile and the rapid rate of urbaniway. “All the top brands are flocking here,” says John Sfakianakis, SABB’s sation have been the major demographic factors driving the boom in conchief economist. struction in recent years. Unlike Western-friendly Dubai, Saudi Arabia had, until very recently, re“Now is a very interesting moment to be looking at investment opporsisted commercialising its major cities – particularly Mecca, site of Islam’s tunities in Saudi Arabia,” says Paul Taylor, the Middle East expert at UK holiest relics, where millions of pilgrims flock every year to perform the Hajj. Trade and Investment. “The global credit crunch has had an impact in the But the dramatic rise in global oil prices – and the construction boom across gulf, seen most starkly in Dubai, but I think the situation is different in Saudi Saudi Arabia that followed – has finally caught up with the city where the Arabia – as it is in Abu Dhabi and Qatar – because all three states are rich Prophet Muhammad (PBUH) was born. The modern Mecca bears little rein oil and gas and they’ve accumulated a tremendous amount of wealth semblance to the birthplace of the prophet, and the proliferation of global from oil sales over the past few years. Saudi Arabia was bringing in roughchains, high-rise apartment blocks and five-star hotels has already raised ly one billion dollars a day from oil sales over the first fears that Saudi Arabia’s rulers are less concerned half of 2008, so there’s definitely money available, with preserving the country’s history than they are and the Saudi government has committed to spendabout squeezing as much money out of its visitors as ing that money throughout 2009 in order to keep the possible. economy going.” Irfan Al Alawi, founder and Executive Director of Most people are aware of the megaprojects that the London-based Islamic Heritage Research have been launched in Saudi Arabia over the last few Foundation, estimates that over 300 antiquity sites in years – in particular the six economic cities, four of Mecca and Medina have already been destroyed, which have already been launched and two more of such as the house of the first caliph, Abu Bakr, which Investment aimed at improving which are in the pipeline – and these provide the was levelled to make room for the Mecca Hilton Hotel. tourism infrastructure major plank of the Saudi government’s plans to diThe building boom has also seen the house of versify the economy. But in addition to the economic Muhammad’s first wife Khadija (where Muslims becities, there are a number of other major infrastruclieve he received some of the first revelations of the ture projects that provide interesting investment opportunities, argues Koran) lost under the construction, as well as the Dar al-Arqam, the first Taylor. “Take the Saudi Landbridge, for instance, which is a plan to build a Islamic school, where Muhammad taught. “It’s not just our heritage, this is railway line from the Red Sea across to the Gulf,” he says. “This offers comevidence of the story of the Prophet,” says Al Alawi. “What can we say now? panies the possibility of transporting goods from Jeddah and Mecca to This parking lot was the first school of Islam? There used to be a mountain Dubai two or three days quicker than if you were to ship them around the here where Muhammad made a speech? The difference between history south of the peninsula. And in December, the government launched an exand legend is evidence.” pansionist budget, which will mean billions of dollars worth of investment Some commentators suggest that Saudi Arabia’s rulers do not concern being poured into other new projects.” themselves with preserving such historic sites because their interpretation He cites plans to boost infrastructure in areas such as education, of Islam regards venerating holy places as akin to idol worship. Others, even healthcare and transport as prime examples. “In education, the governmore outspoken, believe such an approach affords the government the opment has announced that it is going to build 1500 new schools, a new uniportunity to follow religious doctrine while at the same time benefiting from versity for women in Riyadh and a science centre for the King Saud the massive monetary gains to be had from making the city a more touristUniversity. As far as transport is concerned, the country is going to build friendly destination. The tourism sector generates billions of dollars in rev5000km of new roads on top of the 15,000km that are already being built. enue and provides jobs for more than 342,000 people in areas related to And in healthcare, there are plans to build over 80 new hospitals and prihotels, resorts, furnished apartments, cafés, travel agencies, transportamary care centres.” tion and entertainment. “The government has finally woken up to the commercial value of religious tourism,” says Sfakianakis, “and they are really Courting controversy the ones driving this construction boom in Mecca.” The scale of the required investment is huge. A recent report by the Regardless of the reasoning, what is undeniable is that the number of Saudi British Bank (SABB), one of the kingdom’s biggest lenders, estimates historical religious sites remaining in Mecca is shrinking fast – in fact, Al that US$30 billion will be invested in construction and infrastructure in Alawi claims they can be counted on the fingers of one hand, and some will Mecca alone over the next four years from local and foreign companies. Up likely not make it much past the next Hajj. “It is incredible how little respect to 130 new skyscrapers are anticipated, including the US$6 billion Abraj Al is paid to the house of God,” he laments. Bait Towers, a seven-tower project that, once completed later this year, will Added to this, Al Hokeir, a leading Saudi investor in the sector, says be one of the largest buildings in the world. The scale of the project is stagthat investments in tourism are likely to increase significantly over the com-

US$38 BILLION

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ing decades. “The Saudi economy is witnessing robust growth and a major leap in investment in general. Of late, we have noticed an unprecedented boom in the tourism sector in particular. The market has enough potential to accommodate more tourism investment projects,” he says.

Sustainable development Of course, the irony is that in rushing to cater for tourist dollars in the short-term, Saudi Arabia may be missing out on opportunities to develop a wider appeal in the long-term by destroying its precious historical sites – after all, cities such as Rome are popular mainly for their links to antiquity and the cultural delights that are found around every corner, rather than the number of five-star hotels or international coffee houses there are. Catering to tourists is as much about providing a unique cultural experience as it is about luxury branding. The good news is that while the number of projected visitors is set to rise – the kingdom estimates tourist numbers to almost double from 47 million in 2008 to 88 million by 2020, while the number of hotel rooms is tipped to rise from 117,097 to 254,310 – there are signs that the government is waking up to the importance of its cultural heritage. Prince Sultan bin Salman, President and Chairman of the Saudi Commission for Tourism and Antiquities, recently outlined plans to focus resources in this area as part of its tourism drive: “The government has approved bank financing to process loans to fund heritage projects for small and medium size enterprises, and we will announce a national crafts and heritage industry plan to incubate projects in this sector,” the Prince said in a recent briefing. “In Jeddah alone, there is a project with Solidere to redevelop the historic centre, while we have 17km of untouched beachfront in the city centre. The Red Sea will be one of the biggest growth areas with up to 21 new destinations — indeed, we will announce at least one or two of these new projects by the end of this year.” Other tourism initiatives being undertaken in the kingdom include the launch of eco-lodges and farm hotels, as well as heritage accommodation. “We have already started licensing several projects in these areas, and are talking to some of the major hotel chains about these things,” added the Prince. In an encouraging move, the government has also sought to clarify its position on the preservation of antiquities and sites of historical interest. “We have designed a comprehensive awareness campaign to enlighten the public about the misunderstanding over some archeological sites and antiquities,” says the Prince. “We do not base our stand on enthusiasm only, but on the value of the archeological site in terms of its historical importance. Today, historical sites and national antiquities are protected and no one can dare to demolish or disfigure them because there is a national will

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CAPITALISING ON THE DOWNTURN Saudi Arabia plans to spend US$400 billion on infrastructure projects in the next five years as the kingdom seeks to benefit from lower construction costs amid the global financial crunch. “We are looking at much lower construction costs because of the drop in the prices of steel, cement and other building materials,” said Saudi Arabian General Investment Authority Governor Amr Al Dabbagh in a recent briefing. “Today it will cost us 30-40 percent less for infrastructure projects than six months back.”

stemming from the King, who is keen on maintaining and preserving the principles on which the state has been founded.” Back in Dubai, officials have finally begun to wake up to the value of the emirate’s historic sites – partly reflecting a popular demand for tangible links to a fast disappearing past, and also because of the realisation that history can boost tourism. For instance, a project aimed at restoring Al Bastakiya’s old buildings and lanes was initiated by Dubai Municipality in 2005. “We have to have our culture and traditions to show to others,” explains Waleed Nabil from the Sheikh Muhammad Centre for Cultural Understanding in Bastakiya. “We have to be able to show schoolchildren how their grandparents lived or we will lose our culture.” In Saudi Arabia the government’s willingness to increase the number of inbound visitors is a sign that it is aware of the revenue and employment opportunities underlying a robust tourism sector. But the biggest challenge for the country will be to balance its tourism offer with local customs, and allow the sector to grow in a sustainable way.

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THE BIG INTERVIEW

e h t m o r f s e Tal

Blue City

Richard Russell, CEO of Blue City Company 1 – the firm behind Phase One of the Al Madina A’Zarqa development – explains how Oman’s flagship city planning project is back on schedule after a challenging 12 months. BY BEN THOMPSON

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sk someone to name a Gulf-based megaproject development and the chances are high that their ﬁrst instinct will be to namecheck one of the high-proﬁle projects in the United Arab Emirates or Saudi Arabia – King Abdullah Economic City, for example, the sprawling Dubailand or even Abu Dhabi’s Masdar. Yet while these developments are undoubtedly grabbing most of the headlines, something equally staggering in scale is taking place in Oman, on a natural peninsula about an hour up the coast from Muscat. Al Madina A’Zarqa (literally, the Blue City) is a waterfront city being built along 16km of shoreline adjacent to the Gulf of Oman. When completed, the 32 square kilometre city – which represents a total investment of between US$15-20 billion – will be home to 200,000 people, with some envisaging it as the country’s future commercial capital. Only Dubai’s Waterfront development is bigger.

It’s all part of His Majesty Sultan Qaboos bin Said’s Vision 2020 project – a mission to diversify Oman from its dependency on revenue from fossil fuels – and at its heart is the expansion of the country’s tourism industry. However, Al Madina A’Zarqa is ultimately intended to be much more than a tourist resort. It will serve as a growth engine for the Omani economy and generate large-scale employment opportunities for Omani nationals, promote property ownership for nationals and expatriates alike and serve as a hub for leisure activities in the sultanate. Freehold ownership laws are already in place and the Oman government was the first of the Gulf countries to bring clarity and transparency to property ownership legislation. The city will have civic and education clusters, as well as a utilities belt on the south of the city, and seeks to grow on the back of six economic drivers: tourism, entertainment, education, medicine and healthcare, sports and wellness, and trade.

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The man charged with delivering the project is Blue City Chief Executive Officer Richard Russell. An 18-year veteran of Gulf real estate, Russell has previously been involved in several of the more dramatic property developments in the region, among them Saadiyat Island in Abu Dhabi, the Palm Jumeirah in Dubai, and Qatar’s Pearl Development. In this exclusive interview with MENA Infrastructure, he explains how the first phase is on track for completion by December 2012. The travel and tourism industry in Oman is expected to witness spectacular growth over the next few years. Why is the country such an attractive destination, and what factors are behind the expected rise in tourist numbers? Richard Russell. Oman is often called the ‘true Arabia’ and exudes rich heritage and culture dating back to 4000 BC. It has beautiful natural and unspoiled beaches, and a stunning contrast between its mountains, wadis and beaches. Added to this is the fact that its tourism infrastructure is being developed fast, with Oman Air dramatically expanding their destinations to different places around the world, and numerous five-star hotels being constructed throughout the country. The Ministry of Tourism actively promotes the country abroad through international exhibitions and other promotions, and in addition Oman welcomes a lot of foreign investment due to its stable political and financial climate. This makes it a very attractive destination. How does Al Madina A’Zarqa hope to help meet the needs of – and indeed drive – this increase in tourism? RR. The primary goal of the development of Al Madina A’Zarqa is to help in the diversification of the Sultanate’s economy away from fossil fuel. Tourism is an integrated part of the development. This fully integrated city will have 20 hotels, golf courses, a university, entertainment facilities and hospitals, among many other things. The city is expected to have more than 200,000 residents and this will include 10,000 university students. The development has a number of elements that make it an attractive destination for tourists of all types. Al Madina A’Zarqa has 100 percent freehold ownership laws and inheritance laws based on the country of origin of the buyer. It includes facilities such as education and healthcare that position the city as an international education and medical tourism destination to complement the other tourism elements of the city (such as theme parks, an aquarium, a culture centre, museums, etc.). Finally, it will also include vocational training facilities, such as a hospitality academy, that will help it to achieve high quality and customer service standards that will be maintained throughout the city’s facilities.

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THE MASTERPLAN he masterplan comprises a series of clustered communities with private courtyards and narrow, winding streets that fuse seamlessly with an efficient transport and road network extending across the site. A contained city, there will be schools, a university, stadia, golf facilities, a concert hall, marina, hotels, health facilities, souks, as well as further retail and amenities serving the individual communities.

The beaches will be improved to the highest resort standards and the creek (or Al Khor) extended, with hotels, restaurants and a pedestrian route concentrated along the waterfront. A further network of shaded, pleasant pedestrian routes continues throughout the site, while the wider roads are characterised by a careful balance between pedestrians, cars and public transport. Each residential community will have its own identity. The apartment buildings will offer residents their own private courtyard and discreet car parking. The material palette will comprise locally sourced stone and timber. Borrowing from the indigenous architectural heritage, the design is small scale, compact and organic. It is inherently sustainable through passive means, such as natural ventilation, careful orientation – to minimise direct sunlight and maximise ventilation – and the manipulation of the thermal mass of the buildings. The communities have a layered concentric structure, with each layer becoming more private and intimate as it retreats to the heart of the residences – respecting Omani traditions of privacy and an internalised architecture as seen on the Omani heritage settlements of Bahla and Manah. Designed to appeal to a diverse social mix, the residences will combine a variety of different scales and types.

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Traditional Omani architecture is a big inspiration behind the design of Al Madina A’Zarqa

I understand that the city will be much more than just a tourism centre. What is your vision for the city, and what other types of investment do you hope to attract? Can it become an economic hub in its own right? RR. Our vision is to endorse the culture and heritage of Oman and couple it with contemporary facilities. The plan is to provide a completely sustainable new city focused on the six economic drivers of tourism, trade, entertainment, medicine and healthcare, sports and wellness, and education. Each one of these elements will create an economy of its own and will position the city as an international hub.

the second hotel operator in Phase 1, which will be an internationally renowned ﬁve-star brand. We are also currently in negotiations for the operator of the shopping mall in Phase 1.

RICHARD RUSSELL

“Our vision is to endorse the culture and heritage of Oman and couple it with contemporary facilities”

Can you please update us on progress to date? What stage is the development at? What recent milestones have you achieved on the project? And when do you expect to complete? RR. Construction is moving fast and is on schedule. We are already building the first hotel (Anantara Resorts and Spa), and the first 400 apartments and first 200 villas will be completed by the end of 2010. Recently, Blue City Company 1, the company tasked to deliver the first phase of Al Madina A’Zarqa, awarded AECO for achieving four million man-hours without Lost Time Injury (LTI). We recently appointed Thomson, Perett and Lobb as the designer for the first 18-hole golf course in Phase 1, and are almost ready to announce

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The masterplan recently underwent a redesign by Foster + Partners. What were the business reasons behind this decision, and what impact has the redesign had on project costs and schedules? Why is the new design a better proposition? RR. In reality, the Master Plan re-design was completed over a year ago and is inspired by traditional Omani architecture but expressed in a contemporary way. Although the re-design effort delayed the start of the project, the planned completion remains unchanged. The new plan provides for a more efﬁcient land use and reduces associated infrastructure construction costs dramatically.

And what impact has the global economic downturn had on the development? RR. While it is true that there is a global economic downturn, for Oman, the risks to the economy and ﬁnancial system appear to be manageable. Current indicators suggest that the Omani national economy will be able to weather this downturn and that there will not be a signiﬁcant impact on the performance of the sultanate’s overall economy. According to a recent Moody’s report, the sultanate’s economy is sta-

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ble and it is expected to remain so in the future. The current statistics indicate an overall GDP growth of 13 percent at fixed rate and 44 percent at current rate compared to 2007. Furthermore, the Ministry of the National Economy is reporting that the growth of liquidity and credit rates remained highly positive in the latter half of 2008 and the first quarter of 2009. The positive forecast for Oman is due to the fact that it maintains prudent fiscal policies, has a steady political environment and an excellent relationship with other countries. We’re confident that Al Madina A’Zarqa will continue to witness high demand, both in Oman and across the region. The project’s proposition is very different to that of other developments, in terms of scale, scope and product offering. These factors continue to attract discerning investors. Put simply, what we are talking about here is much more than just another real estate development: Al Madina A’Zarqa offers a unique investment opportunity, distinct from other projects.

BLUE CITY IN NUMBERS Area: 32km2 Coastline: 16km Population: Estimated 200000

What was the inspiration behind the city? Did you look at other developments and incorporate certain elements and best practices from elsewhere when putting the masterplan together? RR. We aimed to develop a city that is inspired by its Omani past and inter-

PHASE ONE The first phase of the project is primarily a residential and tourism development with leisure and retail components targeted at the high-end market segment. It represents a substantial standalone project in its own right but it is also intended to fit as a component of the overall development. It will be built over an area totalling 2.2 square kilometres. Phase one of the project comprises of residences designed by Foster and Partners, one of the world's leading architectural design and consulting firms; luxury hotels; an 18-hole golf course; marina; natural parkland and extensive tourism and recreational facilities. With phase one due for completion in 2012, Al Madina A'Zarqa has attracted huge interest. The successful initial sales launch of 400 residential homes saw the project’s owners recently reach out to Qatar and the UAE with sales launches in Doha and Abu Dhabi.

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Employment: Estimated 120000 jobs Total investment: Estimated $15-20 billion Phases: 12 Completion: Estimated 12-15 years Owner: Al Sawadi Investment & Tourism (ASIT) Masterplan: Foster + Partners Hotels: Estimated 20 University: Estimated 10000 students preted in a contemporary way – a city for the future that will take Oman into the international arena. Al Madina A’Zarqa will incorporate existing best practices and include innovative propositions that will make it a truly sustainable development. How are you building sustainability and greener thinking into the design of the city, and how important is this for your development? RR. Al Madina A’Zarqa is committed to ensuring the environment is protected and nurtured throughout the construction phases and beyond. The 16-kilometre coastline of the project will not be altered in any way that affects the natural environment. Environmental impact surveys have already been conducted by a number of international consultants in conjunction with local authorities, and Al Madina A’Zarqa is using the ﬁndings to guide how the city is being built and how it interacts with – and even enhances – the local environment. A guiding principle for the city and its agents is to ensure that any activity creates as small an environmental impact as is viably possible. This principle will continue as the city expands and more people begin to live, work and visit the city and its amenities, carrying on the harmonious relationship Omanis have always had with their natural environment. In addition, where viable, Al Madina A’Zarqa will commission contractors that employ sustainable building practices and materials. It is the rich cultural heritage that makes Oman such a unique and enchanting place, therefore it is imperative that this be maintained.

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ASK THE EXPERT

Going the distance Thomas Elberskirch, Product Marketing Manager of Excavators for Case Construction Equipment Europe and International, explains the importance of going that extra mile for long reach customers.

he main application for long reach excavators is river maintenance and landscaping work around waterfront areas, where the machine cannot normally reach without sitting on delicate river frontage. However, the Case CX models are not just about long reach, they retain the respected Case digging and excavating capabilities, maintaining productivity for the customer and boosting ROI. For an extended reach machine to retain durability and reliability it has to be designed as a long reach model from the outset, not simply converted from a standard excavator. Case has many years experience of producing special attachments and booms for its excavators, to suit a number of industry sectors. Now, with the introduction of the dedicated Case Special Excavators (CSX) division, the company is even better prepared to meet the needs of long reach customers worldwide. All LR models use an exclusive upper structure on a reinforced LC long undercarriage. The rotating frame is reinforced and extended, and carries additional counterweight to compensate for the long reach equipment. Swing motor relief valve settings are revised and the hydraulic system features upgraded check valves and circuitry. Each boom and dipper stick combination is built specifically for long reach use, with larger diameter pins and bushes and stronger arm and bucket cylinders. Additional auxiliary circuits can be supplied for attachments such as weed cutters and tilting buckets. However, the machines retain all of the positive features of the current Case CX-B series excavator and offer real profitability through low fuel cost and reduced maintenance requirements. There is real comfort for the operator, thanks to the CX-B low noise cab. LR machines also have the same engine and hydraulic mode selection system as the regu-

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In the UK, Case has once again won a contract to be the exclusive supplier of construction equipment and machinery to the country’s Environment Agency. The five-year agreement covers more than 100 machines and includes both 15m boom CX210B LRs and 18.5m reach CX240B LR models. The most common tasks include reed cutting and dredging work to keep the water flowing freely and the machines are also used with tree shears for the pruning of over hanging branches. “The nature of the work means that we need as long reach as possible on the smallest machines possible,” says the Environment Agency’s fleet manager Graham Patrickson. “We’ve got to be able to reach all the way across the river as we can’t always have access to both sides, and we want to be able to deposit material on the far bank as we can’t just dump everything on the side where there’s a road.” The Environment Agency’s machines have been equipped with additional fuel tanks as they have to be able to operate for up to a week without refuelling in remote areas. “Being able to standardise on Case long reach machinery has been a real benefit as they’ve listened and worked with us with regards to what is needed,” says fleet operations manager Steve York. “They now come as

“Designed specifically for extended reach applications, Case long reach excavators go the extra mile to ensure that the job gets done” lar CX series excavators, ensuring real operating performance through the standard auto power boost function. Both the CX210B LR and the CX240B LR can be supplied with 900mm wide bog tracks for swamp conditions, while the CX210B LR can also be specified with a 600mm wide track to remain within a 3m transportation width. Both machines can also be specified with a conversion kit to remove the long reach boom and use a conventional digging arm, increasing versatility and boosting utilisation.

standard machines straight from the factory. The Case dealer network proximity is also a benefit in terms of reducing the carbon footprint generated when getting to the machines, which is of course a concern for us.” Whatever the operation, Case has a long reach machine capable of handling the task. Designed specifically for extended reach applications, Case long reach excavators, with the support of the Case dealer network, go the extra mile to ensure that the job gets done. n

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MEGAPROJECT FOCUS

TURNING VISION While the UAE garners the lion’s share of the headlines for its grand designs, massive megaprojects to rival those in Dubai are springing up across the rest of the region, too. And despite the downturn, development continues apace. s statements go, the 818-metre high Burj Dubai is as big as they come. But the goal of the project is not simply to be the world’s tallest building – it is to embody the world’s highest aspirations. For those living nearby, it is a shining accomplishment: tangible proof of Dubai’s central role in a growing world. For those in the rest of the world, it is an icon of the new Middle East: prosperous, dynamic and successful. Burj Dubai is just one example of how the region has taken project development to a new level. From the remarkable land reclamation projects taking place in Dubai to the desert developments rising out of the Saudi Arabian sands, from Abu Dhabi’s pioneering eco-city to the stunning waterfront developments springing up on the shores of practically every Gulf state, the region has made an art form out of developing projects bigger in scale and ambition than any previously conceived. And while the ﬁnancial crisis has put the brakes on some of the more fanciful designs, there are plenty of projects on which construction is continuing at full-speed. Over the next few pages, MENA Infrastructure celebrates some of the best.

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INTO REALITY

Burj Dubai facts Architect: Adrian Smith Construction: 2004-2009 Construction company: Samsung E&C Cost: US$8 billion Design company: Skidmore, Owings, and Merrill Elevators: 66 double-deckers moving at the speed of 18m/s (40mph) Facade: Ferroconcrete, steel-frame Floors: 160 Foundation: Concrete with 55 metre-tall piles Frame: Reflecting glazing to cool and save energy Gross floor space: 314,000m2 Height: 818m Observation deck: Indoor and outdoor at the 124th floor Project size: 190 hectares including artificial lake and downtown Dubai

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MEGAPROJECT FOCUS

ARABIAN ADVENTURES Lying at the gateway to Dubailand is the spectacular multi-billion dollar City of Arabia, a residential, retail, commercial and entertainment destination that is currently on track to open in 2011. In an exclusive interview, Syed Khalil, Group Executive Director of the Ilyas and Mustafa Galadari Group, explains how the development is shaping up. he construction of City of Arabia is in full swing, and despite being plagued by planning problems, the development is reportedly now on course to begin phased opening in 2011. With its businesses, schools, clinics, luxury apartments, shops, galleries, restaurants and multiple unique attractions, the developers of the City of Arabia, Ilyas and Mustafa Galadari Group, hope the city will become a key destination and vibrant urban community within Dubai. The megaproject consists of four distinct elements: Mall of Arabia, one of the world’s largest malls; Restless Planet, a US$300 million theme park and earth science museum; Wadi Walk, a waterfront community with stylish apartments, outdoor cafes and attractive retail outlets; and Elite Towers, a collection of impressive commercial and residential buildings. As a self-contained community, the project has been designed to minimise the use of cars and will be served by its own monorail system that will transport residents and visitors to and

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from a designated Dubai Metro station and around the site. With a total of 8200 residential components, City of Arabia will, on completion, have approximately 40,000 residents and a catchment area containing 1.87 million people.

Infrastructure progress Due to planning issues, the piling work that started on the mall back in 2006 was stopped until early 2008, meaning that the City of Arabia has suffered a series of delays and that the phased opening has been pushed back until 2011. However, since the contractors re-started construction, there have been over 1000 people on-site working 24 hours a day. This means that the infrastructure itself is now nearly complete, including the sewage systems and power substations, as well as several storm water drainage tanks to avoid onsite flooding. The transport infrastructure is also storming ahead: The bridges over the Wadi are already up and the main roads are now visible, although the final tarmac won’t be poured until the construction vehicles have left the site, in order to avoid damage. “We wanted to concentrate first on the underground delivery and now the mall,” says Syed Khalil, Ilyas and Mustafa Galadari’s Group Executive Director. “We are building an entire city, not just a tower, so infrastructure has to come first.” And so it has. The caps are currently being put on the piling, and the columns and slabs are next on the list to be tackled. The Mall of Arabia has attracted much media attention, mainly due to its immense size. The mall has over 30 million square feet of gross leasable area, and a record number of friction piles – 9600 – have been drilled to secure the project. Thanks to some clever design work, the mall features a radial grid, which means it takes just 15 minutes to do one circuit, despite being three times the size of the Mall of the Emirates.

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Mall of Arabia One of the world’s largest malls and a unique retail resort, Mall of Arabia will have a total gross leasable area (GLA) of 10 million sq ft. With more than 1400 diverse retail outlets and a rooftop hotel, it will also offer a wide range of other entertainment facilities, as well as waterfront alfresco dining.

