For the construction specialist
Fresh Canvas
Mohammed bin Zaal on his vision for a new way of real estate development ON TOPIC
What’s in store for the GCC with VAT on the horizon?
IN PRACTICE
Utilising BIM in MEP engineering and design
ON SITE
Flooring is going through the roof in the GCC market
ISSUE 035
March 2017 Publication licensed by Dubai Production City A product of Big Project Middle East
© 2017 LACASA Architects & Engineering Consultants All Rights Reserved
PRINCIPAL DESIGNER I’m Ihab Nayal and I am a
www.lacasa.ae
As a designer, I’m mainly drawn to Neomodernism, focusing more on the power of pure volumes, the masses and the abstract interplay between the different planes that make them. My designs at LACASA have always followed this approach. As consultants, our main goal is to tackle projects functionally and methodologically while ensuring that the function is addressed artistically. I enjoy using tectonic elements to highlight the beauty of mathematical order… and the breaking of it.
Ihab Nayal
PRINCIPAL DESIGNER
LACASA is committed to providing quality-driven designs within a multidisciplinary environment. Established in 2006, the firm has grown significantly over the past eleven years. Today, LACASA boasts a diverse portfolio encompassing all types of developments and across the entire MENA region. While it is said that perfection doesn’t exist, we believe that perfecting design can be achieved by cultivating extraordinary talent.
CONTENTS
On topic IndustRy VIEWs fROM ACROss tHE MIddLE EAst
06
09
12
14
20
26
30
32
38
40
09 AnALysIs
Examining the implications of the proposed pan-GCC VAT levy and how it’ll affect the regional construction industry 12 OpInIOn
Nicola Gregson, COO, Al Fajer FM, outlines the raft of measures undertaken by the company to lower its carbon imprint
In practice AnALysIs, InsIgHts And IntERVIEWs
14 InsIgHt
Asset Management is acquiring prominence as owners and investors seek to consolidate gains from proper stewardship 20 InsIgHt
There is further resurgence in the MEP sector, with new technologies and talent coming to the fore 26 IntERVIEW
We meet with Mohammed Bin Zaal, founder and CEO of KOA, the boutique developer rewriting the rules of Dubai’s real estate industry
On site CAsE studIEs, OpInIOns And snApsHOts
34 dEsIgn
The business of flooring is raising its ceiling, as Middle East Consultant finds out from the experts 38 nEWs
Siemens powers Saudi Arabia’s gas industry with locally produced gas turbines 40 tHE bACk pAgE
New Parsons’ initiative with Riyadh Metro is boosting Saudisation 2 MARCH 2017
Tatweer Schools, Kingdom of Saudi Arabia
Through our PMO contract with Tatweer Buildings Company, we are enhancing educational facilities across Saudi Arabia.
Hamad Port, Qatar
Our program management team ensured Hamad Port opened within budget, on time and met the client’s quality standards.
Safeguarding delivery By acting as an extension of our client’s organisation, we protect their interests as our own. aecom.com
WELCOME
Group EDITOR’S NOTE
Indigenous innovation With an increasing focus in the GCC on localising the workforce, promoting native talent and encouraging home-grown initiatives, examples of successful entrepreneurship of this type are always welcome news for both the government authorities and the business world. Instances of hands-on and personally involved local professionals and citizen business owners in the GCC regional construction industry are few and far between. It is with this thought in mind that we chose to make KOA, a relatively new, home-spun business venture, the subject of our cover story for this edition. Mohammed Bin Zaal is the face and initiator behind the enterprise that is redefining residential properties and reshaping the real estate industry in Dubai. The former CEO of Al Barari has an enviable track record with his former employer, and has been setting new benchmarks in property design and living and working in the UAE. No cookie-cutter, one-size-fits-all construction developments here. His debut Canvas project in a prime housing district offers several dozens of tailored options within the complex, adapted for customised, personalised selections for individual investors. We have the complete low-down on this project. Elsewhere, Asset Management and MEP have taken top spots in our continuing coverage of niche sectors in the construction consulting business. No slowdown here – these key independent, burgeoning industry portfolios are coming into their own with the promise of potential, demand and growth. ‘Downturn’ is a word bandied around globally to characterise the construction sector, but the professionals we contact on a daily basis are having none of it. This is the construction sector after all; it has always proven itself to be resilient, buoyant and optimistic, even in lean times.
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 MALCOLM DIAS malcolm.dias@cpimediagroup.com +971 4 375 5475 SUB EDITOR AELRED DOYLE aelred.doyle@cpimediagroup.com
Advertising COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496
Marketing MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498
Design ART DIRECTOR SIMON COBON
Circulation and Production DISTRIBUTION MANAGER SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCTION MANAGER VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713
Web Development MOHAMMAD AwAIS SADIQ SIDDIQUI published by
CpI TRADE pUBLISHING FZ LLC LICENSED BY TECOM pO BOX 13700, DUBAI, UAE TEL: +971 4 375 5470 FAX: +971 4 447 2409 WWW.CPIMEDIAGROUP.COM FOUNDER DOMINIC DE SOUSA (1959-2015) PRINTED BY pRINTwELL pRINTING pRESS LLC
Malcolm Dias Deputy Editor, Middle East Consultant 4 MARCH 2017
© Copyright 2017 CpI. All rights reserved. while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
The world looks better
Creativity: boschyserret.com 3D Image: beauty&thebit
Technal, architectural aluminium glazing systems for an improved quality of life: even distribution of natural light, large dimensions, high performance acoustic insulation and energy efficiency. Aluminium building systems that are suitable for the most contemporary of creative architecture, with a diverse range of styles, finishes and textures. Aluminium building systems that are in tune with today’s concerns: the environment, security, comfort and accessibility. For a more comfortable living space. For more harmonious towns and cities. For a better world.
Windows - Doors - Façades TECHNAL MIDDLE EAST - P. O. Box: 21848, Manama, Kingdom of Bahrain T: +973 1722 5777 - F: +973 1721 7799 - E: technal@technal.com.bh - W: www.technal-me.com
ON TOPIC
MOST POPULAR
fEATURED
READERS’ COMMENTS
MACHINERY
BALfOUR BEATTY
IronPlanet auctions world’s largest demolition excavator
MIDDLE EAST MARkET
ExIT NO REfLECTION ON
It was surprising, but not particularly alarming, to read about Balfour Beatty’s departure from the Middle East. As you reported (“Balfour
CONSULTANT
SSH designs world’s largest children’s hospital
Beatty to exit Middle East joint ventures”, February 22), the UK group is selling its In pictures: Trump sons in Dubai for Damac golf course launch
stakes in Dutco Balfour Beatty and BK Gulf. The contractor has been active in the
PROPERTY
region for as long as I
Developer renames Trump golf community Damac Hills
can remember – back to the 1970s. But the decision should be seen in light of the other moves made by Balfour Beatty, such as its pulling
PROPERTY
out from Indonesia
Dubai property sales ‘increase by 30%’
and Australia, rather than read as a signal about the Middle East market. Infrastructure projects in this region – especially the Gulf – are continuing apace, even during the depths
CONSTRUCTION
Expo 2020 Dubai to award contracts worth $3bn
6 MARCH 2017
of the oil-price crash. Video: ‘flying car’ being tested in Dubai
Ali Malouf, via email
INTEGRATED DIGITAL CONSTRUCTION PLATFORM u
THINK DIGITAL / BUILD DIGITAL
IEAG HAS DEVELOPED A PIONEERING DIGITAL COLLABORATION PLATFORM THAT BRINGS DESIGN, CONSTRUCTION, PROJECT, AND CONTRACT MANAGEMENT INTO ONE DIGITAL HUB.
OUR VALUE PROPOSITION Up to 4% savings on the Overall Construction Cost when compared to Conventional Method Up to 50% Reduction in Site Re-work Up to 50% Savings on Design Management Process Fully Customizable Platform Up to 20% saving on Operation and Maintenance when compared to Conventional
BIM MANAGEMENT
CONSTRUCTION MANAGEMENT
u
CONTRACT MANAGEMENT
info@iea-group.com / iea-group.com
ON TOPIC
ANALYSIS
VAT – What’s in Store? David Clifton, regional development director, Faithful + Gould, examines the implications for the GCC construction industry in the run-up to the proposed VAT roll-out
V
room, vroom… and VAT will soon be upon us as we race towards the proposed 5% VAT introduction date of 1 January, 2018. With less than a year to go before the UAE and other GCC governments commence the roll-out, David Clifton believes the inferences fall into two categories: the known realities and the potential outcomes. With a tax coming, the construction and development industry will see certain costs and, as a result, inflationary pressures filter through the system. Clifton fully expects most, if not all, products and services to attract VAT through the whole supply chain, as the
only exclusions agreed by the GCC committees are basic commodities such as food, drink, medicine and school fees. The obvious cost here is the tax itself. Given the length of build programmes, markets began feeling the pinch of price pressures as early as late 2016, and these will continue to build through 2017, becoming fully priced into the market by the 2018 VAT commencement date. In March 2017, as a result of the tax, Clifton forecasts 3% inflation in UAE and 0.5-1% in Saudi Arabia. However, there are significant additional costs associated with the roll-out. Both the public and private sectors have systems and processes aligned to the current low MARCH 2017 9
ON TOPIC
01
tax environment and both have a relatively short window in which to adapt – and a lot of organisations may still be unaware of the impact on their businesses and operations. The industry will have to amend invoicing and establish collection and accountancy mandates, and government entities will have to provide clear guidance on the collection periods and procedures they intend to use. Significant investment in human capital development will be needed to ensure compliance. More employees will be needed to administer this for organisations, again adding to costs across the industry. Bracing for increased costs
Clifton expects an immediate impact on costs, with an expected uptick in claims as a notional 5% plus administration costs is added to projects almost overnight. “I expect that the costs to both private and government sector will probably be similar to the actual costs of VAT in the first instance, as companies grapple to get to grips with a new tax regime,” he observes.
