26 | May 2016
InsIght and analysIs for constructIon specIalIsts
on topic
How consultants are propelling medical tourism in the region Insight
A consultant’s role in the UAE’s diversification agenda
designing destinations Paul Priest sheds light on new regional business opportunities
CONTENTS
May 2016
04 04
On topic
07
news and VIews frOM acrOss the MIddLe east OnLIne news
CPI’s digital platform for construction news
07
12
On tOpIc
Understanding how healthcare consultants can help propel medical tourism
12 12
18
In practice anaLysIs, InsIghts and InterVIews
30 InterVIew
Paul Priest of Benoy speaks to ME Consultant about their approach to design and their take on Iran
18
prOfILe
Tom Smith of WSP | PB speaks about their global strategy and property markets in the GCC
26
InsIght
Analysing the role that multi-discipline consultants play in the UAE's diversification agenda
30 30
26
34
On site case studIes, OpInIOns and snapshOts
InfOgraphIc
The top 12 facts about The Tower
34
OpInIOn
Tarana Daroogar of MAPEI speaks about how the chemicals industry can be more sustainable in terms of its products
37
update
Warner Bros. World Abu Dhabi is set to launch in 2018
40
fInaL wOrd
Pedram Rad of U+A talks about the education and hospitality sector and business opportunities in the Middle East
37 May 2016 Middle East Consultant 1
WELCOME
Editor’s note PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713
Changing Tides
D
Editorial
iversification is a key practice of any successful organisation or government these days, and this month’s Middle East Consultant highlights its importance. To begin with, multi-discipline consultants are seeing a lot of business potential and new services in the Middle East as countries like the UAE and Saudi Arabia steer away from being oil dependent. But this is not limited to traditional construction services anymore. Things like facilities management are being given a lot of attention, as clients are becoming increasingly aware that they spend more money once a project is completed than during construction. Other non-construction services like IT and security are gaining traction too. For instance, Paul Priest points out that Benoy has started audio-visual and motion graphics services for clients, as the firm has realised it is an effective way to explain different elements of a project and secure approval. Other focus areas like medical tourism also give consultants the opportunity to look for ways to propel places like Dubai and Saudi Arabia as wellness destinations. Lastly, my meeting with Tom Smith from WSP | Parsons Brinckerhoff was equally insightful, and it was interesting to hear about how the region, particularly Dubai, has evolved into a more mature market. I think the fact that developers and governments are carefully considering where to invest rather than just constructing one project after another is commendable. I’m sure that these conscious decisions will inspire investors further and give them a lot more confidence in the Middle East markets.
CONSULTING EDITOR GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 DEPUTY EDITOR DAVINA MUNRO davina.munro@cpimediagroup.com +971 4 375 5475 SUB EDITOR AELRED DOYLE aelred.doyle@cpimediagroup.com
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© Copyright 2016 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.
May 2016 Middle East Consultant 3
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Al Fahid Island among 27 Abu Dhabi projects approved in Q4 The Abu Dhabi Urban Planning Council approved 27 major projects in the last quarter of 2015. See photo galleries at: meconstructionnews.com/photos
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Explaining Dubai’s
“The first lesson should be to actually construct buildings properly, before selling the idea of ‘premium’ or ‘luxury’, which has mostly turned out to be non-existent. I hope this issue does not get swept up under the rug as a one-off incident, and is seriously taken into account when enforcing new building codes or monitoring how developers design their buildings” Kareem Sadek, comment to story ‘UAE storms bring lessons for construction sector’
new PPP law
Scott Lambert of the Al
READER POLL
Tamimi law firm explains the
What needs to change in the construction industry following the damage caused by the UAE storms?
new law governing publicprivate partnerships
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Green light for Vertical Industrial
City, Dubai Steps Dubai Municipality gets approval for several new megaprojects
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Masdar City in Abu Dhabi
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Aerial view of Mall of Qatar construction works
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When complete the centre will be Qatar’s largest mall, with over 500 stores.
include 2,000 apartments
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outlines 5-year expansion
A nationwide and sweeping overhaul of compulsory building
A new set of voluntary guidelines on weather-proofing for contractors
33% 4% Limited action is needed as such weather is rare
Nothing – extreme weather is a problem everywhere
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com
4 Middle East Consultant May 2016
The world looks better
Creativity: boschyserret.com 3D Image: beauty&thebit
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Dubai | 8 November 2016 Following its hugely successful debut last year, the Middle East Consultant Awards returns in November 2016 to celebrate the GCC’s leading construction specialists in its distinctive and engaging style. Reflecting the diversity of the consulting industry in the GCC, the awards recognise the region’s best multi-discipline construction consultants, architects and the multitude of specialists in structural engineering, MEP, urban design, sustainability, quantity surveyors and cost consultants and all the many other fields that make up all the facets of this wonderful industry. In addition we will be celebrating projects and individuals from junior to senior level, as well as introducing Workplace of the Year. NOMINATION ENQUIRIES Davina Munro Deputy Editor +971 4 375 5475 davina.munro@ cpimediagroup.com SPONSORSHIP OPPORTUNITIES Michael Stansfield Commercial Director +971 4 375 5497 michael.stansfield@ cpimediagroup.com
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HEALTHCARE How healthcare consultants are helping propel medical tourism.
On topic HEALTHCARE
CHECKING THE PULSE
Davina Munro speaks to healthcare experts about boosting medical tourism in the Middle East
O
ver the years, the healthcare industry in the GCC has gathered pace. According to the GCC Healthcare Industry Report 2016 by Alpen Capital, the market is expected to grow at a 12.1% CAGR from an estimated $40.3 billion in 2015 to $71.3 billion in 2020, which can be attributed to an increase in population and the rising cost of treatment. In Saudi Arabia alone, it is expected to reach $27.4 billion by 2020, while in the UAE it will be worth $19.5 billion in the same year. One segment that has gained significant traction within healthcare is medical tourism, and governments like the UAE are diligently working at promoting themselves as a medical tourism destination. Having welcomed 260,000 medical tourists in the first half of 2015, the government of Dubai has unveiled a plan to attract half a million foreign patients annually, which is likely to bring in revenues of AED 2.6 billion ($707.8 million) by 2020. To do this, they have introduced various initiatives to bolster the country’s healthcare infrastructure and the region’s medical tourism offering. For one, the UAE Health Regulation Department will promote medical tourism by issuing new visas to medical tourists and staff, Krishnee Govender, principal health planner at SSH, points out. This will help private hospitals target patients from several areas, including the Arabian Gulf and the Commonwealth of Independent States. Adding to that, Tiana Spence, associate director at CBRE, points out that Dubai Health Authority (DHA) has announced the world’s first medical tourism portal, which enables international medical tourists to book procedures via a central website. “The website offers a range of travel packages inclusive of the cost of medical treatment, visa expenses, accommodation and even recreational May 2016 Middle East Consultant 7
on topic healthcare
NBK Children's Cancer Hospital in Kuwait consists of an out-patient unit, day care facilities and specialist laboratories, among other things.
activities for accompanying family members. This latest incentive supports Dubai’s wider goal of developing a medical sector capable of attracting over 500,000 international tourists annually by the beginning of Expo 2020. “In order to achieve the above target, Dubai plans on building an additional 22 hospitals as part of its healthcare strategy. To achieve this, the public and private sector will need to work together to provide a global standard of medical care at the forefront of international design standards.” There has been progress project-wise as well, with Dubai Health Care City announcing plans to build the world’s largest wellness centre over the next four years in a bid to strengthen the healthcare system as well as drive medical tourism in the emirate.
Bill Jackson, operations manager at Allen & Shariff.
8 Middle East Consultant May 2016
Jim Curran, vice president at CallisonRTKL adds that there have been some exciting medical partnerships too, such as the Cleveland Clinic in Abu Dhabi and Harvard Medical School Centre for Global Health Delivery in Dubai. Not wanting to be left behind, even places like Bahrain, Qatar and Oman are attempting to tap into the action. Alpen Capital’s report points out that Bahrain has planned the construction of Dilmunia Health District, at an estimated cost of $1.6 billion. The 165,000sqm district will feature clinics and hospitals alongside residences, hotels, leisure and wellness clusters on the man-made Dilmunia Island. Oman is also constructing the International Medical City (IMC) at an estimated cost of $1 billion to promote itself as a medical tourism
Tiana Spence, associate director at CBRE.
destination. Apex Medical Group will execute the project in three phases, in partnership with the Oman ministries of tourism and health. As per the plan, the IMC will comprise three clusters – a healthcare complex, a health resort and a medical education complex– across an area of 866,000sqm. The first phase will involve the construction of a 250-bed multi-specialty tertiary care hospital. The next two phases are expected to expand the bed capacity to 530 as well as construct hotels, wellness centres, serviced apartments, colleges and a conventional centre. Despite these efforts, the GCC is still not on a par with other popular healthcare destinations such as Thailand, India and Mexico. One reason may be cost, says Bill Jackson, operations manager at Allen & Shariff Corporation.
Jim Curran, vice president at CallisonRTKL.
