ME Consultant July - August 2016

For the construction specialist

Raising Kane Greg Kane outlines his game plan for WSP | Parsons Brinckerhoff On tOpIc

The impact of Brexit on the ME property investor

In pRactIcE

The best approach to business in the ME

On SItE

NBK Children’s Oncology Hospital in Kuwait

ISSUE 028

July-August 2016 Publication licensed by International Media Production Zone, Dubai Technology and Media Free Zone Authority

FARAH yASSINE CONSULTANT – SUSTAINABILITy AND ENERGy

www.wspgroup.com I www.pbworld.com

#iamWSPPB

I AM WSP PARSONS BRINCKERHOFF

I AM PROVIDING SUSTAINABLE SOLUTIONS FOR A BETTER FUTURE

CONtENts

On topic NEws ANd VIEws frOm ACrOss thE mIddlE EAst

07

10

07 ANAlysIs

Understanding the impact of Brexit on the sentiment of ME property investors in the UK 10 ANAlysIs

Analysing the causes of Middle East construction disputes

In practice ANAlysIs, INsIghts ANd INtErVIEws

14

18 14 INsIght

Evaluating the best approach to setting up and running a business in the Middle East 18 prOfIlE

Greg Kane of WSP | Parsons Brinckerhoff talks about his new role as managing director and his game plan for the company 28 INtErVIEw

28

34

Alexander Bässler and Jayanta Mukherjee discuss Fischer’s plans for the Middle East 34 hOspItAlIty

Assessing specialised hospitality products for luxury destinations and events

On site CAsE studIEs, OpINIONs ANd sNApshOts

40

46 40 sItE VIsIt

ME Consultant visits NBK Children’s Oncology Hospital in Kuwait 46 tOurIsm

Understanding the evolution and rise of the ME tourism industry 50 sItE prOfIlE

Evaluating the impact of Dubai Opera and the importance of the human scale in design

50

54

July-August 2016 1

WELCOME

Group EDItOR’s NOtE

MEC Reloaded Hello everyone, and welcome to a brand-new edition of Middle East Consultant magazine! As you all may have noticed, the magazine has been given a bit of a facelift. We’ve been working on this new design for quite a while and I must say that every element of it has come together very well.

But it’s not just the look that has changed. We’ve got some fresh faces from the industry inside and we’ve covered some pretty interesting topics as well.

This August, we’ve had Knight Frank do an analysis for us on how Brexit has affected the investment choices of Middle Eastern property buyers in the UK. We’ve done an interesting feature on how hospitality products being built around centres of major events like the Qatar World Cup and Expo 2020 need to be highly versatile to adapt to future demands after these events.

Another engaging piece this month is the one on international consultants delivering Middle East projects. It is interesting to understand the thought process that goes into making a decision on whether to set up a fully operational studio in the region or simply have a liaison office until you’re able to dig your heels into the ground. We also had a chance to catch up with Greg Kane, the new managing editor of WSP | Parsons Brinckerhoff, to find out how his experiences over the years are going to help him in this new role, and what his game plan is for the company in the year ahead.

Lastly, I’d like to announce that nominations and registrations are open for the Middle East Consultant Awards 2016, to be held on 8 November at the Ritz-Carlton in JBR, Dubai.

Considering what a grand success it was in 2015, this year we’ve decided to introduce a couple of new categories – ME Consultant’s Rising Star Award and Workplace of the Year – so please do start sending in your nominations. The deadline is 8 October.

I also invite you all to give me some feedback on this new issue.

I’d love to hear your thoughts and suggestions for future issues!

PuBlIsHINg DIRECtOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDItORIAl DIRECtOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713

Editorial CONsultINg EDItOR GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 DEPuty EDItOR DAVINA MUNRO davina.munro@cpimediagroup.com +971 4 375 5475 suB EDItOR AELRED DOYLE aelred.doyle@cpimediagroup.com

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MOST POPULAR

fEATURED

READERS’ COMMENTS

CONSTRUCTION

SAUDI ARAbIA’S IMPORTANT

Saudi Arabia’s first ‘Snow City’ set to open in Riyadh

MOvE ON vACANT LAND

This is a very good mandate (‘Saudi Arabia sets rules for tax on undeveloped land’) to start getting some movement on these vast areas of land which are literally left deserted in the hope of a sale or lease when values are high. Many things were stated in Saudi Arabia’s new economic reform plans and I really hope this is executed.

CONSTRUCTION

World’s largest observation wheel takes shape in Dubai

In pictures: Aldar developments in ‘growth market’ of Al Ain

Harrison Fletcher, online comment

CONSTRUCTION

Dubai South awards contracts worth $272m

DUbAI’S LATEST TRAffIC SAfETy DRIvE

CONSTRUCTION

Work begins at Dubai’s Six Flags theme park

CONSTRUCTION

Dubai’s $8.1bn Desert Rose City approved

4 July-August 2016

video: bIM, RfID technology combined for Hong Kong housing project

We are glad to hear news that the RTA will start a new project to fit telematics in heavy trucks to help minimise the accident rate in Dubai (‘Dubai’s RTA to make telematics mandatory for heavy vehicles’). This is the latest in a string of big projects that have been working towards the goal of zero traffic deaths.

Farhan, online comment

Ritz Carlton, Jumeirah Beach Residence, Dubai 8 November 2016 www.meconsultantawards.com Following its hugely successful debut last year, the Middle East Consultant Awards returns in November 2016 to celebrate the GCC’s leading construction specialists in its distinctive and engaging style. Reflecting the diversity of the consulting industry in the GCC, the awards recognise the region’s best multi-discipline construction consultants, architects and the multitude of specialists in structural engineering, MEP, urban design, sustainability, quantity surveyors and cost consultants and all the many other fields that make up all the facets of this wonderful industry. In addition we will be celebrating projects and individuals from junior to senior level, as well as introducing Workplace of the Year.

Nomination deadline: 8 October 2016 NOMINATION ENQUIRIES Davina Munro Deputy Editor +971 4 375 5475 davina.munro@ cpimediagroup.com SPONSORSHIP OPPORTUNITIES Michael Stansfield Commercial Director +971 4 375 5497 michael.stansfield@ cpimediagroup.com

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ON TOPIC

ANAlysIs

london’s Property Market – Here to stay Dana Salbak, associate partner and head of Research at Knight Frank, looks at the impact of BREXIT on London’s property market

T

he UK vote in favour of Brexit has resulted in much argument and speculation as to the impact this will have on the UK property market. Discussions have particularly focused on the appetite for real estate from Middle East investors, given their position as strong buyers of prime property across the UK and London. Before engaging in the debate, it is essential to note that sales activity and price growth in the prime

London residential market have both slowed since mid-2014. The EU referendum has been only one of a number of headwinds which have affected the market. The UK election, the threat of a Mansion Tax and the imposition of higher rates of stamp duty, as well as the additional rate for investors and second home buyers, have all conspired with the EU vote to dampen market sentiment.

Second, it is important to acknowledge that demand for prime July-AugusT 2016 7

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London property rests on a wide range of drivers, most of which are unaffected by the referendum decision: the scale of London’s business cluster, depth of skills, education, lifestyle and language. It is not easy to identify an obvious alternative destination for investors, despite short-term nervousness.

Finally, while we are entering a period of renewed uncertainty in the UK and London market, on-going issues around EU and especially Eurozone stability, which will be highlighted in the runup to French and German elections, are likely to counter the risks and shore up London’s safe-haven appeal.

This over performance of lower price points within the prime London market is reflected by the local sub-market performance.

Prices in the City & Fringe, Islington and South Bank rose on average 0.8% to 1.5% in the quarter to the end of June.

As shown in the table below, sale price forecasts remain strong across the UK, and more so for specific locations with sub-GBP 1 million properties. We’re witnessing a polarisation of the market with higher value growth expected in East London, which presents as a ripe investment opportunity. … However, Market Risks Remain

Transactions and Prices

Our latest data reveals that average prices across prime central London fell 0.2% in June 2016, the weakest monthly result since November 2014. June’s result pushed annual price growth to -0.6%. The index data for June largely covers the period leading up to the UK’s EU referendum. Weaker price growth, together with rising economic and market uncertainty surrounding the European vote, have prompted vendors to reduce asking prices over recent months.

This more realistic approach has resulted in an uptick in activity, most notably in the immediate aftermath of the referendum result.

In the final week of June, the number of transactions across prime London was 38% higher than in the prior week and 29% higher than in the final week of May. Opportunity in uncertainty

On the eve of the vote, the pound sat 14% below its mid-2014 peak. With the current uncertainty that we have seen around the EU referendum, we have seen sterling weakening and investors have been taking advantage of the currency play to invest into the market.

While the reduction in asking prices has boosted recent activity, it would be wrong to ignore market risks. An initial reading of postreferendum data on new-buyer registrations and viewings reveals both have slipped back slightly compared to the same period a month ago – although it is still very early to draw firm conclusions.

Looking ahead, political uncertainty in the UK will undoubtedly weigh on sentiment, and will be likely to last at least until the terms of the new relationship between the UK and the EU are agreed. A reduction in political risk should allow mitigating factors to kick in and support the London market.

Knight Frank Residential Market Forecast (2016-2020) Mainstream UK

20.0%

Mainstream London

19.3%

Prime Central London East*

26.4%

Prime Central London West**

10.2%

Prime Outer London

24.0%

Value in New Markets

Looking at the market by price band, while the whole market saw prices fall 0.3% in Q2 2016 versus Q1 2016, prices for sub-GBP 1 million properties rose on average by 0.4%, indicating value in new markets.

8 July-AugusT 2016

* City & Fringe, Islington, South Bank, King’s Cross & Riverside ** Notting Hill, Kensington, South Kensington, Chelsea, Knightsbridge, Belgravia, Hyde Park, Marylebone, Mayfair, St. John’s Wood Source: Knight Frank Research, March 2016

ON tOPIC

ANAlysIs

ME Construction Disputes Understanding the causes behind construction disputes in the region and the common methods of alternative dispute resolution

A

ccording to the Global Construction Disputes Report 2016 by Mike Allen, global leader of Contract Solutions at Arcadis, the global construction industry in 2015 faced headwinds, particularly with commodity and currency volatility. This resulted in many projects and programmes facing economic issues that hadn’t been planned for and thus contributed to some of the issues and disputes that materialised.

“The natural resources market in particular and some of the major Engineering, Procurement and Construction (EPC) contracts ran into some substantial disputes, with billions of US dollars in contention. There has also been a rise in the number of insolvent companies and terminated contracts, which the report says is linked to the current economic environment,” notes Allen in the report.

In terms of the value of disputes, the global average was recorded at $46 million, with the highest value dispute handled by the Arcadis Region

team in 2015 worth $2.5 billion. Meanwhile, the global average length of disputes was 15.5 months, which indicates that while disputes globally have reduced from the previous year, the durations have increased by a little over two months.