Beyond the mall lies Restless Planet, a theme park and planetarium based on the Jurassic era. London’s Natural History Museum and Steven Spielberg have been brought in as advisors to ensure that there is a scene as close as possible to reality. Of the 110-animatronic dinosaurs, 50 have already come to life in Tokyo thanks to dinosaur expert Jack Horner, and are currently awaiting Restless Planet dispatch to the planetarium. While the planetarium will Featuring the world’s largest collection of animatronic dinosaurs and spanning be the first of its kind in the world, the infrastructure will more than 500,000 square feet, Restless Planet takes visitors back to prehistoric be a wonder in itself, comprising a 246-foot tall dome times. Combining science, state-of-the-art technology and thrilling entertainment, and a 500,000 square foot ‘cloud’ building. The entrance this unique visitor attraction boasts a collection of spectacular, themed rides, and will be via an enclosed glass bridge that connects to the provides accurate and authoritative knowledge of the Jurassic Age. Mall of Arabia’s second level. Work on the residential component, Wadi Walk, is Wadi Walk also well under way, and will eventually feature as many A vibrant, waterfront community consisting of 1600 stylish apartments, as 1600 low-rise apartments and retail colonnades, with outdoor cafes and more than 1000 attractive retail outlets built alongside a 1000 outlets and waterways. The meandering eightmeandering eight-kilometre canal. Tree-lined shady walkways will make it a kilometre canal, the focal point of the development, will popular place to stroll and relax. be kept to a deep blue colour and pristine quality by 11 water filtration plants sunk within the basement. Phase Elite Towers one of Wadi Walk will include six retail zones, providing A collection of exclusive towers located in Dubailand, offering incredible space for the 1000 outlets, as well as a range of internaviews of City of Arabia and Dubai. Dedicated commercial and residential units tional eateries. The development has been designed to provide all the amenities required to work and live comfortably and efficiently. restrict traffic flow, with cars and other vehicles diverted to the rear of the apartment buildings where there will be ample car parking. Visitors will be encouraged to Opening date cruise the waterway aboard water taxis or use the city’s monorail. The Mall of Arabia is due to open in early 2011 along with the first Meanwhile, the fourth component of the City of Arabia, Elite phase of the Wadi Walk and the Restless Planet, two years behind its Towers, will form an impressive group of high-rise buildings creating originally planned 2009 opening date, although Khalil doesn’t seem a dramatic skyline and a place for residential or corporate investment. to think that this will be a problem for his clients. He says they will Three towers are being developed by the Ilyas and Mustafa Galadari be happy that they will no longer be opening their shops during an Group: Metro Tower, Wadi Tower and the I & M Tower, on which work economic meltdown, but rather when the situation has improved. has already begun, while the other 34 buildings within the complex Indeed, Khalil believes that the current economic crisis could will be built by sub-developers. While 22 towers have been held back be a blessing in disguise for the company, in more ways than one. for future development, Khalil remains confident that around 50 per“It’s a difficult situation over all, but it has turned into an advantacent of plots that have been sold will see the sub-developers start geous situation for us. When we were constructing earlier, costs construction within the next six months and says that he expects were rising, contractors were not available and there were a lot of completion in around three years from now. problems,” he explains. “Today it is the other way around: contractors City of Arabia in numbers are free, we are getting better prices and our construction costs have been 10 million square feet of retail space in the mall trimmed down. The current situation 40,000 residents are expected to live in the City of Arabia will work to the advantage of develop9600 friction piles have been drilled to secure the mall ers. Dubai offers a lifestyle that very few cities do and I feel confident that 2011 will see phased opening it will bounce back soon. But projects 1600 apartments in Wadi Walk won’t be announced every day as 1000 workers have been on-site 24 hours a day was the case earlier. A conservative, practical and pragmatic approach will 110 animatronic dinosaurs will be featured in Restless Planet prevail. Speculators will disappear 34 buildings will make up the Elite Towers development from the market and the real investors 8-kilometre canal will be the centrepiece of Wadi Walk will remain.”

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MEGAPROJECT FOCUS Oman may not share the same glitzy reputation as its GCC neighbours but it is slowly emerging as the next tourism and real estate hot spot in the region. Diana Milne meets one of the pioneers behind its transformation, Nick Smith, CEO of The Wave.

MAKING WAVES rtists’ impressions of luxury property developments are a familiar sight in the GCC – with each claiming to offer a lifestyle more idyllic than any other. Outside, skyscrapers crowd the skylines of the region’s cities as developers clamour to outdo each other with bigger and better towers as they pull out all the stops to attract customers. But, until recently, one corner of the GCC had remained relatively untouched by the property boom – Oman. Although it is just a three-hour drive from the UAE, the country has been insulated from the dramatic changes taking place in the neighbouring country and has retained a strong local flavour. Traditional fishing villages still dot the country’s coastline and its roads, many of which wind through spectacular mountain ranges, remain refreshingly free of traffic jams. Gulf neighbours regard the country’s capital Muscat as a peaceful weekend retreat, and even though it features a shopping mall, cinema and all the conveniences associated with a modern city, the main attraction remains the traditional covered souq.

The next big thing These qualities have not escaped the attention of hotel and real estate developers, particularly since 2006 when a law was passed allowing foreigners to buy freehold properties in developments classed as Intergrated Tourism Complexes in Muscat and the Greater Muscat area. Oman is some way behind its Gulf neighbours when it come to the property boom, but already it is being heralded as the next big thing by developers – not least the creators of Oman’s ﬁrst luxury freehold development, The Wave. The project, which has won a string of awards, including Best Luxury Development from Homes Overseas magazine and four CNBC Arabian Property Awards, is being developed jointly by Oman’s Waterfront Investments, representing the Government of the Sultanate of Oman, National Investment Funds Company

and the UAE’s Majid Al-Futtaim group. Situated in the heart of Muscat, it will feature 4000 home;, including apartments, villas and townhouses; two luxury hotels managed by the Kempinski and Fairmont groups; a marina; and a golf course designed by Greg Norman. And while all this may sound like a far cry from Oman’s traditional values, The Wave CEO Nick Smith says the developers were determined to create a project in keeping with the more low key ambience of the area: “One of the reasons the project is so successful is because it is built on a human scale rather than being on a frighteningly huge scale. There are no towers. The tallest building is six storeys high and most of the villas are just two storeys. We have used indigenous plants in the landscaping and worked hard to create a sense of community. Our ﬁrst residents moved in and have already shared Christmas and New Years Eve parties here. When they arrived we said the new heart of Muscat had started beating.” Smith says that of the residents that have purchased properties at The Wave, 75 percent are already living in Muscat – showing there is strong demand from the local market for such a development. The development has also attracted strong interest from golfers keen to live a stone’s throw from one of the world’s best courses: “I think the Middle East is becoming a golﬁng hub particularly in the winter time,” he says. “There is one golf course under construction here and we have another one which should be starting construction next year. Both will attract not just property buyers but those that want a two-centre holiday in Dubai and Oman or Abu Dhabi and Oman. Being built around a marina, the development is also designed to attract boat owners.”

Survival of the fittest Not surprisingly, Smith says property sales have slowed down in recent months as a result of the global economic downturn. As a prop-

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Foreign ownership rights at The Wave erty developer, however, he believes the current situation will result in long-term benefits for the industry, and is already resulting in more serious long-term buyers of its properties at The Wave. “There is still a lot of interest here and people are still buying, albeit at a slower rate than they were last year. Prices have hardened. I think previously there was a lot of speculation in the market that has now largely disappeared. In other words, what you’re getting now is genuine longer-term investors and genuine end-users. People actually want to live in the properties they are buying.” He goes on to say that the central location of the development has helped to make it attractive to prospective buyers: “The development sits within the boundaries of Muscat and it’s just five minutes from the airport and 10 minutes away from the major shopping centre.” This also means that it has had minimum environmental impact on the surrounding area, he adds: “The fact that we’re not stuck on a beach a million miles from anywhere means we don’t have to worry too much about our effect on the environment.” The success of the project is also down largely to Oman’s emergence as a tourist destination and to the development of property laws making it possible for foreigners to invest in properties in the country. Although the country’s tourism industry has developed at a much slower rate than that of the neighbouring UAE, it is rapidly gaining a reputation as a high class holiday destination, which was voted among the 10 best world tourist destinations for 2008 by Condé Nast Traveller for the second year running and has attracted several international luxury hotel operators. Also in the pipeline is the expansion of Muscat’s airport, which will increase its annual handling capacity from three million passengers to 48 million by 2050. Work on the first phase, which will increase capacity to 12 million passengers will be complete in two years. Work is also underway to increase capacity at Salalah Airport in the south of the country from two million to 10 million passengers a year. “Oman seems to be on most tour operators’ radars now,” says Smith. “Combined with the natural beauty of the country, the big

Omanis have always enjoyed full freehold title rights. In February 2006, His Majesty Sultan Qaboos bin Said promulgated a law through Royal Decree 12/2006 for freehold ownership for all, clearing the way for expatriates and foreign nationals to own real estate in ‘Integrated Tourism Complexes’. The Wave is one of the first developments to have been given this status and has officially been granted the right to offer full freehold property rights to all buyers. Owners will be required to pay the land registry charge, which is levied on all property purchased in Oman and is a fee charged by the Ministry of Housing to cover administration costs. This charge is set by the government and is currently three percent of the purchase price. As in all property purchases in Oman, this charge will apply to purchases at The Wave, Muscat.

mountains, the desert and the culture, it is the jewel of Arabia. And we think those attractions really help to attract more buyers.” Smith hopes The Wave will help tap into the burgeoning tourism industry with the two luxury hotels it will feature and a third which is in the planning stages: “The reason we chose the Kempinski and Fairmont hotels is because they are extremely good ﬁ ve-star luxury brands. Kempinski is the oldest hotel group in the world and the Fairmont is well known for its brands, particularly in the US. We think both brands will help to bring in a US market and a European market and will increase links with those parts of the world. They are also new to Oman so their worldwide networks will help to bring additional tourism to the country. In the foreseeable future there will be another hotel, but it’s much further down the bill programme and we’re not anticipating signing that deal for another year or two.”

Healthy competition

Oman’s emergence as a world-renowned tourist destination means that The Wave’s developers could soon face competition from rival projects. Smith says, What is The Wave? however, that he welcomes the competition as it The Wave, Muscat, is the first major integrated resort and residential can only mean good things for the residents of The development to be undertaken in the Greater Muscat region. Once Wave: “There have been a few other integrated tourcomplete, it will be a fully master-planned community, occupying a ism complexes that have now been given consent. magnificent site with over six km of natural beachfront. Part of the planned That’s of great benefit to us – it means our residents development is a Greg Norman signature golf course, as well as a harbour can pop out and use the facilities that are just down front village located around a 300-berth marina. The architectural style of the road.” The Wave, Muscat, will be in keeping with Omani heritage and will create an The first phase of The Wave has been finished authentic and welcoming flavour for all residents and visitors. The tourism on target with around 20 of the villas completed, component will contain at least three hotels and waterfront retail with an al and if all goes to plan, another 200 residents will fresco ambience. The residential component will encompass a mix of quality move in next year. The fact that The Wave is coming villas, townhouses and apartments – some of which will be waterfront and together and even boasts its own community of beachfront. residents gives it the edge over similar Gulf develThere will be no high-rise towers and the project has been planned with opments that remain for now just artists’ impresa special emphasis on creating a relaxing and comfortable environment with sions, says Smith: “There are a lot of schemes out footpaths, public open spaces and water views. All residents will live within a here that are computer-generated and are never few hundred metres of the beach or prime waterfront areas. really going to happen. Our customers are moving in, it’s really happening.”

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MEGAPROJECT FOCUS

MAJOR MILESTONES FOR SAADIYAT ISLAND Created around an eco-sensitive philosophy, Saadiyat Island has the potential to transform Abu Dhabi into the cultural capital of the Middle East. But, that’s not all, this is a residential, business and tourist centre of global proportions. In an exclusive interview, Rebecca Goozee sits down with Andrew Seymour, TDIC’s Director of Infrastructure, to find out how the project is progressing.

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n 2004, the Abu Dhabi Tourism Authority commissioned the Tourism Development and Investment Company (TDIC) to transform Saadiyat Island into a world-class leisure, residential, business and tourist centre, while maintaining an environmentally sensitive philosophy. The 27-square kilometre sandﬂat, 500 metres off the north coast of Abu Dhabi, will be developed around seven distinctive districts and feature 29 hotels, three marinas with mooring for 1000 yachts, a culture and arts hub, two golf courses and 19 kilometres of beach front. Seen as one of the most important development opportunities in Abu Dhabi’s history, Saadiyat Island has the potential to change the UAE capital into more than simply one of the world’s largest producers of oil, ushering in a new era of economic transition for the emirate. “Saadiyat Island is a captivating natural island in the azure waters of the Arabian Gulf, revealing a world of leisure experiences within unspoiled beaches, signature sports facilities and unrivalled cultural attractions,” says Andrew Seymour, TDIC’s Director of Infrastructure, responsible for the delivery and development co-ordination of the core infrastructure elements of the company’s projects.

Infrastructure development With a project as big as Saadiyat Island, covering 27 square kilometres, Seymour explains that the most challenging aspects of construction have been the logistics and the co-ordination of the various contractors on

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The Saadiyat Beach Golf Club is expected to open up the Arabian Gulf’s first ‘ocean’ course later this year. Operated by Troon Golf, the Saadiyat Beach Golf Club has been designed to incorporate a distinguished practice range, as well as a Golf Academy and an iconic clubhouse. As one of Gary Player’s signature gold courses he has been to identify the natural assets of Saadiyat Island as being integral to helping him design, mould and shape a course that weaves in and out of surrounding developments, exposing open tees to the waterfront.

site. “During the last two years, we have been hydraulically ﬁlling the island with 52 million cubic metres of sand in order to form some topography and allow us to make the highway more aesthetically attractive, by hiding it within a valley. Co-ordinating this filling while constructing bridges and tunnels has been extremely challenging,” he admits. Named as one of the world’s top 10 emerging destinations by the Wall Street Journal, the TDIC insist the outstanding status of the project is all down to well-planned infrastructure. In fact, 2009 is set to see significant progress on the island, which is due for final completion in 2018. Extensive infrastructure development, including storm water drainage, sewerage systems, an electrical grid station and a water supply and a reservoir system are all progressing on schedule with rolling completion dates from now through September. “In 2009, Saadiyat Island will go on to achieve several key milestones,” confirms Seymour. “Towards year end, the 10-lane Saadiyat Bridge and Saadiyat Link will open to the public, and we will also be well underway with the early works for the museums and major infrastructure installation in several of our other districts on Saadiyat Island.” In 2008, much progress was made on road infrastructure with the 1.4 kilometre 10-lane Saadiyat Bridge, one of Abu Dhabi’s largest infra-

THE SEVEN DISTRICTS OF SAADIYAT ISLAND

CULTURAL DISTRICT

SAADIYAT MARINA

SAADIYAT BEACH

SAADIYAT PROMENADE

The artistic soul of Saadiyat, home to architectural icons like Sheikh Zayed Museum, the Louvre and Guggenheim Abu Dhabi

Saadiyat Marina will be the island’s commercial heart, featuring upscale hotels, apartments, restaurants, boutiques and clubs. All positioned on an ultramodern business bay

This pristine nine-kilometre stretch of natural beach is a luxury leisure and resort space. Home to the Gary Player-designed Saadiyat Beach Golf Club, fronting the stunning Arabian Gulf.

A colourful, downtown waterfront for families and young couples. A vibrant mix of homes, hotels, shops, cafes and restaurants, all linked by boardwalks and a stunning beachfront

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structure projects in itself, currently on track with 80 percent of works With so much work underway on the island it is clear that Seymour has completed. In fact, one lane of the bridge is currently open, connecting a lot on his plate, but he certainly isn’t letting it faze him. In fact, he pressAbu Dhabi and Saadiyat Island for the very first time. However, only ones the fact that quality is of uppermost important over speed. “It’s a balsite construction vehicles are able to access the new bridge and use it ance between both,” says Seymour. “We do have tight deadlines, but as an at present, until September when the bridge owner, quality is the most important element. We opens fully. make sure that our stakeholders are involved in A central reserve platform for light rail is also the design stage and not simply on site.” being constructed and is set for completion in the As well as working with the stakeholders the last quarter of 2009. Also, the Mind Road, which Saadiyat Island project has required TDIC to work connects with the Corniche and leads to Saadiyat with a number of sub-contractors, so how does Bridge from Abu Dhabi itself is being converted the TDIC ensure that these sub-contractors have from a one lane by one lane to a three by three the same standards for quality? “We have very lane roadway. Widening of this road will be comstringent design guidelines to ensure all sub-deplete in September and is due to coincide with the velopers understand the responsibilities of deopening of the bridge. veloping on Saadiyat,” replies Seymour. “There The arterial roadway on the island itself will are measures in place for TDIC to monitor their comprise of the Saadiyat Bridge as well as the performance and ensure that they abide by the Saadiyat Link, a 6.5 kilometre 10-lane highway requirements. To date, everyone has been supstretching across the island and connecting the portive of these and the general feeling is that western part of the island with the north-eastern they all want to be part of this process because part, serving as the main thoroughfare on the isthey know and understand that we are creating land and creating a direct road between downsomething special for Abu Dhabi and the UAE. ANDREW SEYMOUR town Abu Dhabi, Yas Island and Abu Dhabi “My ﬁrm belief is that good common sense International Airport. The main interchange of needs to prevail when dealing with project manthe link will comprise of multiple flyovers and tunnels to allow efficient agement. The most important and innovative approach is making sure that traffic flow for both visitors and residents. The link is currently 65 perthe construction and engineering teams work together to a common goal. cent complete and is scheduled to open in September. Everyone working on Saadiyat Island has the latest tools and software, but Work is also well underway on the three tunnels and seven bridges on there is no substitute for teamwork and common sense.” the island, including a 180 metre wide land bridge that is being designed to blend into the landscape. The twin 1200mm diameter water pipes that cross Cultural developments the Abu Dhabi Channel and connect Saadiyat to the main water network, And teamwork is indeed important when considering that Saadiyat were completed in February, while a 1600mm island wide crossing that will Island consists of seven alternative districts, all catering to different auditransport water across the island to the reservoir are under construction ences. The island districts are Saadiyat Cultural District, Saadiyat Beach, and set for completion in May. Saadiyat Marina, Saadiyat Reserve, Saadiyat Promenade, Saadiyat Lagoons and Saadiyat Retreat. At the heart of the island will be the cultural district, the single largest art development project in the world: a three square kilometre cultural district, made up of ﬁve art institutions – the Guggenheim Modern Art Museum, designed by Frank Gahry, the Maritime Museum by Tadao Ando, the Sheikh Zayed National Museum by London-based Foster+Partners, Jean Nouvel’s Lourve Abu Dhabi and Zaha SAADIYAT LAGOONS SAADIYAT RESERVE SAADIYAT RETREAT Hadid’s Performing Arts Centre. The laidback home of A rich environment of lush Nestled on the most With US$1 billion budgeted for modern home living, mangrove sanctuaries and secluded point of the where the splendour of free-flowing waterways island, Saadiyat Retreat each square kilometre it becomes Saadiyat’s tidal lagoon dotted with luxury homes, will be a tranquil haven of clear that Abu Dhabi is looking to put system invites a leisurely boutique hotels and a tidal luxury homes, boutique itself on the cultural map. The iconic boating lifestyle golf course designed by waterfront resorts and new buildings will be huge, the Robert Trent Jones II specialist spa retreats Guggenheim alone covers 323,000

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square feet with the design echoing the original Spanish museum with a shimmering metallic exterior of cubes, cones and blocks, concealing four stories of central galleries, set around a courtyard. And Nouvel’s Louvre, which cost the emirate UK£320 million for the use of the name alone, will be a micro-city covered by an enormous floodlit dome. But the cultural and arts hub is not all that Saadiyat Island has to offer, the development is multi-faceted and will also include a buzzing business hub for international commerce, a relaxed waterfront home and a beachfront destination. The Saadiyat Beach district will host nine five-star highly landscaped resorts along with some of the most prestigious and well respected hotel brands such as St Regis, Park Hyatt and Rotana, all located on a stunning stretch of beachfront. The district will also be home to the championship gold course designed by Gary Player, the first in the Arabian Gulf with several beach-front holes. ject is planned carefully and if the considerations are not planned for “The iconic landmarks that make up the Cultural District such as Zayed they can easily be overlooked or destroyed. “We are carefully addressNational Museum, the Guggenheim Abu Dhabi and ing all of our utility needs and loads on Saadiyat Louvre Abu Dhabi make Saadiyat Island an iconic deIsland,” he says. “Where possible we are challengvelopment not only in Abu Dhabi but the UAE. The reing the parameters that have been set in the past to gion’s first ocean golf course, Saadiyat Beach Golf see if we can improve on them. Water and electriciCourse, designed by the world’s renowned Golf legend ty usage in particular are our primary focuses to enMoorings for 1000 Gary Player will also be one of the major attractions on sure that we act responsibly. the island, in addition to five-star hotels and coastal “We will completely re-use all sewage for plant yachts community living,” says Seymour. growth in the public realm, we have the largest manThe expected grove nursery in the world, in which we have planted Sustainable development completion date is 2018 over 400,000 mangroves. These will be used to plant It was emphasised from the outset that TDIC were in our wetlands area and will re-vitalise this natural 29 hotels required to be environmentally sensitive to the habitat that has been affected by development in Abu Saadiyat Island project. Seymour believes that TDIC’s Dhabi in the past.” 19 kilometres vision, created by His Highness Sheikh Zayed over the of beachfront last 40 years and continued by His Highness President Looking forward Sheikh Khalifa, has been remarkable in driving susThere is no doubt that Saadiyat Island will be a 3 marinas tainable development. “It has been done with both the spectacular development, incorporating residential, environment and the sustainability as major drivers for commercial and leisure aspects to become a truly de2 golf courses the development. At TDIC we are committed to continsirable area. And although the island is not due for ue with this vision as part of our core values.” completion until 2018, the infrastructure that will be in Seymour goes on to explain that the impact that sustainable develplace by the end of this year will be a fantastic showcase for what the isopments have on the infrastructure itself is little to not at all if the proland has to offer.

SAADIYAT ISLAND IN NUMBERS

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ASK THE EXPERT

State-of-the-art compaction Engineering projects today are characterised by the need to increase output and meet high quality demands. One of the technically indispensable construction technologies is compaction. What are the recent developments in this technology? And how can it speed up construction progress?

Hans-Josef Kloubert

he sophisticated art of compaction is not just measured in machine mass. Static compaction has long since given way to dynamic compaction. The secret of modern, highly efﬁcient compaction is the variation of the effective direction of vibration, the so-called directed vibration. Weights are positioned on the exciter shaft that rotate counter-directionally and adjust themselves to the level of force required. These forces can be adjusted progressively and fully automatically between vertical (maximum compaction energy) and horizontal (minimum compaction energy). The compaction result is more even, quicker and more speciﬁc. Being able to vary the effective force means you can operate the machine at considerably higher amplitudes. And higher amplitudes mean higher compaction performance and improved depth effect. Amplitude can also be reduced for the compaction of surfaces or when compacting in vibration-sensitive zones such as inner-city areas. Consequently, a single drum roller with directed vibration will achieve a compaction result comparable to conventional single drum rollers in a higher weight class and you can still operate it in sensitive zones. This is how you get increasing output from one machine.

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For the economical aspects and high quality demands, you need to monitor your compaction results. For example, on BOMAG single drum rollers with VARIOCONTROL, the BOMAG system for the direction, variation and controlling of vibration, the Terrameter BTM prof measuring system monitors compaction results. It allows precise and surface covering detection of soil stiffness in MN/m2 during the compaction process itself. The EVIB value (described as a vibration module)

The advantages of this technology really come to the fore in major projects. For example, BOMAG single drum rollers were able to put their efﬁciency to the test during the development of the Jebel Ali container port in Dubai. Originally, this project intended to do follow-up compaction on an embankment 1.5 m above sea level using conventional 12 ton single drum rollers. The rollers were to be used to install layers of just 30 cm to a level of 3.80 m above sea level and to compact these layers to 95 percent proctor densi-

“The secret of modern, highly efficient compaction is the variation of the effective direction of vibration, the socalled directed vibration” is calculated from the interaction between the acceleration of the vibrating drum and the dynamic stiffness of the soil; this value increases with further compaction. The EVIB also stands in direct relation to the deformation modules produced in static plate bearing tests. A compaction management system, BCM 05, supplements these measuring systems by providing a convenient way to manage measured data, as well as comprehensive options for documentation and evaluation. A graphic display signals when maximum compaction is achieved, so the roller driver is continually updated about the area being worked.

ty. However, a BW 226 DI- BVC single drum roller with polygonal drum and VARIOCONTROL achieved the same measure by installing and compacting layers of just 1.35 m each – a gain in productivity of 450 percent. In addition to this, follow-up compaction of the 1.5 m high embankment was ﬁnished in just eight passes. If you talk about state-of-the-art technology in the ﬁeld of compaction, you have to talk about directed vibration combined with control and measurement systems. It is these kind of techniques that really speed up construction progress.

Hans-Josef Kloubert, Head of Application Technology at BOMAG, is a renowned expert in compaction techniques.

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REAL ESTATE FOCUS

Investment climate looking up Abu Dhabi looks set to be the strongest performing MENA real estate market over the next two years, according to the results of a survey of 200 of the region’s premier investors. bu Dhabi will be the stand out market for real estate investors, according to ﬁndings from the second annual Investor Sentiment Survey, an in-depth study of real estate professionals’ market views conducted by Jones Lang LaSalle in association with Cityscape. The report also reveals that, increasingly, investors are returning to invest in fundamentals with more weight being attached to regulatory issues and market risks than six months ago. According to the investors surveyed, markets will begin to recover in 12-18 months – a view consistent with Jones Lang LaSalle’s view that 2010 will be the optimal year to have invested in the MENA region. The survey incorporates the views of over 200 developers, sovereign wealth funds and high net worth investors, and provides an ideal benchmark for the state of regional real estate markets. Ian Ohan, Head of MENA Investment Transactions at Jones Lang LaSalle, commented: “Sentiment, be it positive or negative, drives markets. Since we last undertook our Investor Sentiment Survey in September 2008 in the aftermath of the Lehman Brothers collapse, sentiment has, without doubt, fuelled a dramatic change in the health of the MENA real estate sector. This is, therefore,

a vital piece of research with contributions from many of the region’s leading investors.” As one of the world’s leading real estate advisory organisations, Jones Lang LaSalle sees many positives in the report. “That investors are returning to investment fundamentals such as focusing on yield is a welcome finding as is the suggestion that there is, at last, an end in sight to the current turmoil,” continues Ohan. “With Abu Dhabi and Saudi Arabia suggested as hot spots for investors in the coming years, the MENA region looks set to grow in significance even further.” Andrew Charlesworth, Head of Corporate Finance Advisory at Jones Lang LaSalle MENA, agrees. “The rebuilding of investor confidence is critical to institutional and fund based real estate investment,” he says. “We are beginning to see the return of investor interest in discretionary funds that provide sound investment strategies, professional and credible management and proprietary deal flow.”