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Experience Centre
on topic healthcare
Al Mafraq Dialysis Centre in Abu Dhabi is 67,000 sq ft and features 68 dialysis treatment stations.
Krishnee Govender, principal health planner at SSH.
“Countries with lower labour cost and appropriate settings for a vacation-style recovery certainly undercut the more expensive countries. Cutting cost here would be difficult, just because of lifestyle and the associated cost of living here. The UAE certainly has sufficient attractive places to compete, but might have to settle for targeting the higher-end patients who are primarily concerned with positive clinical outcomes and not necessarily costs.” Both Curran and Govender agree that besides cost, there are other factors that make these destinations more successful – they are easily accessible, affordable and offer a wide variety of travel packages, destinations and medical care. Govender points out that they even offer customised packages tailored to culture, language, diet, comfort, visa, privacy and medical requirements. “For example, the popularity of cosmetic procedures internationally provides opportunity for the UAE to take advantage of its proximity and accessibility to Europe, North Africa and North America,” she advises. “This facilitates reduced travel time and cost, whilst at the same time enabling potential patients to travel in comfort and style as a consequence of the airlines operating in the region. Additionally, international visitors may be able to secure cosmetic or medical procedures for a fraction of the cost of countries in Europe, Asia and North America.” So what role can consultants play in propelling the medical tourism industry forward in the Middle East? One needs to answer the first question patients looking into medical tourism ask:“Is it safe?” For 10 Middle East Consultant May 2016
“In order to differentiate between the myriad of hospital facilities, it is anticipated that the DHA will introduce a star rating system, enabling patients to distinguish between the different hospitals within their budgetary requirements” this, standards or measures of quality such as the JCI Gold Seal of Approval are of primary concern, says Curran. Consultants need to know these high international accreditation standards so that they can ensure that a hospital’s design and processes meet them. Next is to ensure that the amenities offered to patients and their families create a good experience. Govender adds that knowledge of the target market’s demographics, competition, cultural norms, technical and patient requirements for the various medical treatments is necessary. Consultants providing innovative solutions give their clients a competitive edge over rivals. It is thus essential to maximise the design capacity of typical medical tourism treatment areas such as orthopaedic, sports medicine, plastic surgery, ophthalmology, dental procedures, dermatology, preventive medicine and skin care. Another thing to take into consideration is the appeal of hotel-like designed rooms for patients, as less stressful interiors in a hospital are known to tone down anxiety levels, says Jackson. “The facilities in the medical industry are highly
technical and complex in terms of operation, and specialised healthcare consultants are required to design these state-of-the-art facilities accordingly. “But a balance between facility ambience and the provision of good clinical outcomes is required, with the emphasis on the latter to entice potential patients from other countries in the region.” Location is also important; those facilities with proximity to beaches, lakes, etc offer a more vibrant recovery setting. In fact, he expects some centres to have their own hotels and provide constant people coverage for patients during their entire stay. Spence agrees, saying that this kind of wellness tourism will be a key investment market. At CBRE, they expect to see the construction of luxurious health resorts offering healthy living, education, plastic surgery and fitness options. “In order to differentiate between the myriad of hospital facilities, it is anticipated that the DHA will introduce a star rating system, enabling patients to distinguish between the different hospitals within their budgetary requirements,” she adds.
on topic healthcare
Sheikha Salwa Al-Sabah Centre for Stem Cell and Umbilical Cord in Kuwait spreads across 12,000sqm.
Other things that could differentiate these centres from regular hospitals are elements like lobbies for medical tourists. Curran says that you could have sleek restaurants and cafés with WiFi. Retail shops that offer fine gifts and apparel may also be included and patient rooms will be appointed like deluxe guest rooms. Other amenities include celebrity chef meals with wine and concierge services for both patients and their families. However, attracting patients is not the only consideration, he explains. Consultants must also understand the importance of attracting and retaining quality medical professionals – doctors, nurses and support staff, who are often from around the world. “Taking into account the total staff experience, which includes designing quality break rooms and staff lounges, is also essential. Creating a convivial and fluid working environment is as important for staff as it is for the patients, both of which may be far away from friends and family,” he says. While the ideas and objectives are clear, the challenges are many. Govender starts by saying that the four challenges she sees in the design of healthcare are time, quality, cost and mitigation of risk. She explains that each medical specialty has specific design and engineering requirements. The cost of constructing healthcare is more expensive than some other market sectors, so the key challenge is understanding the specific requirements and then providing a sustainable and affordable solution. Curran adds that to meet the needs of the medical tourist, it’s crucial to meet with
physicians and administrators to understand the standards and processes they will be designing to, such as whether the hospital will have one accreditation, such as JCI, or choose a combination of standards. For larger multi-year construction projects, Jackson thinks the primary challenge will be staying abreast of technology and planning infrastructure in a flexible manner in order to see future profit. A non-design and engineering issue that also needs to be addressed by the healthcare industry, according to Spence, is the shortage of local physicians and allied healthcare staff. “To encourage expatriate staff into the region, salaries are generally higher than those achievable in more developed countries, and staff accommodation is required for a large portion of the hospital staff." “This has a detrimental effect on the hospital's overall profitability and is something that requires close monitoring when projecting a hospital’s financial performance. Going forward, we expect a greater focus on staff accommodation options,
staff education and retention initiatives.” Despite the challenges, the demand for healthcare design in the UAE is growing rapidly, largely due to the government’s drive to expand and improve the quality of healthcare. This is on several fronts, Govender points out: constructing new infrastructure, training medical staff, incentivising foreign staff recruitment, and introducing mechanisms to expedite medical staff and patient visas are all positive steps towards improving healthcare in the region. Curran says that designers too are taking up these challenges and are experimenting with better, faster and cheaper ways to deliver care via hospitals, out-patient facilities, neighbourhood and walk-in clinics, and urgent care and after-hours centres. Naturally, this is because the bottom line in medical tourism is to provide top-quality medical care and five-star service. Finally, Spence says that going forward, she expects a greater focus on staff accommodation options, staff education and retention initiatives. She believes that with Dubai’s healthcare sector continuing to mature, both domestic and international investment appetite will increase, primarily due to the industry offering safe returns on investment and being relatively immune to economic fluctuation. “Well-known international hospital operators are expected to continue to move into the region, and we expect to see existing hospitals look into sale and leaseback opportunities. “We expect that Islamic funds interested in investing in Sharia-compliant assets will continue to show interest, resulting in market investment. Taken together, these market shifts are reflective of the positive investment potential of the rapidly growing medical tourism market,” she concludes.
“Taking into account the total staff experience, which includes designing quality break rooms and staff lounges, is also essential. Creating a convivial and fluid working environment is as important for staff as it is for the patients, both of which may be far away from friends and family” May 2016 Middle East Consultant 11
IN PRACTICE bEnoy benoy
12 Middle East Consultant May 2016
IN PRACTICE bEnoy benoy
Interview
DESIGNING DESTINATIONS Davina Munro catches up with Paul Priest of Benoy to talk about what makes destination projects attractive and the opportunity they see in Iran
“The Bahrain Marina project is especially exciting, as it will be the catalyst to the opening of our third studio in the region. We will open our doors there shortly, and the team based there will deliver this master plan project through to construction, which is currently in design stage� May 2016 Middle East Consultant 13
IN PRACTICE benoy
Benoy's ION Orchard in Singapore consists of a 125,000sqm retail centre, an art gallery, a leisure deck and a luxury residential tower.
E
vER SINCE ThE GlObAl ECONOMIC CRISIS IN
2007–08, briefs for major construction projects have seen significant change. The focus is no longer only on creating an iconic structure, but also a destination that enhances the visitor’s experience and generates great value for the communities surrounding it. UK architecture and design firm Benoy is all too familiar with this design philosophy. Having entered the Middle East at the heart of the recession, its focus has always been on designing destinations. Its first project in the region, Ferrari World, is a prime example of how a project can transform a space into a revenue-generating asset that benefits the locale around it. “When the client gave us the brief back in 2007, he asked us to create an icon that would become synonymous with Abu Dhabi. Ferrari World Abu Dhabi is now recognisable around the globe and is intrinsically linked with the emirate and of course with the F1 Grand Prix,” says Paul Priest, director – head of MENA Studios at Benoy. “We believe it is important to create destinations that are ecological, financial and self-sustainable places where people want to spend time at. Additionally, these places must have a cultural and social heart, and are the kinds of environments we strive to create. “Whilst our projects are often considerable in terms of scale, scope and impact, we focus on the human scale and consider the people who will live, work, play and ultimately benefit from visiting any Benoy-designed project.”
14 Middle East Consultant May 2016
Two other developments that stand out as good examples of people-centric projects are The Beach and CityWalk in Dubai. Unlike the typical mixed-use mall environments common in the Middle East, these two massive developments are approximately 31,400 and 81,000sqm in size and are openair low-rise developments. They have a combination of food and beverage, mixed-use retail, entertainment and recreational elements that have been integrated into an urban streetscape. Naturally, with Dubai being a multicultural society with both well-travelled Emiratis and a mix of expats, the city is perhaps more open to international models and influences. The question is whether this kind of destination development will work just as well in more conservative regions of the Middle East. Priest strongly believes that it will. He explains that the region is fundamentally a family-oriented environment. Projects like these are much appreciated as long as they are tailored to the local demands and expectations, and are appealing and accessible to all age groups. Truth be told, he says, developers have started to recognise that social success underpins commercial success, and destinations like these draw a crowd of people who will ultimately spend a lot of time and money. "At Benoy, we’ve seen that people from our new markets are interested in the Dubai ‘quality benchmark’. What we have learned from GCC clients is that people from the region who have travelled to Dubai have experienced a certain standard in terms of aesthetics and efficiency and they now expect similar experiences at home.
