Me Consultant January 2018

For the construction specialist

Breaking Moulds Richard Stratton on Cundall’s 10 year journey and getting away from being stereotyped ON TOPIC

Maintaining an edge in a competitive market space

IN PRACTICE

We talk to the driving force behind the newly set up SJI

ON SITE

The evolution of design and architecture in Dubai

ISSUE 044

January 2018 Publication licensed by Dubai Production City A product of Big Project Middle East

Presidential Palace, Abu Dhabi

Business Park, Dubai

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Khor Kalba Heritage Village, Sharjah

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INFRASTRUCTURE

CONTENTS

On topic INdUSTRY VIEWS fROm ACROSS ThE mIddLE EAST

06

09

06 ANALYSIS

JLL explains what transpired in the different sectors of Riyadh’s real estate sector in Q3 2017 09 ANALYSIS

Cavendish Maxwell’s Manika Dhama reviews how Sharjah’s economy and residential real estate market performed in 2017 12 OpINION

12

14

DSI’s Sameer Daoud points out that it is worthwhile for construction professionals to study the elements of failure, in order to be successful

In practice ANALYSIS, INSIghTS ANd INTERVIEWS

18 INTERVIEW

18

24

Jason Saundalkar talks to Richard Stratton about Cundall’s tenth anniversary, breaking the mould and challenges in the regional construction sector 24 INTERVIEW

We sit down with Sharon Jutla, founder of Sharon Jutla Interiors, to chat about her career, inspiration and her new design consultancy

On site CASE STUdIES, OpINIONS ANd SNApShOTS

28

32

32 INSIghT

Ibrahim Ibrahim highlights the changing face of retail and says that developers should sell space based on data 37 NEWS

Basma Group and ARADA launch Anantara Sharjah Resort 40 ThE bACk pAgE

Steven Velegrinis speaks about combining environmental planning with cultural heritage conservation on tourism projects

37

40

JANUARY 2018 1

WELCOME

Group EDITOR’S NOTE

MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5713

Editorial

A Year of Decisions Happy New Year everyone! I trust you’ve all had a relaxing holiday season and that you’re now primed to take on the new year? I certainly am, and from the conversations that I’ve had with some of you over the last couple of weeks, it looks like 2018 is going to be a positive year for the construction industry.

I certainly have some exciting things planned for Middle East Consultant (MEC) this year, but first and foremost, I want to direct you to our home on the web: www.meconstructionnews.com. The 2018 media packs for MEC are live – and have been for some time – and in them, you’ll find our forward feature list for the whole year.

If you’re keen on participating in any of those features or you’d like to propose something, please do drop me a line.

Next, I want to plug MEC’s social media channels. On Twitter, the magazine’s handle is @consultant_me and on LinkedIn, look for ‘Middle East Consultant’. I’ve got a few irons in the fire with regard to our social platforms, so please do connect with me there.

Now to the year ahead. I suspect a lot of decisions, in terms of construction projects, will be made by decision-makers. Since I began working on this fine magazine nearly a year ago, I’ve been told several times that while plenty of RFPs and tenders hit the market in 2017, contract awards and decisions have been few and far between.

We could speculate for weeks about the reasons behind this, but let’s just say it was caution in the market.

2018 looks like it will be different, for several reasons. First, with regard to Dubai specifically, we are now just two years away from Expo 2020 and there’s still plenty of work that needs to be done on the site and surrounding areas ahead of the opening. I also think that with the introduction of VAT and the slight recovery in oil prices over the last couple of months, GCC governments will have more budget to allocate to important projects, particularly if they’re to do with infrastructure improvement or diversifying their economies. Personally, I’m quite curious to see how it all plays out.

Enjoy the magazine!

EDITOR JASoN SAuNdALkAR jason.s@cpitrademedia.com +971 4 375 5475 SUB EDITOR AELREd doYLE aelred.doyle@cpitrademedia.com

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Jason Saundalkar Editor, Middle East Consultant 2 JANUARY 2018

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ON TOPIC

MOST POPULAR

READERS’ COMMENTS

FEATURED

FLEET

NEw REgISTRATION SySTEM

Valeo opens regional office in Dubai

CONSULTANT

Abu Dhabi launches engineer registration system

In pictures: ALEC Fitout’s interiors for Boutique Le Chocolat, Dubai

CONSTRUCTION

Developer unveils plan for $218m Dubai Canal tower

CONSTRUCTION

Jumeirah Beach Hotel to undergo renovation works

CONSTRUCTION

Nakheel to debut Raffles on Palm Jumeirah

4 JANUARY 2018

Video: Progress on Aldar’s Shams Meera project, Abu Dhabi

I came across a very interesting piece of news on your site in December.

The announcement that Abu Dhabi’s Department of Urban Planning and Municipalities will launch a new registration system for all engineers in the emirate is a very clever and useful initiative.

Having all the engineers who are working and living in the emirate register their qualifications with the department’s website is an important step in increasing the professionalism and performance of the engineering sector.

In fact, I really hope that this is something that will be picked up in the other emirates in the UAE, as I believe it will set a clear benchmark for the construction and engineering industry within the country.

Thinking bigger, I really hope that we will then see this initiative taken up by the rest of the GCC countries. If this happens, it will create a crosscountry database that will allow best practices to grow across the region.

Furthermore, I hope this information will be made accessible to private sector employers. I think that this will allow for the smoother transfer of skills as well as employees between construction firms.

Name withheld by request

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ON TOPIC

ANALYSIS

Riyadh Real Estate Overview JLL highlights what occurred in the different segments of Riyadh’s real estate market in Q3 2017

T

he Ministry of Housing distributed almost 18,000 affordable residential products in Riyadh during Q3 2017, including off-plan residential units (9,500 units), costfree developed residential land plots (1,100 plots) and subsidised housing loans (6,900 loans). The Ministry planned for the assistance of 280,000 families across the Kingdom in 2017, of which 185,000 had been allocated as of Q3 (leaving 95,000 pending for the last quarter). The Ministry has announced its intention to publish details of this allocation monthly on a city-by-city basis.

There were no major completions in the Riyadh market during Q3 2017, with the only deliveries being approximately 5,000 villas and apartments in small-scale stand-alone projects scattered across the city.

This brings the total residential stock to 1.17m units. Nearly 6,000 units are expected to enter the market by year-end but experience suggests that at least 1,000 will be delayed until 2018.

A further 46,000 units are currently scheduled for delivery in 2018/2019, with most being built and sold on an off-plan sale basis in partnership with the Ministry of Housing. In addition, the construction of several medium and high-rise residential projects remains ongoing, including Rafal Living (350 units), DAMAC Esclusiva and Paramount (around 440 units), Meem Tower (48 units) and Raidah Digital City (around 2,100 units).

The number of apartment sales increased 39% and villas 7% y-o-y, according to the Ministry of Justice. This growth in the volume of sales has however been accompanied by lower price levels. Apartment sale prices declined 4% and villas 5% y-o-y. Apartments have generally 6 JANUARY 2018

ON TOPIC

“Future demand for office space will heavily depend on the 2018 budget and the potential recommencement of some public projects in Riyadh�

performed more strongly than villas, as declining purchasing power has seen a continued shift in demand from villas to apartments (bearing in mind that apartment supply was relatively low).

The expansion of the various Ministry of Housing affordable publicprivate partnerships (PPP), difficulties in raising financing, expected taxation and subsidy cuts on energy prices have together resulted in more private developers working with the Ministry. The market witnessed a decline in villa rents by 4% and apartments by 6% y-o-y, due to rising vacancies resulting from the departure of some expatriate dependants. This has reduced demand for larger units and allowed more room for rental negotiations by existing tenants (including Saudi households), adding downward pressure on rents.

Office Sector

Demand for office space from international corporate tenants has declined over the past year, as spending on major infrastructure and development projects has been scaled back or delayed. Actual government spending Kingdom-wide during H1 2017 decreased 2% compared to H1 2016, to around $102bn, down from $104bn, according to the Ministry of Finance.

Future demand for office space will heavily depend on the 2018 budget and the potential recommencement of some public projects in Riyadh. The Ministry of Finance has indicated that the upcoming budget will be expansionary, which will likely have a positive impact on demand for office space.

Q3 2017 witnessed the completion of approximately 67,000sqm of office space, including Administrative Palaces by Ajlan (32,000sqm), the office portion of Square 6 by Al Habdan (21,000sqm), Oud Square by Al Hudaib (5,700sqm) and the office portion of the Residence (4,600sqm) and the Wahat At Tafaseel (4,000sqm). There are no further major completions expected over Q4 2017, with the only scheduled delivery being the office portion of the Edhafah Tower (9,000 sqm).