Investors expect yields in excess of

11%

on their Dubai investments this year

Key findings The Middle East was the last region to get hit by the global downturn. Capital values and rentals in the Middle East only started to decline in the ﬁnal quarter of 2008, whereas other markets in the world had already been in decline for some time. Nonetheless, Middle East real estate

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MARKET TRENDS markets have reacted relatively quickly over The major findings from the report include: the past six months with prices adjusting to the • Abu Dhabi stands out from the crowd. The emirate is expected to be the strongest performing new market realities, and governments across real estate market over the next 12-24 months due to its level of planned infrastructure, real the Middle East region have been swift to react estate planning and vision, environmental sustainability and the quality of leadership. compared to their counterparts in more mature • Things are expected to get worse before they get better. Investors expect real estate market economies. Concerted efforts are being made to conditions and performance to decline further across the entire MENA region in the short term. stabilise the regional financial and real estate • Saudi Arabia is expected to recover first. Investors expect Saudi Arabia to be the first market to markets after the initial damage assessment. recover, being the only location across MENA where values are predicted to increase over the Despite the downturn, however, Middle next 12 months. Eastern real estate markets continue to • More buyers than sellers in Abu Dhabi, Riyadh and Jeddah. Dubai is the only market with outperform globally. Around 36 percent of significantly more sellers than buyers at present, with a general increase in the number of respondents consider that the Middle East investors seeking to hold rather than sell into what are perceived to be depressed markets. will have the world’s best performing markets • Yield expectations are increasing. There has been a general increase in the level of yield over the next 12-24 months, confirming the expectations over the past six months, with investors now expecting net initial yields in excess view that the Middle East will outperform of 10 percent in all markets across MENA. real estate markets in other regions over the next two years. Opinions on regional markets confirm the view that there is a shifting focus while, 36 percent of respondents believe that liquidity will return to of sovereign wealth funds and major regional investors into their local the market in the next 12 months, with a similar number suggesting markets. Of the international markets, Asia Pacific, North America and that this will happen in the next 12-18 months. This supports the view Western Europe show the greatest potential, with London top of the of a broad recovery in 2011. list of those looking to invest internationally. Within the MENA region itself, Abu Dhabi is seen as the market likely to perform the best over the next 12-24 months. A balanced growth story to date, vast oil wealth and a relative undersupply of housing and other asset classes makes the emirate the most attractive investment environment of all the major markets in the region. Saudi Arabia was considered by a quarter of respondents as likely to be the most robust market in the next few years. Jeddah and Riyadh offer the most potential, according to the survey, with the new economic cities starting to hit the market towards the end of the year. Vast undersupply of housing, notably in the middle-income sector, will continue to drive demand in the largest of the Gulf economies. Qatar’s potential was also noted by respondents, with almost twice as many as last year, suggesting it would outperform other markets. Strong GDP forecasts and vast per capita wealth make Qatar the most protected from a protracted global downturn. Significant future supply may, however, temper real estate performance in the new term.

Falling prices create greatest opportunity 2009 will see a further erosion of values in all markets – KSA will see the smallest drops, with Dubai the worst hit. This price adjustment is expected to aid Dubai considerably as investors are attracted back at fairer values and with greater yields. Early signs of such activity is already visible.

“With Abu Dhabi and Saudi Arabia suggested as hot spots for investors in the coming years, the MENA region looks set to grow in significance even further”

Recovery set for 2010 All MENA markets are currently in the downturn stage of their cycle, with Saudi Arabia least affected, according to respondents. Dubai will be the market hardest hit, and is thus the furthest market from recovery. The emirate has been hit by a combination of the international downturn as well as a signiﬁcant level of new supply coming on to the market; however, with signiﬁcant adjustments in capital and rental values already in place, Dubai may prove to be one of the most lucrative real estate investment opportunities in the region over the next 12-24 months. Other markets not developing at this pace and able to learn from the Dubai model are better protected. Nevertheless, there is a relatively narrow band of sentiment of the likely recovery time for markets within MENA. Half of those surveyed believe KSA will start its recovery within the next 12 months. Mean-

Yield expectations have increased everywhere, with investors expecting yields of greater than 11 percent – higher than the nine percent ﬁgure revealed in last year’s survey. This yield shift represents a decrease in expected capital values for income assets of around 20 percent by respondents and 40 percent from peak actual traded values, consistent with London and other major centres that entered the downturn at least 12 months prior to MENA. “As the signposts of recovery begin to emerge globally and regionally, experienced investors that understand the signiﬁcant lead time to properly review and complete transactions are keen to not miss out on these value investment opportunities and are already pursuing deals,” concludes Ohan.

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EXECUTIVE Q&A

OPTIMISING DRILLING EFFICIENCY

Adam Minatre, International Sales Manager for Bay Shore Systems, explains how innovative approaches are impacting the drilling sector.

What are the biggest infrastructure challenges in the Middle East drilling sector? How are you going about tackling these challenges at Bay Shore Systems? Adam Minatre. The biggest challenge is the lack of qualiﬁed employees. This is a global problem, not just a Middle East problem. Young people don’t go to college to learn how to operate drilling rigs or do construction work. Construction is hard work and the majority of the people who are willing to do this work have to be imported from other less fortunate countries. While this gives these people an excellent opportunity, very few are qualiﬁed to operate equipment that can easily cost over US$1 million. With this in mind it is key to build machines that are easy to operate and maintain; our machines satisfy both.

What is your advice for drilling contractors looking to optimise drilling efﬁciency? AM. Think outside the box. Evaluate the equipment you have and where its shortcomings are on and off the jobsite. Bay Shore Systems makes equipment that is easy to operate, easy to maintain, easy to move from hole to hole and from job site to job site. We enjoy working with our customers to optimise their business because we know that if we can make our customers successful we will also be successful.

Can you give an example of a recent project in which you have been involved with – what were Bay Shore Systems, Inc. has the challenges and how did your solution address been a pioneer in the foundathese? tion drilling industry for over 30 AM. We have been working with a company in Qatar. years. Customer service is the The ground conditions there are very hard and recompany’s number one priority quire good tooling. This particular contractor owns a Are you utilising any innovative approaches in and strives to make our customlot of equipment that competes with ours. The tooling terms of equipment flexibility and customisaers successful by offering a wide that was supplied with these machines was of very tion? array of foundation drilling equippoor quality and under designed. It was required AM. Bay Shore Systems is a very innovative ment to meet all drilling needs. that employees would repair their drilling tools full company. Every one of our machines is truly built to order, with specific criteria that the customer time on their job sites. I was able to bring another chooses or requests. We don’t try to pretend auger manufacturer to the site and ultimately got the to know what the contractor needs, they tell us and we listen. Our contractor tools appropriate for the conditions and strong enough to last. machines are very flexible and can be adapted long after the time of A lot of suppliers are taking advantage of the market and not offering the delivery to optimise drilling operations. contractors the best products.

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STEEL FOCUS

The Middle East steel industry has been undergoing rapid expansion over the last few years to meet the needs of a fast-expanding construction sector. But what challenges has this rapid growth presented to regional producers? Younis Haidar, Regional Director for the Arab Iron and Steel Union, explains.

hat is interesting about the development of the Middle East steel industry during the last few years is the speed at which it has grown: over the last eight years, the growth rate of this industry in the Middle East was second only to China in world terms. This acceleration is evident in the number of new projects that have been set up: between the expansion of existing mills and the start up of new facilities, over 100 new projects have been initiated, which has increased the production volume and made it much easier for producers to respond to the needs of the domestic markets – in particular, in the field of long products production, the growth of which has been driven in large part by the construction sector. In recent years, this rapid growth has imposed certain challenges on producers – for one thing, they need to consolidate their position as producers and improve their ability to compete and continually develop. There

is also the external challenge posed by the nature of a market such as the Middle East, which is considered one of the most open and attractive world markets for a number of big international players. Perhaps the biggest challenge for local producers has been the number of companies trying to enter the market at a time when weak demand means the ﬁeld has become too narrow to accommodate a large number of competitors, each of whom is trying to gain market share.

Economic conditions Without doubt, the economic conditions that have hit the construction sector have been a big shock for steel producers, who have gone from experiencing strong demand for their products to a downturn in a matter of months. However, what makes the markets of the Middle East better able to get out of this shock in a shorter time is the fact that steel is a key need for most countries of the Middle East, and considered a necessity rather

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than a luxury. This reality reﬂects the growing demand for popular, middleincome housing developments, while the demand for luxurious or welfare housing has declined. The biggest proportion of steel products go to satisfy the growing demand in the housing and infrastructure sectors, which are sectors supported by the government and directly connected with the social and living situation of people. The development of the steel industry in the region has been connected with the recent surge in economic prosperity. For instance, much of the revenues resulting from high oil prices in recent years have been directed towards investing in and setting up steel projects. Improvements in the price of steel have also encouraged investment in this sector. In addition, the industry has had a guaranteed return, and its export capabilities – as well as its ability to satisfy the increasing needs of domestic markets – mean it has been a very attractive investment. Nevertheless, the steel industry in the region is relatively nascent, and therefore more vulnerable to crises. Many of the new players who entered the industry in the last few years are not accustomed to or familiar with the cycles of this industry, and the upwards and downwards conditions through which it usually passes over certain periods of time – intervals that Younis Haidar have become increasingly short in recent years. Perhaps the clearest indication of the impact of this crisis on the region’s steel industry is the slowing down of the implementation of certain projects, the postponement of some and the cancelling of others. Projects in the public sector were less affected than those in the private sector. Generally, it may be said that the steel industry is, in spite of the negative impacts of the crisis on its growth, still in good shape – especially compared with the automotive or some other industries. No bankruptcies of steel companies have been announced, and most companies still maintain a strong financial position that enables them to survive and maintain limited growth despite the declining profits and shrinking prices. What may be seen at the world level, however, is a trend to cut down costs and production. This will result in creating the required supply-demand balance for most world markets. Most companies have been forced to cut down their production, but this is better than having overcapacity, which may result in more price reductions and will in turn cause loss of conﬁdence in the industry – which constitutes a danger to the stability of markets and prospects for recovery. This is also applicable to the steel markets in the Middle East, as most companies resorted to cutting down their production as a result of the declining demand. But with signs of the recovery of the market, they have resumed increasing their production so that they can maintain their position.

Regional outlook With the continued recession facing the steel markets as a result of declining demand in most markets, and available cash liquidity decreasing, forecasting what the state of this industry will be over the next few months is very difficult and is one of the great challenges facing the steel markets – not only at the level of the Middle East, but also at the world level. The rapid changes taking place during the last few months have certainly had a destabilising effect on the steel markets, and by extension on other industries too; the price of one tonne of aluminium dropped from US$3500 down to US$1530 inside two months, while the price of steel billets fell from US$1200 per tonne down to US$270 per tonne. This is also applicable to the scrap prices and the prices of some other finished products. Such a situation does not help with forecasting what the outlook might be over the next few months. However, signs of an improvement in the steel industry have begun to appear in a number of markets. Steel consumption in one of the biggest Arab markets, Egypt, has seen strong growth during the first quarter of this year, achieving an increase of 21 percent during 2008 compared with 2007. Consumption of long steel products reached five million tons in 2008 against 4.1 million tons in 2007. Also, the steel imports in the markets of the region have been elevated during the first quarter of this year compared with the same period in 2008. The level of imports from Turkey in March 2009 was one million tons. The markets of the Middle East are the largest steel products importers, with a figure exceeding 30 million tons throughout the whole of 2008, according to international statistics. Based on this reality and not on predictions or forecasts, it may be said that the steel markets in the Middle East have great potential, reinforced by available need and the fact that most steel markets are still unsaturated. The average per capita consumption of steel products is still less than the world consumption average, with some

The price of steel billets recently fell from US$1200 per tonne down to US$270 per tonne limited exceptions in some countries of the Middle East region. This potential is also reinforced by the fact that the economic growth rate – despite being affected by the global economic crisis with levels expected to be the lowest for many years – is still on the positive side, on contrast to many economies of developed countries where growth is expected to be negative. An insight into the coming period can be glimpsed in the intention of many companies to go ahead with the implementation of their projects in spite of the crisis conditions. Some companies also see this crisis as a good opportunity to acquire other projects or to carry out some merger operations with similar companies. n

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ENVIRONMENT FOCUS

he demand for ‘greener’ buildings – and the materials needed to construct them – is increasing around the world, fuelled by a rise in environmental consciousness and the knowledge that our existing non-renewable resources are not going to last forever. The Middle East is not immune to this trend; in 2008, for example, the Dubai ruler and UAE Prime Minister, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, passed a decree to implement green building in line with the emirate’s strategic plan. However, with the UAE earning the dubious accolade of having the highest carbon footprint of any nation, according to the World Wildlife Fund, there is clearly still a lot of work to be done. The advantage being, of course, that when the ruler talks, people listen – even Dubai’s upscale developers. One example of this is the increasing investment by developers in district cooling systems, which distribute chilled water through underground pipes to groups of buildings. District cooling can provide twice as much energy efﬁciency as individual air-conditioning systems. Another example is the recent high-proﬁle launch of the Blue Communities project by developer Nakheel, backed by Dubai’s ruler. The project will invest 200 million dirhams over three years to bring together a wide range of people

BIGGER, BETTER, GREENER The Middle East has not traditionally been known for its focus on energy efficiency or sustainable buildings, preferring instead to follow the adage that bigger is better. But that attitude is changing.

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– from government ministers to philosophers, poets and photographers – to deﬁne standards and guidelines for sustainable coastal development. In addition, the 400 metre-high Lighthouse at the Dubai International Financial Centre is aiming to be the first skyscraper to achieve a platinum rating under the Leadership in Energy and Environmental Design (LEED) system. If it succeeds, it will be only the 18th building in the world to achieve this standard. The Lighthouse will use 58 percent less electrical energy and 48 percent less water than the standard design for buildings in Dubai.

west direction to minimise direct sunlight exposure and maximise views to the adjoining waterfront and main avenue vistas.

Making progress

Jambhekar says that in the countries in which the firm works, sustainability is now either at the forefront of the building industry (for example, in Dubai and Abu Dhabi), or it’s just beginning to surface, such as in Saudi Arabia. Dubai now requires that every project not only be sustainable, but also be LEED-certified. When asked what is behind this new-found environmental consciousness, Sustainable design Jambhekar replies, “His Royal Highness General Sheikh Mohammed Bin Rashid For a building to be truly green, sustainAl Maktoum once said: ‘We have to make ability must be integrated into the design history and approach the future with steady from the outset, as Sudhir Jambhekar, steps, not wait for the future to come to us.’ DIFC LIGHTHOUSE Senior Partner in architectural firm FXI think this is the perfect example of a driver FOWLE, explains, “Our advancement of susto ‘go green’. We must act now and not wait. The first skyscraper to get a LEED tainable design spans a wide variety of Having said that, I think the specific drivers platinum rating is a 400m tower, with 64 project typologies, and in each case, an infor this desire in the Middle East region are a storeys of offices and, above them, three tegrated design approach promotes solucombination of the following. Energy is exhorizontal-axis wind turbines integrated tions relevant to the programme, building pensive, water is not plentiful, there is into the facade. The building also has an size and location. Right now we are designgreater awareness of the LEED system, and entire wall made of photovoltaic panels to ing more than 1.4 million square metres of there is a new consciousness surrounding generate solar energy, and together LEED space around the world, including the issue on the part of world leaders.” architects firm Atkins hopes the three LEED Platinum projects and seven One problem that will continue to renewables will generate 10 percent of the LEED Gold projects. trouble the Middle East’s construction secbuilding’s energy needs. The building is “We recently partnered with the United tor is the continuing need for many builddesigned to let in light but not heat, States Environmental Protection Agency’s ing materials to be imported. Companies minimising lighting and cooling ENERGY STAR and EPA Climate Leadership like FXFOWLE use local materials sourced requirements. It is attached to a district programmes, and are currently developing a from within a 500-mile radius of each project cooling system, and has ‘hundreds’ of comprehensive climate change strategy to site whenever possible, as well as recycled energy and water-saving measures, reduce our office operations’ greenhouse materials and finishes. However, many of including chilled beams, low-energy gas emissions.” the ingredients needed to provide the glitlighting, advanced lighting controls, lowFXFOWLE has been involved in the plantering edge to the region’s luxurious buildenergy car park ventilation and lighting and ning of 200 hectares of land called the Canal ings – Italian marble, for example, and even an intelligent building management District within the Waterfront, Nakheel’s new materials as relatively mundane as glass – system. Atkins expects the Lighthouse to sustainable mixed-use development in must still be transported across long disuse 48 percent less water and 58 percent Dubai. The Canal District is designed to the tances, raising the area’s carbon footprint less energy than Dubai’s standard designs. standards of the United States Green substantially. Building Council’s LEED for Neighbourhood Jambhekar also believes that in Development (LEED ND), and is the world’s order to be considered a global leader largest district designed to LEED Gold standards. The master plan diin sustainable design and development, the Middle East needs to exvides the site into eight smaller districts that are connected by a light plore and implement a greater design strategy for public transport. rail system and a series of parks, canals and pedestrian boulevards. “Dubai is doing this quite successfully,” he points out, “but Abu Dhabi Sustainable guidelines will ensure that all future buildings on the site and Saudi Arabia need to make it a priority. I also believe that there will be LEED Gold. needs to be more emphasis on energy-generating ideas, such as geAnother of FXFOWLE ‘s energy efficient projects is the Maritime Tower, othermal and other renewable energy technologies; and more focus also in Dubai, a 39-storey projected LEED Gold office building comprised given to conserving and reusing water. Lastly, and probably most imof a seven-storey podium with four stories of offices on three sides, and portantly, there must be carefully planned growth. The region must ema total floor area that is approximately 102,000 square metres. The brace the idea of urbanism, and recognise density over urban sprawl.” tower will be located in Maritime City – a new city with maritime faciliThe Middle East will obviously face great challenges in its drive to ties, education, commercial, residential and retail complexes. The tower become an environmental leader. But with the financial resources takes the form of three layers of sails curving up from the ground, built available in the region and the commitment from those in power, this vito look as if they are billowing in the wind, and is oriented in an eastsion could well become reality.

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GOING GREEN

CONSTRUCTION

GOING GREEN? A study of construction professionals around the world has found that the majority expect more than 60 percent of their projects will be focused on green building within the next five years. nvironmentally friendly building currently accounts for more than 10 percent of domestic projects for almost a third of the respondents who participated in a recent study on sustainable trends in the building industry. It is the first review to examine green building market trends and drivers on a global scale, according to McGraw-Hill Construction Analytics, which conducted the research and produced a report on the findings in partnership with the World Green Building Council. The 50-page report, Global Green Building Trends: Market Growth and Perspectives from Around the World, is based on a survey of early market adopters in 45 countries in seven regions: Europe, North America, South America, Australia and New Zealand, Asia, the Middle East and North Africa, and Sub-Saharan Africa. The bottom-line impact of eco-friendly building is expected to be strong, according to the study. It found that 86 percent of firms expect rapid or steady growth in sales and profits associated with green building. Of the seven global regions, the fastest-growing green building market is Asia, where 73 percent of the firms are expected to be dedicated to green building by 2013 compared with the 36 percent that do so currently, the study found. The study also found that solar power is the most common form of renewable energy around the globe. Just over 50 percent of industry professionals reported using solar power today, and usage is expect-

ed to reach 76 percent in five years. The biggest growth spurt among renewables was projected for wind power: 20 percent reported using it today and a jump to 57 percent expected by 2013. Use of geothermal power is expected to rise from a current 22 percent to 45 percent in fi ve years. Looking at drivers, the study found the top reason businesses around the world cited for green building is that it is “the right thing to do”. In Sub-Saharan Africa and the MENA region, “supporting the domestic economy” was frequently cited. And firms in Asia and Europe said “environmental regulations” are a big motivator. “Green building has truly become a global movement,” says Harvey Bernstein, McGrawHill Construction’s VP of Industry Analytics, Alliances and Strategic Initiatives. “Firms around the world are awakening to the positive business, environmental and societal impacts of green building. We are seeing widespread growth as green becomes increasingly visible throughout the global marketplace.” Andrew Bowerbank, Executive Director of the World Green Building Council, notes that buildings and infrastructure globally account for 40 percent of greenhouse gas emissions. “This is more than what the transportation or manufacturing sectors contribute,” he says. “It is critical now that industry leaders recognise current environmental opportunities in the marketplace and begin to collaborate to demonstrate effective solutions.”

50 percent

of industry professionals report using solar power today

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ROUNDTABLE

With the concept of sustainability growing in importance across the Middle East region, how is the building materials industry responding? MENA Infrastructure asked two leading experts for their views.

There has been a growing focus on sustainability in the construction sector over the last few years. What impact has this trend had on the industry? Kevin Mayer. Designers, architects, contractors and building owners certainly consider building lifespan and the materials used for the buildingâ&#x20AC;&#x2122;s lifecycle more now than in the past. In recent years, the main considerations for building construction were focused strictly on the raw cost of materials and their use in the short-term, and their impact on the return on investment. As architects, engineers, contractors, owners and developers become more aware of the impacts of building construction and performance on the environment, different metrics are being used for building construction â&#x20AC;&#x201C; such as energy savings, emissions, building product lifecycles, manufactured goods-environmental impacts and

recycle/reuse programmes. The investment cycles for investment return (which impacts design and construction) frequently extend beyond the short-term and factor in much longer-term returns and environmental impacts. Stephen Barnett. It has encouraged taking a whole lifecycle view of buildings and infrastructure: Looking at ways of increasing their durability whilst reducing their overall environmental impacts. This has led to innovative approaches to design and choice of materials. For example, a nickel-containing stainless steel roof or building exterior can reduce the solar heating effect and hence the demand on the air-conditioning system. At the same time, its corrosion resistance ensures low maintenance, no run-off of pollutants and long life. Finally, it is a fully recyclable material. Similar considerations apply to

Sustainable building materials

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total demand for new stainless steel today. In spite of its value, only about 80 percent of the available end-of-life stainless steel scrap is actually collected and used in new stainless steel, with the remainder being lost from the recycling loop. The industry is making strong efforts to increase that percentage, which will bring both environmental and economic beneﬁts.

As VP of Business Development, Marketing and Sales at Birdair, Inc., Kevin Mayer is responsible for providing leadership, directing strategic marketing initiatives and business development efforts and sales functions for the company.

Stephen Barnett is President of the Nickel Institute. Before joining the Nickel Institute in 2006, Steve was Vice President of Health, Safety and the Community in BHP Billiton’s Stainless Steel Materials Division.

adjustable solar shades. Water, especially potable water, is a precious resource – particularly in the Middle East. There is growing interest in water re-use within a building. Durable, corrosion-resistant nickel-containing stainless steels are a natural choice for such systems. Durability is also the key reason for choosing stainless steel for critical structural items which are exposed to aggressive marine environments such as concrete reinforcing bar in bridges. How are you integrating sustainability and greener thinking into the manufacture of your building materials? SB. The most commonly used nickel-containing construction material is stainless steel. The nickel and stainless steel producing industries are both actively reducing their CO2 emissions and other environmental impacts. This starts with mining and refining the raw materials, where there are already strict environmental controls. Process efficiency improvements are important but recycling stainless steel at end-of-life brings the greatest benefit. The average 60 percent recycled content in a stainless steel melt today reduces the CO2 emissions per tonne of steel by 32 percent compared with using virgin materials. Recycling has always been practised but stainless steel items are very durable and so generally only become available for recycling after many years in use. Just look at the 80-year-old Chrysler Building in New York. Since it has also been one of the fastest growing materials, there just cannot be enough scrap available to satisfy the

KM. Elements in a Birdair system contribute to sustainable design by virtue of their reuse and recyclability. Some examples include recyclable steel and Kenafine, a new membrane made entirely from the Kenaf plant, which is converted into paper at the end of its lifecycle. Birdair has established sustainable practices for onsite construction works. We’re in the process of receiving ISO 14001 certification for our manufacturing facilities, onsite construction work(s) and administrative offices. ISO 14001 deals with environmental policies and procedures in these areas. Products offered via Birdair include internationally recognised sustainable certifications like Cool Roof, Energy Star and Cradle to Cradle.

In your opinion, is enough being done across the Middle East to promote the use of sustainable construction practices and materials? What can be done to increase awareness? KM. We have seen sporadic design efforts in the MiddleEast region. In our opinion, more can be done. Our impressions are that these initiatives are driven as much by the budgets speciﬁc projects carried out and an interest in leveraging a differentiated position from other development efforts as from a sincere desire to construct sustainable structures. It is my experience that awareness comes directly from the public interests. The only way sustainable construction initiatives will gain full momentum is if it becomes a trend in the public eye, from the owner/developers, the clients, and the public sectors, owning, constructing and using the buildings. If these groups

“The only way sustainable construction initiatives will gain full momentum is if it becomes a trend in the public eye” Kevin Mayer buy-in to the practices that the programs require from construction, the building use will allow for the sustainable practices to take hold. SB. There is a growing awareness among both architects and clients in the Middle East of the need to embrace sustainable construction practices. The green building codes or guidelines already established in the UAE, Japan, India, China, Europe, USA and other countries encourage this. This can only increase as more clients demand buildings with long design lives and low maintenance. The key thing is to spread

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the message that there are tangible benefits for all parties from taking a whole life view and sustainable approach to construction. In previous downturns, going ‘green’ was seen as a luxury that companies could not afford. Is there a danger that sustainable practices might get pushed to the bottom of the agenda given the current climate? KM. That is a viable danger, although world opinions about sustainability are very strong and well grounded. The establishment of government policies for sustainable initiatives can be a strong consideration that could help to offset any decline related to downturns. In other countries subsidy and tax relief programmes have been established for projects that meet or exceed predetermined criteria for certification as a green building. The subsidy programmes established can be structured to offset upfront costs. Without some type of government, building code and or certified rating system that establishes clearly

WHAT MAKES A BUILDING GREEN? • Minimum disturbance to site conditions • Use of recycled & environmental friendly building material • Use of non-toxic and recycled/recyclable materials aterials • Efficient use of water and water recycling ling • Use of energy efficient and eco-friendly ndly equipment • Use of renewable energy • Indoor air quality for human safety and comfort mfort

cycle. However, the codes are not perfect yet. For example, the LEED code in the USA does not include sufﬁcient credit for the longevity of construction materials and so it misses an important beneﬁt of using nickel-containing stainless steel. This means that sticking strictly to the codes may not be giving the best building from a sustainability point of view.

“Significant reductions in cooling costs, energy use, and water consumption can have a relatively rapid payback. Similarly, reusing existing materials can be an immediate gain” Stephen Barnett KM. Much of the building codes we see are British, US and European standards. Many of these standards do not include code requirements for sustainability. It is our experience that sustainability sits most with the building speciﬁcations developed via the design teams and the owner/developer and or government programmes. The current structures established for sustainable initiatives exist mainly via the government initiatives to establish tax relief and or subsidy programmes for investors interested in building green and not in new building codes. Building codes although objective in structure tend to be more frequently subjective when it comes to enforcement. Different codes are enforced at different times and more frequently than not, local or municipal codes override national and international codes. For building codes to be enforceable within a sustainable platform the policies for the use of these codes and the applicability of them needs to be addressed via an international platform.

• Effective controls and building management systems

WHAT ARE THE ECONOMIC BENEFITS OF GREEN BUILDINGS?