His colleague Brian Fisher, head of Project Management at Faithful+Gould, also concurs with this view. “VAT will have an impact on PM firms as with the entire industry. It’s fully expected that professional services will attract the mandatory 5% VAT and this will drive inflation on the service. Furthermore, there will be indirect costs associated with administering the roll-out of VAT for everyone, including systems, processes and staff training.” Clifton is also concerned about the lack of communication and clarity with regard to exemptions and government mechanisms for collecting and administering the tax. “There is a significant requirement for training and compliance in this area due to the low taxation environment that has historically existed. That’s on both the government and private sector side.” He is confident that as UK-based and internationally operated companies, Faithful+Gould and its parent company Atkins are well versed in dealing with VAT and other forms of taxation and have robust and stringent systems and processes for normal
“For contracts being delivered as we move closer to the date and which lack provision for recouping these costs, the prospect of absorbing the costs onto the project accounts could result in lossmaking projects where profit was once forecast” 10 MARCH 2017
ON TOPIC
functioning of the business. However, he is apprehensive about the indifference of many local organisations who do not know and have not accounted for anything. “They’d better do some up front or it will come back to hurt them as VAT is now a reality, a certainty,” he advises. So how are construction companies factoring VAT into cost and billing? “Broadly speaking, the VAT cost itself will end up being passed through to the end client. The interesting points are around how to deal with the overall costs of administration, which will drive inflationary pressures in the short term or, alternatively, must be absorbed into company margin.” Media reports suggest that sectors such as renewable energy, water, space, transport and technology may get breaks or special treatment. However, Clifton is sceptical on this count and expects VAT to eventually “catch all”, primarily due to the complexity of administering exemptions. He also believes that VAT is in general a start in modernising the GCC economies around taxation and will assist in diversifying revenue sources. According to IMF estimates, VAT will provide a 1-2% boost to GDP in the UAE. What does the contract say?
Finally, as the agreement to introduce VAT was only passed in early 2016, there will still be a considerable number of construction and consultancy contracts under execution in the GCC. These may or may not have any provision for recouping any direct or indirect costs levied under new taxation legislation. For contracts being delivered as we move closer to the date and which lack provision for recouping these
“Significant investment in human capital development will be needed to ensure compliance. More employees will be needed to administer this for organisations, again adding to costs across the industry” costs, the prospect of absorbing the costs onto the project accounts could result in loss-making projects where profit was once forecast. For some organisations, this could be a deadly combination, cautions Clifton. Where contracts have sufficient provision to enable contractors to pass back the VAT to client businesses, there will be a significant rise in claims and potential disputes as the industry grapples to monetise the true values associated with the tax impact. There is general agreement that the region’s taxation regimes need amendment, as budget deficits amplify the call for more government revenue and diversified income sources. However, it won’t be all plain sailing, as VAT is here to stay and the construction industry seeks to learn, train, educate and adapt to the new normal and the new dynamic. 01 Governments will have to provide clear guidelines on procedures they intend to use. 02 David Clifton says the construction industry will need to learn, train, educate and adapt itself to the new normal.
02
MARCH 2017 11
ON TOPIC
OPINION
01 Nicola Gregson says Al Fajer FM is conducting research and identifying ways to improve its sustainability and environmental footprint.
When sustainability is a commitment, not just a chant COO Nicola Gregson recounts how Al Fajer Facilities Management has implemented multiple initiatives to lower its environmental footprint by 20% by the close of 2017
01
I
n a world of fast cars, fast lives and fast services, convenience comes at a price. Modern living means we have advanced in many areas without knowing the full impact this will have on the environment that we live in, not just here and now, but for our children and future generations. Previously, people didn’t realise that rapid industrialisation and huge energy consumption would have such far-reaching environmental effects. We now know more about how our everyday conveniences affect the world that we live in. 12 MARCH 2017
Sustainability is a core pillar of Al Fajer FM’s operations. In 2016, the company implemented several initiatives to reduce water usage, reduce the volume of chemicals without reducing effectiveness, ensure correct disposal of used chemical containers and paints, and reduce the energy consumed throughout every department of the company. It makes good business sense to operate in a sustainable manner, use fewer resources, minimise wastage and do things more efficiently. In almost every corner of a business, there is a fundamental business reason for being more sustainable. The FM sector in the UAE is anticipated to grow at a steady rate because of huge infrastructure spending in the country in both the residential and industrial sectors. In the UAE, a bill to reduce new large building energy consumption by up to 30% by 2030 has provided a new scope for facility managers and real estate companies to design, build and maintain buildings in a sustainable way. Lowering the FM footprint
The FM industry needs to ensure that the services provided are the most efficient
in terms of energy usage, wastage and environmental impact. Living in this region, we need everyday conveniences such as air conditioning, clean running water and irrigation for landscaping, but we must ensure that we do this in the most efficient way possible, ideally using technology and innovation that lowers energy consumption, emissions and chemicals. Al Fajer FM’s pledge of 20% reduction in its environment footprint is anchored in our support for UAE National Environment Day, which is celebrating 20 years in 2017. Our Environment Pledge is our own initiative under this wider umbrella, and we believe this 20% goal is attainable if we all focus our efforts to ensure sustainability is one of our corporate pillars. Already over the last three months, we have reduced fuel consumption by 16% through educating our drivers in better driving, switching off engines while parked and adhering to planned routes, which results in less overall mileage and fewer vehicle emissions. Indirectly, this also means reduced frequency of servicing these vehicles because they are doing fewer miles each day, which
ON TOPIC
reduces the vehicle maintenance bill. I am personally responsible, with the support of the senior management team and our QSHE managers, for the monitoring and auditing of the efficiencies throughout all areas of the business, and using external data and audited figures to measure the efficiencies on a monthly basis. Internal initiatives
Within our operations, we are researching and identifying ways to improve our sustainability and environmental footprint. In the cleaning division, we have reduced water consumption in certain areas by up to 80% by switching to an efficient mopping system which kills 98.8% of bacteria without adding cleaning detergents. In our staff accommodation blocks, we have increased efficiencies within the kitchens to reduce fuel consumption by 23%. We have invested money to switch to mains gas and
establish mains sewerage connections, which means we are minimising heavy industry vehicles on the roads visiting our premises. These are a few specific examples of how we are already striving to reach our 2017 target. In the GCC, accurate market data is hard to come by but the current market has been estimated at $21 billion (data from Middle East Facility Management Association). However, there is consensus that the industry could grow about 20% annually on average in the medium term, driven by a burgeoning property market in Dubai and Qatar, ahead of Expo 2020 and the 2022 World Cup. According to a recent report, Dubai’s strong construction trends look set to continue through 2017, with 39% of the UAE’s total projects in the concept, design, tender, under construction and on-hold phases. Recent data reveals that Dubai’s urban construction sector has more than 3,200 active projects with a combined estimated value of over
$245 billion. With so many commercial and residential buildings coming on board, there will be huge demand for FM services. The global market for facilities management is projected to touch $394.7 billion this year, according to market research by Global Industry Analysts. We are in a position to adopt and create new technologies that will have less environmental impact if we all do our part. Dubai is already leading in several FM areas, such as the testing and use of light fidelity (Li-Fi), which uses common household LED (light emitting diodes) lightbulbs to enable data transfer, boasting speeds of up to 224GB per second, 100 times faster than Wi-Fi. It does not emit any e-smog, making it a healthy way to be connected to the internet. We live in exciting times, with technology continuing to play a bigger role in our lives. We need to reconcile and temper technology and extreme usage.