The level of new supply is expected to increase significantly, with around 650,000sqm currently scheduled to complete in 2018, including Majdoul Tower (75,000sqm), Ar Rajhi Tower (30,000sqm), Cayan Mefic Centre (12,000sqm) and Malathek 1 (20,000sqm). Some of these projects are however likely to be delayed until 2020 and even further.

Moreover, several hundred thousand sqm of office space within the King Abdullah Financial District remains on hold with no set completion date. This space could be delivered to the market within a relatively short time of construction recommencing.

Vacancies have increased by 1% over the past year, to 16% in Q3 2017, and are expected to increase slightly further in the next 12 months, with soft demand and further supply in the pipeline. Rents have decreased 4% over the past 12 months, to an average of $331 per sqm. Demand for space has shifted from new, shell and core offices to fitted-out (previously occupied) offices, as occupiers seek to reduce capital expenses.

JANUARY 2018 7

ON TOPIC

Riyadh Office Supply (Million sqm) Current Supply (2014 - Q3 2017)

Future Supply (2017 - 2019)

4.5 4.0 3.5 3.0

Prior to the toughening economic conditions, most tenants preferred new office space that could be fitted out according to their own branding. While they still have to pay key money to cover the fit-out, the cost of buying the existing furniture and fittings is generally below that of purchasing new items. Rents are expected to continue to soften for the foreseeable future, as supply continues to outpace demand.

2.0 1.5 1.0 0.5 2014

2015

2016

Q3 2017

2017

2018

2019

Riyadh Residential Supply (Million units) Current Supply (2014 - Q3 2017)

Future Supply (2017 - 2019)

1.6 1.4 1.2 1.0 0.8 0.6 0.6 0.4 0.2 2014

2015

2016

Q3 2017

2017

2018

2019

Riyadh Retail Supply (Million sqm) Current Supply (2014 - Q3 2017)

Future Supply (2017 - 2019)

2.2

1.8

1.4

1.0

0.6

0.2

2014

2015

8 JANUARY 2018

2016

Q3 2017

2017

2018

2019

Growing participation by women in the workforce and plans to allow them to drive in 2018 (a previous barrier to employment) will likely increase the spending power of women in Saudi, resulting in increased demand for retail space. While total employment among Saudi females in Riyadh increased 1% q-o-q to reach almost 397,000, unemployment remains high among Saudi females in Riyadh (28.5%).

The employment of expatriate women working in Riyadh stayed unchanged q-o-q at around 105,000. Nearly 30,000 women participated in the recent Glowork event dedicated to job creation for women in Riyadh. Landmark Arabia (which currently employs around 15,000 employees in retail stores around KSA) has announced plans to hire a further 6,000, which would increase their ratio of female employees from 25% to 40%.

Approximately 44,000sqm of additional retail space was completed during Q3 2017, including Square 6 (21,000sqm), Welfare Centre (14,700sqm), the retail portion of Oud Square (6,000sqm) and the retail portion of the Residence (2,000sqm). The majority of this additional supply falls under the category of convenience, community and neighbourhood centres, a new trend in the market. The supply pipeline is moving towards northern Riyadh, reflecting the city’s expansion in this direction. The market is expected to witness additional completions by year-end, including Elite (11,000sqm), Dheyafah (9,100sqm), Turki Square (2,400sqm) and Adh Dhahiah Centre (2,200sqm). Looking ahead, notable completions in 2018 will likely include Qurtuba Boulevard (72,000sqm) and Reef Commercial Centre (11,000sqm).

Rents remained largely stable during Q3, declining marginally in both the community (-3%) and regional (-1%) sectors of the market over the past year. Shopping centre vacancies remained unchanged at 9% on both a y-o-y and q-o-q basis, while strip retail vacancies continued to increase. Given the significant upcoming supply, vacancies are expected to increase across the market over the next 12 months, although the expanding shopper-tainment segment may occupy more space and help offset this trend.

Retail sales continue to increase. The latest data from SAMA shows a 32% August increase in the number of point of sales transactions compared to the same period last year, and a 7% increase in the value of transactions. This is due to a combination of the public allowances reinstatement, summer holiday spending and rising competition among retailers in terms of price discounts. This is good news for the retail sector, as it will likely result in more demand for space.

Source: JLL

Retail Outlook

2.5

ON TOPIC

ANALYSIS

Sharjah Economic and Residential Property 2017 Review Cavendish Maxwell’s Manika Dhama examines Sharjah’s economy and highlights trends in its residential market

S

harjah, the third largest emirate with a total land area of around 2,600sqkm, borders Dubai to its south, Ajman and Umm Al Quwain to its north and Ras Al Khaimah to its east. Sharjah has become an alternative rental housing option to Dubai, due to the availability of lower-cost housing and regular migration between Sharjah and Dubai. Coupled with this, the significant investment in Sharjah’s real estate sector can be explained by the government’s decision to allow leasehold sales to all non-Arab expats for terms of 100 years in selected developments.

Sharjah’s economy is much more diversified compared to other emirates, with no one sector accounting for more than 25% of the total, per published data. According to the Department of Statistics and Community Development in Sharjah, the real estate and business services sector was estimated to account for the largest share of the economy at 22.6%, followed by the manufacturing sector at 16.3% and the wholesale and retail trade sector at 12.1%.

Sharjah’s infrastructure sector is well supported and funded not only by the emirate’s government but also by the UAE federal JANUARY 2018 9

ON TOPIC

Number of Sharjah Real Estate Transactions by Type (2016)

Sales

Mortgages

Others

2000 1800 1600 1400 1200 1000 800 600 400 200 February

March

April

May

June

government, which allocates large-scale infrastructure projects including main roads, hospitals and schools.

In January 2017, the government of Sharjah allocated 30% of the approved annual budget of $6bn to the infrastructure sector, an increase of 7% from 2016. As a result, Sharjah is witnessing significant developments across all infrastructure segments on the back of government support, despite the ongoing economic slowdown and political instability in the GCC. This is driving demand for the real estate sector in the region.

Real Estate Investments

According to Sharjah’s Real Estate Registration Department, the real estate sector saw a 37.2% increase in the value of transactions in the third quarter of 2017, compared to the same period in 2016. In August of 2017, the Sharjah Real Estate Registration Department announced a 23% growth in the number of residential sales transactions in the first half of 2017 and a 46% increase in real estate sales transactions.

For investment in Sharjah’s real estate sector, the strongest demand is from within the UAE, followed by other GCC countries, including Kuwait and Saudi Arabia, that have maintained strong ties to the emirate over the years.

Residential property market

The residential property market in Sharjah, with regard to purchasing

July

August

September

October

November

December

and renting, is heavily linked to Dubai, with migration between the two emirates regularly occurring during times of boom and decline.

Sharjah has long been an alternative housing option to Dubai, particularly given the lower-cost choices it presents. There is an overall demand for housing from families in Sharjah and those relocating from Dubai looking for residences in planned communities close to the Sharjah airport and outside the city centre.

Prior to 2014, Sharjah had limited freehold ownership, available to only GCC and Arab nationals in a selection of locations. In 2014, the government of Sharjah passed a law that allowed leasehold sales to all non-Arab expats for terms of 100 years in selected developments.

To control the risk of opening up the Sharjah market to the large foreign population of the UAE, the leasehold ownership is currently restricted to those that hold a UAE residence visa. Additionally, only a selected number of residential developments are permitted to offer this leasehold ownership, the master planned Al Tilal City being among the first.

Other master communities, including Al Zahia and Arada’s Nasma Residences, are open to all nationalities for leasehold ownership. Al Zahia primarily offers five-bedroom villas and apartments with prices of $261-285 per sqft, while Nasma Residences includes two- and three-bedroom townhouses, four-bedroom semi-detached houses and five-bedroom signature villas, with unit sizes of 1,500-3,500 sqft starting at $271,000.

“Sharjah is witnessing significant developments across all infrastructure segments on the back of government support, despite the ongoing economic slowdown and political instability in the GCC” 10 JANUARY 2018

Source: Sharjah Real Estate Registration Department

January

ON TOPIC

Other developments throughout Sharjah will be assessed in the coming years and if additional developments are given this permission, it is likely they will act as a catalyst for investment in Sharjah’s real estate market.

Area report: Al Khan

Al Khan is an established residential area in Sharjah, due to its proximity to Dubai and the grade of residential developments.

The area features many residential and commercial buildings and retail outlets, with close proximity to entertainment projects such as Al Majaz Park. It accommodates high-rise residential buildings, primarily offering two-bedroom and larger apartments and other amenities including a swimming pool, gym, playground and prayer

room. Rents are marginally higher than in other areas in Sharjah, due to large unit sizes, especially in the towers that overlook the popular Al Khan Lagoon.