IN PRACTICE benoy
"Having delivered here in Dubai and across the UAE, we are in a good position to take the blueprint to other markets. However, I do stress that we do not operate a ‘one size fits all’ and do not merely replicate our designs across the region. We seek to reinterpret design to complement the locale in the most fitting and sensitive way. Geography, history, climate, tradition and modern culture all influence our work as we seek to make projects pertinent and positive." One such project that has opened up a fresh market for Benoy is the Bahrain Marina project. This mixed-use development includes 30,000sqm of retail, family entertainment and waterfront dining. It also includes a 200-plus berth marina with luxury members’ facilities, a 400-key five-star luxury lifestyle hospitality offer with a beach, F&B and leisure amenities and even a freehold residential tower on the water. Like other destination projects, Priest says this development also pays attention to the cultural demands of Bahrain and uses sustainable and renewable energy systems. Additionally, this project has even promoted the firm to set up shop there. “The Bahrain Marina project is especially exciting, as it will be the catalyst to the opening of our third studio in the region. We will open our doors there shortly, and the team based there will deliver this master plan project through to construction, which is currently in design stage.” In terms of other projects, Benoy has undertaken a number of mixed-use and hospitality projects in the UAE. This includes large master plan projects in Sharjah and Ras Al Khaimah, a very significant appointment in Abu Dhabi and a number of leads for projects related to Expo 2020.
With expansion on the agenda, projects in new markets like Egypt, Kenya, Nigeria, Cameroon, Morocco and Sudan have opened up more business prospects, with Iran of particular interest. Following Benoy chairman Graham Cartledge's participation in a British trade delegation earlier this year and the relaxation of trade sanctions, Priest says the firm is sensing real opportunity in Iran. "Iran is an interesting place. I think the immediate reaction from the market was that as soon as implementation day was announced, investment would begin in Iran and everything would return to how it was. However, there are still strategic and technical issues that require resolution.
(Left to right) Benoy's The Beach is an open-air, low-rise development in Dubai. Benoy's work on the extension of La Maquinista in Barcelona will include plazas, a department store, new community buildings and apartments.
“External investment into Iran will promote liberalisation of the economy and drive structural reform, and will allow better integration with the global economy” “Over the last 30 years, there has been a lack of inward investment in Iran and much work is needed to re-establish the country as a secure platform for investment. I believe that there is perhaps a body of five years’ work required to generate and establish the financial and infrastructure mechanisms required to promote growth. External investment into Iran will promote liberalisation of the economy and drive structural reform, and May 2016 Middle East Consultant 15
IN PRACTICE benoy
(Left to right) Benoy's EAST Hotel in Beijing has 369 guest rooms including 23 suites. Supernova in Noida, India is a mixed-use development by Benoy. It consists of luxury residences, large-scale malls, workspaces
will allow better integration with the global economy.” Priest adds that infrastructure and hospitality should be top priority if the country is to attract and accommodate the potential huge influx of visitors for both tourism and business opportunities. Developing national transport systems like roads and airports will be important, as connectivity and accessibility will be needed to maximise the potential of the country. Even the banking industry in Iran is evolving to complement the global financial markets and is considering, for example, Sharia-compliant lending to finance projects. When asked if the firm would consider investing in Iran, Priest says that for the time being they are happy to be able to share their international design, master planning and commercial experience with regard to infrastructure and transport when needed. As for setting up shop in the country, Priest says, "There are no such plans at the moment, but if we do secure a significant project, we always open a local studio. In fact, that is how we first started in the Middle East, with Ferrari World Abu Dhabi." "As soon as we were appointed on Ferrari World Abu Dhabi, we immediately put a team on the ground. We like to work closely with our clients and to be able to respond swiftly to requests and questions, etc. We like to build good, proactive relationships. With a team on the ground, we believe that we are better positioned to understand the culture and working practices of both the client and the country." Naturally, a plan like this would require a strong local partner, but the company has not yet considered this at the moment, given that it is still very early days. "We are at the beginning of our journey. As and when projects do start to materialise, we will certainly look to partner with appropriate local architects and designers," Priest says. Following several trade missions that the company
16 Middle East Consultant May 2016
describes as "fact-finding missions", Cartledge has also been invited to join the British government’s Jordan Task Force, which is also a completely new market for Benoy. Another new market is Pakistan, where Benoy has already secured a number of projects over the last couple of months. In terms of sectors of interest, Priest says they have noticed a trend of projects increasingly falling into the mixed-used category. He describes that as "an exciting shift for the architect, as it allows them to create a multi-layered environment and spaces that have a sense of place". In fact, he says developers are looking for a more complementary mix of activities when planning a development. This typically includes residential, hospitality, commercial with retail and F&B at the financial heart of the offer. The emphasis on entertainment, leisure and community spaces has increased, as these three ingredients are now considered essential in creating a point of difference within a competitive marketplace. Finally, where is the market heading in 2016, and how is Benoy planning to weather the slowdown? Priest says that while they are hearing words of caution from the market, the company has never been busier. “In Q1 of 2016, we have had over 50 enquiries, and of those we have already converted a significant percentage. To win work you have to understand the zeitgeist, and I believe we offer what the market demands: well-designed projects that are unique yet accessible, attractive to visitors and investors." “As I mentioned, the market has shifted from iconography to destination creation. We have always been on the cutting edge, pushing the boundaries of architecture and engineering and ultimately bringing something new to the market. I think that people will always want that, and this is why I believe Benoy’s work is relevant and so successful,” Priest concludes.
CONSTRUCTION INDUSTRY QUIZ 28 September 2016, from 7pm
Baggot Room, McGettigans, Jumeirah Lakes Towers, Dubai
BRING YOUR BRAINS! BE THE SMARTEST CONSTRUCTION COMPANY IN THE REGION Our annual golf days foster a fun environment for the industry to get together, network and relax. Keeping the spirit of this tradition alive, Big Project ME and Middle East Consultant present their first quiz night for the construction industry.
A range of topics such as general knowledge, sports, geography and history will be included, along with a special round dedicated to construction, keeping in mind the theme of the night. So round up and register your best and brightest colleagues for some friendly competition.
Free registration is exclusive to teams of four colleagues from the developer, contractor or consultant industries.
Contact info: For registration enquires: Lisa Justice +971 3755 498 lisa.justice@cpimediagroup.com For sponsorship enquires: Michael Stansfield +971 55 150 3849 michael.stansfield@cpimediagroup.com
IN PRACTICE in PRaCTiCE tom toM smith sMith
Profile
Thinking global Tom Smith, global director of Property and Buildings at WSP | Parsons Brinckerhoff, sheds light on the various business opportunities within the Middle East region
18 Middle East Consultant May 2016
IN PRACTICE tom smith
Location Courtesy: Arabian Ranches Golf Club.