Disputes in the Middle East

Taking a closer look at the Middle East, the region ranks the highest globally, with its dispute value increasing once more to the highest value since 2011 at $82 million, compared to last year’s $76.7 million. However, the report notes that the amount of time taken to resolve disputes remained more or less static.

In terms of the top three causes of dispute, Allen says failure to properly administer a contract remains the most common cause of dispute in the Middle East, followed by poorly drafted or incomplete and unsubstantiated claims, and incomplete design information or employer requirements for design and build projects.

Dispute values (US$ million)

Length of dispute (months)

2010

2011

2012

2013

2014

2015

2010

2011

2012

2013

2014

2015

Middle East

56.3

112.5

65

40.9

76.7

82

8.3

9

14.6

13.9

15.1

15.2

Asia

64.5

53.1

39.7

41.9

85.6

67

11.4

12.4

14.3

14

12

19.5

N. America

64.5

10.5

9

34.3

29.6

25

11.4

14.4

11.9

13.7

16.2

13.5

UK

7.5

10.2

27

27.9

27

25

6.8

8.7

12.9

7.9

10

10.7

Europe

33.3

35.1

25

27.5

38.3

25

10

11.7

6

6.5

18

18.5

Average

35.1

32.2

31.7

32.1

51

46

9.1

10.6

12.8

11.8

13.2

15.5

The Middle East region saw its dispute values increase, once more, to their highest value since 2011. However, the amount of time taken to resolve disputes remained more-or-less static.

10 July-August 2016

ON tOPIC

2015 Rank

Cause

2014 Rank

1

A failure to properly administer the contract

1

2

Poorly drafted or incomplete and unsubstantiated claims

2

3

Incomplete design information or employer requirements (for design and build)

New

A failure to properly administer the contract remained the most common cause of dispute in the region, followed by poorly drafted or incomplete and unsubstantiated claims, which once again demonstrates the need to get the basics right from the very start. In the Middle East, where a JV is in place, the proportion of disputes caused by a JV-related issue dropped in 2015, moving down almost 10% to 32.3%

In the Middle East, where a joint venture ( JV) is in place the proportion of disputes caused by a JV-related issue dropped in 2015, moving down almost 10% to 32.3%.

The three most common methods of Alternative Dispute Resolution used during 2015 in the Middle East were: 1. Party to party negotiation 2. Arbitration 3. Mediation Allen goes on to note in the report that in an economic environment affected by the oil price, the market continues to see a restriction in decision-making within the industry. This drives a lack of appropriate delegation to project management consultants and client representatives, thereby prolonging critical commercial decisions and generating cash flow issues related to instructed variations. “Some clients are looking to spread cash obligations by prolonging commercial payments and negotiations. Additionally, the tendency to utilise a traditional contracting strategy is ill suited to the continuing size and complexity of the programmes, and this is exacerbated by the propensity of clients to transfer the majority

of project risk to contractors. “However, there is a desire from all parties to better streamline formal dispute processes, reduce the administrative burden and create a fairer contracting model. There is also a noticeable shift in the use of mediation and adjudication instead of the traditionally contracted litigation or arbitration methods,� says Allen.

The market is further increasingly using design and build contracting models and has even experimented with the New Engineering Contract (NEC) suite. Public-private partnerships are also growing in popularity, as inward investment is coveted to mitigate budget deficits generated by low oil prices.

The report goes on to say that this shift in strategic procurement will only be beneficial to the continued growth of construction in the Middle East and maintaining its attractiveness to international contractors and consultants. While the region is experiencing a challenging period, the opportunities and potential rewards for contractors and consultants remain.

Finally, as better compliance and cost optimisation initiatives are introduced by private operators and government entities, the market will improve as an environment within which both domestic and international organisations can thrive.

July-August 2016 11

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COMMENt

Navigating contractual uncertainties Ahmed Elkordy talks about dealing with engineering scope uncertainty in traditional construction contracts

What is traditional contracting?

01

01 Ahmed Elkordy, senior consultant at Hill International Claims.

02 In a traditional procurement scheme, the contractor’s main

In a traditional procurement scheme in the construction industry, the employer separately contracts a consultant to design the project and a contractor to build it. As far as the construction contract between the employer and the contractor is concerned, most or all of the design and specifications are prepared by the consultant, and the administration and approval of the contract works is performed by an engineer appointed by the employer and identified in the main contract.

Usually, the contractor’s main engineering scope in this context is limited to the preparation of shop and builder’s work drawings or specialist elements. Simple as it sounds (or perhaps not), there is vast scope for uncertainty which, unless recognised and dealt with by the parties, can result in unnecessary additional costs and delays.

engineering scope is limited to the preparation

How does one prepare for and deal

of shop and builder’s

with engineering scope uncertainty?

work drawings.

12 July-August 2016

Those involved in traditional contracts may have come across a situation where the employer or engineer considers an engineering document, for example a general arrangement or profile drawing, to be part

of the contractor’s shop drawing scope; and the contractor considers that the document includes design information which it should have received from the employer, and if produced by the contractor would be an additional scope amounting to a variation.

An increased number of such occurrences within a project, especially if involving important engineering drawings, is likely to delay the progress or engineering, with knock-on effects to the procurement and construction.

One of the causes of this uncertainty is the insufficient definition of the contractor’s engineering scope under the contract, making the intent of the parties unclear.

If the contractor is required to design any part of the works, it is important to define this in the contract in unambiguous terms to avoid disputes and delays later during the execution of the work.

Uncertainty in the contractor’s engineering scope under the construction contract can also be caused by an underdeveloped design produced in a fast-track process before the construction contract was awarded. This can result in conflicts and errors in the design which

ON TOPIC

require additional engineering by the contractor to resolve.

It can also lead to an expectation on the part of the employer that certain remaining engineering information will be developed by the contractor as part of its responsibility for preparing shop drawings or developing field engineering, while the contractor submits requests for information (RFI) or technical queries (TQ) expecting that the information or drawing will be provided by the employer.

A key factor in dealing with these situations is that all parties involved need to recognise that there is a problem and attempt to resolve it by effective communication. The contractor should avoid overusing the RFI process and focus on processing the RFIs, which relate to fundamental design information required to carry out construction.

Concurrently, the engineer should deal with the contractor’s RFIs promptly. If there is any additional design work required to be

undertaken by the contractor, it should be recognised as a variation. It is noted that delay in responding to RFIs or providing the required drawings can entitle the contractor to compensation (such as under clause 1.9 of the FIDIC 1999 Red Book), in the event that the delay to completion results in delay or extra cost to the contractor.

Needless to say, there is no clear-cut definition to categorically distinguish between design documents and the contractor’s field engineering scope in situations where there is disagreement over whether the contractor has undertaken additional design work, not least due to the overlap between the contractor’s field engineering/shop drawing scope and the design development process. It has been suggested, however, that as a rule of thumb, the design drawing describes what is to be constructed and the shop drawing details how to construct it.

What if the worst comes to the worst?

There is no doubt that clear communication between parties, starting from the tendering stage, is the best way to ensure a sustainable understanding and assist in clarifying exactly what the contractor’s engineering scope under the contract is. There is also no understating the importance of a reasonable and timely application of the RFI and variation mechanisms under the contract, in order to recognise and deal with any problems with minimal delay and additional cost.

In many cases, however, one or both of the parties will be dissatisfied with the outcome of their discussions. Consultation involving a third party might be useful in helping the parties reach an agreement, assist with the interpretation of the contract, evaluate the merit of a claim, or assist in preparing or defending a claim. A third party can also be consulted during the contract drafting stage to assist with explicit drafting, thereby preventing disputes at the outset.

02

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14 July-AugusT 2016

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INsIghT

Making Inroads Davina Munro asks the experts what the best approach is for new consultants looking to enter the Middle East or any organisation in the construction business, the Middle East has always been a crucial market. The construction industry has seen significant growth over the past few years, with data from London-based analysts like Timetric showing the MEA region set for the fastest growth in 2016, at 5.9%.

Governments across the region are also responsible for this accelerated development, with their strategic visions requiring infrastructure to develop rapidly in response to support these goals.

Naturally, all this buzz and activity has consultants worldwide trying to cash in on the action, but the big decision for many is whether to set up a fully operational design studio in the Middle East or just an office to liaise with potential clients.

Discussing the last 80 years, Uwe Nienstedt, senior regional manager MENA at Skidmore, Owings & Merrill (SOM), says they initially decided to set up a business development office to liaise with clients, while the main design work is produced from their studios in London, Chicago and New York.

He also adds that while the approach all the while has been to fly in team members from these overseas offices from time to time, they are rethinking this strategy at the moment due to the high overhead costs involved.

“In the past SOM hasn’t had a fixed office here, and there were a lot of people from the company flying in and out of the region. What we did have was project offices, so if there’s a big project like the Burj Khalifa or Sheikh Khalifa Medical City in Abu Dhabi, we would have a project office for about six months to a year or two, and we’re still doing this.

“Now, however, we’ve actually decided to open an office in Dubai and grow it a little bit. It is still not a full production office, but more of a liaison office where we can do small things here, give quicker responses

to the client, have promotional and marketing material, business development meetings, etc. We are thinking of expanding, but we’re a long way away from a full service design office.”

At the other end of the table, Jonathan French, global director and regional chairman at Woods Bagot Middle East, says that they’ve maintained a fully operational studio in Dubai for the last 15 years. They even added another smaller studio in Abu Dhabi in 2007, from which they deliver projects right across the region.

“We have almost 100 personnel in the Middle East, and that said, we are continually collaborating with many of the other 16 studios that make up our global studio. Right now we are working with Perth, Adelaide, London, New York, San Francisco and Hong Kong.

“This allows our clients here access to our global resources and in particular our centres of excellence across the globe, such as façade design in New York or retail specialists in Hong Kong or our SuperSpace team in Australia and London, for example.”

Michael Fowler, managing director – Middle East at Aedas, agrees with the benefits of having more than just a business development unit in the region. He believes that great design can only be delivered by people with a deep social and cultural understanding of the communities they are designing for.

“We established our first Middle East office in Dubai in 2005, which we set up as a base for more projects in the region. The main design work for a Middle East project is executed and managed by our local offices, whilst our clients can benefit from our collective expertise from across the globe. Aedas made a conscious decision in favour of fully operational offices working to international quality standards, because we feel this model best serves the clients.”

So what are the advantages of each approach, and how do designers across the globe seamlessly collaborate on Middle East projects?

Nienstedt says that for SOM, keeping the creative teams together at the main offices works in their favour because this helps their talent July-AugusT 2016 15

ON TOPIC

function as a unit and makes work more efficient overall. It also means that when a team isn’t working on a major Middle Eastern project, it can be engaged on other projects in the US, Asia or Europe.