For instance, a two-bedroom apartment in neighbouring Al Nahda is likely to cost $12,800-17,800 to rent, while in Al Khan it could cost $15,600-19,100. Two- and three-bedroom apartments are the most commonly rented unit types and there is limited availability of smaller unit sizes and one-bedroom units.

The majority of projects in Al Khan that overlook the Al Khan Lagoon are two- or three-bedroom units. Additionally, some buildings have three- or four-bedroom duplex or penthouse units – the area is considered more appealing for families because of the range of sizes it provides.

Bedroom size

Size range (sqft)

Average size (sqft)

Two-bedroom

1,044-2,083

1,706

Three-bedroom

1,507-3,074

2,421

Four-bedroom

3,708-4,612

4,122

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ON TOPIC

OPINION 01 Sameer Daoud is chief development officer at Drake & Scull International (DSI).

Safeguarding a Strong & Productive Office Culture To achieve and maintain success, it might be worthwhile for construction professionals to study the elements of failure, says Sameer Daoud of Drake & Scull International (DSI)

01

M

anaging risk in the construction industry is not only about being aware of possible adverse outcomes in operations, it is also about understanding the layout of the organisation and how you engage your personnel, to prevent the people and work environment from becoming a risk to the organisation itself.

To avoid potential threats, you need to be able to foresee them in the first place. This is the foundation of risk management – outlining possible scenarios and developing contingency plans. Risk management is about prioritising potential risks, not planning for every eventuality! That would be counterproductive.

The aim is to know how to react, and not become overwhelmed and paralysed 12 JANUARY 2018

in the face of adverse situations. The key is maintaining a balance between careful preparation and quick, decisive action and elements that depend on each other.

Whether a major multinational or a small business, failure is usually the consequence of personal weaknesses and character flaws, more than any particular shortcoming in skill or lack of intelligence. Simply put, it is difficult to see the least flattering sides of ourselves clearly, let alone be critical of those we have chosen to place our faith in. Neither are we inclined to believe that the least desirable scenarios will play out.

Refusing to acknowledge the inherent risk of our own blind spots explains why organisations often find themselves in situations they can’t resolve. It is hard to consider situations properly that we don’t want to believe can come about at all or are even possible.

Finding the motivation to develop a comprehensive plan B in response to hypothetical situations is difficult. Even if you can, that means having to highlight all the things that can go wrong with plan A,

and risking the organisation losing faith in its overall pursuit of success. Nonetheless, it is vital to maintain a realistic outlook on a situation and to ask questions that you know will yield uncomfortable answers. One of these relates to transparency and accountability.

Effective management is the skill to align incentives for the actors in an organisation that create the optimal conditions to produce the desired outcome. This, of course, is also valid for leadership in the construction industry.

Those responsible for setting incentives and goals are themselves driven first and foremost by incentives. More often than not, it is when this self-interest is misaligned that the seeds of systemic failure and downfall are sown.

So how does an organisation come to find itself in a situation where this is typical behaviour? My view is that succeeding, whether as a person, company or nation, often starts out with a situation where limited resources require ingenuity to solve a problem and compete by increasing efficiency. The next thing you know, you’ve found smarter ways to get things done and are winning in the competitive marketplace.

ON TOPIC

INTERVIEW

Elevating Architecture Middle East Consultant talks to Pedram Rad about U+A’s commitment to the region, staying ahead of the game and its key project deliveries in 2017 stablished in Dubai by Pedram Rad and Martin Dufresne over 10 years ago, U+A has grown to become an international multidisciplinary consultancy with a vast array of projects under its belt. Thanks to its substantial pool of in-house talent and a commitment to quality, the firm has made a name for itself in the architecture, master planning, interiors and landscaping fields.

As a result, despite challenging market conditions in 2017, U+A expanded its project portfolio and closed the year on a high note. In fact, the firm was awarded the prestigious Architectural Company of the Year prize at the 2017 Middle East Consultant Awards, winning for the second year running.

“Winning this award is really encouraging, but it also makes me feel that we have to be even more responsible not just to our people but to our city; and of course we have a big responsibility to the clients that give us this opportunity to design,” says Pedram Rad, managing director at U+A. The Middle East and Dubai specifically are highly competitive markets. To maintain an edge, Rad notes that he and his firm place a lot of emphasis on advancing staff skill levels. “We always encourage our people to grow, and what we want to do this year, in line with being an award-winning company, is to allocate budget for research and making sure that our team is always being educated. I think that no matter what age you are, you need to learn. You have to make sure that you are in the market as fresh and eager as you were when you first graduated.”

Rad is quick to point out that U+A is keen to hire talent from around the globe and that this diversity of staff contributes to his firm’s success. “Diversity in the workplace is always good, but it can 14 JANUARY 2018

be a challenge because people come from different cultures and backgrounds and have studied at different institutions. To get around this, we focus on team building and putting everyone’s heads together so we can move towards our goals and objectives. It’s challenging, but I think our team is quite responsive and we have had a great year because of them.”

Another factor in the firm’s success is its commitment to delivering both quality and value to clients. Rad notes that clients are becoming more and more cost-conscious, which means that meeting expectations is an ongoing balancing act.

“We specialise in giving clients a quality, timeless design that is efficient and delivers both value and return on investment. Maintaining this balance is tough, but we are going to stay on this route and keep focusing on quality design and details. Unfortunately, we see a lot of projects where quality is lacking, which I think is a shame, so this is where we will continue to try and add value. We are trying to work closer with contractors to make sure that they understand what we want and this, I believe, pushes them to deliver better results.”

He adds, “Working together, we can really achieve a different outlook for Dubai architecture. That’s important to us because this is our city, we’ve been here for many years, and we want to make sure that the architecture delivered is the best in the world and that both quality and details are top-notch.”

Reflecting on 2017

Despite challenging conditions across the GCC in 2017, U+A had a solid year and was even able to expand its portfolio. “Last year we included mid- and high-rise projects with developers such as Emaar.

We were quite successful in the interior design sector as well, with projects such as the Marriott Hotel and also with Dubai Properties, again in the residential sector, working on high-rise projects. As you

ON TOPIC

JANUARY 2018 15

ON TOPIC

01 Marasi Business Bay features floating homes, floating restaurants and five marinas.

02 The Swiss International Scientific School is said to be the region’s first low-energy building in the education sector.

03 Martin Dufresne, Malcolm MacLeod, Sue Burge, Stephen Coetzee and Pedram Rad (left to right).

know, one of the signature projects that we worked on in 2017 was the floating homes within Marasi Business Bay. So 2017 was overall a good year in terms of the number of projects that we had,” Rad says.

Spekaing about what’s in store in 2018, Rad is cautiously optimistic, noting that a variety of factors and the looming introduction of VAT had an impact on the real estate market. “We were not directly impacted by the slowdown in the real estate market, but it gave us a different perspective about the future and caused us to consider how to drive through it,” he notes.

Reacting to market realities, U+A looked internally to strengthen its various disciplines. “Each discipline is maintained as an individual business unit and we made sure they each contributed to the business.

So not only can each business unit take on their own projects independent of the others, U+A can also leverage them all on specific projects when needed.”

Rad is convinced architecture will always be U+A’s core business, but notes 02 that the firm’s various other disciplines will also contribute strongly to the company’s bottom line in 2018 and beyond. “We still believe that architecture is our core, while interior design will be the second discipline to support our business.

Site supervision is another sector that supports the whole company, and we’re really trying to make sure that the quality stands on a different level.”

He explains that U+A is eager to expand its area of focus beyond the Middle East in 2018, as part of its plans to diversify and strengthen its business.

“There are two things that are very important to us in 2018. First, we want 16 JANUARY 2018

to start thinking global. Dubai was and still is a big platform for us as an architecture firm, 01 and we have done a lot of work which is appreciated by people we meet around the world. We’re looking to capitalise on the work we’ve done in the last decade and we’re now looking at opening an office in London, which will work with the Dubai office. We’ve already reactivated our Toronto office to cater to North America, which we believe will be a strong market post-2020. We are also in the process of registering in South Africa in Cape Town, which will be our next big move.”

He continues, “These locations are key for us. I was in London to set up the office and it’s quite exciting because it gives our people in Dubai a view of where things are going and where we want to be as a company. Beyond that, people that work in Dubai can also seize the opportunity to learn more about what’s going on in different markets, especially in the London market, which is quite diverse in terms of architecture. We’re also hoping our staff in London can one day bring their know-how and experience to Dubai so we can leverage it.”