F
oR ToM SMiTh, ThE jouRnEy aT WSP | PaRSonS
Brinckerhoff has been long and fruitful. Having been with the company since 1994, Smith has worked his way up the ladder from associate mechanical engineer to the company’s global director of Property and Buildings. Having held many leadership positions over the last 22 years, it’s safe to say that Smith is well acquainted with the complexities and issues surrounding the global construction industry. He’s worked closely with many strategic clients on flagship projects in the UK, Middle East and India, and is now focused on taking the company's global agenda to the next level by developing its culture, connectivity and services. Middle East Consultant caught up with Smith to find out the direction he's steering this division towards and the impact of events in the region on the property markets. With WSP having merged with Parsons Brinckerhoff not too long ago, Smith begins by talking about the impact it’s had on the property and buildings division. He reveals that while there haven't been any changes in the Middle East unit, the Asia Pacific and UK businesses have seen quite a bit of integration, which has seen the division grow further on a global level. "Property and buildings currently represents about 3132% of the global business, which is about C$5 billion [US$3.9bn]," says Smith. "WSP | Parsons Brinckerhoff has always been recognised for its strong market position in this segment, be it in terms of structural engineering, mechanical or electrical engineering. What I've really been trying to do over the last three or four years is leverage and capitalise on the technical and market skills that we have, to create better synergies and more work together. This, I believe, is something we wouldn't have been able to do if we behaved as independent companies." With the global construction market predicted to grow 1.1% faster than global GDP at 3.9% per annum between 2014 and 2030, one of the key issues consultants face is achieving greater productivity, a challenge that Smith
believes can be dealt with using technology. In fact, over the last few years WSP | Parsons Brinckerhoff has made quite a few significant investments in technology to enhance design and facilitate better internal collaboration and communication with teams across the world. "3D, 4D, 5D, BIM and many other designs are now done in a virtual environment, and this allows us to produce more coordinated and complete designs. When we work with other professionals and architects, if we're working on the same platform it makes us a lot more collaborative, allows us to eliminate waste and helps us to drive forward. "Even contractors are beginning to adopt some of this technology, so that the whole supply chain can become much more integrated and productive. Plus it gives our clients the opportunity to see what the final plot is going to look like, which is very important." While technology does play a key role in the process, what does it take to be a successful global consultant in an everchanging and demanding market? Smith says the first step is to be able to identify a client's needs and respond accordingly. This is fairly important, as even the most local of clients is becoming very global. More attention is being given to design and project management services, and everyone wants the best global expertise. Moreover, employees want the opportunity to work with world-renowned architects and be involved with the best international projects. "If you look at some of our big projects in Dubai, for example, it's quite rare for all of the expertise to come from one region. We normally have to use different experts with different capabilities from different parts of the world, and weave it together into a very seamless offer. All of these things drive us on a global scale. "For any company, though, the real challenge is how to move all of those worldwide connections into a much more integrated business that can deliver the very best solutions to clients. I think the investment we made in technology
“Looking at Saudi Arabia, I think that there's going to be a huge or considerable investment in social infrastructure, particularly schools and hospitals, which is an area of expertise. I also think that as they diversify away from a hydrocarbon country, you're going to see more business around science, technology and IT” May 2016 Middle East Consultant 19
IN PRACTICE tom smith
ThE SMaRT REVoluTion “Everything we do in our buildings or infrastructure is dominated by technology. We're seeing smart mobility, smart healthcare, more intelligent transport systems, more autonomous selection of vehicles on the road, and so how we really explore these opportunities will be key. “In fact, we’ve had more and more clients ask us about how we can make their buildings future ready and accommodate new technology in five or ten years’ time because they don't want their properties becoming redundant. “The use of technology is key to all these things, and going forward I'd like WSP | Parsons Brinckerhoff to be seen as a consultant that not only offers technical engineering services but also technology services that actually improve the natural environment.”
The construction area of the expansion of Dubai Mall is approximately 275,308sqm.
happens to attract great talent, plus the culture of global connectivity, collaboration and support from each other is now embedded in the DNA of our business and has made us prosperous." Moving the conversation to his views on the property market, Smith draws attention to the fact that major cities around the world are becoming more urbanised and denser. With more people come increasing demands, which in turn has resulted in a rise in prices. Looking at the market in Dubai, he feels that although some parts of it are at risk, lessons have been learned, the market has matured and developers and clients are more prepared to handle a decline should it occur. “If there is a decline, it is going to be much more manageable than it was five or six years ago. What's different now is that you've got two things – one is that Dubai has really established itself over the last few years and is almost the capital for the Middle East. It’s made itself a centre of logistics, transport and tourism for the region, and I think its economy is built on a much stronger foundation than it might have been six or seven years ago. “Secondly, I'd say that developers and government bodies are making wiser investments. Ten years ago there was this massive rush to build infrastructure and facilities, which was a good thing because now with all that built, they are ready for the next economic cycle. I think it can deal with any downturn in a much more mature way right now.” Other geo-political events in the region, like the unrest in Yemen, rising oil prices and issues between regional powers like Iran and Saudi Arabia, do create some concern, says Smith. However, with low interest rates there still is a lot of money around, and institutions like funds and banks want to invest it somewhere, which presents a lot of great
20 Middle East Consultant May 2016
opportunities for the property and buildings segment. “Financial institutions want to invest money where economies are moving forward with long-term plans. Many parts of the Middle East have those long-term plans, which I think gives investors a lot more confidence to invest. Looking at Saudi Arabia, I think that there's going to be a huge or considerable investment in social infrastructure, particularly schools and hospitals, which is an area of expertise. I also think that as they diversify away from a hydrocarbon country, you're going to see more business around science, technology and maybe IT. “Once they establish these businesses, they will want to employ from the talent pool that they have within the country rather than bring in expats. This requires education, and all of this ultimately means that there will be a lot of opportunity for work around social infrastructure and new service industries.” In terms of whether WSP | Parsons Brinckerhoff is considering business prospects in Iran now that sanctions have been eased, Smith says that while the country has massive market potential, a great talent pool and loads of impressive engineering companies, they prefer to watch and observe carefully from the sidelines at the moment. This is because Iran has been a closed market for a very long time, and as in any new market, the first thing to do is to understand the culture. “I think there is a need for a learning curve, and companies will need time to understand how business is conducted and how customs and cultures work in Iran. Secondly, relationships are important, because so much of what we do in the industry depends on it. In Dubai and Abu Dhabi we have many long-standing relationships with many clients, but in Iran we don't have this at the moment. I think it’s going to take a number of years before any company can
IN PRACTICE tom smith
really establish themselves there.” There is, however, scope to take up jobs there and in other new markets through existing relationships with clients and developers who may look at launching projects in those regions. For example, Smith says a lot of clients are eyeing Qatar at the moment, giving WSP | Parsons Brinckerhoff the opportunity to support those initiatives. Similarly, there are clients considering projects in Saudi Arabia and Iran for whom the company could provide services. Closing with his outlook on where the global property markets are heading in 2016, Smith says that they’re seeing a lot of growth in the US, UK and Europe, particularly in Scandinavia, which they think is very attractive. The Asian markets, particularly China, are growing as well, but at more or less the same pace as before, with GDP levels of around 6% a share. “What this means for WSP | Parsons Brinckerhoff is that we are moving some of our business away from commercial retail-like developments into more social infrastructures, civic type buildings, hospitals and schools. That's us just managing the workload in terms of the sectors that are busy in China.” In the Middle East, Smith says the firm has had ups and downs, especially in the early years, but the market has become a lot more mature now. But while a slowdown has been well noted, they have found themselves doing well on projects that have an end date.
“Financial institutions want to invest money where economies are moving forward with longterm plans. Many parts of the Middle East have those long-term plans, which I think gives investors a lot more confidence to invest” “We're very busy with work related to Qatar and the World Cup in 2022, and obviously for the Dubai Expo in 2020. I definitely see these two markets picking up later in the year with the number of projects due for these two global events. The Saudi Arabia market could be very attractive as well in the long term, with their 2030 national plan presenting a lot more opportunities for social infrastructure, manufacturing and service industries, as I mentioned earlier. “Certainly, for a firm like WSP | Parsons Brinckerhoff, there is always plenty of opportunity around in terms of working with the right clients and adding value by providing the right talent with the right technology. There are always clients who are looking for that quality, even in a slightly slower market.”
The Royal Atlantis Resort and Residences in Dubai will contain 780 guest rooms and suites as well as 232 residences.
May 2016 Middle East Consultant 21
IN PRACTICE ContraCtors contractors & consULtants Consultants
analysis
GETTING AloNG Dominic Varley, senior associate, Construction and Engineering Dispute Resolution at Eversheds, evaluates the contractual collaboration between consultants and contractors
22 Middle East Consultant May 2016
IN PRACTICE contractors & consULtants
C
onstruction and engineering projects regularly bring together a number of diverse disciplines with a great deal of complex information and procedures. As such, it is important for contractors and consultants to establish workable and collaborative practices together. WhIlE INdIvIduAl sTAkEholdERs oN A PRojECT
no doubt have their own interests to look out for, there is generally an understanding and appreciation that consultants and contractors, more often than not, depend on one another for the successful and profitable completion of the project. A consideration from the outset is where the consultant and the contractor sit in the overall contractual framework for delivering the project. Under the traditional procurement route, the employer will typically appoint an architectural or design team to undertake the initial feasibility studies and design services, etc. Then they may gradually introduce engineers to carry out various discrete roles to develop the design before a separate contractor is appointed to build the project itself, with at least some of the original design team staying on as project manager, contract administrator or employer representative. That all seems reasonably straightforward. However, a highquality, coordinated build can be very difficult to achieve without a high level of integrated work between the various consultants and the contractor within this traditional model. As there is no direct contract between the contractor and consultant, this is not so easily enforced. Any right to deduct or withhold payment, or to suspend performance of obligations, exists between employer and contractor / employer and consultant. In the absence of any of these contractual rights and remedies directly between the various consultants and the contractor or subcontractor, the required levels of integration and collaboration can be difficult to achieve. Instead, the consultant and the contractor will need to rely on there being regular project management and site meetings, with detailed minutes being taken to record progress and any significant decisions made. Regardless of the audit trail that this creates, the consultant and contractor may be left with the unpleasantness of trying to persuade the employer that the other party is at fault whenever an issue arises. This can create undue and potentially unfair
pressures for all the parties, breed an environment of 'them versus us' and generate suspicions over whether the consultant or contractor holds more sway over decisions made on the project – in short, who has the employer’s ear. Any resulting communication failures between the employer, the consultants and the contractors can therefore compromise the project and cause additional costs to be incurred, as well as disruption and delays to the project completion. This can all ultimately lead to costly litigation, or arbitration. All distractions from delivering a quality build on time. As an alternative to the traditional procurement route, there appears to be a steadily increasing popularity for design and build delivery systems for construction projects in the Middle East. The most common arrangement within design and build projects is for the design consultant to be employed directly by, or novated to, the main contractor rather than the employer. However, it is not unheard of for consultants to be appointed as prime contractor. They just need to have access to equipment and labour resources, as well as have the usual managerial and technical skills required to execute the project. A number of contractors and consultants have recently supported the wider use of design and build as a means of helping meet employer expectations around quality, as well as meeting tight delivery times (the deadlines for Expo 2020 and the World Cup in Qatar spring to mind). This is achieved by allowing various design, construction and project management activities to be undertaken at the same time and by entities actively looking to work together. While the employer may lose a level of control over the management of the project, design and build is attractive to some, as more risk and responsibility is shifted onto the design and build team. The employer should also benefit (in theory at least) from the joining of forces, or true collaboration, between consultants and contractors. This should see improved scheduling advantages, financing options and innovative design and construction techniques, which may have been developed by the design May 2016 Middle East Consultant 23
IN PRACTICE contractors & consULtants
(Left to right) On every construction project, there are important issues for the consultant and contractor to consider, negotiate and pin down. Dominic Varley, senior associate, Construction and Engineering Dispute Resolution, Eversheds.