Source: Middle East Centre for Sustainable Development

defined requirements for sustainable practices the region will be hard-pressed to consistently enforce and support the trend for sustainable initiative. Based upon the volatility in the economics markets and investors interests solely in short-term returns, there will be constant efforts on behalf of investors to rank the short-term return on investments ahead of any long-term benefits. SB. Yes, there is a danger – particularly when short-term cost reduction measures have to be taken to ensure a company’s survival. However, sustainable practices may provide short-term economic benefits. For example, significant reductions in cooling costs, energy use, and water consumption can have a relatively rapid payback. Similarly, reusing existing materials can be an immediate gain. Prestigious buildings and structures are expected to last for a long time with minimum maintenance. That is one of the features delivered by sustainable practices. How are new sustainable building codes shaping future construction in the Middle East region? SB. These codes encourage thinking about the best way to build, taking into account the expectations of the client, the expected life of the building and the environmental impact over the whole life

green building may cost more upfront, but results in saving 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. This analytical method 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 stand-alone systems. Some benefi ts, such as improving occupant health, comfort, productivity, reducing pollution and landfill waste are not easily quantified. Consequently, they are not adequately considered in cost analysis. For this reason, consider setting aside a small portion of the building budget to cover differential costs associated with less tangible green building benefi ts or to cover the cost of researching and analyzing green building options. Even with a tight budget, many green building measures can be incorporated with minimal or zero increased up-front costs and they can yield enormous savings. Source: Middle East Centre for Sustainable Development

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ASK THE EXPERT

Changing the world for the better Dr Isa Hofmann explains how innovation on the cutting edge is essential to a sustainable future. “What will be of importance tomorrow is most probably what we ignore today.” Starting with this reﬂection from the former Intel CEO, Andy Grove, let’s take a look at recent worldwide trends that will have an immediate impact on our businesses. We distinguish four megatrends: globalisation, mobility, neo-ecology and health and body. The world has become a global village, distances and borders are easy to overcome and this is no longer merely an economic phenomenon, but affects all areas of life – education, consumer habits via mass media, private ambiances and relationships. We all experience extreme mobility in space and time, in our daily life when driving to work, travelling for business meetings, even when moving house. The increasing awareness with regard to environmental offences and ecologically harmful processes needs to be taken seriously. Companies who want to be successful need to envisage doing business in a much more sustainable way in the coming decades, proving they have a respect for nature and mankind and adopting this new business model according to social compliance. The concept of neo-ecology will shift the coordinates of our entire economic system. The LOHAS community (Lifestyle of Health and Sustainability) is steadily growing and already accounts for 30 percent of consumers.

Dr Isa Hofmann is CEO of privately owned consultancy firm IHOFMANN. meaningfulness, commitment and sustainability will gain new momentum and have a major impact on shopping and consumer habits as well as lifestyle concepts. In these periods of ﬁnancial crisis, it is even more important to bank on the power of crosssector innovation that points towards a new business model – one that respects environ-

“It is important to bank on the power of cross-sector innovation that points towards a new business model – one that respects environmental issues and societal prosperity” The new body consciousness on the borderline between leisure, fashion, medicine, nutrition and cosmetics is perhaps the most radical evolution. Society is facing a paradigm shift: work conceptions, values and personal identities are being redeﬁned and these new perceptions will change the imaginations, desires and wishes of each of us in the global community. Within the next decade, intangible values like friendship, authenticity,

mental issues and societal prosperity. There is tremendous potential based on the innovative power of companies dedicated to research and development and the development of new technologies and materials. Forward-looking entrepreneurs create markets, create values: environmental security, global energy, collective intelligence, new materials and emerging technologies will enable the

necessary paradigm shift that a growing global community of conscious consumers is asking for. When shaping the future, we need to reﬂect our points of origin. In architecture, a new doctrine has come up to respect the bio-climatological conditions and combine them with modern technologies and materials. It’s a new symbiosis of simplicity and authenticity, combined with artiﬁciality based on innovative materials. New membrane types that guarantee a perfect temperature control in buildings by solar reflection and absorption; translucent aerogelfilled roof panels that play with natural light sources; photocatalysis that enables new air purification technologies; functional coatings that keep off the heat; and membrane types with advanced polymer coatings and integrated photovoltaics on the top layer of roof constructions that generate energy. These are just a few examples of the fascinating opportunities for technical textiles in architecture. The challenge is to combine these new technologies with ancient knowledge. The traditional patio in Andalusia or in the Arabian villages is a perfect bio-climatological environment, producing fresh air by the evaporation of water combined with vegetation. The aligned incidence of light in old temples and mosques when creating suspense and a special atmosphere for meditation and spiritual contemplation is another example. We have a fabulous opportunity to create new ecologically healthy cities emanating positive energy where people love to live and work. “Issues we don’t think about today and tomorrow, won’t be seen and lived the day after tomorrow on our market squares and in our streets,” postulated Ortega y Gasset, the famous Spanish philosopher. We need to surrender our sightlessness for the future and give up our compulsion to always control everything from scratch. We must modify our visions – be open to new horizons – if we want to be successful, creative and remain competitive in a new and sustainable way.

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INDUSTRY INSIGHT

METALS IN A Metals have played a major role ever since the bronze and iron ages. They remain as vital today. By Dr Peter Cutler

ur food production, energy production, water distribution, buildings, transport systems, infrastructure and communications systems would not exist without metals. They have an equally vital role in providing solutions to the sustainability challenges which society faces. Many metals are well known and recognised: aluminium beverage cans and aircraft; copper water pipes and electrical cables; steel building frames and car bodies; gold and silver jewellery. Other metals are less well known and yet have thousands of uses – nickel, for example. It is found throughout our daily lives, usually alloyed with other metals. It is an important constituent of much of the stainless steel used in food and beverage production, and for practical and aesthetic building components; it is in the hottest parts of aircraft engines; it is used throughout chemical plants and the energy industries; it is in coins; it makes possible the production of CDs and DVDs; it is in rechargeable batteries; and it is at the heart of printing textiles. Right from the bronze and iron ages, when they gave cutting edges which were sharper and lasted longer, metals have enabled innovation. In recent times, we have seen the miniaturisation of computers and mobile phones. This has occurred through improved electronic components, and rechargeable nickel-cadmium and nickel metal hydride (NiMH) batteries. That same NiMH battery technology is used in the hybrid vehicles being developed to combat climate change. Today’s highly efficient aircraft engines would not have been possible without the development of highstrength nickel alloys able to operate for thousands of hours at high temperatures. Sustainability is the big challenge facing the world today: we have to do more with less and with a smaller footprint. That means improving efficiency and that in turn comes through innovation. Nickel-containing materials are often at the forefront. We find nickel-containing stainless steels playing key roles in sustainable construction because they can extend service life and eliminate premature

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material replacement. They have been an important part of desalination plants for several years. The iron 36 percent nickel alloy is used in liquid natural gas installations and transport. The uniquely low thermal expansion coefficient simplifies the engineering design of equipment to operate at -1820C. The same alloy enabled colour television tubes to produce high quality pictures. After its discovery over 100 years ago, the alloy’s first application was to enhance the timekeeping of mechanical clocks. One aspect of metals that is often overlooked is that most are already highly recycled – copper, aluminium, lead, steel, stainless steel and so on. Much less energy and raw material inputs are needed to use recycled metals. Together with its high value, this has helped stainless steel to be one of the world’s most recycled materials today. And as new uses of metals are found, new recycling mechanisms are established – for example, for electronics and rechargeable batteries. Although they are natural elements, metals may have properties that present a human health or environmental hazard. The same is true, of course, of very many substances that we use in our daily life (e.g.,a petrol, cleaning products, garden pesticides). But just because there is a hazard, it does not mean that there should be an automatic ban on use. We all deal with dozens of hazards every day of our lives. What really counts is if the product or its application may cause a potential risk to human health or the environment, and how we manage that risk. The strength of many alloys – including stainless steels – is that they are specifically designed to be corrosion resistant and durable, and therefore safe to use. Metals and alloys will remain essential in providing innovative solutions to the problems of moving towards a more sustainable society.

Dr Peter Cutler is Director of Market Support and Development at the Nickel Institute, based in the UK office.

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EXECUTIVE INTERVIEW

The changing power industry Phil Burns, Managing Director for Aggreko Middle East, reveals why rental equipment is an attractive option in times of limited liquidity.

How long has Aggreko been providing services to the MENA region? Phil Burns. Aggreko opened its first regional office in Sharjah in 1991, and opened its international headquarters in Jebel Ali Free Zone in 1998. Aggreko today offers round-the-clock service support and availability for the MENA region through a network of 10 locations in six countries: Saudi Arabia, Oman, Bahrain, Kuwait, Qatar and the UAE. Using these locations as operational hubs, Aggreko works all over the region; for example, currently we have over 200 MW on-hire in Yemen. In our 18-year history in the region, we have worked on a huge variety of projects including supplying power during construction of the Palm Island development in Dubai, Festival City, Dubai Metro and the Qatar Pearl. How has the global downturn impacted your business in the region? PB. Although the MENA region has not been affected to the same degree as North America and Europe, the impact of the financial downturn is nonetheless making itself felt around the Gulf, particularly with regard to those projects that are in the early phases of development. However, as a provider of high-end services and equipment, we are finding that

our services are still in demand. We believe that this is due in large part to our clients looking for ‘turn-key’ rental solutions that enable them to concentrate on their core business rather than focusing on generating power. Renting equipment as opposed to purchasing is an attractive option in these times of limited liquidity. For companies which require large-scale equipment to operate, particularly in the oil and gas sector, the enormous cash outlays required for equipment are a heavy burden to bear, making rental a good option. We are also ﬁnding that the rental option in this economic climate has a cushioning effect for companies who are uncertain about the long-term future of their projects. By renting equipment, companies can ensure that they will not be left with equipment that will sit idol; if a company that has purchased large amounts of equipment decides that an exploration project must be put on hold, the ﬁnancial damage incurred can be a major blow. Ultimately, renting equipment means that potential risks are lower because ownership lies with Aggreko. What are some of the latest trends and developments in the power industry?

PB. One of the trends we are currently seeing is customers looking to diversify their energy portfolios. Rather than relying on one type of fuel, they are looking to expand their generation capacity to include two or more fuel types. For example, one of our customers, a cement company in Ras Al Khaimah, has its own gas-powered turbine, but contracted a diesel-powered package from us to provide additional capacity to their facility. In response to this trend, we have introduced the ADDGas system, which allows customers to substitute a signiﬁcant portion of diesel fuel with natural gas and gives the customer a considerable saving on overall costs. What are your plans for the immediate future? PB. The slowdown has in some ways provided breathing space for companies such as Aggreko to take stock and evaluate how to improve their all-around business models. We see this as an important opportunity to improve some of our business processes. For example, we are busy implementing a back ofﬁce system to improve and streamline our customer service processes. By taking the time to ensure that our systems are more effective, we will be in a better po-

Phil Burns sition to take advantage of the market once the economy improves and projects that are currently on hold start up again. We are also currently conducting an in-depth market research study, including interviews with executives in the industry, to discuss their needs and identify where best we can bring our specialist skills, knowledge and equipment to support the growth and development of industry in the GCC.

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EXECUTIVE INTERVIEW

INTELLIGENT IMAGES In an exclusive interview with MENA Infrastructure, David Critchley, CEO and Managing Director of Vision, explains the many applications of spatial information and its place in the infrastructure industry. How is technology development changing the face of the spatial information world? David Critchley. Rapidly changing technologies are impacting every aspect of the spatial information industry, most notably in data acquisition, processing and data delivery. Vision has focused on maintaining state-of-the-art capabilities in these three critical areas. Specifically, Vision sees new sensors and cameras, some designed for niche applications, as the key to acquiring highly accurate raw imagery and elevation data. But accurate data is of little value without an efficient string of processing software operated by experienced technicians to generate quality end products. This is why Vision has put extensive resources into its production facility, which is operated locally in Dubai. And finally, clients want their products delivered quickly, which has prompted Vision to investigate and deploy a variety of innovative methods for delivering both hardcopy and digital geospatial products in the formats desired by the client, so the products are ready for immediate use. What are the advantages of using oblique images as opposed to nadir images? DC. Both types of images have numerous applications, and oblique imagery is showing exceptional advantages in any situation where the end user must look at a ground feature or building structure from varying deflection angles and from different sides. Real estate, property assessment and insurance are just a few of the applications where being able to see the front of a building is as important as seeing the back. But those advantages can be life-saving in some public safety applications. Police, fire and rescue agencies are finding tremendous value in being able to map ingress and egress routes for vehicles and personnel in urban settings where 360-degree visualisation of every window, back door and alley eliminates the element of surprise for emergency responders.

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quickly is an extremely cost-effective means of managing and monitoring operational pipelines, pump stations, roadways, office buildings and utility equipment to ensure they are properly maintained and serviced throughout their lifecycle.

David Critchley How do you see the infrastructure industry fully utilising Vision’s visualisation tools? DC. Vision envisions itself as the long-term partner to the infrastructure industry through all phases of planning, engineering, construction and beyond. The advantages of highly accurate and up-to-date geospatial data sets are well documented during the

In your opinion, what is the future direction of imagery technology in the infrastructure industry? DC. Imagery technology is heading in two directions. First, the spatial resolution and accuracy of imaging cameras and sensors is constantly improving. And for this reason, Vision has arranged leases for many of our systems so we retain the flexibility to continually replace and upgrade imaging capabilities as new technologies are introduced. Secondly, the integration of multiple geospatial data sets to derive enhanced spatial information is an emerging technology direction that Vision already is exploiting. Among the best examples is the use of LiDAR elevation data to orthorectify aerial photographs with minimal ground surveying. This technique, which Vision employs, generates higher qual-

“Police, fire and rescue agencies are finding tremendous value in being able to map ingress and egress routes for vehicles and personnel in urban settings where 360-degree visualisation of every window, back door and alley eliminates the element of surprise” planning and engineering of mega-development projects. But the value of imagery and other spatial products continues long after the structure or facility is built. Whether the infrastructure is a new hydrocarbon pipeline or a new business park, modern airborne imagery that can be captured and processed

ity orthoimages that are often more cost-effective than those produced through traditional means. Thanks to our skilled and experienced staff of geospatial technicians, Vision clients can expect us to introduce a variety of similar ‘hybrid’ image products to meet the custom needs of their applications.

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LAS FOCUS

LINKING TECHNOLOGY TO LAND MANAGEMENT

Stig Enemark, President of the International Federation of Surveyors (FIG), explains the importance of suitable infrastructure and sustainable land administration systems for the future wellbeing of land tenure, value, use and development. Sustainability is a key component of land policies and land-administration institutions. In your opinion, which technologies play a key role here and why? Stig Enemark. The management and administration of land is a crucial issue. Land administration systems (LAS) provide the infrastructure for implementation of land policies and land management strategies in support of sustainable development. The infrastructure includes institutional arrangements, legal frameworks, processes, standards, land information, management and dissemination systems, and technologies required to support allocation, land markets, valuation, control of use and development of interests in land. The key technologies in support of land administration systems can be divided into GIS tools and modern measurement tools. Modern GIS tools support e-Government in terms of designing and Stig Enemark implementing suitable spatial data infrastructures and implementing a suitable IT-architecture for organising spatial information that can improve the communication between administrative systems and also establish more reliable data due to the use the original data instead of copies.

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In recent years the discussion has very much focused on these issues of geo-information while the development of positioning technologies has perhaps not received the recognition that it deserves. In coming years, positioning infrastructure will become the ďŹ fth infrastructure after water, transport, energy and telecommunications. This positioning infrastructure will increasingly be seen as a critical component for achieving sustainable development in terms of the triple bottom line of economic, social and environmental sustainability. How is technology development changing the face of the spatial information world? How are new technologies revolutionising traditional surveying disciplines? SE. I focus here on positioning infrastructures. The primary components of the positioning infrastructure are the GNSS satellite constellations themselves, GPS being the best known to the public. GNSS could be considered as one of the only truly global infrastructures, in that the base level of quality and accessibility is constant across the globe. A stand-alone GNSS receiver has a typical accuracy of a few metres and under

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the wrong conditions, accuracy can be worse than 10 metres. Therefore, many GNSS users require improved accuracy or improved reliability with many requiring both. Improving accuracy and reliability requires so-called ‘augmentation systems’ using ground infrastructure such as Continuously Operating Reference Stations (CORS). Modern positioning infrastructure (including both GNSS and CORS) can be grouped into three main categories: geodetic datum in support of surveying and mapping activities; stable geodetic reference frame for precise measurement and monitoring of global processes, such as those associated with climate change and disaster risk management; extension to the concept of a true infrastructure that underpins the explosion in industrial and mass market use of positioning technology such as interactive road maps and other real-time positioning.

such as the surveying profession, images play a key role in terms of integrating data from various sources and for a range of purposes. Modern technologies have changed the use of satellite images and photogrammetry. They have changed both the way of producing maps and even how images are used for monitoring land-use changes, environmental degradation and preventing natural disasters, for example. The use of modern photogrammetry in surveying work depends, of course, on the work that individual surveyors are doing. They offer advanced tools to those surveyors that are involved in planning or geobusiness. More generally, the concept provided by Google Earth and similar web products has changed the perception of images to be something available at your ﬁngertips. The full impact of this invention is still to be seen.

What role is GNSS technology playing in particular? In your opinion, what is the future direction for geospatial technology? SE. Land administration has evolved to become the core component of What are your focus areas for 2009/2010? land management that includes the functions of land tenure systems, SE. The current situation is dominated by the financial crisis. Of course it land valuation and taxation, land-use planning and land development. affects the surveying discipline and geospatial industry throughout the These functions are supported by compreworld, but it also presents opportunities for hensive and updated land information orthe surveying profession in terms of arguing ABOUT FIG ganised through the concept of Spatial for the need and benefit of having sustainable Data Infrastructure (SDI). cadastral infrastructures and land governance FIG is an international non-governmental This has changed and extended the role serving as a backbone for mortgage and sysorganisation that gathers professionals from of geodetic datum accordingly, GNSS techtems for complex property commodities. Until government, local authorities and the private sector nology being the main tool. Recent trends the last couple of years, the developed world to discuss technology and professional issues with have seen the emergence of more efficient often took land administration for granted and researchers and academics. This multi-stakeholder and cost effective solutions for cadastral and paid little attention to it. However, the recent approach brings people together whose joint other surveys. These can often be enabled global economic collapse has sharply focused knowledge can benefit the development of the only by GNSS/GPS and its ability to work diworld attention on mortgage policies and geospatial industry. rectly in the geodetic datum. processes and their related complex comFIG is promoting the concept of a ‘spatialThe growing use and propagation of modities, as well as on the need for adequate enabled society’, where a government uses ‘place’ CORS based on GNSS has enabled a revoand timely land information. Simply put, inas the key means of organising information related lution in the ability to measure and monitor formation about land and land market to activities ranging from health, transportation and global processes, for example, changes in processes that can be derived from effective the environment to immigration, taxation and sea level due to global warming; prediction LAS plays a critical role in all economies. defence, and when location and spatial information of greenhouse gas concentrations or ozone Another opportunity is in the building of are available to citizens and businesses to support depletion; changes in the planet’s overall public infrastructures that are likely to be initithese activities water storage; assisting disaster monitorated as an incentive to boost the economy. This ing and management including earthwould be money well spent, giving the economy quakes, tsunamis and floods. These issues represent the key challenges a boost and giving profits in the coming years. of the new millennium. To summarise the FIG agenda for the next couple of years, the key The ideal way to transport the data required in modern real-time precise challenges of the new millennium are climate change; food shortage; positioning is to link the positioning infrastructure to a modern telecommunienergy scarcity; urban growth, environmental degradation; and naturcations infrastructure (broadband internet and wireless mobile phone techal disasters. These issues are all related to land governance and are nologies based on internet protocols). This will tentatively revolutionise the going to be the core area for surveyors; the land professionals. To efspace-based data. fectively deal with this requires high-level geodesy to create the models that can predict future changes and modern surveying and mapping What place does imagery have in the surveying profession? How is this tools that can control implementation of new physical infrastructure developing? and provide the basis for the building of national spatial data infraSE. In many countries the role of national mapping agencies are changing structures. Sustainable land administration systems that can manage into providing core datasets rather than map series. Traditional topographic the core functions of land tenure, land value, land use and land develmaps are then replaced by databases available for various applications to opment as well as facilitate a ‘spatial-enabled society’ will be the key be designed and marketed by private business. In the professional world, issue for the coming years.

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TRANSPORT FOCUS

GOING WITH THE FL

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How to keep inner city traffic moving is a problem that has plagued authorities for decades. Can congestion charging provide the answer? MENA Infrastructure looks at three case studies to find out.

T OW

raffic congestion is the blight of the modern urban environment. The age of the automobile has put an incredible strain on cities whose road systems were often laid out long before the arrival of the motor vehicle. As traffic volumes have grown, the arteries of the average city have become increasingly clogged, and far from being a potent symbol of personal freedom, the car has become a prison for many commuters. Many attempts have been made to ameliorate the situation, from improved traffic control systems to the promotion of public transport. But the allure of the private vehicle is such that these efforts have failed to stem their flow into city centres. It is this reality that has led to a mounting interest in congestion charging. The thinking goes that if drivers are forced to pay every time they enter a city, they will do so less. A journey carried out at a time when demand is high and capacity limited costs more than a journey carried out when there is low demand and high capacity. In addition, money raised by the schemes can be funnelled into improvements in traffic systems and better public transport, further easing the burden on urban roads. Stockholm represents one of the most recent implementations and is probably the city able to demonstrate the most compelling positive effects of the congestion charging system. The success was so notable that in a referendum following six months of trial operation, the citizens of Stockholm voted in favour of keeping the congestion tax system – probably the first time in history a population has voted in favour of a tax. Ingemar Skogö, Director General of the Swedish Road Administration, is clear that any controversy over the move has been well worth it. “We have a positive experience from our road charging experiment in Stockholm City, where we have undertaken a fully automatic congestion tax in the city centre,” he says. “Our experience is that the congestion has decreased by approximate-

Focus: Dubai Though Dubai’s Salik project became operational a month before its Swedish counterpart, it remains a work in progress. Beginning with tollgates on Al Garhoud Bridge and at Barsha on Shaikh Zayed Road, further gates were added in 2008 on Al Maktoum Bridge and Shaikh Zayed Road between the First and Second Interchanges. Though this implementation is dwarfed by those in Stockholm and London, the conditions it seeks to address are every bit as pressing to the Emirate’s road users. Dubai’s infrastructure has struggled to keep up with its rapid expansion, turning the daily rush hour into a virtual gridlock. The Salik tollgates only form part of Dubai’s overall strategy to ease traffic congestion. A new metro system, more public buses and marine transport aims to change Dubai’s reputation as a place where public transport is the poor relation to the private car. Current usage rates for public transportation sit at around six percent. A massive media campaign is planned to encourage its use by visitors and residents, with a target to increase this rate to 30 percent once the new metro and buses are launched in September 2009.

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Stockholm syndrome tockholm started off with a very clearly formulated policy: the purpose of the congestion charging system was to improve the environment through reducing the number of vehicles in the inner city. To implement the policy, the city of Stockholm decided to carry out a set of welldefined actions:

tendering process) the main contract to build and operate the system to IBM with Q-Free as the key supplier of road user charging technology.

The technology chosen for the purpose of identifying vehicles in the Stockholm Congestion Tax System is automatic number plate recognition, applied in a so-called 1. The charging system should set a price for the use of Multilane Free Flow configuration. This means that the control road services in the inner city that varied according posts, the ‘toll plazas’ of the to the ratio demand/capacity: the higher the system, do not comprise any demand, the higher the price. Thus, the price was physical infrastructure in the lanes – also set to zero at times where demand for road in fact, there are no lanes from the services was low. perspective that the system allows 2. The city realised that the transportation work the vehicle to be located at any carried out was done as a result of a need for lateral position of the road. The transportation services. Making travel expensive at roadside infrastructure comprises some times of the day did not eliminate the fact of an advanced detection system that people needed mobility. The answer to that and coordination system together was to improve the public transport services with Q-Free cameras equipped with significantly so that the traveller had a real choice: Q-Free’s Intrada ALPR software go by car and pay the tax, or travel on a decent engines on both the roadside and Steinar public transport service. the backoffice. In short, this means Furan 3. The city understood that a key success that any car that crosses into the factor was getting information to the public. A congestion charging zone is automatically detected and the number plate charging system affects all inhabitants, young and old, and of the vehicle is automatically read and decoded by the ensuring that everyone understands the basic principles and camera. This in turn is used by the central system to how to interact with the rules of the system is crucial for its determine the tax liability for each car owner. The processing ability to work as intended. Stockholm carried out an capacity of the camera is higher than the road’s capacity for extensive information programme prior to the launch of the handling vehicles, meaning that the cameras send out congestion tax, ensuring that all inhabitants understood that decoded number plate strings and corresponding photos of driving during rush hours would be charged but that new and the plate itself in real-time. improved public transport services were available. In the Stockholm Congestion Tax System, Q-Free’s ANPR 4. The system’s operation had to be flawless so that solution reads more than 96 percent of all vehicle images citizens experienced the system as available, reliable and fair. automatically with an error rate of less than 0.001 percent. To secure this, Stockholm awarded (as a result of a public Correct identification requires that both the registration number and state code are read correctly, which is a truly challenging task as neighbouring countries have plates with similar syntax and fonts. In a combination with the system’s business logic, this means that all drivers are charged correctly and that only a minute fraction of the system’s 400,000 daily images need manual attention. In fact, the Stockholm Congestion Tax System is the world’s only system where a car owner is charged solely on the basis of an automated machine reading with no human intervention. In turn, this means that operational costs can be kept at much lower levels than would be the case for a system with manual inspection.