ON TOPIC

03

“Working together, we can really achieve a different outlook for Dubai architecture. That’s important to us because this is our city, we want to make sure that the architecture delivered is the best in the world” Signature Projects

In 2017, U+A saw two key projects come to life, both having begun in the first half of 2015.

“One of our signature projects pushed the outlook of the real estate sector in Dubai and it is quite outstanding when you look at what has been achieved so far. Marasi Business Bay and its floating homes is a project that I’m sure any marine lover, and certainly the people who will live there, will enjoy. We worked with Dubai Properties to master plan the project, and we wanted to give it a strong identity. We came up with some exciting and interesting ideas with the floating swimming pools and restaurants, and it’s great that our ideas caught the management team’s attention and they agreed with what we had proposed. The whole project was challenging because it’s a first for Dubai and the region, and we’re happy that phase one has come together so well despite the many complexities,” comments Rad. “The biggest challenge on this project was the unknown. We were learning as we were going, and as consultants we had to make sure that we were giving the client proper advice. Above all, we made sure that the client understood the issues and challenges on that project.”

The other key project U+A helped bring to fruition in 2017 was the Swiss International Scientific School. The consultancy participated

in a competition and Rad says his firm beat out three others thanks to its unique proposal. Compared to Marasi Business Bay, the biggest challenge U+A had to contend with here was working around the client’s budget. Rad notes that the project ultimately came together thanks to the efforts of all the stakeholders.

“We were the lead architect on this project, the client already had structural and MEP firms lined up and we managed the whole process.

When we came onboard we started adjusting the master plan with regard to the new buildings, because we noticed that the old master plan didn’t really give visitors or students any sort of arrival experience and it wasn’t obvious where to go once you had arrived. So we changed things around to create a more welcoming plaza for everyone, and then we looked at the interior design of the project. The project now really gives this sense of hospitality to everyone that is studying, working or visiting.”

With both projects, Rad is now eager to see how people will react to what has been developed. “There are a lot of projects that look beautiful, but unless people are actually enjoying the spaces, it doesn’t mean anything to me. I strongly believe that architecture should improve people’s lives – and that’s the focus, and the hope, we have for all of our projects.”

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18 JANUARY 2018

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INTERVIEW

Changing Perceptions Cundall completed 10 years in the Middle East recently and here, Jason Saundalkar talks to Richard Stratton about his firm’s journey, getting away from being stereotyped and the importance of staff and innovation undall is a privately-owned, international multidisciplinary consultancy that has bases of operation around the globe.

The firm currently employs a little over 800 staff across its various offices and first came to Middle Eastern shores 10 years ago, when Richard Stratton set up Cundall’s Dubai office in the first half of 2007.

Stratton is a mechanical engineer by trade and joined the firm in 1994, bringing with him a consultancy background with experience working on projects such as Canary Wharf Tower and the Chelsea & Westminster Hospital. Since joining the firm, Stratton has become a key figure and is now a partner, a member of the group management board and the managing director of the firm’s Middle East’s operations.

As the man responsible for Cundall’s business in the region since it was first established, Stratton has seen the local market and his business change significantly since those early days. “It has been an interesting journey, in our 10 years we saw the height of the boom, the global recession and its regional impact and then a gradual improvement in the market. When we first set up here, it was quite staggering for us as an international company,” he says.

Setting up in Dubai was what Stratton refers to as a “cold start” for Cundall. “Dubai was one of our first offices outside of the UK, following on from Australia which we had set up a few years earlier.

This market was a cold start for us though, we knew and had previously worked with companies that were already operating here, but we came to Dubai without any projects in hand.”

Cundall grew relatively quickly, however; although the firm planned to have 12 people after its first year in Dubai, the consultancy actually had a staff count of 50. “We were doing some exciting

projects and back then you had all the famous celebrities involved with property projects. Brad Pitt was involved in one of the projects we were doing, and although we didn’t meet him or any of the other celebrities, these were the kind of projects that Dubai was famous for in those days. The way I describe it, for an engineer or designer, it was your child in a sweetshop moment. We may never see those kinds of projects again, because the market here is now at a completely different stage to anywhere else in the world.”

When the global financial crisis hit, Cundall, like many other consultants, felt the effects. But unlike some of its competitors, the company was still quite new to the market at the time and had not branched out beyond Dubai. “We had 18 months of operation before the market crashed, so we hadn’t really penetrated the region very well.

We were very busy and so we hadn’t even looked at markets outside of Dubai – we weren’t even doing anything in Abu Dhabi or any of the other emirates. So, when the Dubai market dipped, that was a very challenging time for us.”

Stratton notes that discussions about exiting Dubai were had, but the company decided to persevere. “We contemplated closing the business because of how challenging it got, but we persisted. We are a privately-owned company and I’m one of the owners, and we don’t like to give up. When we’ve made a commitment to a location we try our best to make it work, and so what we had to do was reassess the work we were doing.”

Post-crisis Rebuilding

Since Cundall hadn’t penetrated other emirates or markets outside the UAE when the market dipped, the firm decided to push ahead within Dubai by focusing on property consultancy. “We were looking at buildings and analysing them for our clients, whether they wanted to buy or lease them. We also gave technical advice on what they

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“Our philosophy is to grow a business that can sustain staff numbers – we don’t seek out opportunities and grow the staff around that and then get rid of people once that project is complete” should do and that strategy proved to be the saviour of the company.

We rebuilt the team around that strategy,” notes the father of two.

While the strategy helped the firm regain its footing, it caused the company to be stereotyped in the market thereafter. It’s a challenge Cundall is still dealing with today, according to Stratton. “We’ve become stereotyped because of our previous focus on property consultancy, and it’s a barrier that we have to overcome. We have to get past it because, from an engineering point of view, we’re probably the strongest company in the corporate interiors market. We’ve worked for the biggest and most prestigious international clients as well as a lot of local clients, and we’re doing very big corporate interiors and other such fit-out projects, and some residential work as well.”

Having established a stable base in Dubai, Cundall was keen on expanding its business to reduce its risk and dependence on just one market. “We knew we had to diversify, so back in 2010 we began the process of establishing an office in Qatar. We also signed a partnership agreement with a firm in Oman, so now our main areas of focus are 01

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Oman, Saudi Arabia and Qatar. Our internal structure differs slightly across our Middle East offices – historically we have been disciplinefocused, very much on the MEP engineering side of things, although that has changed now. In Qatar we are now full multidiscipline, we do everything from structural to civil and have all the specialisms and architecture as well.”

Cautious Expansion and Challenges

Today, Cundall has a healthy pool of talent in the region. In Dubai, the firm employs 30, while its Qatar and Oman operations stand at 60 and 15 respectively. In Oman, the consultancy is engaged with a large mixed-use development, while in Qatar, it is involved in a large rail project and is eyeing a larger infrastructure project. Stratton notes that his firm is very loyal to clients and uses its agility to deliver quality work on programme. In Dubai, the firm is now gearing up for expansion.

“We grew in the last couple of years and we are planning to move into our new office in Dubai soon; however, we now want to expand

IN PRACTICE

01 The consultancy was responsible for master planning two new plot areas within the Bahrain Bay Development project.

02 The firm developed an acoustic lab in its London office to allow virtual modelling.

03 Cundall’s London office was the first office in Europe to achieve WELL Certification.

04 Working on the AUS Student Centre 02

cautiously because of how the market is looking moving forward.

Business is business, but our philosophy is to grow a business that can sustain staff numbers – we don’t seek out opportunities and grow the staff around that and then get rid of people once that project is complete. That’s not our style and never has been. You can see that with our staff, we have people who have been with the company for more than 25 years, and even within the region, very few have left since we began operations 10 years ago.”

Stratton emphasises that staff are Cundall’s most valued assets and, as a result, the firm puts a lot of effort into staff happiness and wellbeing. “Staff wellbeing is very important to us, which is why we are moving from here. We want to try and create a better office and working environment that is conducive to health and happiness.

A happy person is better with clients and they are more efficient.

In our new London office, we invested around £60,000 extra into the office to achieve WELL accreditation and it paid for 03 itself in three months. We didn’t look at productivity for that calculation, but we saw that staff were happier and there was reduced absenteeism. If we go back and look at productivity, I’m sure we’d recover our investment even faster.”

With regard to challenges Cundall is dealing with in the construction market today, Stratton notes that his key priority is to get his firm away from its current stereotype and raise its profile. “We have

building, Cundall provided efficient structural and geotechnical engineering.

to raise our profile to a higher level than it has been, which is why we’ve recruited a new business development and marketing manager in 2017. As a business, we worry about the bottom line and striking a balance between growth versus looking after staff, and I think we’ve been a little bit conservative. That should change going forward, we needed someone to keep us on our toes and focus on raising our profile and thinking about what’s next, while the engineers focus on projects and delivery.”