MARCH 2017 13
IN PRACTICE
INsIgHT
Observant Overseers With a growing need for and focus on asset management, top professionals tell Middle East Consultant they cannot manage or operate buildings properly without a robust and structured approach to handling and maintaining assets imply put, infrastructure asset management (AM), in the context of the construction industry, is any system or activity that prudently monitors and maintains things of value to its owner or operator, which comprises buildings, systems, plant, equipment and other tangible assets associated with operating a building or development. In its most basic form, asset management is the realisation of the value of assets while incorporating cost-effective solutions for their maintenance. The portfolio can also extend to manage non-tangible assets such as human capital, intellectual property and financial assets. Its close association and identity with facilities management and asset protection is clearly not lost on the asset management specialist professionals interviewed by Middle East Consultant. According to Abdul Azim Azeez, a senior consultant with Bentley Systems, the ISO 55000 set of standards published in 2014 is the first international standard for AM and evolved from the British Standards Institution’s (BSI) Publicly Available Specifications (PAS) 55, first published in 2004 and subsequently revised in 2008. ISO 55000 defines asset management as the “coordinated activity of an organisation to realise value from assets” and defines an asset as “an item, thing or entity that has potential or actual value to an organisation”. The definition provided by PAS 55, in Azeez’s estimation, provides some context around asset management – systematic and coordinated activities and practices through which an organisation optimally and sustainably manages its assets and asset systems, their associated performance, risk and expenditure over their lifecycles, to achieve its organisational strategic plan. 14 MARCH 2017
“In its broadest sense, asset management is an integral part of facilities management (FM),” affirms Barry Clarke, the Doha-based GM for Mace Macro operations for Qatar and Saudi Arabia. Mace Macro is the facilities and asset management arm of Mace, an international consultancy and construction company. Clarke’s approach to asset management is based on ISO 55000, with a technology system that supports the varying and differing needs of each client and stage in the asset management process. “The primary importance of good asset management is to prevent system failure and maintain or enhance the overall value of the built asset over time,” he says. “The association of asset management with FM is paramount, as it not only increases the longevity and aesthetics of the asset, but with correct management it improves the asset’s net income and subsequently the asset value,” asserts George Malakos, business development manager for Kaizen Asset Management Services, a Dubai-based integrated real estate management firm that provides solutions to developers, investment companies and individual investors. Asset management is about enhancing customer and end user satisfaction through optimum performance and the control of plant equipment and systems, providing improved risk management and corporate governance with a clear audit trail, having the ability to achieve and demonstrate best value for money, and optimising return on investment and growth. “Good AM advances health, safety and environmental performance, generates confidence from long-term planning, better sustainability and performance data, information and decision-making. It also improves corporate reputation, including enhanced shareholder value, greater staff satisfaction and more efficient procurement and supply chain management,” says Clarke.
IN PRACTICE
MARCH 2017 15
IN PRACTICE
01 Abdul Azim Azeez is a senior consultant at Bentley systems. 02
Asset Management 101
The asset management process starts with the identification of need, selection and specification of the asset, and continues through the design and procurement process with fitfor-purpose assessments, cost and 01 performance benefit analysis. It then goes on into installation, testing, commissioning, a handover and defect liability period and into steady state operations. Additionally, it may go into replacement cycles of individual assets or components as required to match the design life of the building or principal asset. In order to join these phases together from an asset management perspective, a clear and cohesive approach or strategy is needed. Azeez advocates the convergence 02 of BIM methodologies and asset management to attain lower total cost of asset ownership. “The advantages of good asset management principles are relatively new to the construction industry, while building information modelling (BIM) is well understood as an important process to manage information throughout the phases of a project.” “Informed decision-making is at the core of asset management and good decision-making requires effective asset information management. This is where BIM methodologies converge with asset management. BIM methodologies adhering to standards provides the structured framework for establishing, collecting and maintaining asset information,” he maintains. From a technology perspective, BIM methodology enables the integration of data-rich models and project information databases, to build a virtual representation of a project and, more importantly, the assets. All stakeholders have access to reliable information, making collaboration easier, reducing risk and improving ROI. With a digital representation – a model of the physical asset rather than a document-based representation – accurate and more timely decisions can be made. “For example, considering the reliability strategy for an asset during the design phase, how an asset is maintained, updated or replaced is made with a view of all that the asset was and is, rather than isolated snapshots of the maintenance that was done,” Azeez says. Mace Macro’s Clarke continues: “To be effective, an asset management strategy must allow for the manipulation and storage of significant amounts of data and information. This is best achieved 16 MARCH 2017
Barry Clarke is the general manager for Macro – Qatar and saudi Arabia. 03 Clients are increasingly focused on the value, as opposed to the cost, of good asset management.
by utilising computer-aided facilities or asset management (or similar CMMS (computerised maintenance management system), CAEMS (computer aided embarkation management system), and related) software.” Furthermore, the modules associated with asset management can be as simple or complex as necessary, but the more sophisticated modules have full interconnectivity and can be used to fulfil every need under the asset management requirement, he adds. Macro adopts asset management techniques on all of its operational contracts to best international standards, and delivers advisory services on all aspects of asset management to clients who do not yet have that in-house capability. Being involved in all three facets (advisory, operational and technology) gives Macro experience and knowledge of the theoretical, technological and practical elements in support of facilities and asset management, Clarke further observes.
“Informed decisionmaking is at the core of asset management and good decision-making requires effective asset information management. This is where BIM methodologies converge with asset management”
IN PRACTICE
“The primary importance of good asset management is to prevent system failure and maintain or enhance the overall value of the built asset over time” Macro launched in the UAE in 2008 and now represents roughly a third of global Macro business. Revenues for 2015 were in excess of $32.7 million, and 2016 results are significantly higher. “There are a number of opportunities in the region, and we are very optimistic about the future. Clients are increasingly focusing on the value as opposed to the cost of good asset management,” he notes. In his opinion, the Middle East is also generally adopting more and more technology to assist with best practice and the need for up-to-date information, in order to enable informed decisions. Malakos maintains that the two principles Kaizen considers are first, no two buildings are the same, so they take an extremely detailed look into the dynamics of every building managed, how it operates and what it requires for improvement; and second, adhere to the company name – Kaizen is the Japanese term for continuous improvement, a philosophy as a corporate motto.
Holistic approach
In order to improve the effectiveness of overall asset management, Kaizen takes a holistic approach to ensure asset optimisation, creating sustainable programmes of expenditure and identifying alternative management processes and specific management plans tailored to the requirements and objectives of each asset. Kaizen emphasises long-term planning and management strategy to ensure objectives are met and assets perform to their full potential. “Risk, cost and performance optimisation are strategic elements of good asset management. The minimisation of risk, cost and maximisation of process performance with respect to determining asset investment planning is a strategic objective in asset management,” Malakos emphasises. Benefits, in his opinion, include financial analysis and integrated asset management planning. This approach will generate the best
MARCH 2017 17
IN PRACTICE
04 Firas Jadalla is the regional director for the Middle East at genetec.
economic scenario that achieves the desired level of service under any budgetary and capacity constraints. It also fosters better risk management and optimised decision processes. Operations and maintenance are a big part of asset management, and a 04 holistic approach permits the use of integrated inspection, maintenance and investment policies and provides strong arguments to justify required CAPEX/ OPEX investments. Typically, AM companies such as Mace Macro and Kaizen cover a wide range of services, including property management, owner association management, facilities management, development project management, investment advisory and handover services and agency. “We have had success further afield and managing 05 projects in Syria and Lebanon. However, we are now concentrating our efforts closer to home and are currently managing assets with a value in excess of $2 billion, all of which are in the UAE,” says Malakos. Kaizen, a member of the US Green Building Council, is one of the first companies to be ISO-certified and has a portfolio that includes properties from master developers Nakheel and Mazaya and the Norman Foster-designed Index Tower. Developers in the region constantly strive to create world-class real estate developments while following international best practice. The realisation that technology is not only beneficial during the development and construction stage but also throughout the lifecycle of the property is becoming more and more relevant. BMs boost
BMS (building management systems) are an example of how
05 george Malakos, business development manager for Kaizen Asset Management.
technology is being used in the region to make buildings more sustainable, efficient and environmentally friendly. The cost savings and extended longevity of building facilities is becoming increasingly known to developers, building owners and asset managers, and hence implementing such technologies is becoming more widespread in the region. As more and more property owners become aware of AM and how it helps them, more firms are offering these services. “There will always be competition, and that is healthy. However, the challenges are more with clients who are seeking asset management services and how to select the right services provider. The UAE offers fantastic opportunities and with 2017 set to see the return of the mega structures, these opportunities are set to increase even further,” Malakos says. Strategic plans and objectives drive the asset management system and direct the optimal combination of lifecycle activities applied across the asset portfolio. This provides a top-down alignment of the corporate direction and goals to the individual’s day-to-day activities. Similarly, as part of the continuous improvement process, the bottom-up feedback loop is essential. Day-to-day realities provide the basis for improving asset management strategies and plans. The feedback should also help diminish disparity between stakeholder expectations and the realities of constraints, risks and opportunities.