“When a project is won, a team concentrates on the work and then, based on the need, we will take a small group of them to the country, where we’ve set up a small project office. At the moment in the Middle East, our liaison office staffs me and a handful other of people.

“From this local office, we go for meetings with the client, we electronically download the material we need, print it out and present it to the client. Alternatively, we can also have video conferences where the local hosts it, and the US or UK staff join in via video conference if it’s an interactive process.”

Despite having design teams in their Middle East offices, French and Fowler say that they also often collaborate with their overseas teams to get sound expertise and input in certain areas. As Fowler rightly says, collaboration helps capacity, and teaming with other professionals enables them to take on larger projects.

“As robust as we are at 70 people, collaborating with our overseas studios in Hong Kong and Singapore, where hundreds of professionals sit, always helps with complex projects. Our collaborative process uses a combination of proven electronic channels such as web meetings, data sharing platforms, video conference, underpinned by face-to-face interaction.

“Our designers also travel to and stay at the project location long enough and frequently enough to ensure both a personal connection with the client and a deep understanding of the project drivers – client brief, urban context, cultural factors and climate.”

Besides collaboration with different internal units, coordination

with the client and the contractor is equally important and must be planned. French says that at Woods Bagot, the strategy they use is to allocate a principal to every project. The principal is someone with an ownership stake in the practice and has a vested interest in a project having a successful outcome for the firm.

“Principals also have a network within Woods Bagot with all the other global principals. We call it P2P, and it is these relationships which allow our teams of experts to be deployed from multiple studios very quickly in response to project needs in the Middle East.

“We supplement these informal P2P networks with formal internal contracts between studios that agree on the resources, fee and scope split between studios. Additionally, we have project managers who help the principals prepare and coordinate these agreements.”

At Aedas, Fowler explains that there is typically a transition over the course of the project. At the early stages, the lead design team from their overseas studio has primary responsibility for the project. At this point the Middle East team serve as local eyes and ears on the ground, collecting data, following up questions and supplying local perspective.

Then, depending on where the engineers and specialist consultants are located, the Middle East sometimes gets more directly involved in interdisciplinary coordination.

Partway through the design process, the centre of gravity shifts toward the Middle East, and the local team completes the documentation to make sure it reflects locally available materials and local construction trade practice, and is within applicable regulations and contracting parameters.

In this manner, he says the client gets the best of both worlds: international standard design along with practical and efficient buildable documentation for the region.

01 01 Aedas was named project architect of Dubai Metro and was also involved with its design.

02 uwe Nienstedt, senior regional manager, MENA at skimore, Owings & Merrill.

03 Jonathan French, global director & regional chairman at Woods Bagot ME. 04 Michael Fowler, managing director, Middle East at Aedas.

16 July-AugusT 2016

ON TOPIC

02

“I think the challenges for consultants with large teams is to keep feeding the beast. The bigger it is, the more you have to feed it” The trio also agree that one big plus point of collaboration with professionals in various overseas offices is the fact that the different time zones can be used to their advantage.

French says, ”Working across offices also allows for us to leverage time zones, as there is always a part of our global studio at work. Many of the consultant engineers that we collaborate with here also work crossborder, and we are able to link up on Middle East projects. In fact, we are currently delivering a significant transportation project in Doha with lead engineers in London, for example.”

Nienstedt elaborates further. “For example, if I get a call at the end of the week on a Thursday afternoon about a change, I take that on board and communicate it to our US offices, which are just coming online at that time. They naturally have Thursday, Friday and sometimes even Saturday to do the work, send it back to me, and I get to print out, communicate the changes and take it to the client on a Sunday morning. That way we aren’t losing out on any time at all.”

Naturally, there are challenges and disadvantages as well. Nienstedt says that despite having technology as an advantage, one challenge is not

03

04

being able to read a person’s body language if you aren’t physically present.

“You cannot beat face-to-face interaction. There’s only so much you can do electronically, but to get a sense of the body language, to understand what the client really thinks, to pick up on things like eye rolling and the nodding can’t be sensed otherwise. You just have to be in the room to read the context of that situation because it’s not just about information you get on paper.”

One financial disadvantage of not having a fully operational Middle East unit is the high overhead costs – the cost of flying people in and out and housing them. On the flipside, having a large team in the Middle East means ensuring these teams are constantly engaged and not sitting idle.

“I think the challenges for consultants with large teams is to keep feeding the beast. The bigger it is, the more you have to feed it, whereas at SOM, we are more flexible.”

With construction in the Middle East gathering pace and more consultants looking to enter the region, what should they consider before making the decision to set up shop?

French says it is important to understand that having an actual presence on the ground is critical. “It really matters to clients that you are here and in tune with the challenges of designing and procuring projects in this region. There is no substitute for having tenure here and having a built portfolio in the region.”

Nienstedt concludes by saying that the first year or two is quite a challenge for any newcomer, because it requires an understanding of the culture and how the clients operate, and most importantly it is necessary to understand what contracts really mean in this region, because they mean something else in other parts of the world.

“I think all of these things are a lot easier if it’s an upturn market, which we had for many years. However, right now we’re in a very flat market, so it will be tricky. At the end of the day it’s all about the money, so I’d say you need to figure out how to keep your overhead down. Starting a new office here and bringing new people here is expensive and will be a challenge, so make wise decisions right at the start.”

July-AugusT 2016 17

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PROFIlE

Taking Charge Davina Munro catches up with Greg Kane, the new managing director at WSP | Parsons Brinckerhoff, to understand his game plan for the company in the year ahead

18 July-AugusT 2016

Location Courtesy: Emirates Golf Club.

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July-AugusT 2016 19

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01

or an international organisation in the 21st century, staying relevant and bringing new ideas to the table is important for survival.

For this to happen, having the right leadership in charge to keep the firm driven, especially during turbulent economic conditions, is vital.

This is especially true in the Middle East, given the idiosyncrasies of the market. Bearing this in mind, multi-disciplinary firm WSP | Parsons Brinckerhoff decided to appoint Greg Kane as its new managing director following the departure of predecessor Tom Bower.

Kane, a structural engineer by profession, has been in the region for a decade. During his first six years in the Middle East, he worked at Hyder Consulting, now part of the Arcadis Group, in its Property and Buildings division, and joined the WSP business in 2013 as its operations director.

A year later, the firm merged with Parsons Brinckerhoff in one of the biggest deals in the construction industry to form WSP | Parsons Brinckerhoff. Kane played an instrumental role in structuring the newly formed combined entity, and a year post-merger his efforts saw him chosen to lead the organisation when Bower stepped down.

So what is Kane’s first order of business as managing director?

To begin with, he says he’d like to do a sense check on the strategy put in place during the integration process, to ensure that it is working.

“18 months ago, we developed an operating model for the combined WSP | Parsons Brinckerhoff business and its structure.

Specific people were placed in certain roles, and we came up with a strategy for 2015 through until 2018.

20 July-AugusT 2016

“Designing a 100-storey building, a large shopping mall or a large highway requires time due to its complexity, and so delivering a quality product in the time scales that this region expects is certainly not easy” “We’re one year down that road, and whilst you want your strategy to have some longevity, it is essential to stop and evaluate whether or not it is having the desired positive effect at certain intervals. That’s one of the things that I am doing in my new role.

“In terms of direction, the big focus for us will continue to be the four pillars of our global strategy - our clients, our people, our expertise and our operational excellence. However, my focus is very much on the first two of those, and my feeling is that if we concentrate strongly on our people and our clients, we’ll continue to be on a successful path.”

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Given Kane’s expertise and professional background, what kind of operational changes can be expected, and is the company likely to see some internal shuffling?

Most likely, says Kane, but stresses that these will be minor tweaks as the focus will be on evolution rather than revolution.

“We’re going through a review process at the moment, so it’s inevitable that there will be some changes. I was very much involved in shaping the business 18 months ago, so to come in and make wholesale changes would be inconsistent with that. Certainly we will look at where we are now, but I predict us staying relatively true to the goals, ambitions, structure and the people that we have with us.”

Additionally, a few new areas of focus will be considered for business opportunities, namely Saudi Arabia’s 2030 vision, Dubai’s recently announced strategy around industry and fluctuating oil prices.

Evaluating the ongoing oil crisis first, Kane starts by explaining the positives and negatives. While the property and buildings division has been largely unaffected, areas of business like air transportation and infrastructure and PMO and PMC have been affected. This is

because most clients in these areas are government bodies who are understandably cautious.

However, these situational constraints have also made governments look at new ways of procuring the infrastructure they require; this is noticeable in countries like Saudi Arabia which have put strategies like Vision 2030 in place.

Kane points out that unlike many of WSP | Parsons Brinckerhoff ’s peers, the Kingdom isn’t a very large market for it at the moment.

However, considering the fresh prospects in the infrastructure sector, it will be looking to do more business there.

“I think if Saudi Arabia is to go down the PPP route or private finance in terms of its infrastructure requirements, that is going to present a lot of opportunity. Additionally, if the government changes how it does things in terms of reorganisations and restructures, there’ll be many prospects for us there.

“In fact, we’ve appointed a new lead director Mike Shaw in Saudi Arabia in January, keeping these growth opportunities in mind. He’s been in the role for about seven months now and he’s largely been in exploratory mode, and hopefully he can continue to present

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01 Bulgari Resort and Residences is a luxury property in JBR, Dubai.

The project is on track for delivery in 2017.

02 seventh Heaven is the second phase of the Al Barari Development in Dubai. It will have 157 residential units, a six-star boutique resort and a retail village.

02

opportunities for us. I think if the company is to see itself grow in the region, Saudi Arabia may be one of the ways we can do that.”

Some other business prospects that these new methods of procurement will bring about are things like strategic advisory services, financial advisory and design & build, which WSP | Parsons Brinckerhoff will explore over the coming months.

When asked about his thoughts on new markets like Iran, Kane says that as a global business, there have been internal discussions about it; however, the reality is that it is not a feasible country at the moment – not only because many sanctions are still in place, but also because Iran has been isolated for nearly 30 years, which means it needs to be studied carefully first.

“I think we need to look at Iran quite pragmatically and say, ‘What is it that this country would really need from us?’ For WSP | Parsons Brinckerhoff, it’s not a massive area of focus right now, it’s more of an opportunistic wait to see what happens.

“In terms of other places, there are no key geographies that we are specifically targeting. But that being said, we will approach other markets on a case by case basis so long as we have the right client and the right project.”

Considering 2015 was a challenging year for the industry and the company, Kane says that 2016 is about maintaining a steady position.

Additionally, more realistic targets have been set, and unlike previous

years where they were very growth-oriented, they will focus on maintaining their current critical mass of 1,500 people in the region.

“We want to be less focused on trying to grow and more focused on keeping our best people. This also means integrating some new people into our business, and of course making sure that we’re delivering great projects for our clients. This is our number one focus and in the first six months of the year, we’ve largely achieved that.