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Focus: London Upon its introduction in 2003 London’s congestion charging system was ly 10 percent, and acceptance from the public is, overthe largest ever implemented by a capital city. To say that is was all, positive.” welcomed by all inhabitants would not be true, but few could argue with In London, a congestion charging scheme has its immediate results; on its first day traffic levels decreased by an been in operation since 2003. Though there have impressive 25 percent. Critics argue that the scheme’s launch during the been some predictable teething problems, the school holidays accounts for a great deal of this success, and debates scheme is now demonstrating a reasonable level of about the scheme persist to this day. Critics of the charge argue that it has maturity. “We’ve made hundreds of changes to the harmed businesses and unfairly penalises those residents that live at the way that the scheme works since it was first introboundaries of the congestion charge zone. Nonetheless, a Transport for duced,” says Graeme Craig, Director of Congestion London report on the first six months of the charge stated that the number Charging and Traffic Enforcement at Transport for of vehicles entering the congestion zone was 60,000 less than the London. “There was and still is no automated payprevious year and the zone was ment system, so drivers have to remember to pay extended west in 2007. However, when they drive in the zone. Sometimes they forget the new mayor of London, Boris and end up getting a fine. So back in 2006 we gave Johnson, has promised to scrap the drivers an extra day to pay the charge.” Next on the western extension by 2010, after 67 menu is a fully automated payment system that percent of respondents to a public should eliminate the risks of driver forgetfulness. consultation voted against it. In Central to the London plans has been the fact London at least, congestion that all money raised by charges and fines for noncharging seems to have a way to go payment is pumped back into improving the city’s before it achieves total public transport infrastructure. As the scheme raised a net acceptance. figure of UK£137 million last year, Craig believes the benefits go well beyond simply reducing the number of vehicles on the roads. “Particularly we’ve improved the bus network,” tentions with Salik has he says. “We’ve also made it easier and safer to walk around and cycle always been to use it as around London. One of the impacts the congestion charging scheme has a part of a broad plan had is we’ve actually seen a 66 percent increase in the number of people within ITS and traffic management in the emirate. We are now seeing pubcycling into London, which obviously is a good news story.” lic transport coming into effect, such as the high-speed train and buses. Given its well-publicised traffic issues, it isn’t surprising that Dubai is Where there are alternatives to the private vehicle, the Salik system can now pursuing its own congestion charge scheme too. The Salik project has prove itself invaluable.” introduced tollgates at some of the Emirate’s worst traffic blackspots and From a technology perspective, Q-Free recommends using automatis the first such system in the region. According to Mattar Al Tayer, Chairman ed number plate recognition (ANPR) combined with dedicated short-range of the board and Executive Director communication (DSRC) in a multilane free flow environof the Dubai Roads and Transport ment. Furan cites the Sheikh Zayed Road as a prime exAuthority the system is already ample of the problems facing transport planners. “This is proving to be a success. “Our studa highway where on a daily basis you will see speeding veies before and after introducing the hicles, stop’n go traffic, six lanes of congested but flowSalik have revealed that it has been ing traffic and so on,” he explains. “In our view, the only a success and helped a great deal tolling system that is able to fully cope with this situation in easing traffic congestion on the is a full-fledged multilane system. Several such systems Salik routes,” he says. Backing this are currently operational in Europe, among those the statement up with personal expeStockholm Congestion Tax System, where ANPR is the pririence, he adds that his journey mary mean of identification and DSRC is used for cross from home to office, previously a border interoperability. A top performing system is crucial 75-minute trip, has now shrunk to for any government that wants to use it as an important just a quarter of an hour. tool in their management plan for the future.” Steinar Furan of traffic system As populations increase and the number of vehicles provider Q-Free lauds Dubai’s on the roads continues to grow, we can expect to see more Mattar Al Tayer move in adopting a road pricing and more congestion charge implementations. They may strategy, but adds that it is only not always be popular with the drivers who have to foot part of a total solution to tackle traffic congestion. “The Dubai RTA has been the bill, but it is increasingly clear that they are a necessary evil. If the ecovery brave and foresighted when deciding to implement the first tolling sysnomic heartbeat of cities like Dubai is to remain strong, it is essential that tem in the region,” he says. “It is important to understand that RTA’s intheir circulatory systems can flow freely. n

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ROUNDTABLE

Next-generation

PAVING With the Middle East embarking on a m massive assive iinfrastructure nfrastructure modernisation programme, governments and transport authorities will be keen to upgrade the region’s road networks. Can emerging surfacing technologies help? Road authorities are constantly looking at how to improve the lifecycle of their road networks. How can this best be achieved? Are polymer-modified bitumens (PMBs) the answer? John Read. Polymer modified bitumens are widely hailed as the universal panacea to all pavement problems; this is a fallacy in the same way that supercars are automatically considered the best cars in the world. By this I mean that PMBs will address many of the problems of the road, but not all, just as a supercar is great on high-speed straights and corners but not as a family car. The product must meet the requirements for which it is to be used. To extract the maximum value from a PMB, you must ensure that the lower layers of the road are properly constructed, compacted and drained and that the traffic loading, climate and desired life of the pavement is understood. Only once all of this is ensured can the choice of PMB be made. Jean-Pascal Planche. Improving the lifecycle of road networks requires consideration of the global picture: traffic loads and evolution, climatic conditions, pavement techniques and materials, recycling and economical constraints. Pavement design models help to optimise the road construction and maintenance process by taking into account all these parameters. PMBs are a major part of the answer but not the magical tricksilver bullet. They have to be adequately employed in the appropriate asphalt mixture and pavement designs according to best practices. But all PMBs are not equal. Field survey studies, like the one carried out recently by the LAVOC laboratory, have shown PMBs performing ex-

tremely well under severe conditions whereas others did poorly – well below base bitumen, even. Using a good performing PMB does help a great deal to improve pavement life expectancy. Styrelf from Total is one of the best, with a fantastic 30-year track record worldwide. Chris Southwell. Extending the life of any road network involves a combination of a number of contributory factors. The answer does not just lie in the use of new binder technologies. Enhancement is available through the use of polymer-modiﬁed bitumen to improve, for example, resistance to fatigue cracking and resistance to deformation in warmer weather conditions. In the UK, Road Note 42 was recently published by the Transport Research Laboratory as a guide for highway authorities and contrac-

Chris Southwell, Technical Director of the Refined Bitumen Association, has 30 years’ experience in the bitumen and roads industry.

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tors to promote the adoption of best practice in the specification, manufacture and laying of asphalt materials. Failure to implement these best practice guidelines can negate the benefits available through higher-performance bitumen grades. Appropriate material selection, mix design and correct installation of the pavement are critical to achieving durability. Assuming these factors have been correctly optimised for the prevailing traffic conditions, extending pavement life even further can be achieved through the use of polymer-modified bitumen or hard paving grades like 10/20 and 15/25 pen, which enable much stiffer base and binder course materials such as EME (enrobé á module élevé) developed in France. Wh challenges are there in communicating the benefits of these What next-generation bitumens to the contracting community? Does this nex differ from region to region? dif JPP. Challenges mainly lie in the technical background differences JPP between local users and international suppliers. Teaching a new user be wh a PMB is, and what makes one PMB better than another, is one what suc challenge. What makes the need worth the value? This crucial such dis discussion, occurring under different technical references, can be cha challenging for suppliers; the lack of universally approved performance-based specification systems does not help. This issue is region-dependant; considering that road authorities

Jean-Pascal Planche has been working with Total for 23 years in the bitumen field. Since 2005, he has been responsible for Total’s international bitumen technical strategy and R&D co-ordination. expect material and maintenance savings, the benefits depend on how much a new binder will contribute to the extension of the pavement life. The specification topic sets the pace for PMB development. The fastest-growing PMB adopters are those with PMB specs, such as Germany, USA, Japan and China. Total is at the forefront of these developments, participating in standardisation committees and actively addressing the development of performance-related specifications and test methods. JR. Not all PMBs are the same, so this requires that the PMB supplier be clearly able to demonstrate which mechanical properties of the PMB (and therefore asphalt) are improved by the modification; this necessitates that the PMB supplier has this type of information, can provide technical support as required, can develop fit-for-purpose solutions at short notice and can demonstrate a long track record. Proof that PMBs really work is always difficult to come by as it is

Professor John Read has worked in the bitumen and asphalt industry for over 20 years. He is currently the Global Bitumen Development and Product Manager for Shell Bitumen. rare that a modified and unmodified section of road are laid together so that they experience exactly the same conditions. However, the Asphalt Institute in the US recently produced a book entitled Quantifying the Effects of Polymer Modified Asphalt for Reducing Pavement Distress that provides a lot of independent evidence to this effect. Additionally, there are many instances around the world where PMBs have been used because other solutions have failed and the PMBs have stood up to the onerous conditions. CS. The primary challenge is the variability in awareness of new technologies and the declining asphalt technical and engineering skills across the community. This can hinder the correct use of polymermodified bitumens and delay their more widespread adoption. In periods of economic recession, new technologies are less readily adopted so it is often the more buoyant markets that are able to take advantage of improved materials and pave the way for others. It is the responsibility of industry institutions and representative bodies to take a collaborative approach to improving highway engineering knowledge across the supply chain, ensuring that clients and consultants are included in this process. Sustainability is a key concern right now across the infrastructure development community. How is the bitumen industry addressing the issue of sustainability, and why is taking a greener approach so important? JR. The need for PMBs is increasing all the time, with increasing traffic volumes, axle loads, tyre pressures and temperatures all having a detrimental effect on the pavement, as well as with the environmental drive towards all industries being sustainable. In the long-term it is entirely feasible that we will move towards PMBs in all bound layers of the road to ensure that we get the maximum performance with the minimum thickness and reduced disruption due to maintenance, and indeed this is already happening in some countries. PMBs such as the Shell Cariphalte range can be more sustainable in that if they are properly designed into the overall structure, then pavement life can be significantly extended – saving money in whole-life terms, reducing the amount of construction materials used, reducing energy consumption and reducing the number of vehicle movements associated with construction and maintenance (thinner structures and longer maintenance periods).

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JPP. The industry addresses the sustainability issue at various levels, depending on which step of the bitumen life is being considered. One must try to ﬁnd solutions to work under the safest conditions, using a minimum of energy, delivering safe products that will last longer and that save as much raw materials as possible – both mineral aggregates and bitumen. To tackle these issues, the industry is getting organised and sustainable development is the main driver. For instance, bridges are set to follow occupational health studies on the effects of bitumen fumes in preparation of the new IARC bitumen monograph. In the US, warmmix asphalts are fast developing under the auspices of joint task forces involving the Asphalt Institute and bitumen user associations.

CASE STUDY: SAUDI ARABIA

to see growing use of warm-mix asphalt mixtures, an increased bio component in bitumen (one that does not compete with food demand), PMB-based solutions for longer-life pavements, a higher rate of recycling materials for asphalt pavements, reuse of wastes from other industries (provided it does not affect the classification of bituminous materials), and various combinations of these sustainable solutions. Total R&D is active in all these fields and has dedicated a significant budget to sustainability. Sustainable development (SD) is part of Total’s bitumen strategy, together with innovation and geographical development. Just one example is our Total 360-degree SD approach where, after an internal evaluation, we interviewed a wide cross-section of stakeholders to know their expectations in terms of bitumen-related SD. The action plan that followed induced R&D studies that are now delivering patents, publications and new products.

Little more than 50 years ago, Saudi Arabia had barely 200 kilometres of paved roads, linking a handful of royal palaces around Riyadh. Now it has about 150,000 kilometres of roads and this is growing daily. But the Saudi Arabian authorities are under pressure to increase capacity to ensure the kingdom’s strong economic potential is not constrained by blocked transport arteries. The increasing population is stretching resources to the limit. As municipal authorities start to take a longer-term view of their traffic difficulties, the seeds of such a strategy are slowly germinating. The Saudi Arabian leadership is keen to make progress on its grand vision of the kingdom as regional transport hub. But the road, like many of the arteries traversing the kingdom, looks long and arduous.

Eurobitume has developed a model to conduct the lifecycle inventory of bitumen for one application. Taking a greener approach is unavoidable from both a professional and citizen perspective. Expectations are high. CS. Development of asphalt materials that provide durability or longer life is the ﬁrst step towards greater sustainability. The industry is developing more sustainable asphalts and products such as semi-warm mix and warm-mix asphalts. In the longer-term, the bitumen industry is contributing to joint industry research into creating a common framework for assessing the carbon footprint of bituminous materials. How is this reﬂected in R&D operations? What new developments can we expect to see over the next few years in this industry? JPP. Our R&D is mainly driven by sustainability issues. One can expect

JR. PMBs are becoming widespread, with developing nations using them to build their infrastructures and developed nations using them for maintenance. The next generation of PMBs adds functionality beyond improved mechanical properties, an example of which is Shell Cariphalte Fuelsafe, a PMB designed to provide all the benefits of a traditional PMB, as well as significantly increased resistance to damage by fuel – particularly important in areas such as airports, where loose material caused by a fuel spillage could cause foreign object damage. So what comes after PMBs? The answer to this question forms the basis of our extensive research and development programme, where we have more than 100 bitumen, asphalt and pavement experts working with our customers to find the sustainable solutions of tomorrow.

CS. The bitumen industry’s commitment to sustainability manifests itself through its co-operation with customer representative bodies and the Highways Agency. One such recently completed three-year programme resulted in the TRL Road Note 42, already mentioned, providing guidance on best practice for the achievement of durable asphalt pavements. A current research programme is looking into the development of a transparent framework for the delivery of sustainable construction including standard protocols for the calculation of key measures such as the carbon footprinting of materials and processes. As in other European markets, the UK bitumen industry is working on the standardisation of test methods and speciﬁcations for bitumen across the continent, along with meeting the challenging requirements of the REACH chemical registration legislation. All of this highly detailed work will ultimately lead to greater technical clarity for the customer, enabling improved health and safety, as well as sustainability.

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RAISING THE PROFILE Drake & Scull International CEO Khaldoun Tabari is bullish on his companyâ&#x20AC;&#x2122;s prospects for the next 18 months. MENA Infrastructure caught up with him to find out why. 92

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he last 12 months have represented an important year for Drake & Scull International (DSI). A successful IPO, listing on the Dubai Financial Markets and the announcement of several key projects marked the company out as a firm with big ambitions. And now, with over 40 years’ experience in the Middle East behind it, the firm is making more moves to expand its operations in the region. Vice Chairman and Chief Executive Officer Khaldoun Tabari recently announced Drake’s intention to spend as much as Dh500 million on new acquisitions in an effort to establish a single brand name across the entire region and increase the profile of the mechanical, electrical and plumbing industry in general. Traditionally, infrastructure projects are awarded to major construction companies as opposed to mechanical, electrical and plumbing (MEP) contractors – something Tabari attributes to their visibility as main contractors. It is a perception he hopes to change. “Infrastructure is about supplying water, taking away sewage, and providing power and cooling. All these four critical elements are what MEP does best,” he asserts. “What is construction ultimately about? It is about providing essential services.” And there are increasing signs that the industry agrees with him. On 16 March this year, DSI announced that it had won an AED596 million design-and-build contract for a 65-ton district cooling plant in Durrat Al Bahrain. Tabari says this is the company’s largest infrastructure, water and power project to date, comprising of two plants that will serve the entire Durrat Al Bahrain community. The scope of work includes pipe reticulation, an energy transfer station and all metering systems, and DSI hopes to break ground on the fi ve-year project in September this year. In addition to this high-profile contract, Tabari is also negotiating to acquire three GCC construction companies – a civil contractor and an MEP firm, both in Saudi Arabia, and an MEP contractor in Qatar – that will further raise the company’s profile across the Gulf. “These are exciting times,” he says. “Our expansion plans were formulated when no one else was even looking at expanding. It’s about survival of the fittest, and now is the right time for us to grow.”

In spite of the slowdown in the economy in general and real estate in particular, opportunities in the region’s infrastructure sector remain high. What is your outlook for the infrastructure sector over the next 12-18 months? Khaldoun Tabari. Our outlook is an optimistic one. In the UAE we can clearly see the ongoing infrastructure projects spanning the country as a whole. In Q1 the UAE government had set the highest budget in the country’s history for 2009 and a large percentage of this budget will be spent on infrastructure projects in addition to other immediate requirements such as schools, hospitals and public service buildings. As you might know, Dubai is moving

ahead with its ambitious 2015 project plans while Abu Dhabi has started execution of its 2030 plans. Both projects mean there will be plenty of infrastructure work needed. The same applies to Saudi Arabia, which has many more infrastructure projects than the UAE scheduled for the next decade. In fact, Saudi Arabia’s ongoing projects in 2009 are valued at US$409 billion and the kingdom is expecting to receive 45 million tourists by the year 2020, so there is an urgent need for infrastructure development. To this end, Saudi Arabia has set aside US$400 billion for infrastructure projects within the next ﬁve years. It’s also worth mentioning that other emerging markets such as Libya, Sudan and Jordan have huge potential, especially with regard to infrastructure work. So, in spite of the economic slowdown, governments in the region are moving forward with their plans and this gives a very positive outlook to the infrastructure sector. Can you tell us a bit more about the projects you are currently involved in? Are there any that you are particularly excited by? KT. We are currently working on 35 different projects, three of which we have been awarded this year. The value of our backlogged projects from 2008 is worth over AED3 billion while the total value of current projects reaches an approximate AED6 billion. We are excited about all our projects; every single one of them adds value to our ever-growing portfolio. I am equally excited now about our six projects on the Palm Jumeirah, which have a combined value of AED1.4 billion and a total built up area of 12 million square feet. I am very keen to see these completed as each one is unique, particularly the Golden Mile project which will begin to be handed over during the second quarter of this year. Of course, the Golden Mile will be one of the many landmarks on The Palm Jumeirah. It is a mixed-use development of 860 luxury apartments in 10 waterside buildings and 220 upscale stores and restaurants; it will truly be the new hotspot in Dubai. You listed on the Dubai Financial Markets last month. How has the current economic situation impacted on your strategic plans? KT. We started planning for the listing on the DFM more than two years ago. This was based on our long-term strategy that focused on diversifying our business, which at the time was mainly focused on our speciality in MEP. Our aim was to take advantage of the potential to be found in other complementary services in the industry such as infrastructure, water and power (IWP) and civil contracting, while at the same time broadening our geographical reach. We felt it was the right thing to do because we had nearly 40 years of experience in the sector and the accumulated technical and operational know-how and skilled man-power to capitalise on the boom that the region was experiencing. Part of our strategy to widen our geographical reach was also to look at acquisitions across the region, though mainly in KSA and Qatar. We completed a very successful initial public of-

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fering (IPO) in July 2008 that gave us the funds to achieve our plans and to start a new chapter in the successful story of Drake & Scull. So, to answer your question, the current economic situation hasn’t really impacted our plans and our strategy is being executed as planned. Now is the right time to grow; it’s survival of the ﬁttest. The listing will give us the extra edge and competitive advantage to buy businesses and win infrastructure works from around the region. Opportunities exist at every stage of the cycle. We have been in the UAE since 1966 and the company has grown through many ups and downs by ﬁnding the opportunities and taking advantage of them. The current situation is offering many opportunities and DSI has the means, the vision and the resources to invest in them.

“Our expansion plans were formulated when no one else was even looking at expanding. It’s about survival of the fittest, and now is the right time for us to grow” Given the current climate you’ve been bullish on the outlook for DSI, stating your intention to achieve 25 percent growth in 2009 whilst not cancelling any existing projects. How do you hope to achieve this, and why do you think you are better-placed than some of your peers to do so? KT. The current climate is quite gloomy for some due to the lack of liquidity. However, we are financially very stable and even with the current economic slowdown we can sustain and grow our business. We have just been awarded three projects in the first quarter of 2009 and are anticipating more contracts soon. None of the 35 projects that we are currently working on have been cancelled and our progress on each site is ongoing and we are expecting to deliver them all on-time. Another important point is our diversification, which means we are no longer reliant on any one sector but can now gain strength from a variety of activities.

KT. This will be a very important step for us as geographical growth is a vital part of our overall strategy. We are therefore looking at companies that have an established reputation and track record in these countries. This will ensure that our business procedures will remain well maintained and that we can enter these markets well positioned to make our mark quickly. Over the past 12 months, the development boom has shifted from Dubai to new markets such as Qatar and Saudi Arabia. What opportunities do these markets offer? KT. Saudi Arabia has vast opportunities; indeed it has always been a vital market in the region due to its wealth, geographical size and economic demographics. It is now witnessing growth in many sectors, especially in manufacturing, agriculture, real estate, infrastructure, education, healthcare, banking and commerce. Furthermore, it has been doing so steadily for quite a while now, and this growth has largely protected it from the crippling effects of the wider economic crises. As such, it is an excellent place in which to grow a business. Qatar, on the other hand, is one of the smallest countries in the region. However, it is a very strong emerging market that has considerable potential due to its high demand for infrastructure, real estate and industrial projects, especially those in the petrochemical sectors. It is estimated that Qatar will spend US$130 billion on different projects during the next ﬁ ve years. Khaldoun Tabari

Has the recent IPO helped in this regard? And what challenges and opportunities has the IPO given you in the current climate? KT. Yes of course; we had a very successful IPO that was 101 times oversubscribed, with investors pledging more than AED124 billion, and the 55 percent of the company’s shares that were offered meaning that benefited from an AED1.2 billion injection of funds. This means we are in a very good position to work through the current economic situation and take advantage of the region’s potential. The challenge will be to record profits and grow the business over this time, but I am confident we can do this given the combination of our careful planning process and the excellent team of employees working with us. As a result, we should emerge stronger. You’ve also stated your intention to expand further through a number of acquisitions, spending as much as Dh500 million in the process. What do these plans involve, and why are these acquisitions so important for the company?

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Infinity Tower, Dubai

To infinity… and beyond At 330 metres, Duabi’s Infinity Tower incorporates a high-strength, reinforced concrete column superstructure that rotates with the twisting shape to create a helix. Drake & Scull was awarded the Dh145 million contract to manage the supply, installation, testing and commissioning of complete MEP works, including the air conditioning, ventilation, plumbing and drainage, building management system, automatic fire fighting, power and lighting, telephone and data, fire alarm system, intercom system, central emergency lighting, CCTV and access control security systems, and lighting control system.

The Royal Amwaj, Dubai is a DSI project Issues like sustainability and resource efficiency have become hot topics in recent years and are increasingly influencing the way developers approach their projects. Why is this good news for a company such as DSI? KT. DSI continuously looks for new technologies to introduce to the regional market as we recognise that there are always ways to improve. This is especially true of the responsibility we feel to safeguard the environment while also providing commercially viable solutions. So far DSI has designed, constructed and now maintains district cooling plants and networks at Jumeirah Beach Residence (the largest of its kind at time of construction), Dubai Festival City, Saudi Iron & Steel Company (Hadeed), as well as many more around the GCC. We have also built considerable technical and commercial skills within this market and continue to invest in developing our capabilities to ensure we can offer the latest and most appropriate solutions. Last year, DSI joined the Emirates Green Building Council (Emirates GBC), a non-profit organisation formed in July 2006 with the goal of advancing green building principles aimed at protecting the environment and ensuring sustainability in the UAE. In 2006, our commitment to improving environmental controls was demonstrated by our investment in new and innovative technologies. This resulted in establishing the Infrastructure, Water & Power operations where, among other services, we offer district cooling technology, an energy efficient solution that helps reduce the overall demand on the electrical grid and controls toxic emissions.

What impact do you think sustainability will have on the Middle East’s construction and development sector over the next few years, and how are you implementing this thinking into the DNA of your company? KT. The sustainability agenda is clearly becoming more important in this sector. We see it as our responsibility to recommend the most appropriate green technologies to employ and we do this by ensuring we are abreast of the latest developments. In this respect, DSI is integrating the principles of an eco-sensitive approach to its daily work practices. Unlike other firms in the sector that have been cutting back on staffing, DSI recently embarked on a major recruitment drive. Why do you think a downturn is a particularly good time to hire? KT. Our recruitment drives are part of the overall company strategy and fall in line with our growth plans. I believe that Drake & Scull’s most important asset is its people. We have an excellent HR department that implements the latest techniques in employee development and that is why our staff numbers are constantly increasing. Our recent recruitment drives were initiated to fill a specifi c need for our growing Civil Contracting subsidiary (Gulf Technical Construction Co.), which is witnessing a growth in business, particularly in Abu Dhabi. There is also a need for our IWP operations in Sudan and Bahrain and, of course, as mentioned we are very close to embarking on new ventures in Saudi Arabia and Qatar and so we always make sure we are ready and fully equipped before any further steps are taken.

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INDUSTRY INSIGHT

To automate, or not to automate Bill Carlyle, Business Development Manager for Lucy Switchgear UK, suggests that distribution automation could benefit both utilities and customers by improving the availability and security of power distribution networks. have often come across confusion over the terms ‘remote control’ or ‘automation’ when applied to power distribution networks. In most cases, customers are really advocating remote control (or telecontrol) to this network and this in effect represents the downward migration of the primary telecontrol systems that have been commonplace over three decades. In more recent times, the term distribution automation (DA) seems to have become the industry buzzword for either application. However, words aside, the adoption of this technology worldwide still remains patchy and I wonder why. In response to the changing requirements from the electricity utilities, manufacturers of power distribution equipment have been very active in developing innovative solutions in the automation arena. In parallel with this, the rapid development of packet data technologies in communications (often IP-based) has offered the industry a real opportunity for improvements in network performance. Nonetheless, there still appears to be reluctance on the part of the industry to embrace the new opportunities that this automation technology provides. The industry, by its very nature, continues to be conservative in its adoption of new technologies and it often requires a sea change in both the mindset of managers and staff working in the sector. Experience from the United Kingdom since the early 1990s, in which the adoption of remote control or automation facilities for the medium voltage power distribution networks is now widely accepted, has been largely driven by a ‘stick and carrot’ approach by the government-appointed industry regulator. From the inception of the privatised electricity utilities back in the late 1980s, it was recognised by the incumbent government

“Although the use of DA technologies and techniques will not be the panacea for all their problems there is clear evidence that utilities and customers alike can benefit considerably from better supply availability and security” that a near monopoly provider of the ‘wires’ business would still require strong regulation to deliver real benefits to the customers they served. The transition to the private sector has not been without its critics or difficulties, but, in general, it is accepted that the industry is more customer-focused and more efficient in its day-to-day operations. In part, the adoption of automation technologies by the privatised UK electricity utilities (now known as Distribution Network Operators), has contributed to a year on year improvement in the quality of supply experienced by customers. The initial years have shown markedly im-

proved performance with respect to supply availability and security and incremental improvements in more recent years. But the trends since privatisation have predominantly pointed south. In parts of Africa, where some utilities have begun their foray into implementing DA, the benefits from initial pilot schemes have been plain for all to see. In addition to having the ability to remotely switch and sectionalise faulty circuits, the utilities have a better understanding of how the network is operating and vital electrical information for forward planning and capital expenditure. One of the additional benefits of automating long overhead feeders has been the ability to limit the amount of load disconnection, known as load-shedding, in order to match available generation and system demand. This application had not been one of the original intentions, but has been an invaluable tool in operating very fragile distribution networks. Poor road infrastructure in many parts of Africa makes gaining access to remote overhead feeders a logistical nightmare; but through the application of DA and modern wireless communications, efforts on restoring faulty networks have been more focused and rapid. The challenges ahead for the world’s electricity utilities are many and varied, from concerns over global warming and CO2 emissions, dwindling sources of fossil fuels and insufficient generation capacity to meet an ever-growing demand for electrical power. Although the use of DA technologies and techniques will not be the panacea for all their problems, if adopted, there is clear evidence that utilities and customers alike can benefit considerably from better supply availability and security (and reduced costs and tariffs).

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ROUNDTABLE DISCUSSION

TIGHTENING UP SECURITY MENA Infrastructure asks a panel of experts for their opinions on security to identify the challenges of megaprojects and the influence of regulations on the region’s safety systems. What new security risk does the increase in resident and visitor numbers to the region present? And how is the security community responding? Hussam Al Haddad. From the life safety point of view, the more humans present in a construction or a building, the more security risks. New rules and regulations are in place to reduce the security risk parameters and enforce the construction market segment, with these new rules inline with the latest international standards. Looking at major constructions where a dense population visit on a daily basis, such as malls for example, the security authority enforces strict measures to integrate the systems and ensures that all the systems works in harmony from the fire alarm system, to voice evacuation with integrated public address and even the music system. As well as integrating other advanced systems like CCTV, allows the operator take the proper action in the course of emergency by guiding the public to safety via intelligible live announcements on the public address system, which is part of the voice evacuation solutions. Adnan Musleh. The number of employees working within a single building has increased dramatically in recent times, which makes identity verification a necessity for individuals trying to access the building. This is where a biometric access control device plays a crucial role. In addition, it has become increasingly necessary to record every transaction in order to determine who’s in the building, not only for attendance tracking purposes but also in the event of fire or other emergencies. The Time App. Software from T.H.E Integrated Systems handles all the time, attendance and security needs in one integrated security management system. Neil Rowland. The increase in numbers is an indication that automated systems must be introduced to replace the manual processes previously managed by human operators. In an airport for example, where thousands of

THE PANEL

HUSSAM AL HADDAD, General Manager, ATEIS Middle East

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ADNAN MUSLEH, Managing Director, T.H.E. Integrated Systems

visitors arrive and depart daily, we are witnessing how implementing a biometric fingerprint authentication technology can provide fast, reliable and secure entry for authorised airport personnel. In a similar fashion, we are also noticing that many companies are now demanding fast and secure access to their employees on top of the ability to manage their time and attendance. This level of sophistication can be accomplished with a state of the art biometric access control device, such as the latest from L-1. The VStation 4G is equipped with multi-factor authentication, powerful on-board processing for rapid and accurate authentication, sophisticated storage, extensible memory, wireless connectivity and full-sized colour LCD displays to keep employees and visitors informed with custom messaging and is time and attendance ready. From commercial and cultural to retail and residential, the types of projects under development in the Middle East have very different requirements. What challenges do these various types of project present from a security standpoint? AM. In recent months, the economic recession has affected all of us and in order to justify the cost associated with some security projects, we are now required to add more and more capabilities to the overall solution. Fortunately, the flexibility of modern biometric access control products such as L-1’s 4G series makes this possible. One of the best decisions made was to integrate access control, time and attendance using Time App. This saves time for the employee since he can gain access and ‘clock-in’ with a single action. For the employer, the cost savings can be significant with increased control over labour costs and a financial payback that rivals any other application. NR. Environmental conditions can be challenging, especially for outdoor locations. For biometric access control devices, an IP65 enclosure can provide a partial solution, but for reliable outdoor operations a true outdoor design is needed. In some locations, electrical supply can be unreliable, so in these cases battery back-up as well as surge protection is essential. These requirements should be addressed in any outdoor solution implemented in the region.