“Risk, cost and performance optimisation are strategic elements of good asset management. The minimisation of risk, cost and maximisation of process performance with respect to determining asset investment planning is a strategic objective in asset management” 18 MARCH 2017
IN PRACTICE
“Essentially, asset management seeks to achieve lowest total cost of ownership through employing a set of processes, tools and techniques. Consultants will need to align the design and delivery of the asset information systems to the owner’s overall asset management framework. Designers and contractors will need to go about establishing asset information with a view of the whole of the asset lifecycle, including the operations and maintenance phase,” comments Azeez. “A well-structured information management system encompassing the entire asset lifecycle will facilitate total cost optimisation and risk/opportunity identification and assessment, not only in the design and construction phases, but also in the operations and maintenance phase,” he concludes. Physical protection
Asset management also manifests itself in the physical protection and surveillance of assets. One company offering global cloud-based solutions and specialising in software server storage is Genetec, headquartered in Quebec. The company, which operates in over 80 countries, set up offices in DAFZA in 2005 and its Middle East
operations cover the GCC, Turkey and Africa. “Genetec is a pioneer in offering next-generation intelligent security solutions including IP video surveillance, access control and licence plate recognition, among other services. Technology is rapidly advancing with more sophisticated, cost-effective systems and security solutions in the cloud for city-wide monitoring, as well as for retail and financial institutions, airports, law enforcement, transportation and facilities management industries,” explains regional director – Middle East Firas Jadalla, speaking to Middle East Consultant on the sidelines of INTERSEC 2017. Genetec’s security solutions are used in more than 70% of airports in the Middle East. The company has installed more than 6,000 cameras at both Dubai International (DXB) and Al Maktoum International (DWC) airports. “Asset management-related protection services are now designed to leverage the benefits of networking technology, with products built on an open architecture plan that allows customers to choose from a wide range of devices, third-party systems and flexibility to allow the system to evolve and grow with the needs of customers,” adds Jadalla.
Bentley systems’ TOTEX lifecycle opportunity To effectively manage asset information, technology, people and process need to align, allowing information to flow seamlessly through the different phases of the asset lifecycle. The diagram below illustrates Bentley systems’ approach to information management to minimise total cost of ownership. Bentley’s design, project information management and asset performance technology support the entire asset lifecycle.
MARCH 2017 19
IN PRACTICE
INsIgHT
Mapping out MEP With the growing emphasis and adoption of new technologies, the GCC market for MEP services continues to be one of the most prominent and resilient in the world echanical, electrical and plumbing (MEP) services are the bedrock of the construction industry and crucial to architectural, engineering and construction (AEC) professionals across the board. The region is still growing in its adoption of MEP technology, with many strides being taken to fully incorporate building information modelling (BIM), the new ground-breaking development in construction projects. Governments are also taking significant steps to reconfigure their business models and measures are being adopted to move away from oil-based economies, create economic sustainability and continue infrastructure investment. This bodes well for the MEP segment. According to the Deloitte GCC Powers of Construction 2016, the pipeline of total construction projects planned for the next three to five years in the GCC as of May 2016 amounts to $2 trillion, with Saudi Arabia, the UAE and Qatar the market leaders. With MEP emerging as a key component in the way buildings are designed and built, this fresh outlook implies that the future of this sector is very positive. Brimming with BIM
“The new available BIM-inspired design technologies for the MEP are key and integral in not only the creation and construction of new buildings, but also in helping stakeholders, including architects, engineers, contractors and owners, derive notable cost and time savings,” affirms Suhail Arfath, head of Autodesk Consulting Services, Middle East, Africa and Turkey. “Processes like BIM are transforming these industries and in turn revolutionising sectors like MEP which are critical for design decision20 MARCH 2017
making, accurate documentation, cost estimating, construction planning, managing and operating the resulting facility.” “The performance of the MEP sector varies according to sector and location. Those in the sector have to be reactive and respond quickly to change in the coming year – change is the only thing that is certain,” says Cathy Christer, partner and head of MEP at Godwin Austen Johnson (GAJ), one of the largest and long-established UK multidisciplinary architectural and design practices in the UAE. “There is a tighter control of budgets, with many insisting on efficient designs for optimal build cost, and so we must consider the building as a whole and in the context of its environment. Efficient design, therefore, should integrate the external and built environment in an energy efficient manner.” Reid Donovan, regional director of MEP Solutions at Arcadis Middle East, also weighs in on the current situation confronting the MEP sector in the region. “Within the market, we are seeing a push to try and deliver projects quicker and at a lower cost than ever before. At the same time, however, projects are becoming more challenging in terms of scale, cost and technical complexity. The only way in which the industry can address these and other challenges will be by embracing change, focusing on innovation and working differently than before.” As clients push for earlier completion dates, Donovan believes the traditional design sequence will need to evolve and become a much more integrated process. MEP design in particular will need to follow on closely from the structural design construction sequence. “This will be a positive step for many reasons; it will enable earlier contractor engagement, facilitate earlier completion dates and reduce the amount of re-work required,” he says. Mick Cairns, a 33-year industry veteran, is CEO of Black & White Engineering, a leading provider of MEP design consultancy services operating in the Middle East since 2007. He estimates the value
IN PRACTICE
“Those in the sector have to be reactive and respond quickly to change in the coming year – change is the only thing that is certain”
MARCH 2017 21
IN PRACTICE 01 Mick Cairns is the CEO of Black & White Engineering. 02
of the UAE MEP sector to be $9-12 billion this year, and is upbeat about his company’s inroads in this sector. “Following an exceptional year of growth in 2015, our focus for 2016 was consolidation in the region. With our additional infrastructure in place, we are experiencing record levels of bidding activity and expect to achieve our target growth of 25% for 2017,” he asserts. “The GCC is a developing market with many clients seeking companies who can value-add. Many clients are packaging large projects or multiple projects, often opting for the simplicity of the major multidiscipline route. In such instances, specialist independent MEP consultants are excluded from the opportunity on many major schemes at design stage.”
Cathy Christer, partner and head of MEP at godwin Austen Johnson. 03 Ecology and energy conservation are prime concerns in the MEP industry. 01
02
Technology trending
Technologies are also shaping and determining the future of the MEP business. Furthermore, using BIM models, MEP consultants can perform multidisciplinary collaboration and coordination, and review cycles faster while making their designs more efficient. This in turn has helped MEP engineers to reduce turnaround time and provide efficient designs while reducing the overall cost of the project. “Currently, new technologies are available to aid the MEP sector. With BIM leading the way in the construction industry, there is more collaboration across teams, which implies that MEP designers can now
“The only way in which the industry can address this challenge will be by embracing change, focusing on innovation and working differently than before” 22 MARCH 2017
perform accurate electric and solar lighting analysis within the design environment,” says Arfath. “Clients seek software that lets them experience their ideas virtually, so they design more affordably, more quickly, more sustainably and with more innovation. This software also creates more integration and collaboration between fields that usually would have been separate entities. There is now more integration and no longer a gap between conceptualisation and manufacturing, or better yet fabrication and design, of a certain project,” he continues. According to GAJ’s Christer, manufacturers in the MEP field constantly update their products to respond to market demand. She is currently seeing huge changes in the lighting and controls fields, and more app-driven commissioning and interrogation of systems. “This approach opens up knowledge on system performance to a wider field, which can be a good thing to drive improved building performance,” she notes. Ecology considerations
Furthermore, ecology and energy conservation are steadily becoming prime concerns in the industry. In her opinion, this trend will continue as the cost of utilities increases. “Our projects aim to reduce the energy consumption for our clients and many have set benchmarks in sustainable design, construction and operation,” she contends. According to Arcadis’ Donovan, with the advancement in BIM technology and the increased ability to integrate complex building systems in real time, there is a tremendous opportunity to disrupt the commercial MEP construction process by building more components off-site. This would provide scope to secure efficiency savings in the complex MEP site works and installation phases, and could help teams complete projects quicker than before. “Introducing greater levels of repetition in the core design of major architectural components will allow for an early MEP design freeze and earlier MEP-contractor engagement. This in turn will see a
IN PRACTICE
“The market has gotten a lot bigger, a lot faster and a lot more complex, especially in terms of buildings going through disruptive technological changes” decrease in the costs associated with any variations,” he says. He also notes that the transition from using computer-aided 2D designs to BIM is already transforming MEP design practices. Over the next twelve months, he expects to see BIM and Revit 3D modelling more widely applied on all MEP systems. Black & White Engineering’s Cairns says he is committed to ensuring the company offers clients the best in new MEP technologies, in tandem with their in-house technical committee tasked with keeping abreast of all new developments, analysing the capabilities of each, evaluating their usefulness for clients, and recommending which products are the best fit for clients and the business. Competition galore
There is near unanimity that competition in the MEP sector is fierce, given the current reality of an increasingly large pool of consultants