“We’ve reached the targets that we have set for ourselves this year, and I’m optimistic that we will deliver the rest as planned. We will then look at 2017 when the time comes to look at our budget, but I don’t see us targeting exponential growth next year either. I think for any organisation, both 2016 and 2017 will possibly be a time to hold your own in a marketplace that is still challenging.”

Talking about the issues that he has faced in his first month as managing director, Kane says that given that the two big areas of focus for him are the company’s people and clients, allocating time to spend with them has been challenging.

“Building and maintaining relationships involves a lot of travelling, meeting people in our offices in remote locations, and meeting our clients and listening to what they say. While this may not sound like a challenge, it actually is, because finding quality time to spend with each individual and making sure that we are doing exactly what they need us to do for them isn’t always easy.”

“We want to be less focused on trying to grow and more focused on keeping our best people.

This also means integrating some new people into our business as well, and of course making sure that we’re delivering great projects for our clients” 22 July-AugusT 2016

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“My feeling is that if we concentrate strongly on our people and our clients, we’ll continue to be on a successful path” On a more regional level, Kane says one problem consultants face is getting the best talent. While some skills are available in the region, others need to be brought in; and since clients generally expect things to be done quickly, finding the right expertise in a practical sense becomes a task.

Delivering a high-quality project on a demanding time frame is another issue. “Everything we do in our industry is complex and challenging by itself. Designing a 100-storey building, a large shopping mall or a large highway requires time due to its complexity, and so delivering a quality product in the time scales that this region expects is certainly not easy.”

24 July-AugusT 2016

Despite the difficulties, the company is engaged in a number of impressive projects. Some of them have really begun to take shape for the public, including Dubai Eye, now renamed Ain Dubai, on the emirate’s coastline, Bulgari Resorts and Residences and Seventh Heaven.

“We just saw the spindle get lifted into place a couple of weeks ago for the Ain Dubai project, which was a very large milestone for the development. In the coming months we will see the project progress, and I think it will be a very public demonstration of the region’s ambitions and capabilities.

“We’re also working on some large infrastructure projects, like the Qatar Expressways project, which is a big contribution to the upgrade of the country’s infrastructure.”

Concluding with his outlook for the construction industry in the Middle East in 2016, Kane says, “My sense is that things feel a bit better today than they did 12 months ago. I’ve already said that 2015 was a challenging year and most of our peer group would say the same, but I feel more positive about the remainder of 2016 than I did a year ago.”

“Even though the region is facing some challenges in terms of oil, I’ve been here for 10 years and I will stand by the fact that the Middle East presents great opportunities. Overall, I would say that I’m cautiously optimistic about the rest of 2016, 2017 and beyond.”

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specify ME

Raising the bar Noha Kadora of KONE speaks to Middle East Consultant about the firm’s recent breakthroughs in technology and energy-saving solutions In terms of vertical transportation, what game-changing solutions has KONE been working on?

Existing buildings are often thought of as stuck with what they have. While it is true that you cannot easily add elevators to existing buildings, and in some cases it is impossible or just not economically viable, we see many cases that the existing vertical transportation is not utilised in the most intelligent way. KONE has many ways of making the building more productive in regards to people flow.

KONE traffic simulations will accurately predict the maximum population of a building. Destination systems that learn and map a building’s traffic behaviour and optimise elevator travel are another example.

Of course, we have access control systems that accurately guide and provide wayfinding through a building that keeps the user experience at its peak.

26 July-August 2016

If we look at 10 Upper Bank Street in Canary Wharf, London, the client imported a tenant into the building and the population went from 5,900 to 9,300, an almost 50% increase, but without increasing the number of elevators. Here we added destination control and completely upgraded the elevator control and group control systems to also add features like invasion control and evacuation control, because people need to get out as well as get in, and the elevators become part of that egress strategy.

It is not just what we do but the way we do it, and that often means changing the behaviour of the users of the building also. It is people that make a building productive. the right vertical transportation solutions save energy. What eco-efficient technology is KONE developing?

In late 2014, KONE was the first company

to achieve the best A-class energy efficiency classification for as many as eight volume elevator installations, according to the new international standard ISO 25745: Energy performance of elevators, escalators and moving walks.

In 2015, KONE’s ISO 25745 A-class achievements were complemented by an A-class classification for the KONE MonoSpace elevator and the best A+++ escalator classification for the KONE TravelMaster 110.

All the ratings have been granted and measurements made by external third parties at customer reference locations. In addition, KONE is the only elevator company to offer the best VDI 4707 A-class energy efficiency rating for its volume elevator range.

We provide services that help our customers achieve their eco-efficiency goals in every phase of their buildings’ life cycles – from designing and constructing buildings

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to maintaining and modernising them. The biggest environmental impact of our solutions stems from the amount of electricity elevators and escalators use over their lifetime. This underlines the importance of focusing on energy efficiency innovations.

KONE is a pioneer in developing ecoefficient solutions in the elevator and escalator industry. The KONE MonoSpace 500, our current machine room-less volume elevator, is up to 90% more energy efficient than KONE’s elevators from the 1990s. This has been made possible by the completely renewed low-rise volume KONE EcoDisc hoisting machine, a highly efficient drive, enhanced standby solutions and LED lighting. Our revolutionary KONE UltraRope high-rise hoisting technology cuts the energy consumption of a 500m elevator ride by 15%.

A maintenance regime is necessary in order for these machines to remain healthy throughout their intended lifespan.

How is KONE assisting with that?

Our customer service is available 24/7 and we have KONE Field Mobility (KFM). KONE Field Mobility gives service technicians realtime remote access to KONE’s maintenance database and KONE’s customer care centre.

For KONE customers, this translates into fast, well-informed service and reduced equipment interruptions.

To serve our customers the best way possible, we run equipment and building specific queries to provide the customers with tailored maintenance plans fitted to the building environment and equipment usage.

For the high-rise buildings, a special method is implemented to accommodate the distinct and specific attention a building requires.

What kind of safety features are integrated into your vertical solutions?

Introduced in August 2014, two new European standards for elevator design

www.kone.ae

“the biggest environmental impact of our solutions stems from the amount of electricity elevators and escalators use over their lifetime. this underlines the importance of focusing on energy efficiency innovations”

and manufacture will bring considerable benefits in terms of accessibility and safety for both passengers and service technicians.

The first, EN 81-20:2014, sets out revised and updated safety requirements for the construction and installation of elevators.

The second, EN 81-50:2014, defines the test and examination requirements for certain elevator components. give us your outlook on vertical transportation going forward. How do you see it evolving? Is KONE working on any solutions we can look forward to?

KONE has signed an agreement with IBM which will transform KONE’s operations and technology capabilities around the world.

KONE will use IBM’s Watson Internet of Things (IoT) cloud platform to collect and store equipment data, build applications and develop new solutions. The platform will gather data from sensors and systems connected to elevators, escalators, doors and turnstiles in KONE’s maintenance base. With IBM’s advanced analytics engine, that information will be used to enable new services and new experiences for KONE’s customers.

With the IoT platform, KONE ecosystem partners and third parties can create new services and integrate existing services via application programming interfaces. These new services will range from solutions which improve people flow in buildings and new smart building applications, to others that advance the speed, reliability and safety of elevator maintenance, remote monitoring and servicing.

Over the next few years, KONE will connect its global maintenance base of more than one million elevators, escalators and building doors to cloud-based services. By gathering vast amounts of data from equipment operations and using sophisticated analysis and connectivity, downtime can be minimised and repairs carried out more quickly.

July-August 2016 27

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28 July-AugusT 2016

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TOuRIsM

gearing up Davina Munro travels to the heart of the Black Forest to understand Fischer’s plan for the Middle East or Alexander Bässler, Fischer has always been part of his professional journey. Having started at the company 15 years ago as a student, Bässler has steadily worked his way up the ranks to his current role as regional managing director of Asia and the Middle East. Sitting across the table, his counterpart Jayanta Mukherjee has also had a notable professional journey. After working at Bosch, Mukherjee helped launch Fischer in India, then moved to the UAE in 2006 to kick start operations in the Middle East. Under Mukherjee’s leadership, the company has flourished over the last 10 years and has even spread to eight countries in the region.

Middle East Consultant headed to the Black Forest in Germany to catch up with the duo at Fischer’s headquarters and understand the company’s plans for the Middle East and their take on business in the region.

July-AugusT 2016 29

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01 Alexander Bässler, regional managing director, Asia & Middle East at Fischer.

02 Jayanta Mukherjee, managing director, Middle East at Fischer.

01

“I think I’ve grown up with a good knowledge of this region. I started as a student in this company and in my first month I was sent to China on work. China was a big deal 15 years ago. It was the future and everyone wanted to go there, and so my regular contact with the country widened my knowledge and helped me in the long run,” says Bässler.

“As I grew in the company, the Middle East became another region of interest for me. Jayanta Mukherjee and I have studied this market thoroughly and I do believe that it has great potential and will play a key role for Fischer. I guess you could say then that my philosophy at work and for the company has always been to follow where the future of construction lies, and that’s what I’m doing.”

Recalling Fischer’s journey in the Middle East, Bässler says that the region had a big impact on the company during the global economic crisis in 2009. When doing business in other markets like

“The strength of the company in the Middle East is engineering and application business.

Once we understand what the client’s needs are, we sit with our engineers and work on a solution” 30 July-AugusT 2016

Europe became difficult, emerging markets like the Middle East and Asia remained steady and fluid.

Since then, the contribution made by Asia and the Middle East has grown in their global portfolio and currently accounts for 12-13% of Fischer’s total turnover – $784.6 million (€711m) in 2015.

Sharing his approach to business, Mukherjee says that identifying the needs within any market is crucial. But instead of telling clients that they need a certain product for a project, their approach is to try to understand the application needs of the client first.

“The strength of the company in the Middle East is engineering and application business. Once we understand what the client’s needs are, we sit with our engineers and work on a solution. While working in this manner, if we find a gap which our current products basket does not fill, we discuss it at the product management level.

“Being a global company, we’re able to source it from our subsidiaries, where we may already have a product that suits the requirement. We then go back to the customer and present them with a solution based on their feedback. By this method, we’ve actually identified and analysed gaps in the market and then introduced products like Fire Stop from Fischer UK and Solar System from Fischer Italy to fill them.”

Educating clients about the need for certain products is also an essential part of the process. For instance, Mukherjee highlights an occasion a couple of years back when at a seminar he asked a panellist about the importance of considering concrete temperature while working on fixtures in extreme climates. When the panellist didn’t have an answer, Mukherjee proceeded to talk about how concrete temperature is an important factor to consider while fixing an anchor, because if the external temperature is 46 degrees, the concrete temperature must be much higher.