NEIL ROWLANDS, Sales Director, L1 Identity Solutions

HAH. Throughout the years, the progress of voice evacuation has kept pace with the architectural development. In old buildings rough materials,

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with lots of sound absorption factors are used, whereas the modern buildings of today utilise hard surfaces like glass, steel and marble as the main item to decorate the construction, and the Middle East is the same story. Straight to the point, acoustics is the most important factor that affects the sound intelligibility ‘Sound Clarity’, the more reverberant the space is, the more echo and sound reverberation take place, which means less intelligibility. Sound physics haven’t changed much since the old days, when the London Great Fire in 1666 destroyed the city, the public could easily get evacuated as the structures were simple and human instict to save the lives of many. Today, mega-structures present a new challenge. Finding the way out of a megastructure requires a guide, and sound communication is the main media to do so. While changing the building materials to become more absorbent might be a challenge in a modern design, utilising the proper acoustic solutions or sound design solution can save the lives of many, as the evacuation messages are clearer, the direction and information to evacuate the building when emergency is much faster. The sheer size and scale of the region’s megaprojects pose significant challenges in terms of security technology requirements – not least in terms of the integration of those various systems. How is this issue being addressed? NR. Fortunately, the latest technologies allow a true enterprise class security system to be implemented. The L-1 4G series of fingerprint access control devices are designed to perform efficiently and reliably, even with hundreds of thousands of users, with thousands of access points within hundreds of buildings that could even be located in different countries. Enterprise database technologies such as Oracle or SQL ensure data integrity while fast ethernet and wireless LAN technologies ensure reliable communication. HAH. While the bells used in the Great London Fire alerted people to the flames, today sound communication is the prime methodology to alert the public. The only difference is the effectiveness to provide clear information to the public compared to a ringing bell or the tone of a sounder. State-of-the-art digital signal processing (DSP) voice evacuation and an integrated public address system is the answer to most challenges in the modern buildings of today. The DSP allows the live broadcast messages to be equalised and tuned to enhance overall intelligibility by filtering the certain resonance frequencies that create major reverberation in the space. The integrated DSP in the loud speaker systems with certain specialised algorithm allow you to guide the sound output of the speakers and control the dispersion output down to five degree vertical, hence providing precise directive sound to the listener without scattering or bouncing from the ceiling and ground or creating echo, which reduces the intelligibility of the message dramatically. AM. In some of the region’s megaprojects, such as airports for example, we are seeing a need to support varying threat levels. Under normal circumstances it may be sufficient for employees to access many locations using a card only. However, at any point in time an event may occur that raises this threat level and these access points must now require increased security, for example, a card plus fingerprint or at an even higher threat level a card, PIN and fingerprint. The L-1 series of access control devices have this capability integrated within the 4G fingerprint readers, making this possible.

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What inﬂuence do regulations and/or standards play in terms of the types of security solutions being deployed within the region? HAH. When sixteen people died in 1996 at Düsseldorf Airport because they had been mistakenly directed to the smoke toxic area, DSP was not a common technology, nor had the standards ever been addressed. Today, international regulations are addressing the latest technology in terms of safety, and make no mistake; they are back to the simple physics equation to maintain an output result to the human being as an intelligible sound as possible. Most of the international and national standards are now related to the voice evacuation and public address systems and demanding an intelligibility factor Speech Transmission Index (STI) or STI-PA of 0.5 on a scale of 1. These regulations emphasise that any construction acoustics realise a reverberation time above one second need to be studied more carefully and particular care must be exercised on the Acoustic Study Modelling, or the evacuation system design. Many available computerised solutions and software simulations can help to provide acoustic modelling indicating the sound pressure levels (SPL) and STI to meet the international recommendations and design. Such a simple approach can result in prediction and simulations to the results of evacuation speaker design, providing upfront anticipation on the sound clarity and intelligibility that the public shall hear during the course of emergency conditions. AM. New rules and regulations are being introduced on a regular basis throughout the region and every market segment has been affected. For example, workers at construction sites must have the appropriate permit or license to operate specialised equipment and the working hours for many job functions are limited due to health and safety reasons. So it is now more important than ever to communicate effectively with employees on a regular basis. This is where a biometric access control solution using the 4G Series of fingerprint products from L-1, have a significant role to play. Using the dynamic messaging feature, a custom message can automatically be displayed for an employee once he arrives at work and is identified. For example, if his crane operator license is due to expire in three days time, this information can immediately be presented to him, via the LCD screen of the fingerprint reader. What used to be a simple access control device a few years ago has now become a solution that provides irrefutable proof of identity with the ability to monitor attendance and provide prompt communication of important information to each employee. NR. Standards and regulations play an important role in identifying key requirements for a large project and configuring a security solution that meets those standards and regulations. Our clients need to have the ability to select the right components for the job and be confident that these components will integrate together. This has been an influencing factor in the design of our new L-1 4G fingerprint series readers. These devices can work with many types of card (such as Prox, Mifare, iClass and DESFire), can interface to virtually any existing access control panel using the Wiegand standard, can be networked using industry standard protocols (such as TCP/IP or RS485) and the user interface can be presented in the local language (text and audio). A compromise solution is no longer necessary.

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WORKER WELFARE

Safety in numbers

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For all the wrong reasons, Dubai’s labour camps hit the headlines in April following the release of a British documentary detailing hideous living conditions for workers. Since then, the region has gone into overdrive, hitting back to prove that living and working conditions are a number one priority for the industry. BY REBECCA GOOZEE

ome to some of the most ambitious buildings on earth, Dubai is renowned for its impressive infrastructure and non-stop construction, with 24-hour building happening all year round. But while the developments are perceived as increasingly glamorous, the work that goes on behind the scenes, and just who does it, is not at all attractive. Previously little was known about the foreign immigrants that make up most of Dubai’s labour force, but all this changed after the BBC Panorama documentary that was broadcast in April 2009. The British documentary showed an undercover reporter investigating labour camps belonging to Arabtec and United Engineering Construction, a subcontractor of First Group, alleging that the labourers were made to live in overcrowded conditions, with poor ventilation, a lack of clean water and raw sewage flowing though the camp. “We sneaked into the camp to be met with the smell of raw sewage. Sewage had leaked out all over the camp, and workers had to create a network of stepping stones to cross it and get back to their accommodation blocks,” stated the BBC in the report.

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CASE STUDY: ALDAR Improving guidelines While the UAE has since instigated a series of legislative measures to protect the rights of labourers, with inspections of accommodation and workplaces, serious damage has been done to the region’s worker welfare reputation, and the smear seems set to continue unless measures are strictly enforced, and done so in the public eye. That said, many in the region are optimistic that welfare in the region can and drastically will improve from what was seen on the documentary. Elias McGrath, Group Administrator of Build Safe UAE, a not-for-proﬁt organisation aimed at improving the health, safety and welfare conditions of all construction industry stakeholders, is one of the upbeat ones. “There has been a lot of action since the negative press was generated, a lot of positive movement,” he explains. “Fortunately for us, Build Safe UAE work with a lot of good contractors and good developers that promote very high standards of welfare. Unfortunately, when such a publication is promoted internationally about the conditions of a particular labour camp in the UAE, the guys that have invested a lot of money to do the right thing and keep their camps well maintained also get affected, which isn’t right. What we want to do is promote the good guys and that’s something that we will continue to do. There is a minority that isn't doing the right thing, but that happens with everything, with construction sites, with labour camps, and so on. So we want to show what the good guys are doing and then provide guidelines to improve what the bad operators are delivering.” Formalised in January 2008, Build Safe UAE was designed to promote greater standards of health, safety and welfare throughout the UAE. McGrath explains that the main objective behind the organisation is to develop a statistics database to understand the most signiﬁcant issues that are faced within the realm of welfare. By establishing a statistics portal it has been possible to break down the barriers of intellectual property and competitive advantage regarding health and safety, which have been prevalent in the region for so long. “We’ve pushed the concept that ‘there is no intellectual property associated with health and safety’, and from the 88 members that have already joined we’ve seen improvements,” says McGrath. Organisations have been willing to share with one another, continues McGrath, from best practices whether it be a driving policy, a permit system or a safety management plan to a safety alert system, these are all examples that truly contribute to saving lives. “The industry was crying out for statistics, and through our simple database we have been able to provide that. We’re also hoping to grow that through 2009,” he says.

Impacting the workforce So how do these changes to the industry impact on the direct workforce? It is still a challenge, answers McGrath. “We initially needed support from senior management before we could get to the workers themselves and get their feedback on the changes that were happening, that’s the way that things happen, everything is done from the top-down. But the great thing is that once we get the senior manager committed, his message is lived and breathed by the organisation that he leads, so unless we have his buy-in, what the worker thinks won’t make a difference.” Getting support from senior management means that collaboration becomes easier, and getting the message to the workers themselves is also easier too. McGrath explains that this is currently happening as the 88 se-

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Although the labour camps in Dubai have been depicted as having horrendous living conditions, Broderick is keen to highlight that not all labour camps are the same: “We have 40,000 workers on a project like Yas Island, so we needed to look at accommodation in a responsible way. We decided to build our own worker accommodation so it reduced production downtime and travelling times, which also meant we were reducing resources and our carbon footprint. “We’ve seen nothing but success from our worker accommodation. We have internet cafes, basketball courts, a cricket pitch with a stadium for 12,000 people, a gym, pool rooms, cinemas and its all worked. We even went as far as having our own catering on site. They built enormous industrial kitchens to cope with 40,000 workers. We’ve obviously looked feedback and we’ve interviewed the workers there – they all seem extremely happy with the situation. “The Ministry of Labour came out and did a surprise visit and he awarded us a grade A and said that we were the benchmark to follow.”

nior managers who have already joined Build Safe UAE are currently filtering messages down and senior management support is becoming more and more apparent. “In the next few months we’ll be conducting feedback, and we’ll be going through site supervisors to see what else needs to be done by finding out what the key issues are and action them in the near future,” explains McGrath. Andrew Broderick, Health, Safety and Environment Manager for Aldar, joined the Build Safe UAE initiative earlier this year. He agrees that one of the main challenges facing the health and safety sector in the region is leadership. “A health and safety officer will be on site to give technical knowledge, advice and guidance, but unless the senior manager is also on site to support that then the health and safety are aspects are lost. A health and safety person can write a million reports, but unless the project manager takes it on board and actions those reports, health and safety can be lost.” Broderick goes on to explain that Aldar joined the not-for-profit organisation in order to engage with stakeholders and really push the idea of health and safety as an imperative into the construction sector. “We don’t want a policy to simply sit on a shelf – we want it to be an active document that is used by the project managers right the way down through to the people on site. It’s not about beating people with a stick when it comes to a policy, we want to educate and train to make sure that people are aware that they need to implement health and safety, that it has benefits, it reduces costs and speeds up production.” A couple of years back Broderick brought a health and safety training company on board that helps Aldar train and educate the workers over a two-day period to ensure that workers are educated to the highest standard possible. Since joining Build Safe UAE, Broderick has become even more focused on ensuring that the contractors, and consequently the labourers that work on site, are educated correctly. He’s found that workers are extremely responsive to training, and are keen to learn. “Most workers come from Asia and they come to the UAE with a promise of onsite training. These guys aren’t used to the vast and techni-

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cal construction sites here, which can be a big problem. And rather than full training, they simply receive a very basic safety induction that addresses site-speciﬁc hazards. So say they have a steel ﬁxer, for example, working 50 stories high, they don’t talk about this person suffering from hypertension or vertigo, these things just aren’t addressed and it can leave the worker feeling isolated. We try and push these areas, and the Build Safe initiative is really highlighting the areas that need extra efforts from the contractors.”

Looking to the future Moving forward McGrath is keen to work on two key objectives. Firstly, after reviewing 2008 data it has become apparent that falls from height have been the most significant trend. McGrath is keen to action some sort of safety campaign on falls from height by understanding the lessons from each case and developing a key focus group with key individuals from various construction stakeholders to prepare some practice guidelines for the industry. “Once that’s finalised, we hope to share that freely with the wider industry to promote better practices and promote the true importance of erecting fall screens, edge protection and clipping into harnesses for example.” McGrath is also keen to emphasise that more communication is needed. His second objective is specifically around communicating alerts. For every near miss, lost time injury and fatality that takes place, McGrath believes that an alert should be automatically developed to document the lessons that took place and then implement effective measures to prevent that accident from recurring, as well as share that information with the wider industry. “Because we’re all delivering the same parts of construction activity, whether it be a trench excavation, a concrete pour or a working at height, we’re all doing the same thing, and therefore, if one of our construction stakeholders experience an issue, it should be communicated for the common benefit.”

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Objective three would be developing guidelines for health and safety inconstruction, continues McGrath, followed by guidelines for labour camp accommodation and welfare. “This is a big project in itself,” admits McGrath, “But on top of that we want to communicate the message to the whole region, for the greater benefit of the construction industry.” So far Build Safe UAE has encouraged the industry, and in particular key individuals who have expertise in labour camps, to submit information and work in conjunction with the organisation to prepare a best practice document on labour camps. The document is currently 80 percent complete and McGrath is confident that following discussions with the UAE Ministry of Labour it will be used to develop their regulations further. “What it is essentially a guidelines document from the time that a person is looking to lease, buy or develop their own labour camp, and it provides them with the best practice guidelines, from camp layout to ablutions, amenities, kitchen setup, fire escapes, space ratios – anything you can think of in relation to a labour camp.” Looking at worker welfare things are without doubt steadily improving, with the Panorama documentary a catalyst, bringing this important issue to the publics attention. The various governments are taking notice of the initiative and demonstrating that they want to be involved with such an important issue. Seeing the Build Safe UAE initiative growing from strength to strength can only be a good thing. “Things are improving, improving, improving,” concludes Broderick. “We were just waiting for something like Build Safe UAE to come along. And I’m so glad it has because it’s really pushing these issues to the top of the agenda. To be a health and safety professional, you’re always promoting best practices and safe systems of work, so to have this now and to see it even more is the best possible scenario.”

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NO SMOKE WITHOUT FIRE Early detection of fire is crucial in order to execute timely evacuation and save property. Mariann McDonagh, Senior Vice President of Marketing for Xtralis, reveals how aspirating smoke detection technologies are able to give the earliest warning possible. Can you explain what your company does? Mariann McDonagh. Xtralis provides safety and security solutions that help identify threats before life, critical infrastructure or business continuity is compromised. We are a global leader in ﬁre and gas detection, video surveillance, intrusion detection, access control and trafﬁc detection. Our powerful early warning threat detection solutions deliver unparalleled protection and situational awareness.

only seconds. Because ASDs are actively sampling air in a facility, they are tolerant of smoke dilution and are reliable in highairﬂ ow environments. ASD solutions provide security and life safety personnel with the earliest warning possible to allow for proper investigation and an appropriate response. In fact, when tested in a controlled environment, ASD solutions have consistently outperformed conventional detection solutions.

What is early warning smoke detection? MM. Early warning smoke detection, or EWSD, is a proactive approach to fire detection and prevention. It is designed to help security and fire safety personnel identify a threat at the earliest stage. EWSD programmes tightly integrate cutting-edge aspirating smoke detection (ASD) technologies with physical security solutions to provide security and life safety managers with a holistic view of a fire event. EWSD saves lives and property. What are the advantages of using aspirating smoke detection systems? MM. ASD solutions detect fire in its earlier stage, before smoke may be visible to the human eye. These solutions use multiple air-sampling tubes, spread out across large, open facilities to capture and filter air samples. The samples are quickly transported through a dual-stage filter to remove dust and other contaminants that can cause false alarms with conventional smoke detectors. Finally, air samples pass through a highly sensitive centralised laser detection unit. If the presence of smoke is detected, alarm signals are transmitted to centralised monitoring stations, as well as to integrated systems such as building management, equipment control or fire suppression systems. The entire process takes

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Mariann McDonagh What markets can best benefit from early warning fire protection? MM. ASD solutions are required when uptime and service provision are critical goals, such as in telecommunications hubs, financial services data centres, and other critical infrastructure facilities. In high-airflow environments, such as server rooms, indoor stadiums and open

warehouses, smoke dilution can prevent smoke from reaching the ceiling, making it difficult to detect with conventional detectors. Smoke can become trapped in ducts, pockets or voids. ASD sampling points can be placed at the return air grille or in equipment cabinets to detect smoke as it is carried by normal airflow. In a large, open space, sampling points for ASD detectors can be placed where the smoke goes – often some distance below ceiling level. Ceiling voids, sub-floor spaces and elevator shafts are difficult to protect due to their high inaccessibility. Maintenance on fire protection systems in these areas can cause disruptions and be inconvenient. ASD solutions can be mounted in accessible locations, allowing easy access for maintenance. In modern art galleries, museums and historic buildings, it's important to preserve the internal design and atmosphere of the environment. ASD solutions can be equipped with tiny, capillary sampling tubes that are barely discernible to the human eye. Public buildings may present a situation when elderly or handicapped individuals need additional assistance during an evacuation. Additionally, in some facilities, such as hospitals, stadiums and underground tunnels, evacuation is difficult due to crowds and limited exits. ASD solutions provide maximum time for a deliberate and orderly evacuation. In oil and gas manufacturing facilities and outdoor public transit environments, poor air quality or extreme temperatures often prove too daunting for conventional smoke detection solutions. ASD solutions feature dual-stage filtration to ensure that they work in dirty environments. For more information please visit the Xtralis website at www. xtralis.com, or contact the office in Amman at +962 6 5691083 to schedule an ASD demonstration.

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INDUSTRY INSIGHT

A trip down memory lane Barry R. Bell details the history of, and explains the current state of, fire engineering in the United Arab Emirates.

t seems like just yesterday, but its a little more than 10 years since I first came to the United Arab Emirates. Arrival at Dubai International Airport then wasn’t anything at all like it is today: the Emirates was a relatively quiet place, with very tolerable traffic, and the kind of pace and lifestyle that always made me want to hurry back as I toggled between Europe and the Middle East on a three weeks in and three weeks out, turn around routine. It was a few small projects that brought me here, consulting on fire and life safety strategies to Dubai Government Agencies on some very unique projects. As usually happens, contacts were established, one thing lead to another and suddenly there was an opening for some additional work in the oil and gas sector, mostly auditing of existing on and off shore facilities. It was a very pleasant experience and I was eager to establish continuity. Even back then, the Emirates was a fascinating place to be, with colourful spice and gold markets, and bustling night-time souks, not to mention the delicious local cuisine: all still very new to a western traveller. I was able to convince the German headquarters, located in the World Expo City of Hanover in

Barry R. Bell is an engineer with degrees in electronics and fire science and has been with the German-based Fire Engineering Corporation, Wagner GmbH, for 30 years. During this tenure, he has headed both national and international operations as a fire engineering consultant, establishing business entities for the corporation in many countries. With affiliation to many leading fire-engineering institutions, he has spent the last 10 years developing the fire engineering discipline in the United Arab Emirates.

The view from my seventh ﬂoor ofﬁce really let me feel that I was sitting in the middle of the Arabian desert. The Sheikh Zayed road leading out of Dubai in the direction of the capital, Abu Dhabi, was quiet and void of modern road infrastructure. But as we know, the change did come, and much more rapidly than anyone could have anticipated. While the construction industry and city in-

“Modern day fire engineering has become one of the newest and most important engineering disciplines amidst this unrivalled construction boom”

the northern state of Lower Saxony, that there was every reason to expect rapid growth in this country, if not the whole GCC region, within the next few years. And so, in the year 2000, Wagner Fire Safety Management Consultants established itself at the World Trade Centre, renting a small serviced ofﬁce in the Sheikh Rashid Tower, the very ﬁrst high rise building to be built in Dubai.

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frastructure development took off slowly, the rate of pace increased almost daily. Everything else had to develop to meet the demands of the massive inﬂux of people and expertise needed to make the last 10 years possible. High-rise buildings now cover the city and the infamous Sheikh Zayed Road. Shopping malls stretch as much as 1km in length, hun-

dreds of restaurants across the city entice the residents away from their dining tables at home, while the flavour of smaller supermarkets and traditional Schawarma style food stands provide the contrast that makes the Emirates a desirable destination. Modern day fire engineering has become one of the newest and most important engineering disciplines amidst this unrivalled construction boom. Wagner Fire Safety Management Consultants have contributed to the establishment and success of fire engineering in the Emirates over the last decade and will continue to do so, together with the local authorities, and many other well branded fire engineering specialists that have established themselves in this region. Today, though we are feeling the pinch of the worldwide credit crisis. Many projects here are, for the time being, left poking out of the ground, baring, their unfinished concrete columns and steel reinforcements to the few visitors that still venture into the region. Things will get back on track; it’s just a matter of time. For the time being the pace resembles that which I encountered in the beginning; it’s just the skyline that looks different.

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FIRE SAFETY FOCUS

The importance of passive fire protection The Middle East, particularly Dubai, has seen a huge growth in fire protection firms and accreditation standards in line with the rapid pace of structural development over the past decade. Calls for tougher enforcement of regulations on building sites and products is the next step for authorities. assive fire protection (PFP) is an integral component of structural fire protection and fire safety in a building. Through the use of fire resistant walls, floors and doors PFP attempts to slow or contain the spread of fire, limiting building damage. PFP is built into the fabric of the building, creating a physical barrier that cannot be turned off and requires no power or water to work; it simply remains passive until it is called upon to provide fire protection. With the rapid pace of construction all over the Middle East building techniques have been developed to include more intricate designs and modern materials. But while building techniques have changed, one thing that has not is the risk of fire that can destroy any building if the design does not accept risk and minimise the potential dangers. And with high-rise buildings and novel building designs being constructed at a faster pace than ever before, they present unique fire safety requirements. The Risk Insight, Strategy and Control (RISC) Authority has published an enhanced version of Approved Document B: Fire Safety (Volume 2) – Buildings Other Than Dwellinghouses. Including insurers’ requirements for property protection with technical guidance for construction professionals, the new document includes additional text, tables and diagrams covering relevant property protection and business interruption issues. Mike Wood, Deputy Chair of the Passive Fire Protection Federation, says that the guide is much needed and fully supported by the industry. “Fire safety has to work harder than ever before. Losses

further regulations. There has recently been an upturn in the number of firms looking for certification of their products, which demonstrates that the message of quality is being met. “There has been a growing awareness in the industry for the need for more certification standards,” says Amal Tamim, Business Development Manager at materials testing firm, Bodycote Warrington Fire. “It has mainly been for things such as doors, but there is also an increasing number of people looking to certify coatings, steel and other major products.” While there are no enforced regulatory controls to ensure that the minimum appropriate standards are monitored and maintained, it falls to individual companies to ensure that the fire protection they install is fit for purpose. One of the key achievements of the fire industry over recent years is the development of third party certification schemes as opposed to a self-certification scheme, because it provides an effective means to provide the fullest possible assurances, offering a level of quality, safety and reliability. So while regulations governing fire protection in the Middle East have been far less stringent than in Europe, the situation is changing, with more and more firms coming on board to make sure that they are certified to a third party standard. International architectural practices and construction standards are playing a larger role in the region these days and the high value of new projects has also raised awareness about the importance of fire safety.

“One of the key achievements of the fire industry over recent years is the development of third party certification schemes” due to fire are too high and more can be done. But as developments have become more complex, with a mix of different functions, design is often influenced by several competing objectives so fire protection can be found to be pushed down the priority list as a less immediate requirement. Modular construction is also more common, with increasing use of innovative materials and techniques leading to lighter, less robust structures against the threat of fire.” But the RISC guide is just that, a guide to providing better fire protection for a building and its contents; what the industry needs is

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EXECUTIVE INTERVIEW

WHY PROTECTIVE COATINGS MATTER Nick Crowther, Business Development Manager for the International Paint business unit of AkzoNobel in the Middle East, explains the importance of protective coatings for the infrastructure industry. What applications within the infrastructure sector are your products used for? Nick Crowther. International Paint supplies a wide variety of high performance coatings for many applications in both the new construction and maintenance markets. We have supplied to airport projects ranging from Beijing International and London Heathrow to New York JFK and Changi Airport Singapore where our coatings have been used to provide long lasting corrosion and ﬁre protection. Our experience in new construction and maintenance and repair for protecting bridges is also hard to beat. Take a look at our track record and you’ll find one of the world’s most iconic structures – the Sydney Harbour Bridge, recently refurbished with our coatings. We have also worked on some of the world’s biggest sporting events. We have a particularly strong history of supplying to major sporting events including the Olympic Games in Beijing, Sydney and Athens. Does the infrastructure sector place any speciﬁc demands on protective coatings? NC. When specifying coatings for the infrastructure market a large emphasis is placed on aesthetics as well as corrosion protection. The

and colour retention, lifetime flexibility and outstanding abrasion and impact resistance. Owners, architects and designers may also require a coating system that offers protection against fires while remaining aesthetically pleasing. Used on structures such as airports, office buildings, hotels, conference centres and power stations our Interchar range offers protection against cellulosic fires and is designed to keep steel below critical core temperature for longer. Applied as a thin layer it does not compromise intricate designs and shapes created from the structural steel and can be easily over coated with a wide range of coloured finishes allowing for the full design features to be fully exhibited.

NICK CROWTHER How do your products address these challenges? NC. International Paint has a unique range of products to offer solutions to these requirements. Our patented Interﬁne 979 arcylic polysiloxane forms part of our premium range of ﬁnish coats that have been developed utilising the latest in polysiloxane technology. When ap-

“Research and development is vital when it comes to making sure we meet customer demand and stay ahead of the competition with the products we offer” client wants their assets to look as good as possible for as long as possible. Failing to protect an asset from the environment regarding corrosion or UV degradation can be costly, both financially and for the client’s image. Early specification consideration can be critical when designing structures for corrosion and fire protection, and also for lifetime cosmetics and maintenance.

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plied over a suitable primer, Interﬁne 979 can provide the same level of anti-corrosive performance displayed by some traditional three coat systems. Not only does this offer the customer the security that their assets are protected to the highest standards but it can also offer the applicator beneﬁts on new construction by minimising application costs. This technology also offers excellent short, medium and long-term gloss

R&D is a big part of your operations. What are your current areas of focus in terms of new product development? NC. Research and development is vital when it comes to making sure we meet customer demand and stay ahead of the competition with the products we offer. Our chemists look for ways to assemble new materials that will uniquely ﬁt our customers’ needs while limiting their effect on the environment. This means bringing products to the market that offer increased asset protection and aesthetics whilst exceeding environmental requirements such as LEED and BREEAM. What do you see as the biggest challenge in the protective coatings industry over the next few years? And what are the biggest opportunities? NC. The biggest challenge to the industry will be new legislation and the drive to offer products that are sympathetic to the environment. International Paint, as part of our parent company AkzoNobel, has been investing in the development of such products for many years and hence welcomes any change in the industry for the better. Increasing demand for products that reduce the carbon footprint of our customers opens up a window to future business opportunities.