dealing with a dwindling pool of contractors. According to Cairns, this represents an opportunity to pick and choose clients even on the same project, meaning a client could be the developer, lead designer, architect, main or management contractor, or MEP contractor. “We are gaining significant wins in working with contractors on D&B projects where we can demonstrate alternative design proposals that offer true value engineering,” he notes. Christer advises: “Competition is intense, and we expect this to continue in the foreseeable future. Listening and the ability to quickly respond to clients’ requirements will be key for anyone to survive and prosper.” Given the highly competitive nature of the industry, are consolidation, mergers and acquisitions the way forward? “There have been many mergers and acquisitions that have taken place over the last few years, and these result in multinationals having 03
MARCH 2017 23
IN PRACTICE
good strength in numbers. My opinion is that mid-size firms are still well placed in the market, as they are able to provide a more agile and reactive response to client requirements,” says Christer. According to Cairns, consolidation is inevitable as the very large multidiscipline consultants strive to hit ever-increasing growth targets that very few, if any, can achieve through organic growth. “Such large practices rarely offer a comparable product to a mid-sized independent practice. Often there is more focus on the P&L than there is on the client end or the quality of the MEP design.” Talent availability
There is also concern that it is becoming increasingly difficult to source good talent and skill sets in potential employees. “We work hard to ensure that we find talent with the correct engineering and personal skills to match the requirements of the post. This is never easy, but the efforts in ensuring a good match are rewarding and essential for the business,” says Christer. “Our region is the hub of human diversity, with grand projects attracting a vast number of experts from around the world. Starting from the construction of the Burj Khalifa and looking forward to Expo 2020 and Qatar 2022, local professionals have gained a significant 04
24 MARCH 2017
“The MEP sector in the UAE is looking bright because of an increase in retrofit and refurbishment opportunities. We are seeing a lot of projects that were constructed over a decade ago that are now coming up for refurbishment”
IN PRACTICE 04 Retrofit and refurbishment opportunities look likely to drive the MEP market for the near future. 05 suhail Arfath, head of Autodesk Consulting, Middle East. 06 Reid Donovan, regional director of MEP solutions for Arcadis ME. 05
expertise in eye-catching projects across the region,” says Arfath. All interviewees affirm that they have training facilities and employeeequipping initiatives in place, particularly in light of the advent of game-changing BIM technologies. “The use of BIM is becoming more widespread, driven partly through local authority requirements, so it is imperative that our team is fully conversant with this tool. We have already made good progress in this 06 area; however, it remains our focus for 2017,” responds Christer. “Sourcing quality staff is always a challenge; however, we are fortunate that our reputation as a company that provides top quality MEP design services to our clients means that we have a large pool of highly qualified and talented engineers eager to join the company,” claims Cairns, who says Black & White Engineering is also very focused on staff retention, ensuring that employees are recognised and rewarded for their valuable contribution to the business’s success. Positive future
The mood for the MEP sector going forward is also cautiously optimistic. “The outlook is positive, provided that changes to approaches and ways of working are embraced. The sector in the UAE is looking bright because of an increase in retrofit and refurbishment opportunities. We are seeing a lot of projects that were constructed over a decade ago that are now coming up for refurbishment. This
provides an excellent opportunity to address sustainability issues to reduce energy consumption, and therefore hotel operating costs, in some of the older hotels,” remarks Christer. In Donovan’s estimation the last 18 months have been a challenging period for the industry. “However, such conditions often serve as a catalyst for driving positive change. It forces consultants and clients to think creatively, embrace new solutions and work more efficiently, all of which ultimately raises standards. Those firms that embrace change, and who invest in bringing new insight and capabilities to the table, will secure a competitive advantage that will help them to stand out.” This view is echoed by Arfath, who says that today AEC firms who fail to adopt technologies and change will be left behind. For example, BIM provides a critical foundation that can help designers, builders and owners gain a competitive advantage with a greater ability to access, share and make useful enormous amounts of information throughout the lifecycle of buildings and infrastructure. “The time has never been more important to embrace new technologies. The market has gotten a lot bigger, a lot faster and a lot more complex, especially in terms of buildings going through disruptive technological changes,” he cautions. Cairns is optimistic, focused on developing relations with partners that are committed to the region and believe in quality. “We have positioned ourselves with a few key partners that understand what we do, the value we bring and how we differentiate ourselves from others,” he says. That must be music to the ears of the community, with the MEP juggernaut in the Middle East on a roll and gaining momentum.
“With BIM leading the way in the construction industry, there is more collaboration across teams, which implies that MEP designers can now perform accurate electric and solar lighting analysis within the design environment” MARCH 2017 25
IN PRACTICE
“I wanted Canvas to appeal to the millennials and Gen Y. This generation is focused on individuality, and wants to be a part of something�
26 MARCH 2017
IN PRACTICE
INTERVIEW
Canvas Creativity Inspired by the passion and mindset that drove the creation of Dubai Design District (D3) and Al Serkal Avenue, Mohammed Bin Zaal is rewriting the rules of Dubai’s real estate sector on a blank Canvas ubai’s real estate firmament has a new rising star. Meet Mohammed Bin Zaal, the youthful, suave, founder-CEO of KOA, a distinctive new boutique real estate company that aims to usurp antiquated ideas and redefine residential living in the UAE. “The real estate industry in the UAE and in Dubai specifically has grown exponentially over the past 10 to 15 years, but it continues to be more of the same,” he remarks in a wide-ranging interview with Middle East Consultant. “There have been no major changes, qualitative or imaginative, in planning, designing or construction during this period. KOA is well positioned to bring that new fresh approach, a welcome variance from the standard, run-of-the-mill style that has dogged the wider real estate sector for a considerable time now.” “KOA aspires to provide people their dream homes, working spaces and communities, and we hope that the ambitions of our investors are well demonstrated and manifested in the finished products of our work,” says the former CEO of Al Barari. Canvas is the embodiment of brand KOA and reflects the personality and signature style of its author and initiator. Bin Zaal best sums up the KOA-Canvas interface: “KOA was inspired by Dubai, the changes that are happening here that are strengthening the cultural proclivities of the region. It is my vision
to bring my ideas to a new generation of residents, global citizens that are part of this cultural and innovative movement, among others notably the burgeoning Dubai Design District (D3) and Al Serkal Avenue, the region’s foremost arts hub.” “They demand homes that follow this ethos. This creative movement is touching so many aspects of the emirate and the wider UAE at large, but has not as yet been introduced into the real estate market. It is my vision to bring this same ethos to the way people live.” Cultural Ethos
The KOA ethos, in his assessment, encompasses three important pillars: craftsmanship, substance and soul. “We bring uniqueness and individuality into every project, and a level of quality and attention to detail that is almost impossible to currently find in the market. KOA’s first development, Canvas, has been strategically designed to foster creativity and collaboration. Through a co-working space and a large outdoor common area, community living is redefined.” Near the Mohammed Bin Rashid Gardens off the Emirates Road (E 611), one of Dubai’s busiest thoroughfares, Canvas is KOA’s first project. Bin Zaal has gone to great lengths to imprint his signature creative and design trademarks, personality and representation. “I wanted Canvas to appeal to the millennials and Gen Y. This generation is focused on individuality, and want to be a part of something,” he says. He believes this community don’t want a mass offering, projects that follow the cookie-cutter approach, amorphous and built on a
MARCH 2017 27
IN PRACTICE
mass scale. “Canvas is about creating something that meets the demands and expectations of this generation, and about workmanship, distinction and identity. Everything about KOA, from the 43 unique floor plans, the choice of material, design direction, the amenities that are focused on social interaction, is a showcase of our ethos.” 01
All-inclusive amenities
Canvas is a 70-unit complex comprising studios and one-, two- and three-bedroom apartments, with 43 unique floor plans. It boasts 200,000 sq ft of indigenous landscaped gardens, with 80% of the vegetation indigenous to the region, unprecedented for an apartment complex according to Bin Zaal. It offers 24x7 security, paddle tennis courts, a natural sand amphitheatre and three pools – a pool for adults, a 25mx3.3m lap pool and a family pool. Canvas’s community will also offer residents and visitors multiple services and amenities, complemented by an array of retail concepts. Other amenities include a private outdoor dining area, a day-care centre, a kids’ play area, a dry fountain, a steam room, three treatment rooms, a Turkish-style hammam, an event amphitheatre, a screening room and even a gourmet market. Additional facilities include a photography studio, laundry pickup, ATM, salon and fitness studio. Other add-ons and conveniences include restaurants, storage rooms, maid rooms and, importantly,
co-working spaces. “Investors can expect to find every convenience on their doorstep. We designed Canvas to enhance the lifestyles of its residents,” Bin Zaal adds. Canvas is focused on the millennial and Gen Y market that the brand is expected to appeal to. Many investors are first-time buyers wanting to make investments that guarantee healthy growth and financial returns. Canvas allows customisation and special modification in very exceptional cases, and only when it does not affect the overall ethos and plan of the development. “The way we priced the construction, the way we are marketing ourselves, the way the building has been designed, has always been about meeting the demands of this demographic community. We see the key audience for the project as end users, those who have been in Dubai for some time and are ready to make it their home, and they are just waiting for the right development. We see Canvas as the property product that would give them the confidence to make their home in Dubai.” 02 01 Canvas aims to target the millennial and Gen Y market. 02 The project has been designed to meet the needs of a creative community. 03 KOA aims to challenge the status quo of how developments are thought of regionally.