He adds, “Another challenge is the market is very competitive. I remember the first project we secured after the crash, it was a fit-out project and the fees we secured on that project, we haven’t been able to secure again, even though the market has improved. I think clients today are more demanding, and I think that’s fair enough.”

Market unpredictability is also an issue Cundall and other consultants are currently dealing with. Stratton notes, “When I talk

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04

to colleagues and competitors in the industry, they’re all saying the same thing. We’ve all been bidding for huge amounts of work in recent months, but the decisions seem to be taking much longer. In 2017, we probably bid on about 30% more projects than we did in 2016, which is quite significant, but our success rate is lower because we just don’t have decisions on many projects. I think that shows that there’s a bit of caution in the market and we have to manage this by not resourcing up to big teams out of hand.”

To get around these challenges, Stratton explains that his firm is looking at delivering projects more efficiently and cost-effectively and, of course, on programme. “As consultants, we need to offer something that our competitors don’t. I think that we need to focus on understanding clients better as well, sometimes it’s not just about offering a better service than everyone else. We have to find out what’s really important to clients, understand their business and then approach them accordingly.”

Differentiating through Technology

Cundall is also keen on creating differentiation through innovation and the use of new technology. Its WELL-accredited office in London is just one part of its plans in this respect. The company has also developed a virtual acoustic reality (VAR) system in-house, which can be used to place designers and clients in a 4D virtual space during the design phase on projects.

Using an Oculus Rift headset and set of headphones, a person can be fully immersed in a virtual visual and acoustic world, which enables them to get an accurate feel of what the space will be like 22 JANUARY 2018

“From an engineering point of view, we’re probably the strongest company in the corporate interiors market. We’ve worked for the biggest and most prestigious international clients” when it is completed. The system is part of the firm’s acoustic lab set up in its London office.

The company has also developed the ability to optimise building parameters through parametric modelling technology. Using analytical tools such as Rapier and Grasshopper, building designs can be optimised in terms of lifecycle energy and cost without compromising comfort early in the design process.

“There’s an appetite for technology and innovation in Dubai, because it is so young as a city and because they want the very best the world has to offer. We are committed to the city and to the region, and we plan to be here for the next 10 years and the 10 years after that.

As long as the region will have us, we’ll be here,” concludes Stratton with a smile.

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IN PRACTICE

INTERVIEW

Going Independent Jason Saundalkar talks to Sharon Jutla, founder of Sharon Jutla Interiors, about her career, inspiration and her recently opened design consultancy haron Jutla is an English architect with over 18 years of international experience spanning Asia, Europe and the Middle East. She considers herself a designer, entrepreneur, influencer and educator and if you’ve been following Middle East Consultant over the last few months, you’ll have seen this globetrotter’s name pop up from time to time.

Jutla has over 14 years of experience in the region and after being bitten by the entrepreneurial bug, she set up Sharon Jutla Interiors (SJI). Here, we find out about her background, inspiration and goals.

Give us a snapshot of your life and career

My career has been rewarding, it has given me the opportunity to work in multiple sectors across the globe. It has also been an 18-year learning curve and what I have learnt is that, fundamentally, every project is building spaces around people that use them. Whether I’m designing a hotel, restaurant or stadium, I love to bring passion to each of my projects, with a distinguishable stamp and the conceptual flair that people can enjoy and experience.

Each project has challenges and I feel I am always learning something new. At the same time, what was once daunting is now relatively easy due to my experience – I’m able to achieve objectives quickly that reflect the qualities, values and aspirations of clients.

I lived out of a suitcase for many years but travelling the world has given me insights into the realities of the design world, which I believe is an achievement in itself. The places I’ve been, the people I have interacted with and what I have seen about how business is conducted is a book of stories that needs to be written.

What inspires you and spurs your creative thinking?

Life. I am inspired by everything, every day – wandering around aimlessly and public solitude are important parts of my creative process.

New things, new people and self-belief – it can even be something simple like colours of a sunset. Beautiful objects are an endless supply 24 JANUARY 2018

of inspiration as well. I am a very visual person and images often give me the map to my final design. Art and photography speak to me as well, whether I’m in a a gallery browsing some fantastic art or looking through online photography sites, these really spark my imagination.

I often draw on historical references and reinvent them with today’s materials in a timeless and elegant way. Fashion as well; as an interior designer I’m always looking to the same colour forecasting sources for inspiration. New seasons can be a great source for themes – from New York, London, Milan and Paris Fashion Week to trend forecasters themselves.

Are there any designers that inspire you?

Good artists inevitably take inspiration from the world around them, not just what’s near them or what is on trend. There are many designers that I admire and that inspire me. The two that stayed with me from a young age are both my grandfathers, who were also in the construction industry.

From a really young age, I was always watching, observing and inspired by their talent, hard work and dedication. I felt like they could make anything.

I often turn to and admire several other designers, including Philippe Starck, Marcel Wanders and Jean-Louis Deniot. With Deniot, I’m fascinated by how his decor is what he calls his playground. His approach to creating electric and emblematic interiors and never sticking to purity of style is incredible and I‘m inspired by the use of history and references of his contemporary work, which produces timeless spaces.

Which are your favourite countries to work in, and why?

Every country is different, the culture, the people, the buildings, the way business is conducted and the way spaces are occupied. We live in spaces that are active, changing and dynamic and when designers create interior spatial designs for various types of uses and experiences, they consider both the aesthetic qualities of a space and how people experience interactions and sensations within those spaces. However, people’s experiences are subjective – these are experiences people have in interaction with the space and others in the space.

Designing with culture in mind is a way to express those beliefs and lifestyle factors that make you who you are. The statement that culture

IN PRACTICE

“I often get asked what’s your design style, but it’s really about what’s your story. Your story creates the style”

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IN PRACTICE 01 Casa Mia has over 40,000sqm of area built to the highest standards and includes sound barriers and advanced lighting to give customers an immersive sensory experience.

02 Jutla worked with Pizza Express to redesign its JLT branch. The result is the new Jazz@PizzaExpress.

makes in your space has the ability to create a domino effect that can be extremely positive. Bringing culture into spaces is a personal step that should reflect your cultural roots and emphasise what’s important to you through interior design, giving your residence a personal touch that puts your passions on display and speaks to your unique life. So for me, every country and market is unique and an opportunity. There’s no favourite.

Which countries show the most potential for your business?

I’m quite busy in a few places within the GCC at present, mostly in Dubai, Abu Dhabi, Oman, KSA and Kuwait. There are also a number of markets outside the GCC where I’m engaged on some great projects – a couple of hotels in Europe and America as well as private residences for investment bankers in both London and India. There’s no market that stands out in my business plan, it’s more about the client and project and the opportunity that comes my way.

Are there any specific types of project you want to work on?

There is no building or space I look up to but I believe design is around us everywhere and every day in our daily lives. I am lucky that throughout my career, I have been exposed to every sector, ranging from sports, residential, hospitality, retail F&B and commercial, including large-scale mixed-use developments not just in the Middle East but worldwide.

What drove you to set up your own consultancy in the GCC, given the current market realities?

When is the right time to set up a business? And why not the current

market? To do anything entrepreneurial, I think the biggest part of the battle is having the persistence to break through all the obstacles and not 01 being influenced by challenges.

We are each capable and deserving of living a life that is successful, rewarding and balanced. The biggest challenge is in knowing what that life looks like, no matter what the circumstances are. Knowing this, we can define the steps we need to take to make it a reality. I always dream big and I never get discouraged by anyone or anything. I network and collaborate, I share my passion and listen to other people’s stories. Every minute is an opportunity, and I believe the more you share your work and inspire your surroundings, the more opportunities will come your way.

When you have a blank canvas, how do you approach a project and connect client aspirations to what you deliver?

One of my key design philosophies comes from stepping outside of people’s comfort zone and making a difference in the way people use, live, learn, experience and feel spaces. As designers, we need to solve problems and at the same time give that creative flair that a client seeks.

Regardless of your style, design should have a personality that needs to be a strong concept that resonates with your client.

Clients love my ‘concept and story’ model because it enables them to have an emotional connection with what we’re doing. They call me the storyteller – my job is to help clients materialise their story, not mine.

It’s why I love my job; I get to listen to and learn about people, their passions and beliefs and most importantly, their dreams and desires, and reflect the environments that make them happy. By listening to their stories, I gather the memories, moods and philosophies that make their lives unique and create the most breathtaking spaces. After all, the world would be a boring place if we all had the same story. Therefore, my

“Every minute is an opportunity, and I believe the more you share your work and inspire your surroundings, the more opportunities will come your way” 26 JANUARY 2018

IN PRACTICE

spaces are all different and unique. I often get asked what‘s your design style, but it‘s really about what‘s your story. Your story creates the style.