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FIRE SAFETY FOCUS

FEELING THE HEAT The Dubai Civil Defence has warned that it will resort to strict legal procedures against establishments that fail to meet stringent fire and safety prevention standards. But what does this mean for firms in the region?

n June 2008, the Dubai Civil Defence launched the ‘Safety First’ campaign after a spate of massive ﬁres in the city. Most of those ﬁres were attributed to failure to abide by prevention and safety regulations in warehouses, factories and labour accommodation. The campaign has since focused on creating an awareness among both employers and employees, while recognising the diversity of cultures and attitudes of people and the need to abide by preventive and safety standards. The campaign involved 18 teams of four personnel carrying out strict inspections of international safety standards in establishments in 10 zones, with four in Deira and six in Bur Dubai. “Well-qualified teams have been assigned for inspections, as the teams will also avail themselces of the latest technologies in gathering and managing information for fire prevention at these buildings,” explains Major General Rashid Thani Al Matrooshi, Director of Dubai Civil Defence. “The campaign also aims to establish an electronic system for field scanning, which contains information on all buildings and the safety standards in use. The Civil De-

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fence will also follow up on the mandatory linking of warehouses, factories and labour accommodations to the direct alarm system.” In the ﬁrst six months since its launch, the campaign reduced ﬁre-related accidents from 386 in the last six months of 2007 to 300 in same

tion and safety standards, of which 496 were referred to the preventive safety department for further investigation. “The campaign has contributed towards reducing fire-related accidents by 22 percent. The campaign also helped in identifying, in the first phase, 3011 establishments that followed fire-safety norms. Around 1486 establishments also rectified their faults with regard to following fire prevention and safety standards.” Dubai Civil Defence has also announced that the teams are in the processes of establishing an electronic database to work as a main reference in case of any accident. The database will include information on the number of actual warehouses used for storage, the types of goods stored, locations, abidance by safety standards, the number of factories and their activities, the number of temporary and permanent worker accommodations and the number of people living in each one. Although the number of fire safety related accidents continues to drop, in December 2008 Al Matrooshi made a further announcement regarding the Dubai Civil Defence strategic plan for 2009-2015. He advised that the strategic plan had been revised from the previous year’s proposals after considering its compatibility with the specific targets and the need to develop an updated plan that dovetailed with the objectives of both the Federal Government and the Government of Dubai. “The plan came as a result of the continuous hard work of the teams entrusted with the study of the previous strategic plan 2007-2008,”

“The campaign reduced fire-related accidents from 386 in the last six months of 2007 to 300 in same period of 2008. Accidents have been cut by a huge 22%” period of 2008, which means accidents have been cut by a huge 22 percent. “We launched the campaign for many reasons,” explains Al Matrooshi. “These included the increasing number of accidents owing to a failure to abide by ﬁre prevention and safety standards, the expansion of storage and construction facilities in the industrial sector and also the need to improve safety in these areas.” Al Matrooshi goes on to explain that 3319 establishments were caught violating preven-

says Al Matrooshi. “Dubai Civil Defence’s various administrative and occupational heads of department at all levels, from individuals and the executive staff members to the assistant directors, department directors and the heads of internal sections, participated in the formation of the strategy. 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.”

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AVIATION FOCUS

Lift off Terminal 3 at Abu Dhabi International Airport has been eagerly anticipated since ambitious expansion plans for the airport were announced back in 2005. Four years later, the terminal is fully up and running. MENA Infrastructure investigates what was involved to get the new terminal up to scratch.

s part of the ambitious US$6.8 billion re-development and expansion programme at Abu Dhabi International Airport, a host of initiatives have been implemented to the aviation hub, and most recently the capital’s airport unveiled Terminal 3. Spearheaded by the Abu Dhabi Airports Company (ADAC), the airport is being transformed into a best-in-class facility that will effectively cater to the needs of the Emirate’s prospective growth of 20 million passengers by 2012. A second runway came on line in October 2008 and the third terminal in March this year, while a new air trafﬁc control tower and the Midﬁeld Terminal Complex will complete the redevelopment within the next three years.

The iconic Terminal 3 has capacity for ﬁve million passengers, boosting capacity for the entire airport to 12 million. The terminal is a unique and modern facility that features the latest innovative technology and also follows international standards. His Excellency Khalifa Mohamed Al Mazrouei, Chairman of ADAC, described the opening of the new facility as a major leap, particularly taking into consideration the state-of-the-art infrastructure that would match Abu Dhabi’s unparalleled growth in air transport and cargo handling. “The opening of Terminal 3 holds great signiﬁcance, not only for the airport and Etihad’s passengers, but also for Abu Dhabi as a world class centre for investment, tourism and commerce,” he said.

TIMELINE: Abu Dhabi International Airport

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1929

1930s

1960s

1982

The British Royal Air Force starts using the calm coastal waters as a base for its ‘Flying Boats’

The salt flats south of the town serve as the first land base for the RAF

A purpose-built airport with a hard surface runway is inaugurated in the Al Bateen district. It becomes Abu Dhabi’s first international airport

With foresight and planning the airport moved to its present location. Designed by Aeroports de Paris, it has a maximum capacity of five million passengers per year

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Design

OPEN FOR BUSINESS

This impressive new terminal is set to meet the increases in demand in the short term, while the Midﬁeld Terminal Complex, due for completion in the next few years, will provide long-term capacity for up to 20 million passengers. But what exactly has gone on behind the scenes to get this new terminal on track? “ADAC has worked hard on the design of the new terminal to create an unrivalled passenger experience,” explains Al Mazrouei. “It is a unique modern facility that features the latest innovative technology and offers a premium experience to our passengers with exclusive retail and luxury goods and services.”

he Abu Dhabi Airport Logistics Park forms an integral part of the major expansion programme at Abu Dhabi International Airport. The new, state-ofthe-art Logistics Park is located adjacent to the airport and close to the upcoming Khalifa Port, as well as Capital District, the future centre for business and commerce, and Masdar, the world’s first carbon neutral city. “The Logistics Park is being developed in phases to ensure there is enough space for improvement to cater for investors’ growing requirements,” says His Excellency Khalifa Mohamed Al Mazrouei, ADAC Chairman. “Through its establishment, ADAC aims to help stimulate economic growth and create opportunities for local companies and international organizations to access the UAE market and the extended Gulf region.” With construction of the first phase of development currently underway, the Logistics Park is welcoming tenants during 2009, and the full project is expected to be completed by 2015.

“The designs were based on user experience from both the airline and passenger perspective” Sheikha Al Maskari

For anyone planning to build or upgrade an airport, co-ordinating operations and simplifying processes while consistently delivering better service is a huge challenge, particularly when considering the high numbers of passengers involved. “The designs were based on user experience from both the airline and passenger perspective,” explains Sheikha Al Maskari, ADAC’s Vice President of Corporate Affairs. “In terms of the look and feel of the terminal, we have designed a modern sleek terminal that reﬂects our local traditions and the values of Emirati hospitality.” With rising passenger numbers comes an increase in the number of risks to security, which was a pressing area of concern for ADAC. “Abu Dhabi International Airport beneﬁts from award-winning security standards, which are constantly reviewed to ensure our security remains appropriate

for the increasing number of passengers passing through our airport,” says Al Maskari. “That said, we do not rest on our laurels, and continue to strive for improvement and look ahead to the future needs of our airports, passengers and airline partners.” Another vital part in the design considerations was ensuring that the technologies in the airport integrate and dovetail with the technologies the airlines themselves are integrating. As a dedicated facility for Etihad Airlines, it was important that both parties were involved with the decisions around design, space and security. Detailed co-ordination meetings were

1990s

2008

2009

2010

2011

Rapid growth necessitates expansion. First of several stages of planned enlargements are undertaken.

Second runway opens

Terminal 3 opens

New cargo terminal due for completion

New midfield terminal due to open

Source: www.gec.au

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MOMENTUM STILL UPWARD DESPITE SLUMP bu Dhabi International Airport recently announced a 10 percent year-on-year gain in passenger traffic for January to 811,530. The robust result, coming against a backdrop of aviation industry turmoil and global financial crisis, follows a 30.2 percent rise in passenger traffic to 9.02 million last year at the UAE capital’s gateway. ADAC Chairman and Managing Director Khalifa Al Mazrouei commented: “We have said all along that, even during buoyant market conditions, growth rates such as we have seen over the past two years were not sustainable indefinitely. But we are pleased that, in light of the added challenge of the global economic slowdown, we remain an airport of choice – and have continued to realise double digit growth.”

Source: The Moodie Report Plus

held with all end-users, who were involved from the beginning of the design process, choosing everything from the technologies to the equipment. The exchange of information took place on a regular basis to ensure compatibility between the two, and a series of exhaustive tests were also conducted under the simulated operating conditions to ensure that everything worked together exactly as planned.

“The new terminal is considered to be one of the best of its kind in the region, incorporating the latest technologies and operational systems” Richard Hill

In order to ensure that the terminal got off to as smooth a start as possible and learned lessons from some of the less auspicious terminal openings in the recent past, a phased-in process started in December 2008. New facilities went through rigorous testing and scrupulous technical assessments to ensure passenger comfort, safety and security was all accounted for. The new terminal adopted the most advanced airport operations and navigation systems, as well as internationally recognised quality standards, to ensure that the award-winning security standards are met, including KAT 2000, the most modern passenger and baggage security screening system. “We conducted many tests and simulations before we started out phased, carefully managed passenger trials. Due to the nature of our very

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gradual opening, we were able to evaluate every interaction passengers had with the terminal and adjust the different touch points according to requirements,” explains Al Maskari. The transfer of Etihad flights from Terminal 1 to Terminal 3 was done during February and March, and was slowly phased in in order to minimise the disruption to customers as well as ensure an effortless transition of flights. The transfer of flights was supported by new facilities for Etihad Airways customers, which include a designated check-in zone and lounges for premium customers. “Etihad Airways’ home base at Abu Dhabi airport has undergone a massive transformation this year with the opening of Terminal 3,” explains Richard Hill, Chief Operating Officer for the airline. “The new terminal is considered to be one of the best of its kind in the region, incorporating the latest technologies and operational systems.”

Economic conditions While Terminal 3 has been up and running officially for a couple of months now, there is no doubt that the current economic conditions will affect the airport as a whole, including Etihad Airways. However, the airline is confident that while the new terminal has expanded airport capacity by five million, they anticipate flying seven million passengers in 2009 alone. “Looking further ahead,” explains Hill, “we have our sights set on flying 25 million passengers a year by 2020 and doubling the number of cities served from 50 to 100. Our projections to 2020 reflect the order and scale of our ambitions, closely aligned to the growth of Abu Dhabi as an economic and tourism powerhouse. The new terminal will help us meet these ambitious growth targets.” And as for the future of Abu Dhabi International Airport? Well, it is full steam ahead to see the new air traffic control tower and the Midfield Terminal Complex completed in the next couple of years. “Moving forward we will continue to excel in what we do best,” concludes Al Mazrouei. “We will provide the quality and convenience that investors look for to achieve their goals and business objectives.”

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r Majdi Sabri, International Air Traffic Association (IATA) Regional Vice President for MENA, believes that the region’s aviation industry should brace itself for turbulence this year, as the Gulf’s airlines are poised to rack up combined losses of US$200 million in 2009 alone. “The Middle East will be the only region with demand growth in 2009, of +1.2 percent, but this will be overshadowed by the impact of a 3.8 percent increase in capacity,” explains Sabri. “This is significantly below the double-digit growth of previous years and to exacerbate the situation, the region continues to add capacity ahead of demand. As a result, airlines in the region will lose US$900 million in 2009 after losing US$800 million last year.” But while the outlook is far from rosy, Sabri believes that there are many opportunities for the aviation industry to help minimise losses during these tough times and prepare for when the situation begins to look up. “There are always opportunities in times of crisis, and in the Middle East I see three,” he says. “First, use this crisis as a leverage to improve liberalisation. Second, convince airports and air navigation service providers (ANSP) to improve efficiency. And third, instil a sense of urgency so that airlines look more closely at technology as a tool for greater efficiency.” In fact IATA itself has been active in helping airlines find more efficient ways of doing business, including the ‘Simplifying the Business’ programme, which is designed to help airlines reduce costs while improving service. In 2008, the organisation completed the 100 percent ET project, which delivered US$3 billion in annual industry savings, and four initiatives from the project remain in place, including, bar coded boarding passes (BCBP), a baggage improvement programme (BIP), the fast travel initiative and IATA e-freight. “Together these can deliver $11 billion in annual savings,” says Sabri. Sabri goes on to explain that fuel savings are another area with great savings potential – not only in terms of costs but also in terms of emissions reduction. The industry currently has a target to achieve a 25 percent improvement in fuel efficiency by 2020 compared to 2005, with a four pillar strategy that features technology, operational enhancements, more efficient infrastructure and positive economic measures. “Airlines in this region are doing their part and ordering 1000 new, fuel-efficient aircraft worth over US$178 billion to be delivered over the next decade,” explains Sabri. Since 2004, US$12 billion and 59 million tonnes of CO2 savings have been made globally by shortening routes, enhancing operational procedures and sharing best practices. And since 2006, US$460 million has been saved in the Middle East alone, US$40 million through shortened routes and US$374 million by helping airlines in the region improve fuel efficiency. Reducing infrastructure costs is another measure that could improve the state of the industry and see more transparency, fairness and consultation. “IATA is pushing for cost efficiencies by challenging our monopoly providers – airports and ANSPs – to deliver the same efficiencies that airlines have achieved. Some see the logic of efficiency improving competitiveness, but unfortunately some don’t. For example, recently charges were increased in Saudi Arabia and Egypt without proper consultations with the users in accordance with the recommendations of the International Civil Aviation Organisation (ICAO).”

THE ONLY WAY IS

UP The state of the airline industry today is grim. Demand has deteriorated much more rapidly with the economic slowdown than could have been anticipated even a few months ago. It’s difficult to predict how the industry will emerge from the downturn, but one thing is for sure: Change is essential for the long-term health of the sector. And the best time to implement that change is now. 122

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REDUCING LOSSES Open skies Open skies policies also have the potential to radically improve the state of the aviation industry in the Middle East and in 2004, the Arab Ministers of Transport signed an agreement establishing a goal for open skis, fair competition and a mechanism for bloc negotiations with the European Union. However, since that date only six states have ratified the agreement. Every country needs to be on board as soon as possible in order for the initiative to work properly. IATA is attempting to kick-start the process on a global scale by facilitating discussion among progressive governments. Sabri explains that last October the organisation held an Agenda for Freedom Summit in Istanbul with the EU and 14 governments, including the UAE and Morocco. “We found common ground and common vision among the participants and we are working with them on several proposals, including a Multi-lateral Statement of Policy Principle that could help drive this process forward,” he says. Sabri goes on to highlight the progression on liberalisation, which has led to new airlines in Saudi Arabia, the UAE, Jordan, Morocco. Lebanon, Bahrain and Libya. “Open sky policies are delivering economic benefits in Lebanon, Kuwait, Bahrain and the UAE. Morocco’s open skies deal with Europe is boosting tourist arrivals towards 10 million a year. But restrictive bi-laterals elsewhere are depressing traffic growth – if we don’t open up our skies in the longer term, we could face an overcapacity situation with the airports. Last year, 160 million passengers flew into, out of or within the Middle East, by 2012, the 10 leading airports in the region will have a combined capacity of some 320 million passengers per year.”

inimising losses becomes increasingly important in lean times. These are just four initiatives implemented by the IATA that could deliver up to US$11 billion in annual industry savings.

Bar coded boarding passes (BCBP): BCBPs can be printed at home or paperless boarding passes can be accessed from a mobile phone for faster and more convenient web check-in. BCBPs also reduce paper by using only one boarding document for the entire journey. Baggage improvement programme (BIP): Lost baggage is a costly problem that affects both airlines and passengers. BIP aims to reduce the rate of mishandled baggage by improving handling processes

to make sure that passengers get their baggage at the final destination. Fast travel: The fast travel initiative will give travellers more control by designing a range of self-service options that will enable the passenger to manage more aspects of the departure and arrival processes. IATA e-freight: e-freight deals with the airfreight sector of the aviation industry and aims to take the paper out of the cargo process and use only electronic systems.

“The Middle East will be the only region with demand growth in 2009, of +1.2 percent, but this will be overshadowed by the impact of a 3.8 percent increase in capacity”

Dr Majdi Sabri

Air traffic control However, while improving open skies and finding more efficient ways of doing business will improve the region’s aviation industry it can only work to a certain extent without other changes being initiated. A key area will be improving the current state of air traffi c control (ATC). Sabri believes that the infrastructure and air traffic control procedures are not keeping up with growth and that military restrictions have limited airspace expansion, causing a fragmentation of airspace resulting in sub-optimal routes that are costing the region’s industry millions. It is essential that there is better coordination in order to find workable solutions, which means involving governments, airlines, ANSPs and industry groups like the Civil

Air Navigation Services Organisation (CANSO), ICAO and IATA. “We are calling for a coherent regional approach to air traffic management to provide capacity and improve efficiency. That means looking beyond national borders to the region-wide implementation of en-route airspace and terminal control areas based on performance based navigation (PBN). It calls for investment in improved aeronautical information management and communications infrastructure. And it means making better use of aircraft and air traffic management technology to achieve an airspace structure that is based on user-preferred flight-paths.” So while it is difficult to predict exactly what will happen in the region over the next 12 to 18 months as the full extent of the financial downturn and its affect on the industry becomes more obvious, Sabri remains optimistic that although there are areas that can and should be improved if the health of aviation in the region is to progress, change is indeed in the air. “We’ve made significant progress in getting everyone aligned with the need for change. And I’m optimistic that we will see progress in the next year and beyond,” he concludes.

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OPPORTUNITY KNOCKS

Douglas Spragg, CEO and Managing Director of SAL Consultants, reveals why a decrease in growth equals an increase in opportunity. he world economic slow down affecting the Gulf area provides an opportunity to recover and review the developments for the capacity of the airspace and airports in preparation of the future spurt of growth that is bound to occur when global recovery finally arrives. The breathing space provided permits an in-depth review of all aspects of the aviation stakeholders’ interests, whether military or civil. In reviewing the Gulf area, the first characteristic to be seen is the channelling of the European and Far Eastern aircraft into a relatively limiting route structure, restricted further by the proliferation of military airspace. Whilst it would be natural to use the lessening pressure of traffic to recoup budgets and reduce developments, this reduction should be taken as an opportunity to re-evaluate the capacity strategy without the time pressures often seen in areas of growth. The boundaries between Air Traffic Control Centres are often also boundaries between traffic handling techniques and procedures, often forcing traffic over a particular point on the boundary. Airspace is often divided by permanent boundaries between civil and military and political priorities and takes prime position overshadowing the aviation stakeholders’ needs and priorities.

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There are many alternative solutions that have been put into practice in many countries, from the European ‘open skies’ concept to the American flexible civil military airspace practices. The reduction of vertical separation has provided relief in many areas where the traffic is composed mainly of over-flights. So, how to start? Perhaps the first steps are to clarify, from a purely operational viewpoint, the current constraints as recognised by both the air traffic controllers and their aircrew counterparts. The implementation of a ‘Fire Brigade’ of experienced controllers and pilots could examine all the little blockages in the system that, whilst relatively small, when added up in heavy traffic streams cause a major workload problem. Adding to the above task force, the military partners should be involved from the very first by including the military controllers, air defence and pilots. In order to keep these groups manageable, both groups should be examining their own areas of operation to see where the weaknesses of operation occur. It is only after this exercise that both groups should get together to compare their findings with a common view to highlighting solutions that can initially be put into place, the more complex being highlighted for further

‘proofs’ arising from modelling and simulation. It is likely that the concept of ‘Flexible Use of Airspace’ will make an appearance at this stage. Since the initial exercise was to examine all weaknesses and problems covered by both civil and military partners, there should be a basic understanding of the needs to be aspired to in the simulation. Whilst this bottom up approach is being started, a review at senior management level needs to be addressed where the political aspects of co-operative civil and military development planning are examined to investigate the requirements of clear and co-ordinated project design and development can be initiated or strengthened. At the same time a review of the whole Gulf region should be initiated with the aim of opening up the airspace divisions whether civil/civil or civil/military. In exploring capacity improvements, airports can often be treated separately, but capacity is only as good as the weakest link in this complex chain and the imbalance can

Douglas Spragg cause a build up of delays for both arriving and departing trafﬁc. For arrivals this ends up as holding in medium to high levels and for departures a backlog with infrastructure problems as staff are being directed to priority needs. The instinct to reduce budgeting during times of a downturn is understandable, but expensive in the longer term, not only to the budgeting organisation but also to industry in general as the necessary planning and implementation has been delayed, often measured in years.

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EXECUTIVE INTERVIEW

Time for change Emile van Essen, expert in sustainability for Recyclus.com and management monitoring for Essence-SUM, explains how implementing new techniques in the Middle East will build a sustainable environment. What prevalent opportunities for responsible behaviour are ready to be implemented and executed in the Middle East? Emile van Essen. Recyclus is a company that promotes solutions for the essential needs that have become glaringly apparent in the new millennium. Spirit and energy are requirements for development. To cause formation of spirit, study and education is needed, based on actual information offers. In the Middle East, cheap energy is available abundantly. Drinking water, agriculture and infrastructure provide, together with healthcare and trade, a basic economy. But it is nevertheless the human endeavour that creates this. Building towards better welfare and heavier industries will need bigger investments, especially with environmentally sound techniques where a lot of additional international competitive power can be gained. Predominantly, the proper maintenance of the internal economy needs attention. Federal and national self-sustainability prevents erosion of the economy. Based on this vision, Recyclus offers the conversion to federal, national and corporate social responsibility, eco-system selection and mediation. Essence-SUM, as a partner company, offers management directives, ﬁnancing constructions and technical implementation. Can this be done also with a better use of resources? EvE. In the MENA countries, I do not see the better use of resources as all-important; this point instead has received enough attention throughout history. Instead we can see a growing enthusiasm for an ecological lifestyle and re-cultivating of the wild lands. It is all about culture and cultivation. The vectors are: From apathy to creativity, and from a buyer’s economy to self-reliance. Informa-

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tion centres for healthy building and housing, knowledge centres for clean technologies, and model projects will help. The recyclic use of resources will play an ever more important role and technical solutions must be based from the ground up on nature-simulation models. Can you give us a few examples of this? EvE. The implementation and wide spread of mind-setting systems like perma-culture, transition-towns and water-landscape integration delivers joy in realisation and prolonged use over time. We have to think in structures and projects that last for the next 300 years. Constructing for short-term use is a waste of manpower and means. Con-

techniques can help to provide enough potable water with less effort? EvE. For water, we do not believe in one solution. First we need to deal with the actual problem in combination with wastewater management. Secondly, we have to look for landscale water infrastructure that contains several levels of implementation, providing agricultural, industrial, and neighbourhood solutions. We see a sea connection with the backlands, branching out of inland deltas. Cleaned rain and salt water can be supplied for all purposes. Technologies are secondary to this strategical program, but it is important to choose diverse and well. Our planet has become a global village. Electronic means like video conferencing or internet sessions can be used conveniently for doing business worldwide. How can we implement an advantageous strategy to reﬂect these changed needs? EvE. The ICT infrastructure is the fundament for social and business communications.

Emile van Essen is an expert in the fields of architecture, economics, health, sustainability, MBA, competitive intelligence and export. He has written several books and developed various international programs in sustainable building and living, integrative healthcare, economical development, CO2 reduction and peace projects.

gruently, such an approach will cause a sustainable cosiness, let sense generations of connectedness, and bring self-esteem. This can ﬁnd expression in national structural planology, sophisticated urban blueprints, international spiritual convention centres, and educative holiday parks with the best of regional and worldwide cultural muses: Music, poetry, dance, art, culinary highlights and entertainment. Clean drinking water is a sophisticated commodity in this region. Which sustainable

Presently unforeseen applications will influence our life in the next fi ve to 10 years. To be prepared, we can only prearrange our present gifts well and stay ready to enjoy the future. For transition we have to find best practices in sustainability. The United Nations body UNFCCC (Climate Chance Committee) already has 1600 certified technologies available for direct implementation, all qualified for emission trading. Recyclus and Essence-SUM are keen to support MENA countries and businesses for strategic focussing and practical implementation.

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A FORMULA FOR

SUCCESS While the global credit crunch is holding some developments back, Michel Noblet, Chief Executive of Hospitality Management Holdings, is confidently forging ahead, committed to building 100 hotels by 2012. So what’s his secret?

ospitality Management Holdings (HMH) has quickly emerged as a key player in the hospitality sector in the Middle East, achieving rapid growth since the launch of Coral International Hotels, Resorts and Spas in 2003. Consisting of six independent firms, four of them hotel management companies, HMH has created four strong hospitality brands within fi ve years, each designed with a specific clientele in mind, from top-end luxury hotels to select service hotels, budget hotels and serviced apartments. The HMH portfolio includes: Coral International Hotels, Resorts and Spas; Corp Executive Hotels; ECOS Hotels; and EWA Hotel Apartments. Michel Noblet, Chief Executive of the thriving hospitality company believes that the success the firm has enjoyed so far is all down to a successful partnership structure and a highly motivated and experienced corporate team. “Outstanding vision and leadership of His Excellency Sheikh Mohammed bin Faisal Al Qassimi has been the key behind our rapid growth. Let’s put it this way – dedication and hard work form the core of our formula for success.” Noblet goes on to explain that by specifically catering for a niche market the company is able to meet a full spectrum of choice in terms of hospitality. Each of the four brands that HMH has created is for a specific consumer group and each is designed to offer a client something different, providing for a whole range of business and leisure needs. “All four of our brands are innovative in their own way,” says Noblet. “Coral Hotels and Resorts offers boutique style luxury

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with personalised attention and service. Corp Executive Hotels is specially designed for business and corporate travellers and offers cutting-edge technology. ECOS Hotels is the Middle East’s ﬁrst and only eco-friendly budget brand. EWA Hotel Apartments are lifestyle apartments catering to the needs of long and short staying executives and families.”

Economic difficulties Coral International Hotels, Resorts and Spas was created in September 2003 at the height of the real estate boom in the Middle East, since then HMH has gone on to launch four brands and sign 40 management contracts. However, with the global recession in full force, there is no doubt that the hospitality trade has got tougher in recent months. “There is no denying the impact of the global recession on businesses around the world,” says Noblet. But while HMH has been hit by delays to some of the projects due to come online in the coming months, Noblet remains optimistic. “Owing to the nature of our development and the strategic diversiﬁcation in terms of development we remain on course with our business objectives.” In order to ensure that the effect of any slowdown is mitigated, Noblet is keen to continue expanding aggressively. Indeed, the company is looking at opening a hotel almost every three weeks in 2009. Noblet hopes that by continuing to go ahead with the openings, the projects will be in the right place when the market begins to pick up again.

