For the construction specialist
A Team Effort We speak to CKR Consulting Engineers about growing through competencies ON TOPIC
RAK’s residential market and growing economy in focus
IN PRACTICE
Building revitalisation a viable solution to boost ROI
ON SITE
The state, acceptance and penetration of 3D printing
ISSUE 046
March 2018 Publication licensed by Dubai Production City A product of Big Project Middle East
© 2017 LACASA Architects & Engineering Consultants All Rights Reserved
MEP DIRECTOR I’m Reem Dayoub and I am a
www.lacasa.ae
I am constantly advocating for efficient MEP systems As a MEP Design professional I enjoy the challenging aspects of my role; Finding the balance between efficiency, sustainability, and cost-effectiveness. I am constantly advocating for efficient MEP systems to ensure that we not only meet our clients’ expectations, but also exceed them every chance we can. At LACASA, these values are shared across every team; each doing their best to create quality-driven, sustainable, efficient, and elegant buildings.
Reem Dayoub MEP DIRECTOR
LACASA is committed to providing quality-driven designs within a multidisciplinary environment. Established in 2006, the firm has grown significantly over the past eleven years. Today, LACASA boasts a diverse portfolio encompassing all types of developments and across the entire MENA region. While it is said that perfection doesn’t exist, we believe that perfecting design can be achieved by cultivating extraordinary talent.
CONTENTS
On topic IndustRy VIEWs fROM ACROss tHE MIddLE EAst
07 AnALysIs
06
07
10
13
14
16
22
26
30
32
Cavendish Maxwell’s Manika Dhama discusses Ras Al Khaimah’s growing economy and the city’s residential real estate market 10 nEWs
Core Savills’ David Godchaux examines Dubai’s office real estate market and the impact of VAT on the sector 14 OpInIOn
AECOM’s Prakash Senghani speaks about three different technologies that could impact the construction industry in the coming months and years
In practice AnALysIs, InsIgHts And IntERVIEWs
16 IntERVIEW
Following a brand refresh, Jason Saundalkar sits down with CKR Consulting Engineers to chat about current market realities, challenges and growing through competencies 22 IntERVIEW
Stephan Degenhart speaks to Middle East Consultant about revitalisation and how it can help asset owners maintain returns
On site CAsE studIEs, OpInIOns And snApsHOts
26 IntERVIEW
We talk to Autodesk’s Louay Dahmash about 3D printing technology and discuss its acceptance and penetration in the region 30 EduCAtE ME
Patrick Bean and Nadin Al Kayyali discuss LACASA’s Interior Design department within the context of the Mall of Palestine 32 tHE BACk pAgE
Alternative funding models require a culture change 2 MARCH 2018
WELCOME
Group EDITOR’S NOTE
The Rise of MidMarket Projects Last month, Perkins+Will announced middle income projects as a key trend for 2018. Citing Euromonitor International data, the firm said that in 2017, 20% of adults in the UAE accounted for bottomincome earners, while top- and middle-income earners accounted for 32% and 48% respectively. While I have some questions about the data, the firm summarised that although high-end luxury developments will continue to be part of the project mix in 2018, developers would seek to deliver more opportunities catering to the middle-income. It’s about time... I’d have liked to have known what the average income or income classification was for each of those categories, as that would have helped paint a clearer picture in terms of what people could potentially invest into. But in any case, I was pleased to read the announcement from P+W, as I think the UAE market could do with more projects geared towards low- and middle-income earners. After all, people in those categories are the bread and butter of the economy and in the current market, I personally find it hard to classify current low- or mid-market projects as such, because the asking prices seem to be geared towards cash-rich investors and/ or high-income earners. Having appropriately priced low- and middle-income residential stock in the market is perhaps even more crucial this year, following the introduction of VAT. The tax has raised the cost of living, which has had a knock-on effect on disposable income. At the same time, while VAT doesn’t directly affect residential sales values, the tax is chargeable on bank fees, broker commissions and other important things like home insurance. It all adds up. So, going forward, I hope to see more projects that actually target low- and middle-income earners. Developers and other industry stakeholders have already delivered some of the world’s best luxury developments in the UAE, and I’m confident they will be able to cater to the other segments appropriately as well. Enjoy the magazine.