The company is also actively involved in sustainability, and an interesting story about how green their products are stems from Fischer’s

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“We have a lot of green technology in our portfolio. In fact, I think the products that we have must be at least five years ahead of their time” involvement on the Palm Jumeirah project. “I remember getting called by Van Oord and being asked to bring some of our epoxy chemical products along with us. When we arrived, we saw a tank full of fish, at which point we were asked to inject our product into the water. We did this a couple of times and were finally told that we got the job because the fish were not harmed by it, as these products are eco-friendly,” says Mukherjee.

Fischer’s habit of constantly checking the pulse of the market has allowed them to identify various trends as well. From a macro point of view, Bässler says that he sees a lot of regulations and approvals coming up in the area of safety and sustainability.

“Safety plays a significant role, especially in our product range, and we’ve seen that there is more and more focus on these kind of regulations and approvals in the Middle East. This is a trend that we can use to strengthen our product range. I think what drives us is not only the product itself but also all the documentation surrounding it.

“Another trend that we’re seeing is the focus on green buildings and LEED certifications in the Middle East. This is something that even drives governments these days, and it will gain importance in the years ahead. I think we have a lot to smile about here, as we have a lot of green technology in our portfolio. In fact, I think the products that we have must be at least five years ahead of their time.”

Speaking about development plans till 2020, Bässler says Fischer has a ‘five years and beyond’ strategy, whereby they identify areas of growth and then focus on strengthening their presence in each of those verticals.

In terms of the Middle East and Asia region, they are aiming to grow its current contribution from 12-13% to at least 20% by 2020. Fischer is expanding globally by opening two new subsidiaries every year.

“We’ve already opened a few of these in the Asia-Middle East region.

In fact, just last year we opened a company in the Philippines, which was a defined part of the strategy for growth. We will also see some activity in India as well, which will find its way to the rest of Asia and the Middle East.

“The next part of the strategy is to tap into all our sales channels in the market. A good example of this in the Middle East is that we have a very strong presence in the project business division and we know that there is a strong market in special trades as well.

“This leads us to our next step. which is to adapt our product range to these demands, and so Jayanta and his team came up with a new product range that specifically covers the demands of special trades, which is different to the project market. This approach has become our company strategy as well,” says Bässler.

In terms of new markets, he says that while Fischer enjoys a strong presence in the Middle East, they are looking to improve their presence in the African region. As for opportunities in Iran now that sanctions have been eased, Bässler says he definitely sees business potential there.

“We are closely studying Iran right now and we’d like to first get a context of what to expect in this market before making any decisions. I think because it is still opening up, this is a market that will need a lot of relationship and in-roads, but we will definitely be looking at entering it at some point.”

Concluding with his outlook on the industry and the impact of oil price fluctuations on the industry in the Middle East, Bässler says that he does see it influencing construction in the region as well as having an effect globally.

“Fluctuation in oil prices has become something that you really cannot predict. I think even the OPEC itself does not know what will happen in the next few weeks, but I think we will get more and more independent in the mid-term from this kind of an environment. I don’t think the market itself will allow oil prices to dictate and affect business and development very significantly going forward. Today, however, it definitely impacts everyone.”

02

July-AugusT 2016 31

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Educate ME Cutting Carbon and Cutting Energy

Naturally, as governments across the GCC commit to cutting carbon emissions – Dubai’s Integrated Energy Strategy commits to reducing energy demand by 30% by 2030 and Abu Dhabi’s Vision 2030 commits to reducing energy consumption and power demand by 30% – it has become vital for low energy buildings to become a mainstream part of the Gulf’s construction industry.

Currently, it is estimated that on average each building in Dubai consumes 220360Kwh/sqm a year. For the total building stock, this equates to around 70% of all the energy produced in Dubai. Across the Gulf, up to 80% of this energy usage in a single building can be used for cooling alone. This is especially so in the summer months when the outside temperatures can reach above 50 degrees.

So, surely the most effective route to reducing carbon emissions and energy usage is by decreasing the cooling demand of buildings. Now a region-wide study from Mott MacDonald has shown that improving the U-value specifications in buildings reduces building energy consumption and carbon emissions and can lead to remarkable ROI on the cost of the insulation. understanding the real value of u-Values – Mott MacDonald study

Creating greener Buildings Improving the U-value specifications reduces building energy consumption and carbon emissions, and can lead to remarkable ROI on additional insulation 32 July-August 2016

For its study, Mott MacDonald modelled six buildings representative of common building types across the Gulf – villa, low-rise residential, low-rise commercial, high-rise residential, highrise commercial and hotel. The study looks at four different constructions within the six buildings. Two build-ups within the walls, one using an insulated cladding façade and one using an External Insulation Finishing System (EIFS), one roof construction comprising a concrete deck, and one floor construction comprising a concrete slab were considered.

The firm then compared the effects of improving U-value specifications, by

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using additional insulation in the roof, floor and external walls of the buildings. The model considered a wide range of physical, environmental and financial building characteristics, such as building size and use, energy consumption and cost, elemental cost and regional environmental profiles.

For each of the 1,241 scenarios, an energy consumption comparison was made between the regional baseline U-value specification and an improved U-value specification. The construction cost for each build-up was entered into the model, and the ROI for the improved U-value was then calculated by subtracting the savings that resulted from a reduction in cooling plant size from the added cost of the insulation, and dividing this by the value of the energy savings over the life of the building.

As would be expected, the study showed an initial rise in project costs of 0.01% to 3.23% of the overall project developments. However despite these increases, the calculated results for the modelled buildings showed that an overwhelming ROI could be achieved by improving the U-value specification.

In total, 100% of the calculations showed energy and carbon emissions savings;

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additionally, up to 84% of a building’s calculations showed an ROI of over 100%, and more than 1 in 5 of the total calculations displayed an ROI exceeding 200%, with instant returns being observed and, in the absence of that, returns of over 6,500% identified. the Results

One iteration Mott MacDonald looked at was a new, medium specification, three-bedroom villa in Abu Dhabi. The villa is constructed using concrete blockwork walls which use an EIFS, a concrete slab floor insulated above and a concrete deck roof insulated above.

The energy use of the 266sqm building was calculated for the baseline U-value specification required in Abu Dhabi of 0.31 W/sqm.K, 0.36 W/sqm.K and 0.57 W/sqm.K in the roof, floor and external wall respectively. The energy use was then calculated for the building after improving the U-values to 0.25 W/sqm.K, 0.30 W/sqm.K and 0.45 W/sqm.K. The improved U-value specifications concluded in an ROI of 5,412% on the cost of the additional insulation, with only a 0.59% uplift in the overall initial development costs.

The results also represented an energy saving of

593kWh/year and a carbon emission saving of 356kgCO2/year.

Across the gulf

The rest of Mott MacDonald’s study showed the strongest financial returns and energy consumption reductions were seen in residential buildings; however, the study also revealed significant returns in commercial buildings.

For example, the ROI for improving U-value specifications in a hotel was up to 1,334% in Dubai, 888% in Muscat, 2,999% in Riyadh and 507% in Doha.

Increasing Returns

It is safe to say that as energy prices increase, the ROI for additional insulation will increase and developers and occupiers could see monumental returns. However, the energy consumption and carbon emissions of building stock in the Gulf need to be tackled now, and improving U-value specifications is proven to reduce the cooling demand of a building in every instance.

Andrew Pack, global technical support manager, Kingspan Insulation LLC

July-August 2016 33

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HOsPITAlITy

Checking In Middle East Consultant speaks to the experts about specialised hospitality products around luxury destinations and major events s traveller traffic to the GCC gathers pace, the hospitality industry has had to simultaneously evolve and cater to the demands of an evergrowing diverse clientele. A host of new leisure destinations have mushroomed all over the region, and major events like Expo 2020 and the Qatar 2022 World Cup, as well as cultural and religious tourism in Saudi Arabia and Oman, have increased the need for a variety of hospitality offerings that suit every budget.

Looking to capitalise on the demand, developers are creating a new hospitality asset class that is designed and tailored specifically for travellers coming to these cultural centres. So what kind of hospitality products can we expect, and which segment of the market will they cater to?

Starting with the facts, Simon Chambers, partner at Godwin Austen Johnson, points out that around 40% of Dubai’s existing room supply currently lies in luxury or upper-upscale hotels, with only 10% in the upper-midscale and midscale segments. This in turn leaves a significant gap that needs to be filled by more affordable accommodation options.

“Where once the luxury segment was seen as a driver of growth, this is changing in favour of today’s younger, socially connected traveller.

Though the demand for luxury hotels will not disappear, we will see a shift towards more affordable lifestyle brands,” Chambers says.

“If you look at Qatar, they’ve been considering temporary Bedouin-style camps in desert areas close to stadiums during the World Cup. I believe this will not only reduce the amount of permanent accommodation being created, but would also be culturally authentic and help to showcase traditional hospitality.”

Adding his thoughts, Rashid Aboobacker, associate director at TRI Consulting, thinks that the new hospitality offerings at these destinations will be primarily geared towards leisure tourism. Citing Yas Island as an example of a pure leisure destination, he says the

planned hotel products predominantly target family tourists.

“Most of the family-oriented or leisure resorts in this region tend to be upscale or luxury-oriented. Now, however, there is a move towards more budget-friendly hotels, but the overall themes that we’re seeing coming up in these destinations are more specialised and lifestyle-oriented hospitality projects.

“For example, if you look at Dubai Cultural Village, you’ve got the Pallazo Versace, which is an international luxury project that has already opened. We also understand that there are multiple sites in there that are earmarked for three-, four- and five-star hotels and hotel apartments.”

Hospitality developments in places like Saudi Arabia also need to be properly planned because of the large influx of business tourists and Hajj travellers coming every year. Aboobacker says that hotel development in KSA is focused largely on business hotels in main economic centres like Riyadh and Jeddah, as well as in religious centres like Makkah and Madinah.

“We see the majority of upcoming projects in Riyadh and Jeddah are four- and five-star business hotels, including luxury products and some three-star developments. Meanwhile, the upcoming supply in Makkah is predominantly three- and four-star, with some five-star hotels and apartments. However, we note that some developers are now looking to develop different products such as affordable lifestyle hotels, leisure resorts and branded serviced apartments which will help diversify the offering in the future,” he says.

In Oman, the government is focusing on developing both business and leisure tourism, with the latter focusing on cultural and environmental tourism-based projects.

“Consequently, a large proportion of projects under development in Oman are leisure-oriented resorts, which include both independent hotels and those located within larger mixed-use developments. The majority of the upcoming supply will be in the five-star category, followed by four-stars. The majority of these hospitality products are located in and around Muscat and in Salalah, while there are a few projects under construction in secondary cities such as Sohar.”

July-AugusT 2016 35

IN PRACTICE

Since these offerings will be built for a specific purpose, a number of things need to be kept in mind while designing them.