build team having previously worked together on other projects. That said, both contractor and consultant need to carefully consider their risk profile and have a clear understanding of where the pitfalls lie within this model. Along with the usual need for collaboration and cooperation, there are other important issues for the consultant and contractor to consider, negotiate and pin down. For example, in a main contractor-led project, a consultant could be expected to prepare design development products and information as part of a tender bid which ultimately might not be successful. If this happens, is the consultant expected to receive any compensation for the work carried out? Maybe not. Even when the bid is successful, the timing of fee negotiations for ongoing services needs to be managed carefully. There may also be a level of expectation that the designs prepared at the bidding stage will require no further amendment or development as the build progresses. This issue tends to go hand in hand with pressure on the consultant to deliver profit over quality. As such, care should be taken when negotiating terms for payment (particularly with regard to tender design services), the level of accuracy of any design products and information provided at certain stages of the project, and precise and detailed levels of insurance requirements. The parties should also push to jointly review the available site data and agree on what further information is required (if any) at
“While the employer may lose a level of control over the management of the project, design and build is attractive to some, as more risk and responsibility is shifted onto the design and build team� 24 Middle East Consultant May 2016
an early stage. It is also important for there to be a commitment that if the bid is won, the consultant-contractor relationship will continue until the project is completed. Representatives from both the consultant and contractor should be included in the client team to ensure a high level of understanding, partnering and teamwork for all the key players involved. Whatever the procurement model, there may be a lingering concern about a lack of strong leadership or slow decisionmaking by the employer, which could unfairly push more issues onto the contractor and consultant to manage. As such, the parties should, as far as possible, safeguard against potential inefficiencies and indecisiveness and the potential for unrealistic expectations by the employer. While the UAE Civil Code gives some limited right to suspend, the express right to suspend performance of obligations in circumstances where there are unreasonable delays in payment or delays in issuing instructions and approvals which are required to advance the project, should be considered. The right to claim a related extension of time, and associated compensation for the resulting delays to completion of the project, are also important. Regardless of which model is adopted by the employer on a construction project, it goes without saying that as parties involved in often complex construction projects, consultants and contractors should in all circumstances understand the risks involved in the various roles they undertake. They should also exercise care when negotiating their terms of appointment, or at least have a firm grasp of the implications of certain provisions. The use of appropriate wording when drafting contract terms should also be ensured, otherwise the parties’ efforts could be negated. Notwithstanding these efforts, the reality is that the terms and conditions agreed are only as good as the parties involved. Accordingly, an understanding and appreciation of the significant benefits of collaborative working and cooperation between consultants and contractors is essential.
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IN PRACTICE Multi-disCiplinE multi-discipline cOnsultAnts ConsultAnts
Analysis
BRANCHING OUT
ME Consultant speaks to the experts about the role that multi-discipline consultants can play in the UAE’s diversification agenda 26 Middle East Consultant May 2016
IN PRACTICE multi-discipline cOnsultAnts
A
mong the oil dependent GCC countries, the UAE is one nation that understands the problems of rentier state economics well, and is ahead of the curve in terms of steering away from being completely reliant on the black gold. DIvERsIfICATION Is THE ONly wAy fORwARD,
and the UAE government has been working hard on establishing itself as a hub for finance, trade and commerce and tourism. Naturally, such ambitious plans require a certain level of involvement and commitment from the construction sector, a challenge that industry veterans are quite bullish about. Among the many construction consultants, multidisciplines offer great convenience in terms of being a onestop destination for an array of services. As Louise Collins, MEP director at WME Consultants, rightly points out, multi-discipline consultants don’t complicate things. There is usually a single point of contact for everything, not to mention the catalogue of services provided in-house, the competitive pricing points and the knowledge share that takes place across disciplines. But what new skills and knowledge can these consultants bring to the table to benefit clients? Neil Reynolds, senior vice president and regional managing director, MENA & India at ch2m, says that like any other global firm, what they do is mix the best local knowledge with the best Western practices. “We're a very solutions oriented company, and what we tend to do is bring the best from what we see around the world to the Middle East. According to our clients’ needs, we then package this into projects for them by combining global technology with best practice. “Some of our projects are proof of that already. If you look at Masdar, it's the first of its kind in the world and we applied all of our sustainability and energy experience to it. We learnt a lot from it too as we were able to play on the cutting edge of
technology. In fact, we know that this learning can be taken to our next clients as well.” Another means of adding a competitive advantage is by focusing on new and niche markets, says Riad Nashif, executive vice president, Middle East and managing director, UAE & Oman at AECOM. One trend that multi-disciplines are seeing, among real estate clients in particular, is willingness to pay for a service that will result in capital cost and overhead cost reductions of their assets. “Mature clients are showing more interest in energy conservation, thus resulting in reduced life-cycle cost, which is an area that multi-discipline consultants appear to be upskilling. “Facilities management is another area that is getting greater attention from developers as they give more consideration to the lifetime maintenance costs of a facility, rather than just the initial capital expenditure,” he says. He also believes that exploring non-commodity services is another way in which multi-disciplines can add a differentiator and create value for their clients. In fact, it makes them better placed than single practice specialists, as their synergies generate certain advantages, such as lower fixed costs, agility to respond to changing project demands and a diverse talent pool. More skills require more manpower, Fiachra Ó Cléirigh, director Middle East at WSP | Parsons Brinckerhoff, points out. He believes that to be able to take advantage of new opportunities, a company needs to have a good work force, and the only way to attract and retain great people is to be a great place to work. “We work hard to create a safe environment where people truly work as one and take great pride in the
“Mature clients are showing more interest in energy conservation, thus resulting in reduced life-cycle cost, which is an area that multi-discipline consultants appear to be upskilling. Facilities management is another area that is getting greater attention from developers” May 2016 Middle East Consultant 27
IN PRACTICE multi-discipline cOnsultAnts
(Left to right) Riad Nashif, executive vice president, ME and managing director, UAE & Oman at AECOM. Louise Collins, MEP director at WME Consultants.
projects we deliver together. “We also provide advanced technology to ensure our people can collaborate, innovate and share easily and readily, whether it's face to face or virtually. All of this enhances the way we function and allows us to take advantage of new opportunities.” Multi-disciplines are also looking beyond traditional construction requirements to expand their portfolio of services into areas like AV, IT and security, and motion graphics, to name a few. Collins says that new in-house expertise such as medical planning, sustainability skills, BIM and energy modelling creates a greater point of interest for clients. “We are all evolving, as we should, but only the best will survive when there are so many options for clients among multi-discipline engineers, and we need to prepare ourselves and think out of the box." Nashif adds that through multiple conversations with clients, they too have realised that clients are increasingly looking for single-source solutions for their projects that might not traditionally fall under the umbrella of engineering design constancy. One area increasingly being discussed with Middle East clients is how to access funding, as well as requests to provide economic feasibility studies and market research, an indication that clients are being more careful with their spending. Reynolds agrees, and says that his firm too is noticing that clients are focusing on capital costs, especially in this part of the world. “We're seeing a trend where clients are starting to think about the outcome of the project, because that is what is going to drive revenue and the income for the clients. They're starting to think about how they can manage the asset better, how they can operate it better and is it flexible in terms of change of use. “Since there is a lot more focus on outcome, I think as a company we also have a play in asset management, we operate facilities and I think this is another trend that is going to pick up. Even in terms of the Expo, legacy planning plays a big role, and all of our clients are asking us for flexibility in 28 Middle East Consultant May 2016
design so that they can change the use of it later on.” Of course another way that Middle East consultancies are expanding their portfolio of services is through mergers and acquisitions, Ó Cléirigh points out. In fact, he says the diversification of services has in part been made possible by the increasing size and sophistication of global multi-disciplinary consultancies, which we can expect to continue if consultancies are to grow their offerings. Opportunities for new services have also been spurred by industrialisation, Reynolds points out. But that depends on the type of industry being developed, and the market where it is taking place. “Take the UAE, for example. There's more buzz around precision, R&D and life sciences, whereas Saudi Arabia has a different approach, also because of the population mix. Over there it’s also about automotive clusters, whereas here in the UAE you've got aviation clusters. “The aviation and shipping industry is a key trend and there’s the predominance of Dubai as an aviation hub linked to shipping with Jebel Ali. However, rail will go off for a while because of the huge capital costs, but it could come back with private sector engagement.” He adds that military is a trend now as most countries gearing up their military capabilities require infrastructure to support it, which ultimately leads to industry opportunities. Despite the vast opportunities, being a consultant in the Middle East is no easy task. Nashif says that the challenge lies in educating clients on the benefits of a single-sourced, integrated service, as some believe they are better off being in full control of their project by assigning different consultants to various disciplines. “No doubt there will always be clients that prefer to engage multiple consultants, but those that are single sourcing are reaping the benefits due to easier project communication, a better coordinated product, a single point of accountability and faster resolution of issues.” Reynolds agrees that educating clients is a challenge,
IN PRACTICE multi-discipline cOnsultAnts
(Left to right) Neil Reynolds, senior vice president & regional managing director, MENA & India at ch2m. Fiachra Ó Cléirigh, director, Middle East at WSP | Parsons Brinckerhoff.