28 MARCH 2017
IN PRACTICE
“We bring uniqueness and individuality into every project, and a level of quality and attention to detail that is almost impossible to currently find in the market” Encouraging response
The positive response has been overwhelming, with potential investors drawn to this project for both its uniqueness and its flexibility. “Generation Y investors are savvy and sophisticated. We have created and developed an idea, an initiative in real time that appeals to their lifestyle and is in sync with their expectations. Canvas is clearly something that has been a long time coming in the market, and people are ready for it. This is demonstrated in the levels of sales we have attained,” Bin Zaal remarks. T.ZED Architects is the lead architect on this project, and Bin Zaal characterises the KOA-T.ZED partnership as a synergy between like-minded brands. He says T.ZED, in tandem with KOA, will be
instrumental in bringing projects to reality. “All aspects of KOA projects will seek to push design boundaries, taking inspiration from around the world to ensure a fresh new aesthetic across all projects. KOA wants to change the way people work and live, with residential communities that are more than just apartments, and T.ZED will be an integral part of the joint efforts to realise this vision.” Sustainability and concern for the ecology and environment are also priorities for KOA. The landscaping will comprise plants native to the region and in keeping with the natural habitat, which means fewer resources are required to sustain it. The building itself is a case study in sustainable practices. Tarik Zaharna is the founder and director of T.ZED Architects. Now
Mohammed Bin Zaal Mohammed Bin Zaal is an entrepreneur from the UAE who has helped shape the property landscape in Dubai. As the developer and former CEO of Al Barari, Mohammed Bin Zaal set a new benchmark in real estate design through this project, which focused on enriching lifestyles through a connection to nature, culture and unmatched amenities. As CEO, Bin Zaal grew the company from ten employees to over 500 and, in the process, created a company now valued at $6.4bn. Adding to Bin Zaal’s impressive career, he has also founded other companies, including Sustainable Builders and Wojood Facilities Management. Named in the Construction Power 10 and 100 Most Powerful Arabs under 40 lists, Bin Zaal has already earned numerous accolades. MARCH 2017 29
IN PRACTICE
based in Dubai, his work experience across Europe, North America and the Middle East has further honed his abilities to practise architecture globally. T.ZED Architects is the second architecture and design practice he has founded in Dubai. As the architect of record for Canvas, he takes both the opportunities and the challenges of this demanding project in his stride. “KOA Canvas, the first development under KOA, needed to set the precedent not only for future developments under KOA, but also needed to challenge the status quo of how developments are thought of regionally. We were mandated the task of creating a culturally and contextually rich project that allows people to live, work and socialise in a space that will be familiar to all, while remaining unique and personalised to each user’s needs,” he says. T.ZED in tandem
“There are many things that excite me about Canvas,” Zaharna continues. “One of them is the fact that this building will weather and will stand the test of time in this arid desert climate. This is due to
Tarik Zaharna Founder and director of T.ZED Architects Tarik Zaharna is a graduate of the Bartlett School in London and has a wide range of international professional experience, working for Urban A&O in New York and Bolles+Wilson in Germany. He has a passion for developing an architectural and design language in the Middle East, nurturing the humble beginnings of what could become a dynamic new architectural movement. He is also a founding member of Design Ras Al Khor (DRAK), a homegrown international design initiative founded by pioneering regional designers, as well as a mentor selected by the British Council for the Cultural Excellence Fellowship Programme launched by the Abu Dhabi Music and Art Foundation. 30 MARCH 2017
“The public and social aspect of the architecture has really resulted in us walking through the design time and again to ensure that experiences are rarely repeated as the building transforms use depending on the time of day”
IN PRACTICE
Canvas: Highlights • Project value: AED 250 million • Project start: Q1 2017 • Project completion: Phase 1 and 2 – Q2 2018; Phase 3 – Q1 2019 • Scheduled duration: 18 months • Lead consultant: Emkaan Architecture and Engineering Consultancy • Additional consultant: Kulkarni Quantity Surveyors • Architect: T.ZED • Landscaping consultant: Kamelia Zaal • Facilities management services provider: Etisalat Facilities Management • Area of studio, 1-, 2- and 3-bedroom apartments: 630-4,944 sq ft • Estimated cost of apartments: AED 1,000-1,200 per sq ft
03
a fine balance between using the right materials for external cladding, landscaping and moulding the architecture in a way that relates to the sun path and wind direction. For the first time in the Middle East, thermally modified tulipwood will be used as a cladding element that transforms into outdoor shaded walkways, as well as an elevated public balcony.” “Out of the 70 living units designed, 43 are unique and have been designed individually to a high level of detail. The public and social aspect of the architecture has really resulted in us walking through the design time and again to ensure that experiences are rarely repeated as the building transforms use depending on the time of day.” He continues to wax eloquent on Canvas, a project he describes as initiated by a highly motivated, visionary client very much in
line with his own ethos at T.ZED. “It is contextually relevant and aims to contemporarise regional architecture. Although a large-scale project, it is approached with all the finesse, craft and detailing to the level of a niche-scale design.” He believes Canvas allows both KOA and T.ZED to showcase their skill sets in renovating an existing structure and building a fivestorey plus penthouse level new-build, as well as designing villas. He sees this project as truly programme-rich, with as much attention paid to the public aspects as the private living units. Zaharna hopes Canvas will really shift the way architects and developers think about this type of project. For his part, he is happy to demonstrate the benefits of using natural materials wherever possible in the interest of ecology and the environment. Canvas allows open public social spaces to occur, he asserts. “Many times the importance of these areas have been overlooked. At Canvas, priority is given to them through good design and an appreciation that they are key components to a successful development.” MARCH 2017 31
ON SITE
INTERVIEW
Cooking up ideas Rami Salous, founder & CEO of Lamar Interiors, talks about his forays into the restaurant and F&B sector, and how he’s bringing his distinct touch to the culinary scene
I
t is difficult to box Rami Salous. An entrepreneur and a professional designer by trade, he has over a decade and a half of experience in the field of architecture, interiors and fit-outs. He has also ventured into his passion for Middle Eastern gastronomy with the Kitchen Nation series of restaurants, and more recently his signature Rumann House outlets. On a recent visit to Dubai, Salous sat down for an exclusive interview with Middle East Consultant.
the UAE, and they advised me to start my business here. They were looking for someone they trusted to handle their projects here in the UAE, and that is how Lamar Interiors began. Our first project in Dubai was Petra Aluminium. Your portfolio is vast and covers many niche sectors. What does this say about the scope and scale of your work expertise and output?
My father, Akram Salous, was one of the first people to work in the construction sector in my native Jordan. He started his career in the early 1950s when construction was still in its infancy in the Kingdom and there were not many people involved in this industry at that time. Then he worked almost single-handedly on projects. He subsequently moved on to become a contractor and then a developer. He was the first to develop real estate and apartments. It was then that I developed a passion for architecture, because of my father. At the age of seven, I used to go with him to different projects and sites, even on vacations and weekends, I accompanied him everywhere to learn more about construction and related businesses.
My current portfolio always includes big projects. Given our reputable track record in Jordan, our clients know us well and are aware of our consistency and commitment. When it comes to fit-outs specifically, we typically enter projects that are worth $30-40 million in both Jordan and Dubai. I made my foray into F&B because of my passion for the culinary arts. For me, the concept of food is much more than cooking or the taste – I am intimately and exhaustively involved in the design, fit-out, supervision, cost management, inventory, procurement, even the choice of foods and the menu. Our service as a fit-out and design company is much more than just construction and design. When it comes to F&B, we help our clients with everything they need within the F&B segment, all the way down to the smallest considerations such as the menu card, crockery and cutlery, and choice of cooking utensils.
Talk to us about the symbiosis between Lamar Construction
You are credited with initiating Kitchen Nation, the UAE’s first
(Amman) and Lamar Interiors (Dubai).
food incubator, and playing a role in getting the food truck trend
Lamar Construction initially started off in Amman. Then there were so many clients, friends and acquaintances who were doing business in
on the road. Talk to us about the thinking behind that concept,
How
has
your
01
family
background shaped your career?
32 MARCH 2017
which includes your trademark interior designs.
ON SITE
“When it comes to F&B, we help our clients with everything they need within the F&B segment, all the way down to the smallest considerations” As mentioned earlier, I have a strong passion for F&B. I believe that cooking is an art, and the idea of Kitchen Nation’s design is exactly that. We wanted people to come and see our kitchen – it should not be and is not out of bounds, but accessible to patrons. Here you can see exactly what the chef is cooking, what he is mixing and how he or she is handling your food. We wanted it to be neat and open-spaced, with live stations. Thus the concept of Kitchen Nation matches the design.
Fitness Clubs chain in Jordan?
How did Kitchen Nation evolve into your signature Rumman
What are your expansion plans for Lamar Construction and
House brand?
Lamar Interiors?
When it comes to Rumman House, I felt that since I have the kitchen, we can come up with ideas, and I already had an idea. Nothing should stop me from opening up my own signature restaurant. I wanted Kitchen Nation to bear my trademark and imprint it with my personality. I wanted to demonstrate to my clients my versatility while also providing them a fine-dining option.
Right now, Lamar is looking to expand in Saudi Arabia and Qatar. We have an office and stand-alone showroom in Riyadh. I am not rushing, though, as it is very important for us to maintain our good reputation and consistently provide quality work. I choose capabilities before expansion.
Vega Fitness is one of our signature Jordan projects, along with the Queen Alia Hotel and the airport in Amman. This strong brand name provides us strong credibility in the region. Regarding fitness, I do have a good understanding of the trends in that sector. As a fitness freak myself, I have good experience when it comes to the design, the spaces, the décor, the training regimen and equipment. Even when it comes to management and cash flow, I always make sure to keep up to date.