What are some of the key services your boutique offers?

SJI offers bespoke design services in the residential, hospitality, F&B, commercial, retail and entertainment segments. We offer everything from strategic briefing and branding, feasibility studies, space planning, interior design, interior architecture, FF&E specification and procurement, OS&E, artwork and accessories, turnkey projects and client representative project management. We have collaborations and tie-ups between operators and clients for new sites, and assist in collaborations with funding and investment. This is something I have been doing for many years now.

What challenges do you face in the market?

Competition, when design should really be more about collaboration.

To me, the operative line is challenging competition in adversity. I understand the importance of pushing limits but the method involved in the madness describes one’s attitude, which ultimately decides the approach. Being competitive is a basic credential that any working professional should possess but at the same time I believe there is more to it than just being competitive. It’s about respecting the work environment, fitting into a situation and not dictating to others that makes competition a playground, where I can decide my own pace.

How do you deal with unrealistic clients and other issues?

The biggest challenge today really is cost and clients who want instant

results, it has always been an issue. Clients drive the industry and at the end of the day, we can design and build the best but if it doesn’t sell, we’re out of business.

Clients are now asking for more technology and they’re asking for better price points for the products. We then have to ask, how do we incorporate safety? How do we incorporate scalability and eco-design and how do we do it at a budget price? The only way round this is to educate clients and we have to resist the urge to undercut competitors.

What’s your approach to sustainability?

Our future depends on sustainability, so we must find ways to reduce our impact on the environment, by using materials produced in a responsible manner and by using products from sources that promote safe manufacturing and socially-just business practices. Reducing waste is also a must. Antique and vintage furniture and decorative items can be repurposed, refinished or otherwise refurbished to give them new life. For the truly environmentally conscious, tiles, carpets, fabrics, even sinks and counters can be made from recycled materials.

Sustainable interior design allows you to bring special materials into the space. It is still primarily about functionality and form but the experience people can get from material adds a new dimension to. I try to interpret materials in new ways and find a different artistic expression. That’s what drives us to be unique. We also look for materials that are made in special ways and that allow people to see and feel the uniqueness in them. It’s important for there to be a good story behind the sustainable material, something unique and memorable about it.

02

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28 JANUARY 2018

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INTERVIEW

Overseer of Architecture Brian Johnson, managing partner at Godwin Austen Johnson, explains how the architecture of Dubai has evolved over the last 30 years ubai has captured the attention of people around the world thanks to its large-scale construction projects.

What’s interesting is that much of what Dubai is today was designed and built in the last 30 years. Several companies have been instrumental in shaping the city’s landscape and Godwin Austen Johnson (GAJ)’s portfolio is among the most impressive. In its nearly 30-year history, the architecture and design firm has helped bring some of Dubai’s most iconic buildings and projects to fruition, including the Dubai Creek Golf & Yacht Club, the Arabian Court at The One & Only Royal Mirage, the Bab Al Shams hotel, and more recently, developments such as Marsa Al Seef.

GAJ was founded in London in 1989 and a year later the firm’s headquarters in Dubai was launched by co-founder Brian Johnson. With decades in the region under his belt, the British architect has seen the evolution of architecture and design in Dubai first-hand and continues to keep an eye on the city, as GAJ’s managing partner.

“When I first started working in Dubai in 1975, I was doing a lot of schools and there was a desire for Dubai to show that it was part of the international world. Around 1989, there was a slight change in the sense that Dubai became more of a tourist destination. Then you started getting people saying that they wanted to come and see, according to the manager of the Arabian Court which we designed, “the magic of Arabia”. So there was this desire to reflect the heritage of the region, and whether that was just the more traditional architecture of the interior or Islamic architecture from across the region, that changed the basis of what we were doing.”

According to Johnson the shift was perhaps a bit too dramatic, but he notes that maturity ultimately prevailed. “The pendulum swung arguably too far in the other direction in the early ‘90s, and you then had a lot of buildings built by the creek that seemed to have a traditional wind tower on top. So we went from modern to extremely traditional, but thankfully

the market went back to being more sensible. It matured and has stayed at that level – people are now choosing the architecture that suits the purpose, so if a project is tourism-related it’ll be designed in a certain way, and if it has a different purpose, it will be designed to that specification.”

Guiding Vision

Johnson points out that Dubai’s leadership has always played an active role in the evolution of the city’s architecture and infrastructure and that each emir made his own unique contribution. “Under His Highness Sheikh Rashid, you had projects such as the drydocks come up, and even before His Highness Sheikh Mohammed became emir of Dubai, you could see he was a driving force for a different sort of project.”

Since those early days Dubai’s landscape has continued to evolve, and the result is a city that now caters to both indoor and outdoor tastes of residents and tourists. Johnson explains, “Today, if you look at projects like La Mer and City Walk, they are enormous and you realise that there are suddenly a lot more outdoor places to visit and spend time. The city has moved beyond big shopping centres and I think that shows an interesting vision. With projects like this, the city is encouraging being outdoors rather than spending all your time indoors in a mall. There’s room for both, clearly, thanks to the weather, and as a result you can see the projects are busy at different times of the year.”

With regard to making decisions about projects, Johnson explains that too has evolved, as data and analytics are increasingly being relied on by decision-makers. “People are looking at data as a metric to make decisions – before, they might have used their gut feeling or turned to market sentiment to decide on how to proceed. Now they consult with the background data and look at factors such as visitor numbers, visitor breakdown, salary levels and expectations, etc. I think Dubai has become very data-centric, shall we say, and ultimately the more connected we get, the more data is collected and the more everything will fit together.”

Tourism has been a significant contributor to Dubai’s economy for decades and now the city is targeting other aspects of tourism, and is also JANUARY 2018 29

IN PRACTICE 01 GAJ was appointed as a full service consultant on the iconic Dubai Creek Yacht Club in 1991.

02 Designing the academy buildings in Dubai Sports City, the firm had to design large, clear spaces while avoiding a large and unsightly shed structure.

01

keen on adding educational institutions to its landscape, in a bid to attract families and cater to their children’s educational needs.

“When you talk about tourism, the primary focus is holidays but medical tourism is also growing in popularity. Here, it’s not only about attracting people from the surrounding region. If you consider the number of people who live here, there is a need for quality facilities that can offer extended/ongoing care in case people have accidents and need rehabilitation, for example. We’re involved with a project that is bringing that sort of rehabilitation facility to Dubai, which is something that hasn’t been done before. It’s not just about skills and competency, which Dubai already has, it’s about designing and building facilities that are equal to or better than the best the world has to offer.”

With regard to education, Johnson adds, “There are a lot of people with kids here, and if you looked at Dubai in the ‘80s, ‘90s and even early 2000s, there weren’t that many schools and universities. As a result, you’d see a 02 lot of families migrating or sending their kids overseas for their education. That has reduced significantly in recent years, as families are taking advantage of the new educational facilities, which means they get to be close to their kids while enjoying the lifestyle that Dubai offers.”

Influences on Architecture

Speaking about what influences architecture and design in general, Johnson highlights materials as having the biggest impact.

“Modern building materials give you the freedom to design things differently. In the past, if you considered a material such as stone (which was and still is popular), it could only span a certain distance so you had 30 JANUARY 2018

to design keeping that limitation in mind. With modern materials it’s quite different, so materials really do define what you can do from an architectural standpoint – there are now certain building materials that can span 6m (for example), which means that you can specify it in the plans and design the building accordingly.”

Technology such as BIM is also influencing the way buildings are designed and built. GAJ was an early adopter of BIM in the region and is committed to training its staff so they can ‘speak the language’.

“BIM is a sort of language, and we have a training programme and some very talented people in the office to help other members of staff to get into it. There is a challenge, though, because as with all technology, the more you get into it, the more complex it becomes. The other danger is an over-reliance on it or indeed any technology. People might stop thinking for themselves as the technology gets smarter and start believing the machine or technology outright, so when mistakes are inevitably made, people may not be able to spot it before it’s too late. Using this technology is clearly the way forward, but I think it’s important for people to take a step back every now and then and exercise their own judgement.”

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ON SITE

OPINION

01 Ibrahim Ibrahim is managing director at Portland Design Associates, a Perkins+Will brand.

Developers Must Sell Space Based on Data Portland Design Associates’ Ibrahim Ibrahim discusses the changing face of retail and points out that developers should sell space based on data rather than square footage

01

I

n an ideal world, design processes would all be based on research and a rich understanding of the end user. Couple that with market, sector and technology insights, and you’ve got a winning formula.