especially when it comes to the procurement process in the GCC. With the process still very traditional and the fact that most employers don’t hire an operator, he says they never really get the full value out of the asset. However, in other countries there is a different approach. “In other developed economies, we get early engagement and form strategic alliances with consultants. You form frameworks and enter into contracts with them that have clear KPIs. It all just drives different behaviour, so it’s not adversarial, it’s actually about working together to get it done. Every project needs a good client, and if you can get a good client with a good consultant and contractor, then you've got a good outcome.” Ó Cléirigh takes a different viewpoint and says that with increasing globalisation of the industry, they see many of the same challenges in the GCC that are there in other parts of the world. He adds that as a people business, the key challenge will always be to attract and retain the best people throughout the market cycle. “Our approach to this challenge is to empower our people to make decisions and help to create an exciting and challenging place to work. We adopt a high-trust, low-process approach to leadership, thereby allowing our people do what they do best – create value for our clients.” Finally, with market conditions changing, how are multidisciplines expected to evolve? Nashif says that with markets becoming very pricesensitive and clients expecting value at low cost, multidiscipline consultants need to respond by devising ways to provide value by working smarter at a lower cost base. Multi-discipline consultants are also well positioned to respond to current conditions, as they can spread costs and resources to suit market conditions. Equally, sourcing several services from a multi-discipline consultant should result in a lower cost for the client, as they are contributing to one consultant’s overhead allocation rather than several, he says. Reynolds says that his company is already fairly diversified in
the services it offers and is present in almost every sector where there is a requirement. “We're seeing diversification in terms of private finance, industry and industry that is related to military, because at the end of the day military still requires infrastructure. “We provide services for industrial advanced technology buildings such as smart buildings, laboratories, life sciences too. We do all of these things as a company, so actually the fact that the UAE and Saudi Arabia are diversifying plays for our strengths.” Collins takes a different stand, however, saying that as a company, WME Consultants hasn’t really seen any negative effects of the slowdown as yet, possibly because it's a mid-size firm. “Well, we don't see the market changing rapidly, and in fact we haven't seen this great turndown that everybody is talking about. What I hear in the market from peers and friends is that some of the big global multi-discipline companies are suffering a bit, and obviously there is less work to go around for everybody, but I think with our size it hasn't affected us as much. “I think fees are changing, there is a lot less money going around. People are hungry for work and that had a bit of an impact on everyone, but in general, we haven't seen negative effects as yet.”
With clients focusing more on the outcome of a project, asset management is gaining importance. Even with Expo 2020, legacy planning plays a big role.
May 2016 Middle East Consultant 29
in practice on site ThE TowEr Saif al ShamSi
Infographic
12 faCts about tHe tower 1. DesigneD by santiago Calatrava The Spanish-Swiss architect is known for his eye-catching designs, which include numerous bridges and the rail terminal at the World Trade Center site in New York. Other works include the Calgary Peace Bridge, the Olympic Sports Complex in Athens and the Turning Torso Tower in Malmö, Sweden.
2. CentrepieCe of Dubai Creek Harbour The wider 6 sq km development is a joint venture between Dubai Holding and Emaar Properties. Dubai Creek has long been Dubai’s centre of history and culture and is in close proximity to the Ras Al Khor National Wildlife Sanctuary.
3. it will be tall But we don’t know exactly how tall. Because Emaar did not reveal the exact height, it is not immediately clear whether the building will tower above the under-construction Jeddah Tower in Saudi Arabia, which at 1km high is set to be the world’s tallest building.
4. tHe tower is inspireD by islaMiC arCHiteCture It draws design inspiration from the lily and evokes the image of a minaret, which is a common feature and distinctive aspect of Islamic culture, Emaar says. The elongated oval-shaped bud and geometric texture set the template for the observation decks.
5. eiffel tower funCtionality Calatrava says the purpose of the building is similar to that of the Eiffel Tower, which he said “represents a city, a whole nation”, according to The National.
30 Middle East Consultant May 2016
in practice on site SaifThE al ShamSi TowEr
6. 10 observational DeCks This includes the Pinnacle Room, which will offer 360-degree views of the city and will be the “crowning glory” of the tower. “The VIP Observation Garden Decks will recreate the splendour of the Hanging Gardens of Babylon, one of the Seven Wonders of the Ancient World,” the developer says. The building will also include numerous balconies that rotate outside the façade of the tower.
7. foCus on energy effiCienCy & sustainability The tower will use a highly efficient cooling system and the water collected from this system will clean the structure’s façade. Elegant landscaping and vegetation will encourage solar protection. An integrated shading system and wing doors will also contribute to energy efficiency.
8. finanCial plan Alabbar says the $1 billion project will be financed by 50% equity and 50% debt.
9. faCilities Facilities include a café on one of the three public observation decks. The main working floors will include “a world-class boutique hotel for visitors”, restaurants, function rooms and an interior garden space. The tower’s ground-level Central Plaza will have “world-class retail, a museum, educational facilities and an indoor auditorium”. But unlike the Burj Khalifa, The Tower will not feature residential units or offices.
10. tHe tHree Main ConstruCtion eleMents Building work is likely to commence under three key deals, namely the foundation work, concrete core and fabrication of steel cables, The National reports.
11. work to CoMMenCe tHis suMMer Foundation piling is set to begin in late June or early July.
12. CountDown to 2020 Emaar aims to complete The Tower, along with an accompanying “mega-retail district”, by the time Expo 2020 starts in Dubai.
May 2016 Middle East Consultant 31
on site RAWLPLUG
Specify ME Besides using standard technologies in its R-HPTIIZF throughbolts, Rawlplug also uses advanced protective alternatives such as zinc flake coatings for the best anti-corrosion protection and for environmental reasons.
Tooling Up Charlie Makowski, managing director at Rawlplug Middle East, speaks to ME Consultant about revolutionary throughbolts and his commitment to sustainable products
Rawlplug’s products have been used in several landmark projects; one that certainly stands out is NASA’s exploration of Mars. Can you tell us about that?
Screws manufactured by Rawlplug have been used to join highly advanced technological elements used in the NASA rover, Curiosity, which has been collecting data from the surface of the so-called red planet for over four years now. The Rawlplug part used in the construction of the Curiosity rover was the Rawlplug DIN 7984 screw and is manufactured at our factory in Poland. Given the demanding nature of the mission, not a single construction element could be chosen without stringent testing and the appropriate level of due diligence when selecting materials and components. All elements used must be capable of withstanding temperatures as low as -127 degrees Celsius and as high as +140 degrees Celsius. What’s more, the presence of ash and low levels of moisture in the air combine to create a particularly unforgiving environment for all components and equipment used. Sustainability is deeply rooted in Rawlplug’s business. Tell us about the strategy and the framework that allows you to pursue this.
We have numerous plans in place to continue our sustainable development. As a market leader with a history of innovation, we feel it is our duty to be at the head of the charge into the future. Rawlplug is continuously developing ideas, products and processes with sustainability at the heart of our thinking. Our responsibilities are clear: we must protect the environment by successfully managing and reducing resources expended, contribute to the development and happiness of the communities we are a part of, look after our own people, and improve our industry. What are the highlights of Rawlplug’s Sustainability Report 2015?
In its most basic form, sustainability is about providing for the future by living responsibly now. In theory, something sustainable should be able to continue indefinitely. Rawlplug is devoted to achieving these ideals, and the 2015 Sustainability 32 Middle East Consultant May 2016
on site RAWLPLUG
Report illustrates our progress. Our sustainable development report is an opportunity for us to define, describe and present in detail the values which we perceive as the pillars of development for our organisation. It allows all of our stakeholders – including business partners and customers – the chance to see the full picture of how we envision the future of the company and how we combine the concept of sustainable development with traditional business strategy. The report illustrates the most important steps we have taken towards ensuring a sustainable future. It also offers an opportunity to talk about recent successes in the ongoing development of Rawlplug. These deserve a special mention due to the amount of hard work which went into their achievement and their importance for the entire organisation. Rawlplug’s R-HPTIIZF throughbolt for cracked and non-cracked concrete is a game-changer. Tell us about what makes it so unique and how you developed it.