What are the challenges facing interior design in the region? To what do you attribute the success of another venture, the Vega
One of the things to think about is that the competition is very high in the region, and financial resources are becoming 02 more and more limited and stretched because of the current economic downturn. Competition is also getting intense. Despite the existing challenges, I am confident our human and professional resources will see us through. 01 Rami Salous’ Lamar Interiors has a portfolio that covers F&B, fitness centres, residences and commercial spaces. 02 Kitchen Nation has been designed so that its kitchen is accessible to patrons.
MARCH 2017 33
ON SITE
“In any interior, the floor is fundamental. It has a big impact on both the look and feel of a space. As any surface, it has to withstand the wear and tear of feet and furniture” 34 MARCH 2017
ON SITE
DESIGN
On a firm footing Business for companies providing flooring solutions in the GCC is going through the roof. The industry is one of the fastest growing in the region, as Malcolm Dias finds out he flooring industry, clearly on a roll, shows no sign of bottoming out and interestingly is one of the sectors on top of the construction stack. One of the fastest growing segments in the Gulf region, floor tiles alone as a product category constitute the largest product segment for the ceramic tiles market, accounting for over 50% of market volume, according to industry sources. Flooring is an integral part of any construction project, which makes it an important design and architectural choice for any development. Not only should it be beautiful and add a sense of personality to a space, but it must also be practical to meet the demands of customers. Exponential industrial growth in the GCC, fuelled by heavy government investment, will also play a vital role in growth for the flooring business, as all industrial facilities need fit-for-purpose floors. The market is certainly design-driven, experts point out, and is very close to leading design trends in Europe and the US. Flooring, guided by aesthetics, practicality and purposefulness, is evolving using the latest trends. With a high percentage of new-build versus refurbishment, the region has a higher uptake of new products than other parts of the world, making the case for phenomenal growth of the flooring industry. The emergence of floor tiles as an eco-friendly replacement for hardwood and other flooring options is a key driver for this increase in demand. Coupled with superior qualities compared to other flooring options, such as high durability, frost and thermal shock resistance and ease of maintenance, it is expected that this product segment will continue to grow. “Tiles are now the most popular choice and are chosen over most flooring alternatives, due to their long life and durability. The quality of tiles chosen and skilful laying are both very important factors in increasing the lifespan and keeping floors looking beautiful for longer,” affirms Steve Allen, head of corporate communications, RAK Ceramics.
Tile production is a core business for RAK Ceramics, and flooring is a big part of its tile business. The company produces 110 million sqm of ceramic wall and floor tiles annually, he says. “Ceramic tile floors are popular because they’re easy to clean and their stain-resistant properties mean they stay clean and fresh-looking for longer.” The flooring sector in the GCC is highly competitive, and while ceramic tiles are still a popular choice for flooring applications in the region, there are also many alternatives available, especially in commercial and infrastructure segments. This has an impact on market opportunities, mainly because the substitutes are more economical. The current state of the industry looks stable, although demand has been marginally affected by global economic uncertainty and, for RAK Ceramics, by the removal of high-denomination rupee notes in India, a substantial market for the company. “Sustainability remains a key concern for the industry and we are committed to sustainable practices throughout our manufacturing chain. Globally, other than customisation and 3D tiles, there is a trend towards manufacturing eco-friendly products,” Allen explains, adding that technology is also rapidly moving into this arena and the emerging trend of 3D printing will continue to develop. “With the technology now available, it is possible to produce 3D tiles with more textured patterns using digital printing technology customised to suit a client’s needs. Ridges, whirls, bumps and shifts in grain are all possible, enabling manufacturers to create both unique visual experiences and more tactile surfaces.” “Along with market fluctuations, China presents the most imminent challenge for the flooring market in the region, whose low-cost products appeal to the price-sensitive GCC tiles market. This influx has forced many GCC manufacturers to target only the high-end market, as Chinese products tend to dominate the low end.” The global ceramic tile market is projected to reach $125.32 billion by 2020, growing from 12.3 billion sqm in 2013 to 21.8 billion sqm by 2020. MARCH 2017 35
ON SITE
01 Ruth Waugh, international business development director at Twintec ME. 02 Stefano Iannacone, regional
UK-headquartered Twintec has a long-standing track record of designing and constructing high-tolerance floor slabs worldwide. According to Ruth Waugh, international business development director, Middle East, the specialist design and build floor 01 contractor hopes to build 500,000sqm of floor space this year. “The floor slab is critical for the efficient operation and life cost of a new facility. For example, a warehouse with VNA (very narrow aisle) racking requires a high flatness tolerance to be able to operate the MHE (materials handling equipment) efficiently and safely. An inferior designed or constructed floor slab will necessitate great expense to rectify and reduce facility operations and efficiency,” she comments. “Optimised design solutions, 02 quality materials, skilled and experienced workers, efficient equipment and the appropriate working environment provided by the general contractor. It is a team effort to produce the best outcomes,” she says. Each project should be considered individually and the requirements of the end user investigated thoroughly to ensure the floor slab meets the current and potential future needs of the business. This includes building use (storage, manufacturing), temperature control (freezer or chilled storage), racking and MHE movements, specific manufacturing equipment or aircraft types, materials being stored or manufactured… no one design fits all. VNA racking requires a very flat floor to operate efficiently and safely. All too often floors are constructed and then require extensive grinding within the aisles to achieve the flatness tolerance specified. “Twintec
“An inferior designed or constructed floor slab will necessitate great expense to rectify and reduce facility operations and efficiency” 36 MARCH 2017
managing director at MAPEI. 03 Steve Allen, head of corporate communications for RAK Ceramics. 04 Matt Hall, architect and design sales, and key account manager for Interface ME.
designed and constructed a floor slab to tolerance, maintaining all the advantages of a large-panel jointless SFRC (steel fibre reinforced concrete) floor slab. The independent survey reports an overall 99.4% compliance,” Waugh says. Floors in the Middle East have greatly improved over recent years and international proven technology has been adopted by many end users and consultants who are open to innovations within floor slab design and construction. There is still a trend to focus on build cost rather than the life cost of the building – investing in the floor slab is critical for long-term durability and business efficiencies. Twintec plans to introduce new products to the Middle East that have been tried and tested within the Twintec Group worldwide for the past few years. These include totally seamless floor slabs that have no saw-cuts and no opening construction joints, and advanced admixtures that greatly reduce the shrinkage properties of the concrete. “The flooring sector in the Middle East is very important, and while in the overall flooring category Interface is a marginal player, we are one of the market leaders in the carpet tile business,” asserts Matt Hall, architect and design sales, and key account manager for Interface Middle East. “Interface’s level of involvement within the carpet flooring business is high. Interface is leading a workplace revolution where creativity is put ahead of efficiency and productivity. Spaces are designed to foster collaboration, and to create a sense of identity. This has a huge impact on our products, and the way Interface makes them,” he observes. “By following principles of biomimicry, Interface created a design platform featuring carpet tiles that vary from one to the other within each style and colour. With a non-directional style install one can even get less waste – 1.5% for non-directional styles, compared to an average waste factor of 14% for traditional roll carpet.” Squares are the core elements in the Interface system. The shapes work in any combination, with limitless possibilities to create the seamless look of broadloom carpet, in addition to pattern options to provide a
ON SITE
“The more specialised the products and the floor finish, perhaps the less competitive it becomes” dramatic geometric effect. “In any interior, the floor is fundamental. It has a big impact on both the look and feel of a space. As any surface, it has to withstand the wear and tear of feet and furniture.” “At Interface, we create floors that combine visual appeal, functional performance and design freedom. We do this with modular carpet, a concept we invented to meet the fast-changing needs of the workplace,”’ he continues. MAPEI is a top supplier of construction chemicals, and is heavily involved in the flooring market. The company supplies a variety of products to the numerous flooring installers in the region. Its portfolio is varied and includes adhesives, grouts, screeds, sealants, self-levelling compounds and resin floors. All floors require regular maintenance to make sure they remain clean and durable, with the amount of maintenance depending on the type and often the initial quality of the covering. For example, marble and ceramic floors need a simple wash-down on a daily basis and perhaps a polish once a week, depending on traffic. Wood floors may require specialist detergents so as not to affect the wood or lacquer. All floors are different and require a different maintenance regime. Like many other areas of construction, the more budget allocated to the floor in the design and installation stage, the lower the maintenance costs. 03 According to Stefano Iannacone, regional managing director of MAPEI Construction Chemicals, there are varying considerations for floorings for homes, industrial properties and other developments. For homes, the focus is aesthetics, and in this region many go for ceramics and marble since they can also offer a cooling effect. Designers of residential units mainly focus on the look of the flooring, since they will not be subjected 04
to heavy traffic. On industrial properties, epoxy and polyurethane are usually preferred. Examples include food processing plants and factories where the flooring needs to be able to hold heavy traffic and perhaps be resistant to chemicals. Hotels and commercial properties often opt for carpets, since they experience heavy traffic yet need to be comfortable at the same time. Hospitals need flooring which is easy to clean, sterile and seamless for trolleys and hospital beds to move over easily. This is why they choose a resilient covering such as PVC, rubber or linoleum. According to Iannacone, the flooring sector is just as competitive as any other sector in this region. “The UAE, for example, is very developed and there are many companies supplying many floor finish products. The large sections within the flooring market, such as car park floorings, are very competitive due to the fact that there are a lot of square metres and everyone wants their share. The more specialised the products and the floor finish, perhaps the less competitive it becomes,” he says. Traditionally, the Middle East’s choice floor finish is tiles – ceramic, porcelain or marble. However, there is currently an increase in wooden flooring, both solid and engineered. The industrial look – concrete floors – is also becoming more popular in shops, residential and office buildings. With the introduction of new types of flooring, designers have a wider choice when specifying products. It is also of benefit to the end clients, since they too have a wider choice of floors. MAPEI’s researchers have developed large-format porcelain tiles such as Laminum. These tiles can have surface areas of over 3sqm, so specialist tile adhesives are required to install them. The biggest challenge facing the construction industry, and the flooring industry as a spin-off, is perhaps the low oil prices and in turn lower public spending budgets. However, countries such as the UAE with diversified economies, and continued investment in development infrastructure by GCC countries, continue to provide a muchneeded boost to the construction sector. The refurbishment market and obsolescence are also significant factors for optimism. “There are numerous projects in this region that have been completed and used for a number of years. This means that they are due for maintenance and renovation, which is a whole new market sector for us,” concludes Iannacone. MARCH 2017 37
ON SITE
KSA gas project to have locally made gas turbines Siemens will supply five F-class gas turbines to the Fadhili Combined Heat and Power (CHP) plant in Saudi Arabia. With a generating capacity of 1,200MW, the plant will supply electricity and process steam to a new natural gas extraction plant in Fadhili, around 120km northwest of Dammam. The turbines will be produced at the Siemens Dammam Energy Hub (SDEH), the Middle East’s largest gas turbine manufacturing facility. The project is led by Doosan Heavy Industries and Construction, the Engineering, Procurement and Construction (EPC) partner with whom Siemens inked the supply agreement for a 16-year long-term service contract for the gas turbines. The Fadhili CHP plant is jointly owned by Saudi Electricity Company (30%), Saudi Aramco Power Holding Company (30%) and the developer (40%), an ENGIE affiliate. In addition to the turbines, Siemens’ scope of supply includes five generators and a control system, all of which will be commissioned onsite. The long-term service agreement covers maintenance services for the turbines, including advanced power diagnostics services, which is part of the company’s Digital Services for Energy portfolio.