Ahmed Osman, managing principal at DeSimone Consulting Engineer’s Middle East division, says that firstly, engineers and architects must take into account not only the budgets of potential visitors but also reasons for visiting and desired amenities.

“Not all visitors desire or can afford luxury accommodations.

I think there will be increased competition between this category of hotels, leading to a potential over-supply in the aftermath of the World Cup and Expo 2020 that could cause low occupancy levels in this section of the market.

“Dubai has become a distinguished international business centre, but does not currently contain the appropriate mix of hospitality developments to suit business travellers. This category of travellers does not seek luxury resorts and the countless amenities that accompany them. So mid-scale and four-star hotels are being built to diversify the types of products available in the cities.”

Aboobacker explains this further, saying that hotels in leisure destinations should offer a more relaxed setting and generous space in guest rooms and public areas compared to their city counterparts.

“These hotels should offer larger rooms (2+2 occupancy), multiple themed F&B outlets, large spas and expansive swimming pools and kids facilities. In comparison, you’ll see business hotels in city centres have more efficient designs and offer relatively smaller rooms, limited or multiple F&B outlets depending on the location and limited recreational facilities, but larger meeting facilities.”

Chambers adds that besides the shift towards more affordable lifestyle brands, these places now have a stronger sense of place and a distinct personality to appeal to next-gen travellers.

“New-style hotels are designed to provide unique experiences

01

that are both visually appealing and based on originality. The key to the design of lifestyle hotels, in response to customer demand, is personalisation and flexibility.

“Where once the emphasis was on the guest room, this has shifted to public spaces. Today’s guest wants a flexible social space to hang out with friends and spend time on their mobile devices. I think we are also going to see more lifestyle brands coming online as the industry caters to today’s millennial traveller.”

While these cultural and leisure developments are guaranteed frequent visitors due to the attractions in the vicinity, experts believe that the real

02

01 The Regent Emirates Pearl Hotel is a 60-storey hotel and residential tower in Abu Dhabi.

02 Business hotels in city centres have more efficient designs and offer limited or extensive F&B outlets depending on the location.

36 July-AugusT 2016

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IN PRACTICE

03 Fillipo sona, director & head of Hotels, MENA at Colliers.

04 Rashid Aboobacker, associate director at TRI Consulting.

05 simon Chambers, partner at godwin Austen Johnson.

03

04

06 Ahmed Osman, managing principal at Desimone Consulting Engineers ME.

challenge for developers is on projects for events like the Qatar World Cup or Expo 2020.

As occupancy rates will be much lower after these events, 05 developers will need to keep in mind that these products have to be flexible for future use.

Aboobacker notes that while FIFA needs the city to have 90,000 keys, the government needs to decide whether to have all of them as hotel rooms. He suggests that a mix of hotel rooms, holiday homes, serviced apartments and other temporary accommodation be offered instead, as this would make it easier for the market to absorb them post the event.

For instance, historically it has been observed that when certain countries host big events like the Olympics, an Olympic Village is constructed to accommodate the teams, athletes and entourages. After the event, these units are sold or leased into the market as residential units.

Filippo Sona, director and head of Hotels – MENA at Colliers International, has a similar opinion. While the design and facility interaction has to be highly versatile to adapt to future demand changes, these assets are critical to the wider destination that has been created.

“Once the event is completed, these destinations tend to attract tourism by building upon the legacy created. For example, Qatar will have the newest and most modern stadiums in the world and post the World Cup, these can be utilised to host other sports events, parades, concerts and national events. Also there will be lots of people that will be curious to see venues where the World Cup took place.

“For example, London now has consistent visitation to the Olympic Park by people that want to see what the venue looks like. During these 38 July-AugusT 2016

06

events the focus is on volume, whilst thereafter the focus is extracting value from tourists.”

Despite the current challenges, the hospitality segment in the Middle East still has a promising future. Aboobacker points out that Dubai has remained a top tourist destination, recording close to 10% growth in 2015, much better than the global average.

So what does the future of hospitality in the Middle East look like?

Osman concludes by saying that countries like Qatar, Oman and Saudi Arabia are developing more leisure and entertainment destinations to rival Dubai and Abu Dhabi. This means that tourism will increase throughout the region, and thus the hospitality industry will reap the benefits of this investment.

Sona adds that the hospitality industry in the Middle East is well positioned and ready to accommodate further growth.

“I think what is key to this is the consistent growth of the three major airlines – Emirates, Etihad and Qatar Airways – as well as the development of key destination attractors such as Dubai Parks, Expo 2020, World Cup, etc.

“Furthermore, the pressure felt by the region caused by the decline of oil prices has provided the opportunity for governments such as Saudi Arabia to invest further into economic diversification, with tourism, and particularly religious tourism, being one of the key drivers for it.”

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ON sItE

sItE VIsIt

Healing spaces Davina Munro travels to Kuwait to visit NBK Children’s Oncology Hospital ike many wealthy Arab nations, Kuwait is a high-income country whose citizens enjoy many perks, social amenities and services, like high standards of education and healthcare facilities provided by the government.

Infrastructure for public sector healthcare in particular has gathered pace over the years, and tremendous expansion has taken place with the government insisting on the development of modern hospitals, institutes and clinics for various treatments.

According to World Health Organisation data, more than 76% of deaths in Kuwait are caused by non-communicable diseases, and thus the need for specialised healthcare centres is high. Keeping this in mind, the National Bank of Kuwait decided to set up a new NBK Children’s Oncology Hospital to treat patients who need bone marrow transplants within the age group of one month to 15 years.

Talking about his vision for the project, Yaqoub Al Khabbaz, executive manager – ESD, National Bank of Kuwait, says that the idea goes back 15 years to when the first NBK Children’s Hospital was built. While this hospital did have a visibly positive impact on the treatment of general cancer patients, they realised that adding a facility for bone marrow transplants (BMT) would benefit patients in the existing hospital. Additionally, the new hospital would also eliminate the mistakes made on the previous project, such as the use of certain materials like marble that weren’t medically suitable for a healthcare project.

40 July-August 2016

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July-August 2016 41

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“We initially thought of a centre for dentistry or some other specialised medical facility in another part of Kuwait. However, after an internal discussion with the executive committee, we realised that facilities for a bone marrow transplant for children was the need of the hour. These kids are inevitably taken to countries like Canada or the US for this treatment, and most often the mother is the one to escort the child for this, which results in the family being separated for as long as a year.

“There are many Kuwaiti doctors who already have the expertise and overseas experience to do this operation here in Kuwait, so our idea was to enable this. By building a world-class centre that allows these operations and treatments to happen in this country, we are ensuring that families can stay together and patients get the medical treatment that they need.”

In order for this $14.2 million project to be successful, Al Khabbaz says a committee was formed to overlook the medical facilities requirements for the project. It consisted of members of the Ministry of Health, consultants 01 who have expertise in bone marrow transplants and related diseases, and specialists like blood transplant experts as well.

Among the healthcare construction consultants, NASA Construction was the appointed contractor

01 the design and colour schemes had to be playful, keeping the end users in mind.

02 two internal structural columns have been sculptured to resemble trees to give public spaces a natural feeling.

03 the building was oriented in a way that would maximise external views and manage direct solar exposure.

42 July-August 2016

02

and SSH was appointed to design the new hospital, while other experts like London-based HDP, which specialises in children’s oncology hospitals, were also brought on board to help develop.

Talking about the collaboration process, Lennie Joubert, associate director of Healthcare at SSH, explains that the client’s mandate was to create a new children’s oncology hospital that would extend the medical capabilities offered by the existing NBK Children’s Hospital.

NDP Architecture was also brought on board, and after evaluating the building’s footprint, it decided to separate it into three smaller but distinct blocks. These blocks are linked by a shared main corridor and overlook the open external spaces and the existing children’s hospital.

“SSH took full ownership of design responsibilities once the basic footprint and schedule of accommodation was agreed on by the client.

The idea was to keep the design playful and colourful, keeping in mind that

ON sItE

03

“We’ve had many visits from doctors and the under secretary’s office to see the design and the way in which the building has been built and the materials that have been used for it. I think what makes this project even more special is that it is for children”

the end users are children. Compact and intimidating building typologies were avoided, and this is most noticeable in the elevational treatment and internal spaces.

“Externally, four different colours were applied in a random sequence to the vertical shading elements. Each element has its own distinct colour, with coloured glazing panes located across the southern facade.

“Internally, two structural columns on the ground floor have been sculptured to resemble trees, introducing a natural feeling to public spaces.

For younger children a play area is was added near the main entrance, and a teenage zone was designed towards the outpatient department.”

There are other interesting elements to the new NBK Children’s Oncology Hospital. For one, Al Khabbaz points out that unlike the older hospital, built with high-end materials like marble and ceramic that aren’t meant for medical use, the new hospital uses much more hygienic materials.

Vinyl is one of the main materials used almost everywhere – it is antibacterial and anti-static, he explains. Focus was also given to things like the flow of air through the building, ducts are hygienic, anti-bacterial and anti-fungal, and there are no internal plants. Even the number of patients admitted will be kept to the minimum, says Al Khabbaz.

“We’ve done everything possible to keep it safe and hygienic and speed up the treatment of the patient and not affect this in any negative way. The hospital will also only serve six patients at a time and will not admit more than 20 patients a year. The protocol for treating these children is different from the protocol used to treat adults who need bone marrow transplants.

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04

Even internationally only three to four patients are treated at a time in a place, so we have followed the same rule.”

Detailing the configuration of the hospital further, Joubert says that the outpatient unit on the ground floor also contains a training and administration department. The first floor contains the day care unit, laboratory and pharmacy, 04 while the remaining training facilities are placed directly above the same department on the ground floor.

“The second floor is where one finds the sterile and non-sterile BMT departments as well as shared facilities for staff. Treatment rooms in the sterile BMT department were designed to receive positive air pressure and a HEPA filter system to reduce the risk of infection.

“Special consideration was given to improve the physical environment for the patients. Family members and carers 05 have the ability to stay with patients during chemotherapy treatment too.

Sharp edges were removed from the physicality of the hospital wherever possible, to reduce the risk of injury, and views to the outside are also maximised.”

Both Joubert and Al Khabbaz explain that the orientation of the building was important too and so the structure is internally formed by the need to maximise external views and manage direct solar exposure, which was a challenging task. SSH used computer-aided solar studies to support the design process and concluded that horizontal shading solutions would not be effective, due to the low trajectory of the sun in the west during the winter months.

Vertical solar shading was then selected as an alternative, to reduce solar exposure and also act as a structural support for the cantilevered concrete roof slab, which in turn also provided additional shading.

Interestingly, a separate MEP building has been constructed 150m from the main building, says Al Khabbaz. “Most hospitals have all the MEP works in the basement, but we didn’t want to do this because we know that the equipment kept in these places generally produce electromagnetic waves, which are really harmful for children and will especially affect these kids as their immunity is already so low.”