For anti-corrosion protection, Rawlplug uses not only standard technologies such as zinc electroplating or hot dip galvanising, but also more advanced alternatives. Modern protective technologies such as zinc flake coatings are also used for best anti-corrosion protection and environmental reasons. A coating of zinc flakes is a 'paint' made up of lots of little flakes, which primarily protects R-HPTII throughbolt from corrosion. Through the sacrificial effect of the less noble zinc, it provides active protection from environmental influences. This form of corrosion protection is called active cathodic protection. Zinc flake coating generally contains a combination of zinc flakes and aluminium flakes (as per DIN EN ISO 10683 or DIN EN 13858), which are fused together by an inorganic matrix. In addition to the necessity for extremely thin layers due in part to the components' design, e.g. the need for threads to fit precisely, it is also worth mentioning from an ecological and economic perspective the low use of resources. Even with extremely thin coats – typically a system consists of a base coat and topcoat of 8-12µm – it is possible to achieve protective effects against base
metal corrosion (red rust) – as per DIN EN ISO 9227 – of up to 1,000 hours in a salt spray chamber (equivalent to 10 years). By contrast, other conventional technologies require a greater coating thickness in order to offer similar corrosion protection, or due to the way they are applied cannot work in the thinnest micro-layer range (for example, 40-80µm in hot dip galvanised coatings with 504 hours in a salt spray chamber, equivalent to 50 years). What challenges did you face while developing this product and designing it for the Middle East market?
The Middle East market is very demanding, but very similar to the European one, where all our factories are placed. However, certain products, like Pure Epoxy Resin R-KEX-II-600, have been redesigned to work better in high temperatures. We just finished testing the new formula and
currently our product can withstand highest loads among competition in temperatures of 45+ degrees Celsius. Lastly, take us through Rawlplug’s future plans. Is there anything new that you are focusing on or any opportunities in new areas that you will be pursuing?
Our strategy remains unchanged and our main goal is to expand and become the top player globally. Currently we have opened new markets in India, Sri Lanka, Singapore, Malaysia, Indonesia, Australia and New Zealand. All logistics operations will be handled from our Dubai office because of geographic location (shorter delivery times). To be able to cater to new markets, we have bought land with a 2,500sqm warehouse with 500sqm offices in Jebel Ali Freezone, and we have plans to expand it to 5,000sqm in the near future.
“Our responsibilities are clear: We must protect the environment by successfully managing and reducing resources expended, and contribute to the development of communities” Screws manufactured by Rawlplug have been used to join highly advanced technology elements in NASA's rover Curiosity on its Mars mission.
May 2016 Middle East Consultant 33
on site Tarana Daroogar
Opinion
Tarana Daroogar is Technical Services director at MAPEI.
Green Solutions
Understanding how the chemicals industry can work towards making adhesives used in buildings or structures safer and more sustainable
Cities are the growth drivers of our future. Half of the world’s population already lives in cities, and the number of city dwellers is rapidly growing. But they also account for the biggest share of energy consumption, CO2 emissions and environmental impact. In order to protect cities for future generations, we need to balance their overall environmental impact and make better use of finite resources. The chemicals industry can be a driving force, because it provides cutting-edge solutions, materials and technology, as well as sustainable responses to global environmental issues. The technical approach that should be adopted when proposing a material must be alongside compatibility and durability within the structure. Guaranteeing the performance compatibility of the entire system plays a fundamental part in the quality of the structure as a whole, and therefore its final durability. Guaranteeing the long service life of a construction, be it a building or a structure, a new build or repair/renovation work, and correctly specifying the methods, techniques and innovative products right from the design phase, means making a concrete contribution to its durability. 34 Middle East Consultant May 2016
Paying attention to durability also means paying attention to building and maintenance costs, which have to be evaluated very carefully, especially in times like these when the financial resources available are limited. This is why durability has become a necessary condition for sustainability. If approached correctly, sustainability can guarantee profitable growth and create a veritable driving force for development. An efficient simplification of sustainable development is represented by a three-legged stool made up of environmental, economic and social factors, which by coexisting and integrating with each other form and support the structure of the system. These three considerations therefore guide our focus on sustainability and presuppose a change in mentality, through a holistic approach, in a context in which two fundamental concepts must always be kept in mind: 1. Reduce the impact 2. Repair whatever we damage For the building industry, the translation of sustainable development is green building, and it proposes to use fewer natural resources and virgin raw materials, and limit the production of atmospheric emissions and solid and liquid waste. Looking at the built environment, we find many constituents such as adhesives, mortars and paints, and in general all building products applied in our buildings can influence indoor air quality, both during the application and during the final user’s life. We are all aware of the dangers of environmental pollution, and we all know,
on site Tarana Daroogar
The technical approach that should be adopted when selecting a solution or material must be alongside its compatibility and durability within the structure.
for example, the damage that benzene from cars can do to our comfort. But there is also another type of pollution around us, indoor pollution, the pollution in the air inside our homes. In fact, the odours we get after installing flooring, assembling a piece of furniture or even painting a wall are due to the volatility of certain compounds which may be found in the wood of furniture, varnishes and detergents. These compounds are called VOC, volatile organic compounds. More than 300 VOC have been identified in indoor air, with total concentrations two to ten times higher than the air outside. These concentrations are usually three to four times lower than their olfactory limit, which is why they cannot be smelled. According to some studies, VOC in indoor air may be the cause of what is known as Sick Building Syndrome (SBS), which can cause nausea, irritation, painful joints and headaches, especially in sensitive people such as babies and the elderly. With alarm bells ringing, the target of adhesive worldwide manufacturers nowadays is to obtain
green products which can comply with all eco labels, answering to increasing market demand for low-VOC products. Eco labels can be voluntary, such as the European GEV, Blue Angel, M1 and the worldwide LEED criteria, or mandatory, like DiBt in Germany and Grenelle Environment in France. Evaluation of VOC in building products can be performed in different ways, according to different labels and criteria. VOC, in fact, can be considered as emitted by the product (after application) and measured in Âľg/mÂł, or as contained in the product (before application) and measured in g/l. Products used in the building industry used to be evaluated according to their emission of volatile organic compounds, emitted by the products themselves from the moment they are applied, and then according to their influence on the quality of the air inside the building. People soon realised that a solventfree adhesive is not necessarily an adhesive with low VOC emissions. In order to preserve the health of both applicators and final users, and to guarantee good
indoor air quality, some manufacturers started to develop technology for innovative products that could be considered low VOC emission. Since October 2005, these products have been certified and labelled EC1 (very low VOC emission levels); since June 2010, EMICODE EC1 PLUS (very low VOC emission levels PLUS), both issued by the German Institute GEV (Gemeinschaft Emissionskontrollierte Verlegewerkstoffe, Klebstoffe und Bauprodukte e.V.), the association for the control of emissions in flooring installation. Both GEV and Blauer Engel are extremely severe classification systems which assess the possible VOC emission levels of products used in the building industry on a short-term basis (three days) and on a long-term basis (28 days) from when they are applied, using special environmental simulation chambers. Both labels consider products to be low emission on the basis of the sum of all VOC released within a certain period of time after being applied, and the absence of emissions of carcinogenic compounds such as benzene, acetaldehyde, formaldehyde and dioxane. May 2016 Middle East Consultant 35
on site roundup
Events Building Healthcare Exhibition to draw over 6,200 industry attendees The Building Healthcare Exhibition & Conferences will take place on 30 May and 1 June at the Dubai International Convention and Exhibition Centre. The event will bring together 6,000 investors, healthcare CEOs, government
representatives, healthcare developers, consulting engineers, healthcare IT suppliers and architects. Topics will include digital health, architecture, design, construction, longterm care facilities, medical equipment
planning, healthcare management, lab management and special sessions covering 3D printing and mega project investments. Over 151 exhibitors will be present from 70 countries, including Al Mazroui Medical & Chemical Supplies, GE, Maquet Getinge Group, Human Scale, Olympus and ProVita. The keynote speakers at the conference include HE Dr Amin Al Amiri, Assistant Undersecretary of Public Health Policy and Planning, Ministry of Health, UAE; Dr Mohammad Al Redha, Director of Health Data & Information Analysis Department, Health Policy & Strategy Sector, Dubai Health Authority; Dr Ramadan Al Blooshi, Chief Executive Officer, Regulation Sector (DHCR), Dubai Healthcare City Authority; Mark Adams, CEO, Anglo Arabian Healthcare, Dubai; and Dr Tomislav Mihaljevic, Chief Executive Officer, Cleveland Clinic, Abu Dhabi.