38 MARCH 2017
Coloured solar panels to debut on Dubai buildings Coloured solar panels and photovoltaics from Emirates Insolaire, a joint venture of Dubai Investments and SwissINSO, a Switzerlandbased pioneer in solar technologies, will soon be coming to Dubai, the company announced at Solar Middle East 2017. Emirates Insolaire, which pioneered the Kromatix coloured solar technology, reportedly the first of its kind in the world, also announced that discussions with different authorities and companies across Dubai are in final stages on installing the panels in buildings. “The Kromatix solar panels can supply between 20% and 60% of needed energy for a building and for certain industries with large roof and façades, this can go up to 100%. “Emirates Insolaire expects to play a pivotal role in the regional solar sector growth,” affirmed Rafic Hanbali, managing partner, Emirates Insolaire. The solar panels from Emirates Insolaire also offer high efficiency in generating energy from solar power, with each photovoltaic module capable of generating 170W to 190W per sqm for roof installation or 110 to 130W per sqm for façade installation, Hanbali explained further.
ON SITE
SSH unveils design of Marassi Boulevard
Six Construct completes QPMC’s Gabbro terminal Six Construct, a subsidiary of the BESIX Group, has announced the completion of the expansion project for the Gabbro terminal in Mesaieed for Qatar Primary Materials company (QPMC). According to a Six Construct press release, the company, in consortium with Danish engineering group FLSMidth, recently completed the expansion of the Gabbro Terminal, doubling the capacity of the terminal by replacing the current operation system (4,000 daily rotations) with a state-of-the-art conveyor system, which will help boost the terminal’s annual turnover to an impressive 30 million tons of aggregate. To support the new, streamlined supply chain, Six Construct was responsible for building the auxiliary infrastructure, such as substations and weigh bridges, and installing the electro-mechanical equipment. Within the first few months of the project, Six Construct was also awarded two additional 33KV substations, feeding the main project under a separate EPC contract. “The overall concept was to keep the existing offloading cranes, while optimising their maximum capacity by removing the trucking operations, which was the main bottle neck of the process,” explained Frederic Brunelle, project director of Six Construct. Each stacker, weighing 260 tons, travels on a 900m-long rail and piles the materials up to 20m high. The total process allows material to be stored from the vessel to the stockpile in approximately 25 minutes and replaces up to 4,000 daily truck rotations in the berth.
SSH has unveiled the design of Marassi Boulevard, a residential mixed-use development within Marassi Al Bahrain, the Kingdom’s premier urban waterfront project. A highly distinguished urban project developed as a joint venture between Diyar Al Muharraq, one of the leading urban developers in Bahrain, and Eagle Hills, a UAE private real estate company, Marassi Al Bahrain is just a few minutes away from the kingdom’s business centre and airport and connected to the mainland via two major highways. Marassi Boulevard consists of four low-rise residential buildings of seven to 10 floors, including more than 240 homes, from studios to three-bedroom apartments, and comprising 700sqm of community retail. It features contemporary architecture that blends with the local climate and boasts views of the vibrant streetscape, combining community living with an urban feel. “With a strong focus on building communities, we are excited to have contributed to the growth of the Marassi Al Bahrain community,” commented Andrew Barwick, the resident director of SSH’s operations in Bahrain.
MARCH 2017 39
THE BACK PAGE
LAST WORD 01 Bruce Edwards has been a transportation professional for more than 40 years, with experience in aviation and rail.
Upping the Saudisation drive The Jeep may be an off-road vehicle, but at Riyadh Metro Transit Consultants (RMTC) in Saudi Arabia, JEEP means Saudisation
01
S
audisation is the national policy of the Kingdom of Saudi Arabia (KSA) that aims to reduce unemployment and bring more Saudis into positions historically held by foreign workers. To achieve this aim, the Saudi Ministry of Labour has introduced the Nitaqat programme, requiring that foreignheld companies employ a percentage of Saudi nationals on business ventures within the Kingdom (there is a range or zone identified for companies on a case-by-case basis). 40 MARCH 2017
RMTC sees this as an extraordinary business opportunity, particularly because many young Saudi nationals are completing their university work and entering the job market. We want to go beyond the government’s Nitaqat and our contractual requirements for Saudisation; we believe we have a moral commitment to actively recruit qualified Saudi nationals. In the interest of Saudisation, we are working to staff not just engineering positions, but core functions within our management team as well. And it doesn’t stop there. We are going a step further with our Junior Engineer Education Programme ( JEEP) to actively recruit new Saudi graduates fresh out of university, invest in their professional development and build a sustainable core competency in rail engineering and management within the Kingdom. In January 2015, RMTC was meeting the government’s Nitaqat requirements, but our staff was forecast to double in the coming year so we needed an innovative solution to increase the number of Saudis we were bringing aboard. In May 2015, RMTC was invited to Washington, DC to participate in a Saudi Arabian Cultural Mission (SACM) event introducing new Saudi graduates (educated in North America) to potential employers in KSA.
The one question that the team was consistently asked was: “Do you offer any additional training that would help me in my career?” This question became the inspiration for our JEEP programme. Our commitment to the ADA has always been to provide on-the-job training and knowledge transfer; however, the team never envisioned the enormous potential success of the training and knowledge transfer process if the focus were directed at fresh graduates. Working with the support of the Arriyadh Development Authority, the RMTC TM team developed plans to tap this huge potential professional resource of inexperienced graduates. With the full support, encouragement and approbation of our project leadership team and our client, the ADA, we currently have 55 Saudi nationals in the JEEP programme and a new group started in September 2016. So, has our innovative idea worked? Absolutely! RMTC has had a 100% increase in professional staff since January 2015, currently employing more than 820 people. As a result of JEEP, we have improved our Nitaqat percentage by 50% in the same period (and quadrupled the number of Saudi nationals hired for the team). We believe this innovative approach to employing and training fresh Saudi graduates is a roadmap for the future.
RIGHT WHERE YOU NEED US.
We now have a permanent base in the Middle East.
Purlins supply and support for the Middle East ยง Engineered Solutions: Metsec works closely with structural engineers and steel fabricators to add value and design expertise ensuring long term compliance and performance ยง Complete System Delivery: Metsec provides complete systems, including all accessories, that are compliant with quality accreditations including ISO9001, CE Marking and PAS 99 ยง Regional Experience: Metsec has already supplied a range of landmark projects in the Middle East ยง Reliable and Trustworthy: Metsec considers all work with customers as a partnership, priding itself on its superior customer service and technical support in all areas ยง Design software: Our free MetSPEC software optimises the design of our systems that are also covered by our Professional Indemnity Insurance
To discuss your purlin needs for the Middle East call us on +971 (0) 4 8870704 ext. 226 or visit the website: metsec.com/middle-east
by voestalpine
Materials that inspire ideas. Shapes and hues designed to freely express your style. Unique and inspiring products with unlimited choice. RAK Ceramics gives you limitless imagination.
SHINE STONE
RAKCERAMICS.COM