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Jason Saundalkar Editor, Middle East Consultant 4 MARCH 2018
© Copyright 2018 CPI. All rights reserved. while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
The world looks better
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ON TOPIC
MOST POPULAR
fEATURED
CONSTRUCTION
ABB SUPPORTINg DEWA fREE SOLAR PANEL PROgRAMME IN HATTA
Nakheel to build largest mall in the Middle East
CONSTRUCTION
First Middle East Hindu stone temple to be built in UAE
Site Visit: India’s Construction Disruptors
BIM
Cheaper construction tech will speed-up KSA development
CONSTRUCTION
Alec wins Dubai Hills Mall solar project
EXPERTS
The power of the sun
6 MARCH 2018
READERS’ COMMENTS
Video: The blackest building in the universe
I am a great believer that everyone should benefit from progress in a society, whomever and wherever they are. Thankfully, this is something that is shared by the leadership of the UAE and again this initiative proves that investment into areas beyond our cities is a fundamental part of the growth of this country. I’m sure anyone who has been to the Hatta Heritage Village will understand its importance, particularly in reminding us of a traditional way of life. By delivering solar panels to these people we are not only making the most of our resources but also helping more remote and important communities to grow. Across the world, people are deserting their traditional lives in the country to live in cities, but rural communities have a huge role to play in our future and are neglected at our peril. It would be great if the panels could also be shared with other non-UAE nationals, so they could also understand why it is crucial we protect these communities. Name withheld by request
ON TOPIC
ANALYSIS
Ras Al Khaimah Residential Market Cavendish Maxwell’s Manika Dhama discusses Ras Al Khaimah’s growing economy and residential real estate market
R
as Al Khaimah’s real estate sector has seen a substantial increase in development and a change of demographics in the last 15 years. The emirate has witnessed rapid development of its tourism industry and increasing employment and economic activity in the manufacturing, industrial, retail, education and hospitality sectors. Additionally, the emirate offers wider freehold property options than before, thus attracting expatriates as owners and end users. As the fourth largest emirate in the UAE, Ras Al Khaimah’s growing population is a key driver for residential demand. According to the Ras Al Khaimah Department of Economic Development, the
population was 416,600 in 2011, 438,000 in 2013 and is expected to reach 520,644 by 2020. Expatriates make up 60% of the population and the majority of residential demand from this segment is for apartment and villa/townhouse units, whereas UAE nationals are more likely to occupy mid- to high-end villas. Ras Al Khaimah demonstrates significant economic potential due to its expanding tourism industry and expat population. Major sectors contributing to the emirate’s GDP are manufacturing and extractive industries, construction, financial services, wholesale and retail services, and tourism. According to the Federal Competitiveness and Statistics Authority, Ras Al Khaimah’s GDP increased from $5.8bn in MARCH 2018 7
ON TOPIC
“With the growing beach resort market, historical attractions and the recently completed Jebel Jais Guinness Record holder longest zipline, tourism demand in Ras Al Khaimah is expected to increase at a healthy pace over the coming years”
Tourism in the Emirate
Ras Al Khaimah’s integrated communities and tourist attractions are key drivers of continued GDP growth and job creation. There were 740,383 visitors to Ras Al Khaimah in 2015, increasing 10.9% to 820,772 in 2016. According to the Ras Al Khaimah Tourism Development Authority, the emirate attracted over 631,000 people in the first nine months of 2017 and expects to reach one million visitors by the end of 2018. Given its proximity to Dubai and Sharjah’s international airports as well as Oman, the emirate is easily accessible to tourists. With the growing beach resort market, historical attractions and the recently completed Jebel Jais Guinness Record holder longest zipline, tourism demand in Ras Al Khaimah is expected to increase at a healthy pace over the coming years. Residential Supply
2010 to $8bn in 2016. The manufacturing sector contributed to 36% of GDP in 2016, in comparison to 25% in 2015. Wholesale and retail trade contributed 9%, closely followed by the quarrying industry at 8%. According to Standard & Poor estimates, the emirate’s economic expansion is likely to accelerate and GDP growth is expected to average 2.5% between 2018 and 2021.