There are key ways to ensure this both happens and is effective – for example, we created a dedicated insights team to perform the sole function of ensuring our designers are thoroughly informed about future behaviours and mindsets of consumers.

32 JANUARY 2018

For us, it’s consumer journeys and missions that drive the concept and should be the focus of developers and architects.

In fact, this data capture ability led us to the realisation that the space race is over for retailers. For anchor stores or major space users, the idea of needing more and more space is no longer the case. What has in fact happened is a percentage of sales has moved online and space is evolving from transactional use to experiential.

Through the shift to online shopping, the e-commerce market is currently valued at $7bn globally. Looking at the shopping haven of the Middle East, the e-commerce market in the UAE is expected to reach $2bn in 2018.

Interestingly, a Mastercard behavioural study in 2014 revealed that nearly 35% of Middle East citizens had previously accessed the internet to shop online, 44% of whom had made at least one online purchase in the previous three months.

With local internet penetration of over 90%, there is so much data available to us, which we should be able to translate into a clear path that developers should take. It’s imperative we take a look at the data made available to us, if we are to stay ahead of the curve, boost the retail sector across the UAE and become the proposed fashion destination of the Middle East region, alongside the likes

of other global cities such as Paris, London and Milan.

I firmly believe that the internet will not kill shops – it will liberate them, as increasingly we are looking at money not changing hands in-store. When it is no longer the focus of a space, that space evolves creatively. Retail is about three things: recruitment (sourcing customers), transaction (sales) and retention (loyalty). Increasingly, we are looking at transactions happening online and physical stores being about recruitment and retention.

The space retailers have will be used more and more for experiences rather than transactions, much like the Apple store, which is designed to be entertainment- and leisure-driven. You can buy an iPhone as you walk down the Avenue, enjoy a seminar with artists in the Forum, fix your laptop under the trees in the Genius Grove and get some training in the Boardroom – you’ve been in an Apple Store the whole time.

Retail will take on more of a hybrid role, anchored by food and beverage, while turning into more of a social destination. Good examples of retailers turning experiential are beauty stores. Brands will create a hybrid of products and services, like makeup stores selling products as well as offering services like manicures on-site. Think of it as a lifestyle destination for a specific set of requirements.

ON SITE

Shoppers are changing as well, so shopping mall tenants are changing, which ultimately means that developers have to change too. The issue for the developer is the changing net-to-gross ratio, whereby there will be a convergence of public and tenanted spaces, without a clear demarcation of spaces owned by a retailer and public space. Salesper square metre will no longer be how one values a piece of real estate – developers need new ways to show a tenant the value of taking space within a specific mall or destination if they wish to retain or gain tenants.

Developers are able to capture granular data with the use of modern technology and hence charge based on the quality of audience. A developer’s asset is also its audience, not just its space, and like it or not, this shifts developers from the property

business into the media business, where they must begin to think and behave like media brands that own media platforms.

Developers need to look at commercial models of media companies. If you look at a publishing house, it charges for digital advertising based on impressions – how many of what very specific type of person will see a brand by paying to be in this location.

This is what developers need to adopt and support with statistics.

Let’s now look at the future planning of retail destinations. As designers looking to design a retail destination, we must understand the shopper. To future proof a retail destination, you need to understand how the aforementioned data will affect design. If we say retail destinations are to become media platforms and brands need

physical space to engage with customers, we are looking at very different designs. These are designs which will ultimately include hybrid, soft, programmable spaces, acting as destinations which are not limited to transaction but also include engagement and experiential opportunities. These spaces need to be versatile and reactive.

Smart architecture will be designed with anthropology, not architecture, at its core.

It really is people and places, not buildings and spaces. As a result, we are increasingly working with our partners to ensure that we provide developers in the region with valuable insight and design, in order to keep the region at the global forefront of retail. It would be fantastic to see early adoption by the UAE, as this type of approach is increasingly common across Europe and the US.

“The space retailers have will be used more and more for experiences rather than transactions, much like the Apple store, which is designed to be entertainment- and leisure-driven”

JANUARY 2018 33

ON SITE

Educate ME

Developing an Identity

Ayman Jaber, founder and executive creative director at INTEGR8, explains how the Mall of Palestine got its identity How did you approach the mall project in Palestine and come up with its identity?

We were involved with the project during the concept development stage, which allowed us to understand the design inspiration and the motifs that were going to be used. Before we could begin our ideation process, we had to research the commercial aspect of the mall, its social impact and its cultural significance.

Studying all of the different aspects of the development, namely its impact on the country’s economy and social life, enabled us to compile a list of key words and phrases that summarise the essence of the mall. A core message turned into shapes and concepts, followed by preliminary 34 JANUARY 2018

logos and colour schemes, which finally led to a detailed brand identity.

What did your client want to achieve with the identity for the Mall of Palestine and how did you help them achieve this?

While smaller retail compounds are present in the country, none have been able to mirror the true essence of a shopping mall, one that combines a variety of retail units, multicultural dining options and thrilling entertainment hubs.

Our client envisioned a large-scale destination that encapsulates all these aspects within one space. By choosing the name Mall of Palestine, we were making a bold statement: “This is the

first true example of a mall in the country.� The message was clear. Any similar projects that might come after will follow the example that this development has set.

By building a project of this size, LACASA Holdings had a mission that went beyond profit.

They created a hub that will attract Palestinian expatriates to their homeland, where they can experience the same level of comfort they find abroad. The mall also acts as a gateway to a new world, allowing people to experience international concepts, brands and delicacies without having to travel overseas.

Our task was to convey these messages by using concise visuals that would form a

ON SITE

For further information, please contact: info@intgr8.agency

www.intgr8.agency

lettermark logo consisting of a monogram. Our first inspiration was a literal gate placed at the centre of the identity: inviting, intriguing and ready to present something new. Next was a key resembling the ones carried by those who left their homes in 1948. This signifies the return to their homeland – the motif is an invitation for Palestinian expatriates.

How does the mall’s identity tie into Palestine’s heritage and culture?

We wanted to create an identity that combines the cultural aspect of the development, due to its geocontext, with a contemporary twist that mirrors its architectural style and interiors. We achieved that combination by forming the monogram of the mall’s name using two Palestinian motifs: a gate-shaped ‘O’ reminiscent of old Jerusalem doors and a key-inspired ‘P’ which signifies people’s return to their homeland. Elements inspired by the mall’s façade were used to form the first letter of the monogram.

What was the biggest challenge working on the brand identity of the project?

The biggest challenge was being able to create an identity that encapsulates the culture of the country, while also maintaining a contemporary feel that matches the architecture and the interiors. The two styles used are usually found

on two opposite ends of the spectrum, and hence finding a way to make them work well together was challenging yet intriguing.

What challenges do you face in giving an identity to built environments?

If a client wants to rebrand and change the current identity on a fully constructed building, the challenge is to find a way to communicate the new image while keeping in mind the existing architectural language and façade treatment. The signage needs to blend into its surroundings while also standing out.

I think that one of the main misconceptions in the region is that a brand identity is considered a replaceable asset. Often, it is the last aspect of a commercial project that gets developed as an add-on, as opposed to the core concept that influences the architecture.

We worked on a branding project for an old development in Pakistan, where the client wanted to rebrand and introduce a contemporary identity. A new identity meant fresh signage that would not match the façade of the building. In cases like this, we suggest a partial rebrand where the colour palette remains the same and only a few elements are modified to communicate a more modern approach. For instance, these would include using flat vectors as opposed to realistic visuals.

Brand identity is as important to community structures as the design.

How do you convey this to clients?

The brand identity of a commercial project should be the basis of any marketing campaign.

Hence the identity needs to be generic enough to encompass all marketing objectives, yet still be specific to the brand. Our job is to ensure that the client understands this aspect, as it will influence every activity that the development will undertake, even 10 years down the line.

Investing in a strong brand identity and equally strong campaigns will have a vast impact on the commercial success of the project. I’ve seen examples of projects where the identity wasn’t developed thoroughly, which in turn stunted the marketing efforts and ultimately led to commercial loss.

One common misconception property developers have is that an identity is a logo.

We do our best to educate clients on the importance of defining the project, not only in terms of business objectives but also personality, communication identity and visual look and feel. These aspects influence how consumers perceive the destination long before they set foot inside it or even drive past it. The façade of a building is an equally important trait that should be designed with the brand identity, especially with regard to commercial projects.

JANUARY 2018 35

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ON SITE

LACASA signs McARTHUR + COMPANY for mall operations

Basma and ARADA launch Anantara Sharjah Resort The Basma Group and ARADA have signed a management agreement with hospitality group Minor Hotels to launch the Anantara Sharjah Resort. The 233-key resort will be located on a prime beachfront location just 15 minutes from Sharjah International Airport.