“What we did instead is we built a separate building which is solely for MEP-related equipment located away from the hospital. Although this cost us more, it ensures that the hospital is safe, patients won’t be disturbed by any noise and even servicing can take place outside the main hospital in 44 July-August 2016

yaqoub Al Khabbaz, executive manager – EsD at NBK. 05 lennie Joubert, associate director of Healthcare at ssH.

the MEP building. Overall the children will be in a very stable, safe, hygienic and controlled atmosphere.”

As with any construction project, there were challenges as well. Khaled Al Khoury, construction services director at SSH, points out that one of the main issues was ensuring that dust and noise pollution was kept to a minimum, since the construction was taking place right next to a fully operational hospital.

“We had to keep the noise and dust problem under control so as to not disturb the operations in the old hospital next door. We had to take extra care with every activity that we engaged in, and overall there was normal coordination during construction.

“We even conducted workshops to make sure that everyone was on the same page and any kind of problems were resolved. We tried to avoid blaming each other and tried focusing on the task at hand. We had to work only during certain hours, we had to keep watering the place to reduce the dust, and overall it went well.”

In terms of tackling logistical challenges and making sure that everything ran on schedule with the contractors, NASA Construction, Al Khoury says they made sure to schedule weekly and monthly progress meetings to follow up on things.

On the whole, the NBK Children’s Oncology Hospital is on track; although it was scheduled for completion in July this year, it will most likely finish in August or early September, given that the holy month of Ramadan will see shorter working hours, explains Al Khabbaz.

He says NBK also has plans for a future Phase 3, though what facilities this will entail is yet to be decided. He believes this new oncology hospital will not only benefit the patients treated in it but will also raise the bar for other government projects going forward.

“We’ve had many visits from doctors and the Under Secretary’s office to see the design and the way in which the building has been built and the materials that have been used for it. I think what makes this project even more special is that it is for children.”

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ON SITE

46 July-AuguST 2016

ON SITE

TOuRISM

Desert Destinations Jack Rouse Associates explains the evolution and rise of the Middle East’s tourism industry forest of skyscrapers towers above city streets. Visitors rush through airports like a flood. Retail centres are reminiscent of a beehive, buzzing with activity.

This is the Middle East of today.

What was once a vast and desolate region laser-focused on oil has now become an epicentre of global tourism.

Opportunities and challenges abound in the region, and while Dubai remains the frontrunner of this entertainment movement, other cities and countries are quickly finding their stride.

According to the ‘World Travel and Tourism Council Economic Impact 2015’ study, the Middle East’s total contribution of travel and tourism to GDP was $200.5 billion (7.4%) in 2014 and is projected to rise by 4.6% between now and 2025.

Tourism’s contribution to employment in 2014 was 5,330,000 jobs and is expected to rise by 3.2% annually to 7,635,000 jobs in 2025. With a growing and increasingly sophisticated middle class, Middle Easterners now desire a wider range of high-quality leisure activities close to home.

Welcoming nearly 14.3 million visitors in 2015, Dubai is the fourth most visited city in the world, trailing only London, Paris and Bangkok.

July-AuguST 2016 47

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01

It has the world’s highest visitor per resident ratio (5.7), and tourism now produces 20% of the emirate’s GDP. These startling statistics are perhaps not so surprising when considering Dubai’s close proximity to the rest of the world. While Saudi Arabia is Dubai’s top source market, a large percentage of hotel guests travel from the United Kingdom, United States, China, Russia and Germany.

Dubai boasts a long list of global superlatives (tallest building, largest mall by total area, busiest airport for international visitor traffic) and the list of ‘-ests’ continues to grow. The world’s largest indoor theme park will be completed in August, and the $1.6 billion Ain Dubai, touted as the largest Ferris wheel in the world, will open within the next year.

Themed attractions, linked to recognisable brands like Lionsgate, Six Flags and LEGO and incorporated as part of larger destination resorts, seem to be the key ingredients of the Dubai tourism recipe, with theme and water park development proceeding at breakneck pace.

But Dubai isn’t the only city accepting an invitation to the tourism party. Forty kilometres northeast, the emirate of Sharjah has ambitious plans for its Waterfront City. This development, located on a series of ten islands covering 60 million sqm, includes 200 residential and commercial towers and 96 apartment buildings. It also has more than 1,100 waterfront and park side villas, marine clubs, a world-class water theme park, a large shopping mall and two main entertainment centres.

The water theme park will spread over 1.5 million square feet and feature 40 water and dry rides, as well as a dazzling fountain show and evening spectacular. The Sharjah Waterfront City project is a key component in the emirate’s plans to attract 10 million visitors by 2021.

In Antalya, Rixos Hotels’ 639,000sqm Land of Legends Theme Park will add a landmark attraction to the Turkish Riviera. When fully completed, the resort will include a five-star hotel, theme park, shopping boulevard, wildlife park, water park and family entertainment centre.

The first phase of development, Aqua World, will open soon and will feature an aquarium, a dolphinarium, a water park featuring over 70 slides 48 July-AuguST 2016

“Developers are banking – literally – that if they build it, tourists will come, and attendance expectations are as lofty as those cranes dotting the Dubai landscape” – including a typhoon coaster reaching 85km/h – and a 5D cinema.

The resort is poised to become a new family destination in the region.

But not all of the development in the Middle East is pure entertainment. In Saudi Arabia, several cultural and educational venues are in the pipeline, with the aim of inspiring Saudi youth to pursue careers in science and technology.

The King Abdulaziz Centre for World Culture in Dhahran, an initiative of global energy leader Saudi Aramco, will be housed in a dramatic modern building shaped to be reminiscent of the surrounding sand dunes.

Emphasising Saudi Arabia’s past, present and future, the Centre will house a 300-seat multimedia theatre where young Saudi directors can present their films. It will also contain a 900-seat theatre showcasing top performers from across the Kingdom and around the world, an innovation centre and maker studio, a library, a lifelong learning centre, an art and natural history museum and a children’s zone.

ON SITE

While the development of entertainment attractions in the Middle East seems rife with opportunity, it is not without its fair share of challenges, and Western companies working on Middle Eastern projects must be particularly cognisant of a wide range of differences, from climate to culture. The attraction planner must also be sensitive to and understand the values of clients and colleagues in the region.

From a religious and cultural perspective, this could mean orienting a building towards Mecca or providing separate facilities or operating days for males and females. It also means designing facilities that accommodate the extended family, as several generations of guests often visit an attraction at one time.

Accommodating multiple generations means not only offering the biggest and best rides and shows, but also including areas for relaxation and conversation. In addition, with this being a relatively new tourism market, particular care must be taken to the phasing of an attraction to address how it will grow and change with consumer demand and tastes.

Obviously, despite the additional expense, creating climatecontrolled attractions is the easiest way to address the region’s heat and wind. This is why the majority of themed attraction projects in the Middle East are either indoor theme parks, water parks or family entertainment centres within existing retail outlets. Incorporating water features and shade structures, as well as keeping parks open late into the cooler evening, are other tools that developers, designers and operators can use to create maximum guest comfort in the region’s often extreme conditions.

Once the attraction is designed to maximise guest comfort, the next challenge is acclimating a Western crew to a Middle Eastern working environment. Since governments require a local office and architect, Western companies must set up a separate satellite office to complete their project. That also means setting up such necessities as internet,

power and air conditioning in areas with minimal infrastructure, as well as relocating staff, sometimes for years at a time.

Communicating between the home and remote offices can be difficult, given the 8-10-hour time difference and the different five-day work weeks.

After the mobilisation comes the actual work of completing the project. Because project crews often come from countries around the world, language barriers can arise. Even the tools to complete the job are often different.

While all of the above factors can cause their fair share of issues, they can also foster a creative melting pot, offering a variety of perspectives that often result in a richer, more culturally sensitive end product.

Despite the challenges, with major international events on the horizon and dozens of projects underway either on paper or on the ground, the burgeoning Middle East tourism market shows no signs of slowing down.

Dubai aims to attract 20 million annual visitors by the time it hosts the World Expo in 2020, and the emirate is investing nearly $32 billion in its Al Maktoum International Airport to accommodate the increased traffic. Qatar, home to the 2022 World Cup, aims to build 69 new tourist establishments in advance of the marquee football tournament.

Developers are banking – literally – that if they build it, tourists will come, and attendance expectations are as lofty as those cranes dotting the Dubai landscape. Hopefully, great risk will bring even greater reward.

Barring any seismic political and economic shifts, and if the predictions are proven true, the future of the tourism industry in the Middle East should be as bright as the desert sun.

Shawn McCoy, vice president; Rob Morgan, senior project director; Mark Amos, project manager; and Clara J. Rice, director of Communications at Jack Rouse Associates

02

01 Bird’s eye rendering of Rixos’ land of legends Theme Park in Antalya, Turkey.

02 Crystal lagoon – Developers hope this water theme park will become a leading global entertainment destination attracting 900,000 visitors per year.

July-AuguST 2016 49

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SITE prOfIlE

The Human Touch

Janus Rostock, design director and head of Architecture, Urban Design & Masterplanning at Atkins, speaks to Middle East Consultant about Dubai Opera and the importance of the human scale in design 50 July-AuguST 2016

ON SITE

“Dubai Opera is unique in being able to offer a much more al fresco lifestyle as well as tactile involvement to the surrounding neighbourhood, so it was very important that we sought to take advantage of this. Everything about the building is designed to draw people into its cultural and artistic offering”

y compatriot, the celebrated Danish architect, urbanist and city planner Jan Gehl, first introduced the idea of the 5kph city and the 60kph city, the difference being that the former is designed with pedestrians in mind, while the latter puts the emphasis on motorists.

You could reasonably say that large swathes of our rapidly growing cities in the Middle East are closer to 120kph cities. That isn’t to say that they’re visually dull, far from it, but the buildings which make up the region’s impressive skylines have, in general, been designed as individual objects which are best appreciated from a car at a distance or at high velocity. Get out of the car and up close and there tends to be little for the human eye and soul to connect with.

The other, closely linked notion which most Scandinavian architects are passionate about is human scale in architecture. This is based on the idea that people are better able to interact with the urban environment when it is based on their own physical dimensions and capabilities.

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01 Dubai Opera is the city’s first purposebuilt multi-format performance arts theatre.

02 Janus rostock, design director & head of Architecture, urban Design & Masterplanning at Atkins.

01

It stands to reason, perhaps, that historic cities built before the age of the car most naturally fit into the mould of the 5kph environment.

Copenhagen, my hometown, is an excellent example of human scale architectural detailing that encourages pedestrian and cycling activities; this applies not only to historic buildings but also to its bold and distinctive modern architecture.

Newer cities have tended to evolve in a different way, which has been dominated by people’s desire to use private cars. The response from clients and designers has been to focus not on detail, but on being able to capture attention within seconds and from afar. This applies to public space as much as it does to buildings – but what about pedestrians? And what about community? At street level, there is little to offer.