Big 5 OutdOOr design & Build shOw tO intrOduce sustainaBle OutdOOr sOlutiOns The Big 5 Outdoor Design & Build Show will make its debut at the Community Management Week taking place 23-25 May at the Dubai World Trade Centre. It is a specialised trade show for landscaping, infrastructure and urban development and is focused on the design, build and construction of all private and public spaces. It will showcase sustainable, low-maintenance and cost-effective technologies, products and services for the outdoor design and landscaping sector. Held under the patronage of H.E. Dr Abdullah Belhaif Al Nuaimi, UAE Minister of Infrastructure Development, the show is also supported by Dubai Municipality, the Sheikh Zayed Housing Programme and the Federal Transport Authority. The three-day agenda of the Summit includes sessions on Landscape Project Leaders, Leaders in Landscape Architecture and Design and Leaders 36 Middle East Consultant May 2016
in Landscape Construction. The highlight of the event will be the educational conference, which includes a Leaders in Landscape Summit and freeto-attend CPD-certified workshops. James Meltz, Exhibition Director of The Big 5 Outdoor Design & Build Show, says: “The UAE government has given a tremendous significance to outdoor built environments by developing them as open spaces that easily blend with the
surrounding architectural and natural features. Keeping up the vision of building sustainable, aesthetically pleasing and utilitarian open areas, The Big 5 Outdoor Design & Build Show 2016 will bring dynamic ideas for industry professionals through the exhibition. We are confident that the show will fill the market gap for smart, innovative and green landscaping solutions, making outdoor spaces, beautiful, inviting and useable.�
The Big 5 Outdoor Design & Build Show will showcase sustainable, low-maintenance and cost-effective technologies.
on site roundup
Update $1bn Warner Bros. World Abu Dhabi set to open in 2018 Miral and Warner Bros. have officially announced that a Warner Bros. themed destination will open on Abu Dhabi’s Yas Island in 2018. The construction of the first phase of the project is already underway and rides are in production. The $1 billion development will also include a Warner Bros. branded hotel, and is expected to create a thousand jobs in the emirate. Warner Bros. World Abu Dhabi is expected to take Yas Island’s annual visitor tally from 25 million in 2015 to 30 million in 2018 when it opens. It will create experiences from its portfolio of DC Comics characters like Batman and Superman, and from its cartoons like Looney Tunes and Hanna-Barbera. Mohamed Khalifa Al Mubarak, chairman, Miral, commented: “It is incredibly exciting to announce that we are bringing the iconic
Warner Bros. brand to Yas Island. Miral’s investment in the Warner Bros. World Abu Dhabi theme park is estimated at one billion dollars and is a milestone in the emirate’s journey to put Abu Dhabi on the global map and become one of the world’s leading tourist destinations.” Kevin Tsujihara, chairman and CEO, Warner Bros. Entertainment, also commented: “Warner Bros. has been entertaining audiences for more than 90 years with the world’s most-loved characters and franchises. Working with our partners at Miral, we’ll bring this expertise to Yas Island, one of the world’s leading entertainment destinations, to create a fully interactive, innovative and unique experience that will allow fans of all ages to experience the most exciting aspects of Warner Bros. in a completely immersive environment.”
Warner Bros. World Abu Dhabi is expected to take Yas Island's annual visitor tally to 30 million in 2018 when it opens.
aBu dhaBi’s aldar launches $1.6Bn Yas acres prOject Abu Dhabi developer Aldar Properties has announced the launch of Yas Acres, an AED 6 billion ($1.6bn) project that will add 1,315 villas to the northern shore of Yas Island. The golf and waterfront development will accommodate 15,000 residents upon completion, and units are available for purchase by all nationalities. The starting price of units is pegged at AED 2.9 million ($789,000) for a three-bedroom town house. Yas Acres will also contain another housing component called Royal Oak in the centre, which will comprise four-, five- and sixbedroom luxury villas. Facilities include a golf course and a clubhouse, parks, two schools, five mosques, a community retail complex, a full-service ADNOC petrol station, a yacht club and a marina. Villa clusters will also include landscaped parks, running and cycling tracks, community pool areas, playgrounds, sports facilities and BBQ areas. Commenting on the launch of Yas Acres, Abubaker Seddiq Al Khoori, chairman of Aldar Properties, said: “Abu Dhabi’s economic fundamentals remain solid, built upon a longterm vision for economic diversification. In order to play a key role in our emirate’s growth plans, this AED 6 billion development is a clear example of Aldar committing to the delivery of only the highest quality homes to the market. Through this we can improve the quality of life of our customers, while also contributing to the local economy.” May 2016 Middle East Consultant 37
on site roundup
Update Dubai Parks and Resorts secures $270m funding for Six Flags attraction Dubai Parks and Resorts says it has secured $270m in debt financing to fund part of the Six Flags attraction it plans to build next to its three under-construction theme parks. A consortium consisting of Abu Dhabi Commercial Bank, Dubai Islamic Bank and Sharjah Islamic Bank will provide the $270 million debt funding, the developer said. Dubai Parks says it is looking to raise $726.8 million, primarily to finance the development of Six Flags Dubai, through a combination of debt and equity funding. The debt portion accounts for approximately 37% of the total financing being raised, Dubai Parks said in a statement to the Dubai Financial Market. Six Flags Dubai is expected to open in late 2019 with 27 rides and attractions. Six Flags Inc is one of
the largest amusement park companies in the world, based on the number of parks it operates, and the fifth most popular in terms of attendance. “Dubai Parks and Resorts has a clear strategy to be the largest leisure and entertainment destination in the Middle East. The proposed Six Flags branded theme park will strengthen the appeal of
our destination for thrill-seekers of all ages, complementing Motiongate Dubai, Legoland Dubai and Bollywood Parks Dubai, which are on schedule and on budget to open in October this year,” said Raed Kajoor Al Nuaimi, chief executive of Dubai Parks. “We are pleased to have the support of the banking community as we expand our entertainment offering,” he added.
Dubai Parks is looking to raise $726.8 million primarily to finance the development of Six Flags Dubai.
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Under the Patronage of His Excellency Dr. Abdullah Belhaif Al Nuaimi Minister of Infrastructure Development
23 – 25 MAY 2016 DUBAI WORLD TRADE CENTRE
THE INTERNATIONAL OUTDOOR TRADE SHOW FOR LANDSCAPING, INFRASTRUCTURE & URBAN DEVELOPMENT Gain market insight, collect new design ideas, source latest equipment and network with peers. A must-visit event for consultants, designers, architects, developers, contractors and engineers working in infrastructure and urban development.
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On Site PEdraM rad
Final word
Pedram Rad, managing director of U+A
Sketching the Future As architects and consultants, the focus should be on maximising the potential of a plot of land within a given budget Dubai has been set up as a tourist hub and has around 15 million visitors every year, not to mention the 60 to 65 million transit passengers that Emirates sees per year. Besides the many opportunities this brings, two sectors that we feel should be closely watched are hospitality and education. The number of keys required for Expo 2020 is one factor driving the hospitality sector. With Dubai viewed as a leisure and holiday destination, hotels will need to be up to date and in a position where they can evolve easily and cater to the end user. At U+A, we’re working on hotels that cater to a wide range of clients, such as a five-star hotel with Habtoor and a four-star hotel for the Marriott and Millennium Hotel, and we're also working on a threestar hotel for Dubai Festival City. Education is another sector where we see great growth prospects. Considering there are a large number of expat families that come to Dubai, demand for schools will increase, and as such we want to associate our name with these kinds of projects. Take Swiss International Scientific School in Dubai as an example. We were quite thrilled when we won the competition for Phase 3 of the school, which is ongoing. We thought having a school that is focused on energy saving is a fantastic idea, and the mandate made the project even more interesting, as we had to ideate and figure out how to make this project energy efficient without compromising on the architecture and space. We didn't want the school to feel like a traditional school with the rigidness, and one thing that you'll notice about the project is that it has an atrium, which is very uncommon for a 40 Middle East Consultant May 2016
school. What we tried to do is create it in a way where students from the mid and senior level can enjoy this space and give it a sense of university. I'm sure when this project is fully completed and children start to really enjoy it, other schools will follow suit. In fact, we have got two other clients who are discussing similar projects with us, so I can see the potential and impact this one project is having. Looking at the broader market, one thing that the UAE government will be doing is focusing on completing projects that they have already launched, like the Canal project for instance, which is due for 2020. We are developing another part of the canal on the Safa Park side, and if everything goes well, it should be up by 2017. Other supporting projects like the Museum will also be on high priority. Infrastructure projects such as roads and metros will also be in focus, because Dubai is known for its services and they will look to keep these things up to standard. In terms of Middle East markets, where we see most opportunity, I would say that Dubai is the best place at the moment, as it has a lot of potential still because of the direction and vision that they have. Qatar and Saudi Arabia are also good markets to look at. Iran and North Africa are of interest to us, and we believe that the RFPs that we're receiving from these two places suggest that these are new areas that we should be looking at. I feel that 2016 will be a difficult year in the sense that you will have a lot of contractual and claims issues. This year will be all about budget, cost and value engineering. It’s definitely not going to be an easy year, but each year comes with its own set of difficulties, and we as consultants need to cater to this and make sure that our designs are responding to that need of the client. This doesn't necessarily mean cutting costs or cutting corners. I feel we need to stick to our philosophy and have all the necessary design, engineering and technology elements to make projects successful, but cut out on the frivolous elements.
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