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The group has been aggressively expanding in the Middle East region with 40 projects across the region. The company is also looking at expansion into Asia, particularly China, India and Pakistan, as well as Africa, with projects lined up in both North and South Africa. Noblet believes that emerging markets will continue to drive growth and hopes to see this area grow as new properties are added to the HMH portfolio. “The move and expansion is aimed to maximise HMH's presence beyond the region as well as to open other strategic options for the group. We remain committed to develop 100 hotels by 2012 – a target not easy but it is achievable,” maintains Noblet. By reorganising and redistributing resources, as well as implementing a number of basic cost-cutting measures, Noblet hopes to avoid any unnecessary financial burdens and release some of the financial pressure. With a 15 to 20 percent drop in the average room rates, it is clear that major steps are needed to alleviate the situation, and as such Noblet will also be looking to evaluate existing properties and focus on improving visibility by introducing promotions, as he believes that it is more important than ever to keep present customers happy and ensure they return. “Despite the interim hurdles we are going ahead with our plans,” says Noblet. “We have full faith in the competitiveness of our team. It is a goal that is obtainable and we are already half way there having signed 50 hotels across our four brands in our first fi ve years of operation. There is no secret path to success, but respect for quality, commitment, dedication and hard work are all key elements.”

ing UAE’s largest children’s painting competition under the patronage of UAE Ministry of Education for environmental campaigns.” Noblet goes on to explain that HMH environmental initiatives symbolise the efforts that the company is going to to reduce environmental burden. “At the same time our hotels are actively involved in a number of environmental initiatives to make the world a better place for future generations. In April, Coral Deira Dubai, won the Green Award for saving energy, for example.” As for the future, Noblet seems set to prove that HMH will accomplish their goal of 100 hotels by 2012, defying the credit squeeze and pressing ahead with ambitious global expansion plans. It seems to be a winning formula for the young company, which looks set to continue in the coming years. Whether Noblet’s determination to see 100 hotels up and running by 2012 comes to fruition, and whether it pays off, remains to be seen, but without question is his commitment.

“Sustainability is high on our agenda and is absolutely non-negotiable”

Sustainability With the business environment becoming more and more challenging it becomes increasingly important to operate in the most efﬁcient and sustainable way, and that includes being socially responsible. Outlining HMH’s sustainable strategies Noblet says, “Sustainability is high on our agenda and is absolutely non-negotiable. ECOS Hotels is primarily focused on sustainable development and is the Middle East’s ﬁrst eco-friendly budget brand. We are also leading the way at HMH in creating awareness about key issues and have been organis-

Product diversification and innovation, sound fundamental values, respect for local culture, commitment to excellence, quality service and expansion in key destinations are the cornerstones behind HMH's impressive growth. Having got a firm foothold in the Middle East and North, South and East Africa, the group is now poised to conquer other destinations and looks set to be a key player in the international market.

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HOSPITALITY

HE WHO DARES WINS As one of the Middle East’s biggest home-grown hoteliers the Rotana Group has been instrumental in building the region’s tourism industry. And as its founder Selim El Zyr tells Diana Milne, it will let nothing stand in the way of its success.

otana is not a company that is afraid of taking risks. Among the destinations where its hotels are located are Erbil in the Kurdish area of Iraq and Khartoum in Sudan. And in December it hit the headlines by announcing plans to open a five-star luxury hotel in Baghdad’s high security Green Zone – the only one of its kind in the war-torn city. Iraq may not be every hotelier’s first choice of location, but Rotana President and CEO Selim El Zyr sees high potential for his 225-room Baghdad hotel: “It’s going to be right opposite the American embassy. There are a lot of diplomats that come and go in the area and everybody that comes to Baghdad will have to stay in our hotels because the other hotels are in a very poor condition after the war”, he says, whilst admitting a lot of people were “astonished” by Rotana’s announcement. “That

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is Rotana. We always go to places where nobody else goes and that is why we are pioneers in this field. We don’t mind taking risks, not at all,” says El Zyr. It is a good thing that Rotana is fearless because the company is operating in a fiercely competitive environment. The tourism boom in the GCC has attracted the world’s top hospitality players and as a local company, Rotana must fight hard to stay in the top league. El Zyr believes that it is precisely the fact that Rotana is a local brand that has ensured its popularity. In a recent regional brand awareness survey it was voted number 18 in the top 100 brands in the Middle East, an accolade El Zyr is justifiably proud of: “If we remain at this level we’ll be very lucky because there are some great, large brands in the survey such as Emirates Airline and Etihad Airways. The Rotana brand is associated with trust. People trust us. There are no surprises when it comes to the Rotana ho-

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tels. You know what you get in advance, we deliver on our promises and this is how we are in business.” Another of the company’s strengths, says El Zyr, is its knowledge of the Middle East market – giving it the edge over international rivals. “Our clientele knows that we are experts in the Middle East market. That is our particular selling point,” he says. The Rotana Group is also diversifying into providing unique product offerings, in particular Rayhaan – a brand of hotels that adhere to Arab cultural values and beliefs, which, El Zyr says, he believes has strong potential, particularly in Saudi Arabia, but also in cities across the world. Indeed he goes as far as to say there is enough demand for alcohol-free hotels in every city in the world: “I think that in every city there will be space for one or two of these hotels. They will be attractive to Arabs, Turks, Iranians and any people that do not consume alcohol.” Rotana has grown rapidly since it started in 1993 with just two Dubai hotels. Today its properties span the Middle East and North Africa and by 2012 it plans to have a portfolio of 65 hotels. Part of the reason behind its rapid expansion is that it has grown at the same time as the UAE has grown as a tourist destination. It has played a big part in both creating and profiting from the region’s tourism boom and El Zyr is particu-

“The challenge of yesterday was how to get enough resources to manage all the hotels efficiently. The challenge of today will be how to remain in business” larly excited about plans to develop Abu Dhabi as a global travel destination. The Abu Dhabi Tourism Authority has announced plans to open 29 additional hotels in the emirate and projects being built there include Yas Island and Saadiyat Island. Rotana will be managing 3000 of the additional rooms to be created in hotels there, including a 259room property on Yas Island. “Abu Dhabi has all it needs to be a tourist destination,” says El Zyr. “It has fantastic beaches, beautiful islands and now construction is happening to build super luxurious hotels. Abu Dhabi does not compete with Dubai – it complements it. It has more of a focus on cultural tourism and will have some of the world’s most exclusive museums.” He is all too aware, however, of the effect the global economic downturn could have on the plans for Abu Dhabi – revealing that occupancy rates at his own hotels have already dropped by up to 15 percent compared to the previous year. El Zyr says he is determined to ensure Rotana’s standards don’t drop as a result: “This situation will be very challenging because when occupancy drops, rates drop and the natural result would be that quality will also suffer. What we will try to do is to avoid compromising on quality in order to ensure a better market share.” El Zyr’s experience in the hospitality industry means he is keen to take a hands-on approach to running hotels and ensuring that standards are kept high. He studied at Cornell and Columbia Universities in the US

Company history Rotana Hotel Management Corporation (Rotana) was founded in 1992 by a partnership between, Nasser Al Nowais and Selim El Zyr, who were joined three years later by Nael Hashweh and Imad Elias. Operating as Rotana, it opened its first property in Abu Dhabi in 1993 and is today one of the leading hotel management companies within the Middle East and North Africa. Rotana’s aggressive expansion plans have seen the company grow from two properties in 1993 to a total of 65 by 2012. The many new projects in the pipeline confirm the company’s intention to have a Rotana-managed property in all the major cities throughout the Middle East and North Africa within the next five years.

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then trained at L’Ecole Hóteliére de Lausanne in Switzerland. He started his career as assistant chief steward at the Waldorf Astoria in New York where a serendipitous turn of events meant he was quickly promoted to the top spot: “I was appointed as the assistant but then the chief steward ran away,” he explains. From there he worked in Madrid, Germany, Cairo, Montreal and the UAE. He set up then sold a fast food business in Lebanon, then moved to Abu Dhabi to work for the Abu Dhabi National Hotels Company as manager of one of the hotels. In 1992 he and the chairman of the Abu Dhabi National Hotels Company decided to strike out alone and set up their own hotel business, starting with the Beach Rotana hotel in Abu Dhabi then with the Al Bustan Rotana hotel in Dubai. El Zyr is passionate about working in the hotel industry, but says he doesn’t always enjoy being a guest in his own properties: “If you asked the manager of the best hotel in the world if he’d like to stay there, he’d say ’no get me out of there, I don’t want to stay there’.” He’s the first to admit that this is a “dream job” by most people’s standards and says his favourite hotels to stay at if he is off duty are those run by the Four Seasons or Six Senses groups, or his original training ground the Waldorf Astoria in New York. But he knows that the year ahead will be tough with tourist numbers hit hard by the global economic downturn: “The challenge of yesterday was how to get enough resources to manage all the hotels efficiently. The challenge of today will be how to remain in business, to retain market share and to stay profitable in the economic conditions that are prevailing in the world.” n

Selim El Zyr

ROTANA’S GULF OPERATIONS

Erbil (Iraq)

Khartoum (Sudan)

Al Ain (UAE)

Abu Dhabi (UAE)

Dubai (UAE)

Fujairah (UAE)

Sharjah (UAE)

Kuwait City (Kuwait)

Beirut (Lebanon)

Damascus (Syria)

Sharm El Sheikh (Egypt)

Hurghada (Egypt)

Rotana is one of the biggest hoteliers in the Gulf region. MENA Infrastructure takes a closer look at its expansion in the area

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Going to waste Why environmental groups, local businesses, residents and tourists are kicking up a stink over Dubai’s overstretched sewerage infrastructure – and how the authorities are responding.

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he illegal dumping of untreated sewage in Dubai’s inland storm drain network has led to a nasty surprise for some of the city’s hotels: raw sewage is flowing into the sea close to prime tourist beaches. As the city’s rapid growth outstrips its infrastructure, there simply is no longer enough capacity to deal with all the human waste the city dwellers produce. At Dubai’s only sewage treatment plant there are long queues and serious delays. Truck drivers who are paid by the lorry load to collect waste from the

city’s septic tanks wait for several hours to dispose of their foul cargo legally. When the long queues, stifling heat and putrid stench get too much, many are taking a shortcut and dumping their loads straight into manholes meant only for rainwater. The result is raw sewage flowing directly into the once-clear blue sea of the Gulf. This is bad news for a city that depends on the tourists who flock to its shores. The Dubai municipality has already closed one beach and says it is trying to catch the culprits. It has imposed fines of up to $25,000 and threatened to confiscate tankers if the dumping persists.

Hassan Mohammed Makki, Director of the Waste Management Department at Dubai Municipality, believes that progress is being made. To date, more than 200 drivers of tankers have been caught and punished for illegally dumping sewage waste, while work is underway to overhaul the emirate’s approach to waste disposal. “Dubai Municipality has recently signed a contract with an international consultant to develop a national waste minimisation strategy for the emirate of Dubai,” he says. “We expect that the strategies for waste minimisation, along with an action plan, will be submitted by the consultant before the end of 2009 for our review.” The authorities certainly need to take action: the GCC region ranks among the top 10 biggest waste producers in the world. Responding to the challenge is not just a matter of reacting to the current demand for efficient waste management; it is also about safeguarding Dubai’s economic growth and social development.

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SMART CITY Smart thinking

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Malta could be Europe’s next IT hotspot thanks to a high tech business park which is being built there by Dubai-based developers SmartCity. Diana Milne meets CEO Fareed Abdulrahman to find out more.

t’s not often that a European government calls on the expertise of a Dubai-based company to build a major infrastructure project. But as one of the pioneers behind the transformation of Dubai, SmartCity, a joint venture between TECOM and Sama Dubai, is now in a position where it can import knowledge from East to West. Having successfully set up the high tech free zones, Dubai Internet City, Dubai Media City and Dubai Knowledge Village, the company is now working with the Maltese government to create the US$269 million SmartCity Malta project. Described as a “knowledge-based township”, SmartCity Malta will create 5600 jobs and once completed in 2021 will be the Mediterranean’s leading ICT and media cluster and the country’s largest foreign investment. As well as offering ofﬁce space to ICT and media companies, it will include homes, hotels, conference facilities and retail units. But why Malta? SmartCity’s CEO Fareed Abdulrahman explains that the country was chosen because of its location and its potential for growth. “We have two models that we look at when we choose any location. One is the Dubai model in terms

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of location. If you look at Dubai today we always say it’s the bridge between west and east. Malta is the bridge between the south of Europe and North Africa. Location-wise it’s perfect and it’s also very close to the Middle East. The second factor is the soft infrastructure and Malta has the soft infrastructure to attract people. It’s a very safe place. The lifestyle is great. It’s so peaceful, it’s very safe. It’s very similar to Dubai. And I like the system. Despite being a small Island it is ranked number three in terms of eGovernment in the EU. So this creates a good environment for the businessman, the investor and for companies.” Abdulrahman goes on to say that the jobs created by the project will create opportunities for Malta’s skilled IT professionals, who often move overseas for work because of a shortage of positions in their home country. The aim of the project is to boost the Maltese job market by four percent, making it the biggest job creator in Malta’s history. Of the jobs that will be created, 65 percent will be new jobs in knowledge-based industries. “Although Malta has qualiﬁed people, they always go somewhere else. You ﬁnd them in the UK and in Australia especially,” says Abdulrahman. “We will be looking to attract back

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some of the Maltese talent that has left the island to work in other markets. Many industry experts in Malta have expressed concerns over the flight of scientific and technological talent. This project will contribute towards reversing that trend.” However, in order to create job opportunities in Malta, Abdulrahman must succeed in attracting IT companies to set up headquarters within the SmartCity cluster. He says one way to do this will be to encourage these companies to use SmartCity Malta as the base for their North African operations, given the country’s proximity to the continent. “We are aiming to attract IT companies that are looking for an office location in Europe that is cost effective for them. But we are also looking to tap into business in North Africa. SmartCity Malta will create the ideal infrastructure, support systems, environment and lifestyle for ICT and the people working in the industry. When it comes to the multinationals we want to be their first choice for this.” While keen to emulate the success of its Middle East developments in the creation of SmartCity Malta, Abdulrahman acknowledges that his company will face different challenges when it comes to its first European project. One of these will be the fact that it will be required to form agreements with local telecoms and IT companies to built a communications infrastructure and provide services to residents of the cluster. “We are not looking at SmartCity in terms of providing the telecommunications services. Instead we will be talking to the operators at that location to get the best services for our clients.” SmartCity will also have to be responsible for providing housing and other facilities for residents within the Maltese development – whereas in Dubai this was provided by local developers. As well as office buildings the Maltese project will also include shopping boulevards, residential units and landscaped recreational areas. “We never worried about who would come up with housing facilities, retail outlets and hotel facilities in Dubai Internet City,” says Abdulrahman. “We knew what developments were being built around the cluster and that they would provide all the necessary facilities to our business partners. In Malta we will take responsibility for creating a city that people can both live and work in.”

“Malta’s vision for knowledge-based development finds a parallel in Dubai’s strategic plans to develop itself into a knowledge-based economy.” The company aims to make the city as energy efficient as possible and has carried out an extensive Environmental Impact Assessment (EIA) to ensure it meets European environmental regulations and is in accordance with LEED (Leadership in Energy Efficient Development) standards. This is due to conclude with the carrying out of a traffic impact study of the project in accordance with LEED standards. While in the Middle East the concept of creating a selfcontained ‘city’ from scratch in a relatively remote location is a

Fareed Abdulrahman familiar one, SmartCity Malta will be the first of its kind in the country, creating infrastructural challenges for the company. However, Abdulrahman says he believes Dubai and Malta share similar aspirations and that based on this, he expects the European project to emulate the success of its Middle Eastern counterparts. “In terms of strategic location, size, connectivity, access to key markets and high tourism orientation, Malta and Dubai share a natural affinity. They have similar knowledge-economy aspirations. Malta’s vision for knowledge-based development finds a parallel in Dubai’s strategic plans to develop itself into a knowledge-based economy.” Abdulrahman believes that the aspirations of the Maltese government and its desire to establish a strong knowledgebased economy mean the financial pressures currently facing European companies will not affect the success of the SmartCity project. Moreover, he believes that IT companies are relatively insulated from the pressures posed by the credit crunch, “IT business will not stop. It might reduce but it will not stop. There are a lot of mergers happening in some other industries but I’ve not seen mergers in IT. Instead these companies will move to other locations that are more cost effective.” He is highly confident that SmartCity Malta will succeed, basing his assumption on the success of the original SmartCity – Dubai Internet City. The project has achieved success beyond his original expectations, he admits: “I didn’t expect it to be such a success, I’ll be honest. And especially because the time when it started was when the whole dot.com bust happened. There are two main reasons why I think it was so successful. The primary reason is because of Dubai – the location of Dubai and how the Dubai system has worked. The second reason is that Dubai Internet City, which was ready in 365 days, has created new standards that have made it the benchmark for all projects in Dubai since 2000. The team behind this project and the leadership of the country were the reasons behind this success.” And while there may be big differences between the UAE and Malta, for both countries the SmartCity concept represents a new level of infrastructure and the opportunity to kickstart an IT industry with huge potential.

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FINANCE FOCUS Islamic finance comes of age

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With global financial markets in flux, Shariahcompliant banking is an increasingly attractive option for Western investors and financial institutions.

new report by management consultancy Arthur D. Little entitled Islamic Finance Comes of Age has identified a surge in activity around Islamic finance as a promising opportunity for the global financial services industry as it emerges from the current recession. With Islamic finance assets currently standing at around US$800 billion, Arthur D. Little expects this figure to surge to as much as US$4 trillion in the next six years – representing a major opportunity for Western financial institutions looking to develop new partnerships and global markets. The firm’s latest report investigates 10 capital markets in selected Islamic countries, each of which offers the Western investor different opportunities due to their varied levels of market maturity and sophistication. The study groups the 10 markets into three clusters, helping financial players to identify the best strategies for entering each Islamic finance market.

“The collapse of conventional financial markets has left many traumatised investors seeking a return to conservative and ethical financial practices” The so-called ‘big four’ – the Kingdom of Saudi Arabia (KSA), Kuwait, the UAE and Malaysia – have highly developed capital markets that are supported by both government and private sector initiatives to promote financial education and diversify the range of available financial products. For instance, KSA and Kuwait hold the largest concentrations of Islamic financial assets of 40 percent and 21 percent respectively. The ‘challengers’ – Qatar, Bahrain and Oman – are rapidly growing Middle Eastern economies, and market growth as well as a range of government incentives has meant that these emerging players are quickly climbing the global Islamic finance ranks. Meanwhile, the ‘newcomers’ (Morocco, Tunisia and Egypt) are also making progress. Morocco and Tunisia authorised

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Islamic finance markets in 2007, while in Egypt Shariah-compliant products were only recognised last year. Despite this, the new players have government backing, and in the cases of Tunisia and Egypt, policy-makers are doing what they can to encourage the inflow of investment. This is not the case in Morocco, however, where regulation remains tight. “The collapse of conventional financial markets has left many traumatised investors seeking a return to conservative and ethical financial practices, and we believe Islamic finance is now one of the most attractive alternatives to conventional finance in this regard,” says Dr Gerrit Seidel, Managing Director and Global Head of Arthur D. Little’s Financial Services Practice. “With such huge growth over the last two decades, MENA’s capital markets are now ready to shine on the world stage, and smart investors from the West will act quickly to make the most of these alternative markets.” A wide variety of products and services exist across the spectrum of Islamic finance, which are likely to expand further as the industry develops. Along with the popular sukuk or Islamic bonds, syndicated lending, project finance and refinancing, and equity markets all represent real opportunities for growth. However, despite the tremendous progress it has made in recent years, the MENA capital markets still face many challenges. For one thing, they remain vulnerable to sector-specific shocks. Fluctuations in the property or oil industries, for example, will affect MENA finance disproportionately. In addition, many of the major players in Islamic finance do not have robust inflation-fighting policies in place, while the legal, institutional and regulatory environment also requires work. Despite progress, many Islamic finance markets still operate with relatively new or incomplete regulatory and compliance regimes in place that risk the transparency and smooth operation of capital markets. “Western private banks and wealth managers can gain credibility in Islamic finance by offering strong market-specific research reports on Arabic local markets, or even volunteering to host exchange programs to help financial market specialists from Islamic banks gain knowledge of the traditional financial market,” KUWAIT adds Dr Seidel. “Collaboration between esBAHRAIN tablished Western banks and the rapidly QATAR U.A.E growing Islamic finance industry can be mutually beneficial. We have already seen leading players such as Deutsche Bank, Barclays Capital and HSBC initiate such partnerships.”

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IN REVIEW On the shelf

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As climate change and sustainability become increasingly important considerations, MENA Infrastructure reviews the best of this quarter’s green book releases.

The Green Guide For Businesses The Ultimate Environment Handbook for Businesses of All Sizes, by Chris Goodall A whole heap of businesses claim to be ‘green’ but how much of this is true is anyone’s guess. Slashing carbon footprint is about more than just switching to a few low-energy light bulbs – it’s about changing your whole mindset. Author Chris Goodall, an expert on climate change solutions, guides you through cutting carbon and costs with advice on everything from ‘green’ computing and data centres to recycling and reducing ofﬁce travel. It also features scores of case studies to help you learn from other people’s successes and mistakes. MENA Infrastructure says: An informative book that illustrates how making a few simple changes can have a massive impact on your carbon output. A good read.

Fixing Climate

The Story of Climate Science – And How to Stop Global Warming, by Robert Kunzig and Wallace Broecker With Broecker as his guide, award-winning science writer Robert Kunzig looks back at Earth’s volatile climate history so as to shed light on the challenges ahead. Ice ages, planetary orbits, a giant ‘conveyor belt’ in the ocean … it’s a riveting story full of maverick thinkers, extraordinary discoveries and an urgent blueprint for action. Fixing Climate explains why we need not just to reduce emissions but to start removing our carbon waste from the atmosphere. And in a thrilling last section of the book, we learn how this could become reality, using ‘artiﬁcial trees’ and underground storage. MENA Infrastructure says: A fascinating account of how we have arrived at a point where climate change is no longer preventable. A compelling read for anyone wishing to understand the unique challenge of climate change.

Green Recovery

Get Lean, Get Smart and Emerge from the Downturn on Top,

by Andrew Winston When the economy turns rough, many companies sideline their green business initiatives. That’s a big mistake. In Green Recovery, Andrew Winston shows that no company can afford to wait for the downturn to ease before going green. Green initiatives ratchet up your company’s resource efﬁciency, creativity and employee motivation. They save energy, waste and money, preserving precious capital – and give precise focus to your innovation efforts and strategic priorities. Part manifesto and part how-to guide, this concise and engaging book provides a road map for using green initiatives to deliver short-term gains and position your company for long-term strategic growth. MENA Infrastructure says: Green Recovery is a great guide to establish positioning in a downturn and explains how to emerge stronger when the economy is back on the up.

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CATALOGUE PAGE MENA INFRA2:may09 08/05/2009 13:22 Page 141

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

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: MENA, US, Russia Find out more: www.ngoilgasmena.com

Business 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: MENA, US, Russia Find out more: www.busmanagementme.com

100Thousand Club 100Thousand Club Magazine is a unique venture – an exclusive magazine and content-driven website for a very select group of readers. Where informed writing is complemented by passion, superb design, and the very highest quality execution. Available for: MENA, US, Russia Find out more: www.100thousandclub.com

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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 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. NextGen P&E covers them all. Available for: US Find out more: www.nextgenpe.com

Executive Healthcare Management 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 Find out more: www.hrmreport.com

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COLUMN Crisis or opportunity?

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The infrastructure industry in particular has been hit hard by the credit crunch. But is there a silver lining to the dark cloud of the economic crisis?

he arrival of the global economic crisis in the Gulf proved more brutal than anyone could have expected, with the infrastructure industry taking the full brunt of the impact. As projects are put on hold or even cancelled, the days of fast growth and unparalleled expenditure are behind us. But with that comes the opportunity for intelligent and considered investment, as well as cheaper materials and available contractors. Indeed, as the economic storm continues to batter the region, the current slowdown can be viewed as a time to stop and take stock of the situation. It is a time to look for new markets and opportunities that arise and take them, no matter how small. Despite the slowdown, the GCC and wider MENA region are still growing. As such companies in the region are better placed than most to continue to grow. In fact, now is the perfect time to step back from the pace and intensity of the boom and look at areas to improve. Firstly, evaluate the changes that have happened in the industry and work out the lay of the land. Priorities will have changed and in order to ﬁt in with changing speciﬁcations,

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companies will need to adapt in order to retain their current customers and emerge from the other side in a stronger position. Secondly, with intense competition and tight liquidity, service is next in line for improvement. While training, human development and marketing are often the first budget casualties in a cash-strapped situation, this is an opportunity to upgrade both the skills and capability of an organisation and make processes more efficient. Those companies that survive the meltdown will be those that look to improve their customer service to the highest possible degree. Finally, with fewer projects on board it becomes easier to focus on quality and execution as opposed to speed. Focusing on the customer and their exact needs, as opposed to working to get as much done as possible in a shorter time, is the order of the day. Improved operations, cheaper materials and the increasing availability of contractors mean that costs are (finally) coming down. With the dramatic drop of raw materials, fuel and contractor costs, it is possible to re-negotiate old contracts with the current market value in mind. It is key to make an alliance with contractors and consultants and get them involved in every step of the process. While the storm of the recession rumbles on, there are undoubtedly still challenges that have to be faced in the region’s infrastructure industry, particularly around projects that are on hold or even cancelled. However, there are also opportunities to be had by concentrating on being in the right place when the inevitable upturn arrives – improve operations and focus on customer service and you’ll be heading in the right direction.

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FINAL WORD Dealing with the downturn

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Mishal Kanoo, Arab billionaire and Deputy Chairman of the Kanoo Group – one of the largest family-owned independent groups of companies in the GCC – explains why the downturn could be good for Dubai.

e tend not to use the word recession here, we talk more about a correction. The global economic downturn was the catalyst for the economic downturn in the GCC, but it would not have affected it so badly if major issues did not exist here in the ﬁrst place.

People’s greed got the better of them, and they ended up speculating on something that was not really there. I remember someone telling me I could buy the 48th ﬂoor of the Burj Dubai for US$73 million. When things reach that point you know there’s a problem. For that price I could buy a signiﬁcant building or several smaller buildings.

The industry that has been most seriously affected is the property market. That has completely imploded – and unfortunately, when one industry implodes it is rarely isolated; it often takes many other industries with it. One of the worst affected is advertising, which had been largely propped up by the property industry.

I’m guessing that by summer of this year things will stabilise, and by the fourth quarter we should start to see an upturn. However, while it lasts I can tell you that every company will be hurt by this economic situation, no matter how big or intelligent that company is.

The main reason why the property market imploded was that it is impossible to sustain year-on-year growth of 30 to 40 percent without a major correction occurring eventually. And this correction would not have been so spectacular if people had been buying property for their own use rather than speculating.

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I believe the correction in property prices is the best thing that could have happened for Dubai, because now all those cowboys and ﬂy-by-night operators will hopefully leave. We will have a few months of pain, but after that – say, six months down the line – those that did survive will come back in a better ﬁnancial position and will have better relationships with the banks. Then the economy will start to blossom again.

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