Scheduled to open in mid-2020, the resort will be the emirate’s first Anantara property. ARADA is assuming a developer management role in the delivery of the project and the resort is expected to offer a mix of rooms and suites and boast several dining options.

“Anantara is one of the world’s most prestigious luxury hotel brands, and this new property marks yet another hospitality milestone for Sharjah. We’re looking forward to launching the Anantara Sharjah Resort in 2020 and delivering on our commitment to providing exceptional new destinations to the residents of Sharjah, as well as tourists to our fastgrowing emirate,” said HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of Basma Group and ARADA. The new resort is expected to bolster Sharjah’s rapidly growing hospitality sector.

William E. Heinecke, founder, chairman and CEO of Minor International PCL, added, “We are delighted to be partnering with Basma Group and ARADA to bring our luxury Anantara brand to Sharjah. There is a huge opportunity within the luxury segment in this fast-growing destination, and we are confident that Anantara will be well received within the market.”

McARTHUR + COMPANY has been appointed as the retail consultancy and operator of The Mall of Palestine. LACASA Holdings is the entity behind the $40m mall project, which is said to be the largest retail destination in Palestine.

The retail consultancy’s scope will include design consultancy and retail mix advisory at the construction stage, followed by operations management once the mall is completed.

LACASA Holdings says it appointed the firm following its positive experience with the retail consultancy on several other projects in the region. LACASA Architects is a subsidiary of LACASA Holdings and is responsible for the entire design of the mall project.

“We’re thrilled to have McARTHUR + COMPANY onboard as our retail consultants and operators. The consultancy’s portfolio and service offerings are impressive, and we look forward to working with them over the next year to create an iconic landmark and an unparalleled retail experience for our customers,” explained Jaber.

The mall’s identity was developed by LACASA’s creative agency, INTEGR8.

JANUARY 2018 37

ON SITE

Cluttons to provide property services for Busaiteen Views KAR Properties has appointed real estate consultancy Cluttons to oversee property and facilities management on its Busaiteen Views luxury development. Cluttons is also responsible for providing leasing services on the new development.

“We’re excited to be appointed by KAR Properties to manage its newest project Busaiteen Views, and will ensure that Busaiteen Views follows the successful steps of Cebarco Tower and Segaya Views as it heads towards full occupancy,” said Harry GoodsonWickes, head of Cluttons Bahrain and KSA. The 14-storey tower features 34 apartments split between one- and twobedroom units.

Deborah Sellers, head of Residential Property Management at Cluttons, said, “We strive for excellency at each step while operating and managing our clients’ developments. We will offer Busaiteen Views the best, just as we’ve done with Cebarco Tower and Segaya Views – and will ensure that we’re continuing to attract and retain tenants through excellence in property management, as well as the quality of the development.”

38 JANUARY 2018

Alstom signs MoU for urban transport project Alstom has signed a memorandum of understanding (MoU) with the government of Iraq. The MoU covers two main projects and was signed during the Franco-Iraqi government authorities meeting, with Dr Sami Al Araji, head of the National Investment Committee of Iraq, and JeanBaptiste Lemoyne, the French Secretary of State, in attendance. Both projects are expected to contribute significantly to the development of Iraq’s economy and urban infrastructure.

“We appreciate the opportunity to develop industrial cooperation with the Republic of Iraq, in order to better address the country’s needs for urban transportation. Alstom is ready to bring its innovative technologies and sees the signature of this MoU as a first step towards the development of a long-term partnership with Iraq,” said Bernard Peille, managing director of Alstom in Western & Central Asia.

The first project is a 20km elevated train in Baghdad, with Alstom responsible for supplying rolling stock, electromechanical systems, tracks and associated civil works. This rail system will link Al-Mustansirya, AlShab, Al-Wazyria, Alsarafia AlEtafia bridge, AlKhadumia, AlMuthana Airport and Al-Alawi.

The second project is the development of a Metro system in Basra.

It will consist of two elevated lines of approximately 30km each, 15 stations and one depot for each line from north to south from Zubair to Shat Alarab and from east to west from Karma to the desert.

ON SITE

EDF keen on Saudi Arabia nuclear projects

McDermott wins Saudi Aramco EPCI contract McDermott has been awarded a major contract

by Saudi Aramco for its Safaniya onshore and offshore fields. The firm will provide a full suite of EPCI services for 10 production deck modules, nine slipover jackets and an electrical distribution platform, as well as the cables and pipelines for the fields.

The contract is estimated to be worth $750m to $1.5bn. McDermott says the combined weight of the structures will exceed 20,000 tonnes, while the pipelines and cabling will measure over 26km and 22km in length.

McDermott plans to use its engineering and procurement teams in Dubai, Chennai and Al Khobar for the project.

“We continue to receive contracts under the long-term agreement for Saudi Aramco’s most considerable projects. This award is a continuation of our long-standing relationship and successful track record with Saudi Aramco.

We plan to execute much of the project from our Al Khobar office and Dammam fabrication facility, increasing our local content in country, in support of Saudi Arabia’s Vision 2030 and Aramco’s In-Kingdom Total Value Add (IKTVA) programme,” said Linh Austin, McDermott vice-president for the Middle East and Caspian region.

French state-owned utility company EDF is keen on participating in a tender for the construction of two nuclear reactors in the Kingdom of Saudi Arabia. Officials in the Kingdom have requested information from international suppliers, on the back of a need to reduce domestic oil consumption.

Saudi Arabia is reportedly considering adding 17.6GW of nuclear power capacity to its grid by 2032. With the deadline for the Kingdom’s initial inquiries set for early 2018 at the latest, a formal tender could be launched by late 2018 or early 2019.

EDF has already held discussions with decision-makers in the Kingdom with regard to providing Areva-designed European pressurised reactors (EPR), among the largest in the world with a capacity of 1,600MW. Russian and South Korean companies are also said to be keen on entering the tender, while Toshiba-owned US firm Westinghouse is in talks with its peers to form a bidding consortium.

Last month, a Saudi nuclear official told a conference in Abu Dhabi that for the first two reactors, the Kingdom is considering reactor models in the 1,000-1,600MW range.

JANUARY 2018 39

THE BACK PAGE

LAST WORD

01 Steven Velegrinis is director of Cities+Sites at Perkins+Will Dubai.

Designing for Sustainable Tourism Steven Velegrinis speaks about the importance of combining environmental planning with cultural heritage conservation to design for a resilient and ecologically sensitive form of tourism

01

R

esilience in this respect refers to the capacity of individuals, communities, institutions, businesses and systems within a city to survive, adapt and grow, no matter what kind of chronic stresses and acute shocks they experience on a day-to-day basis.

It equally relates to the ability of elements of natural and cultural heritage to be resilient to increasing tourism numbers.

40 JANUARY 2018

The latest MENA Hotel Construction Report by TopHotelProjects states 83 hotels will open in 2018, with 200 in the pipeline, including 164 in Dubai, 25 in Abu Dhabi and 12 in Ras Al Khaimah. As architects, we must look at sustainable options to manage such growth within the region without causing irreparable damage to the local ecosystems.

The good news is that resilient design doesn’t need to be austere – it can be hedonistic and luxurious, as it must be for hospitality design. A good example of a resilient yet luxurious design concept is what we delivered for a resort island in the Maldives.

Faced with the seeming inevitability of sea level rise, hedonistic resilience is realised through a reclamation plan that triples the amount of available beach front and mangrove habitat and a reprocess of all waste water in the island landscape. The project also grows significant amounts of organic food on-site, is fully self-sufficient in energy as a consequence of underwater tidal turbines, and enhances the marine reefs and lagoons by introducing artificial reef structures to protect against storm surges on the exposed side of the atoll.

The built elements are also designed to be both the ultimate in luxury and

privacy, accessible only by private boat, while responding to sea level rise as they are designed as floating villas with underwater fish breeding platforms.

We expect to see an increasing number of these types of requirements coming in over the course of the next decade. Considering the waterfront developments coming to fruition at the moment, such as the NEOM Project recently announced in Saudi Arabia, architects will be challenged to respond with complex levels of environmental intelligence applied to their conceptualisation and design.

The UAE is serious about the challenges of climate change, proactively addressing them through policy and projects, with the Ministry of Climate Change and Environment dedicated to such solutions.

This body has prepared the UAE National Climate Change Plan 2050, which makes climate change mitigation a national goal, and architects are being asked by governmentlinked developers to produce master plans with this firmly in mind.

As a result, the future of UAE ecological preservation looks to be in safe hands, especially within the hospitality sector, which is excellent news for the UAE’s sustainability vision and tourism growth plans.

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