It’s taken some time, but in the past five years or so there has been an awakening to this challenge in the Middle East. There’s an understanding that building healthy communities – which evolved over hundreds of years in the ‘old world’ – needs human scale. It needs interaction, fine detail and energy. As humans, we need some subtlety in our environments which encourages us to explore, ask questions and have fun.

In Dubai, there are now some powerful examples of how this has been put into action to create a new city experience. For instance, Citywalk in Jumeirah and The Beach at JBR offer low-rise, retail-centric developments which have quickly been embraced as part of the urban landscape. They promote social interaction of communities, which is fundamental to improving quality of life and creating sustainable and liveable cities.

Human scale and pedestrian-friendly cities have long been at the heart of our thinking; when Atkins was appointed to design the Dubai Opera and the Opera District in Downtown Dubai, it was pivotal to our idea. It is rare to have an opportunity to fully integrate a building in its context from the earliest master planning stage through to its functionality in the public realm. The vision of our client was very clear from the start, and we had a great deal of freedom to bring it to reality. And that vision was very much in keeping with our thinking of a pedestrian-friendly neighbourhood – a 5kph city.

Because Dubai Opera sits within Emaar’s Downtown Dubai

“There’s an understanding that building healthy communities – which evolved over hundreds of years in the ‘old world’ – needs human scale. It needs interaction, fine detail and energy. As humans, we need some subtlety in our environments which encourages us to explore, ask questions and have fun” 52 July-AuguST 2016

ON SITE

development, we were tasked with creating a building which must fulfil various roles. Not only should it showcase world-class cultural events to its guests, but the building should also be the iconic centrepiece of the new Opera District and a stimulus for a vibrant, creative public realm.

We had an opportunity to present much more than a stunning new building to the region. Our client’s vision was for a venue which, while hosting fabulous cultural performances within, would also transmit its energy and excitement to the whole community, making full use of its surrounding spaces including Sheikh Rashid bin Mohammed Boulevard, The Opera Plaza and Burj Lake Park.

It is designed, therefore, to complement rather than compete with its surrounding area, spreading its cultural and artistic function from its internal transformable theatre onto an external multifunctional urban plaza, towards the adjacent walkways and alleyways of surrounding neighbourhoods.

An important dimension of the project is that it closes the circle of attraction points in downtown Dubai, the others being the Burj Khalifa and Dubai Mall, as well as the centrepiece of Dubai Fountains. Of these attractions, Dubai Opera is unique in 02 being able to offer a much more al fresco lifestyle as well as tactile involvement to the surrounding neighbourhood, so it was very important that we sought to take advantage of this.

Everything about the building is designed to draw people into its cultural and artistic offering. The building has a 360-degree lobby which is fully integrated with its public realm. The façade design is extremely complex; the glass frontage comprises 1,710 individual façade and mullion sections, 1,270 individually sized glass panels shaded by the roof overhang, and 5km of externally mounted shading louvers. The aim is to make the building as transparent as possible, while keeping solar radiation out through passive design measures.

To this end, the glass is made as transparent as possible thanks to an internal and external anti-reflective coating.

In the evening, the impact is even more apparent because lighting is integrated within the building’s vertical columns only – there is no external illumination.

This will create the sense of a lantern which will offer a warm glow to onlookers and accentuate the impact of seeing guests inside the building. The lobby and public realm are therefore seen as one – a space where the audience become performers for residents and visitors when they are inside the building.

Arriving at Dubai Opera will also be part of the experience. There is no valet parking at the entrance to the building – guests will make a processional walk across the plaza to the lobby doors, creating a ‘theatre of people’

surrounding the building. This, again, will help bring the whole Opera District to life, animating its environs like nothing else in the city.

The public realm around the building will capture the buzz from the Opera, with retail and cafés and the opportunity for street performances. Importantly, navigating the area is encouraging pedestrian activities and movement, ensuring a high level of accessibility, with plenty of walkways intersecting the boulevard to offer a feeling of openness and space.

It feels very fitting that, in creating Dubai’s new cultural beacon, we’ve had the opportunity to deliver something which is much more than an entertainment venue. We’ve been inspired by the chance to offer the city and the region a project which will truly engage passers-by at 5kph through its level of detail and its allencompassing celebration of performance.

Dubai Opera will exude the energy, creativity and excitement of its audience, setting the mood for the whole neighbourhood. I can’t wait to see them perform!

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Qatar to build Zaha Hadid-designed towers Two buildings designed by the late Iraqi-British architect Zaha Hadid for Al Alfia Holding will be constructed in Qatar, it has been announced.

The towers were commissioned by Al Alfia Holding’s chairman Sheikh Mohammed Bin Khalifa Al Thani in 2013 and were to be built as part of the Lusail City masterplan.

The first project, a 70,000sqm hotel with residential apartments in Lusail City’s Marina District, is set to complete in 2020, with the second tower to be built within the ongoing plan for future development of the city.

The hotel tower will be 38 storeys high and resemble the structure of a flower called the desert hyacinth, with its façade designed to reduce solar gain. Zaha Hadid Architects will be working with Arup Engineering and Atelier Ten on the project.

Al Thani commented: “With truly inspirational public spaces and atrium, 120 unique residences and 200 hotel rooms of Zaha Hadid’s unmistakable signature, we celebrate her remarkable legacy and continue Lusail City’s commitment to creating the region’s most sustainable, interconnected community.”

54 July-August 2016

Damac launches Akoya Oxygen units starting at $340k Damac Properties has launched a new residential project, The Beach at Navitas Hotel & Residences, within its Akoya Oxygen master development in Dubai. The project is a collection of apartments spread over five towers that provide golf and beachstyle living, the Dubai-listed developer said in a statement. Its first phase comprises the release of three-bedroom apartments sold on three-year payment plans, with prices starting at AED 1.25 million ($340,000).

The resort-style residential and hotel complex will be surrounded by artificial sandy beaches. Facilities such as restaurants and cafés, entertainment areas, gyms, spas and dedicated children’s play areas will also be close by, the developer said.

Ziad El Chaar, managing director, Damac Properties, said: “The hotel units will also provide investors with the opportunity to be part of the emirate’s flourishing hospitality industry, with lucrative returns and hasslefree management through a rental agreement with the operator, where the administration, management, bookings and maintenance are taken care of.”

ON SITE

Kuwait signs deals worth $953m for housing project

Farnek wins contract for IMg Worlds of Adventure UAE-based facilities management firm Farnek announced that it has won a mechanical, electrical and plumbing (MEP) contract for IMG Worlds of Adventure in Dubai. According to a press release, the contract will start immediately and requires Farnek to maintain the entire site of the indoor theme park, which opens in August.

IMG Worlds of Adventure spreads over 1.5 million sq ft and includes rides, food and beverage outlets, retail and cinema areas. Farnek did not specify how much the contract was worth.

Markus Oberlin, CEO of Farnek, commented: “We are extremely proud to partner with IMG Worlds of Adventure, as this extensive project highlights our core technical and critical competencies. From both an operational and commercial perspective, it is essential that IMG Worlds of Adventure offers its customers the safest and most exciting experience, with minimal downtime of the rides and attractions. Although the rides themselves will be serviced by specialist operators, Farnek will support them by offering MEP maintenance in the immediate vicinity and throughout the site.”

Lennard Otto, CEO of IMG Worlds of Adventure, said: “Farnek has been chosen for its technical and critical competency and its operational methodology. Farnek already manages a multidimensional portfolio and so has proved it can handle projects of varied scope. We look forward to working together as we continue to progress towards the opening of IMG Worlds of Adventure this August.”

Kuwait’s Public Authority for Housing Welfare has signed contracts worth 288 million dinars ($953.3m) to commence work on the South Al Mutlaa City development, the largest housing project in the country.

According to a report by the Kuwait News Agency (KUNA), the housing authority has signed contracts with Italy’s Salini Costruttori engineering company and Turkey’s Kolin Group to start infrastructure works, and has also signed a five-year contract worth nearly $77.8 million with Hill International for the management of the project.

The housing development will consist of 28,363 homes spread across 12 suburbs.

It will house around 400,000 residents and include 16 schools, 156 mosques, 48 mini markets, 12 public health centres and three specialised clinics.

Around 60 tenders for the construction of public utilities and power plants, among other things, will take place over the coming years, with the first licence expected to be issued in December 2018.

July-August 2016 55

THE BACK PAGE

lAst WORD

01 Jason lewis is founder & managing director at limah Design Consultants.

Paving the Way Jason lewis outlines the five principles to consider when engaging a wayfinding consultant consultant can consider these five principles to determine whether the end result will be merely signage design, or whether the consultant will develop human experiences that make environments users want to keep coming back to.

1. Apply multidisciplinary skills and perspectives

01

t

oday’s developers and users demand more than just buildings; they expect a great customer experience. A few consultants across a number of disciplines are leading the way, from architects delving into placemaking to landscape architects creating walkable cities and innovating wayfinding consultants focused on user experience.

Much has been written about turning built environments into more dynamic spaces to visit, but the total user experience is rarely considered. This is where a professional consultant in wayfinding can add the most value to a project. Every developer and architectural team engaging a wayfinding 56 July-August 2016

A professional wayfinding consultant will define and develop with the client the common project vision or site-wide strategy.

However, to do this effectively they must cross the borders between product design, marketing, architecture, engineering, customer experience, digital design and many other disciplines. Today’s leaders in the field see that human experience drives strategy and design and is multidisciplinary.

2. Consider the whole journey.

Arriving at the site is only one stage of the user’s experience. Other experiences that can be developed include the online stage, parking, navigating, customer service and social media interactions, digital applications, facilities management, public art engagement and VIP or upgrade considerations. While signs will always be part of wayfinding, they should be the result of consideration of the holistic journey and experience.

3. Make the design process iterative

The best time to engage a professional

wayfinding consultant is at the earliest masterplan stage. Early testing of conceptual human experience models will uncover opportunities but should be reconsidered through all stages as each discipline contributes to the project. In all cases, wayfinding strategies and design can be refined and improved by iteration. Complete user journeys are key, as they help identify interactions between stages of design work and disciplines.

4. Keep users engaged through design of non-traditional wayfinding elements

Don’t assume that adding signage to a project at the last stages is adequate. Users’ needs have evolved and a successful environment keeps users engaged and keeps them coming back.

An excellent way to do this is through nontraditional means such as public art, digital platforms, customer service interactions and design integrated into the architecture and interior.

5. Integrate users, human factors and environments.

Designers must factor in user behaviour, abilities, architectural context, user preferences and client goals and aspirations.

If developers are looking for a competitive advantage, creating a positive total human experience is the place to start. This is the future of the discipline, and those at the forefront recognise that a positive human experience is the deliverable.

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