Most of the completed residential developments in Ras Al Khaimah are in central Ras Al Khaimah, around major commercial roads. In contrast, the north has the smallest share of housing units, most of which are older stock of villas/townhouses. The west also mainly consists of old residential stock catering to low- to mid-end buyers, whereas the east consists of villas and traditional Arab houses, which cater to a middle to upper-middle income household profile. The south of the emirate presents the main opportunity for development through still available vacant plots. The development of the southern coast of Ras Al Khaimah as a freehold residential
Population Growth in Ras Al Khaimah
Contributors to Ras Al Khaimah’s Economy
Population
Growth Rate 4.0%
600,000 3.5% 500,000 3.0%
400,000
2.0%
300,000
1.5% 200,000 1.0%
Manufacturing 26.0%
100,000
0.5%
12
13
14
15
16
17
18
19
20
Construction 6.6%
Retail trade 11.5%
Real estate activities 5.6%
Public administration 8.8%
Mining and quarrying 5.6%
Financial and insurance 8.7%
Transportation 4.9% Other 22.2%
8 M ARCH 2018
Sources: Cavendish Maxwell, RAK TDA, FCSA
2.5%
ON TOPIC
destination has led to a number of waterfront residential communities, including Al Hamra Village and Mina Al Arab. Al Hamra Village is an integrated community comprising over 4,000 residential units along with leisure facilities. The development includes Al Hamra Golf, an 18-hole championship golf course, Al Hamra Marina and Al Hamra Mall. Meanwhile, Mina Al Arab is an island community being developed by RAK Properties that comprises villas, townhouses and low-rise apartment developments. The island also has proposed hotel developments. Current findings suggest that residential demand in Ras Al Khaimah will shift primarily towards apartments and villas/ townhouses, given the decreasing household size and increasing expat population. The majority of upcoming projects targeting expats typically include studios and one-bedroom units. Smaller unit sizes are also more popular with investors and this segment has seen increased activity in other emirates as well. There is a particular focus on these unit types due to rental demand from the target population as well as higher returns on investments and yields compared to larger units such as four- and five-bedroom villas.
The new developments in Ras Al Khaimah offer a unit mix in line with current market demand. However, the market is considered price-sensitive and fluctuation of rental rates is likely to affect the absorption rates of any new development. Ras Al Khaimah Outlook
On average, Cavendish Maxwell estimates that the forthcoming residential supply will be approximately 600 units a year. Typically, project completion is within two to three years of project launch. The expansion of the emirate’s tourism base is also opening opportunities for the construction of new hotels and resorts. Thus, the northern emirate presents several real estate opportunities catering to tourism, hospitality and residential demand, especially in line with requirements of the expat population. However, given the sheer number of competing developments being launched and handed over in neighbouring emirates, product differentiation and specialist offerings by real estate developers is essential to attract both investors and end users to participate in the Ras Al Khaimah market.
“Current findings suggest that residential demand in Ras Al Khaimah will shift primarily towards apartments and villas/townhouses, given the decreasing household size and increasing expat population� MARCH 2018 9
ON TOPIC
SSH unveils museum district in Kuwait City SSH, in partnership with the Sheikh Jaber Al Ahmad Cultural Centre, has launched a new museum district in Kuwait City. The Sheikh Abdullah Al Salem Cultural Centre (ASCC) will form Kuwait’s new national cultural district, and SSH was appointed by Al Ghanim International as the lead architect and engineering designer on the project. Working with global museum specialists, SSH says it presented the ASCC project to the Amiri Diwan of Kuwait, adhering to the standards expected of world-class public cultural buildings. HH Sheikh Sabah Al Ahmad Al Jaber Al Sabah, the Emir of Kuwait, and representatives of the Amiri Diwan attended a private inauguration of the district. “The Cultural Centre is a fitting and spectacular addition to Kuwait’s cultural heritage, and sets out to embrace the rich diversity of the world’s finest achievements. As the largest museum project of its kind in the world, SSH is proud and honoured to have been involved helping HH Sheikh Sabah and the Amiri Diwan to fulfil their cultural aspirations for Kuwait and the region,” said George Abi Hanna, managing director of SSH Kuwait.
10 MARCH 2018
ARADA names contractors for phase two of Nasma project ARADA has awarded the construction contracts for phase two of its Nasma Residences community to Intermass Engineering & Contracting and Klampfer Middle East. According to the Sharjah-based developer, the contractors will be responsible for building the 184 villas and townhouses that make up phase two of the project. Mobilisation on-site began late in February, with final handover of units to customers scheduled for Q1 of 2019. “This year is a hugely important one for Nasma Residences, as we work towards handing over our first homes in the final quarter. These contracts for phase two of this community show our commitment to homebuyers to move quickly and deliver on schedule,” said HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of ARADA. Nasma Residences was launched in Q1 of 2017 and the main construction contract for phase one was awarded to Intermass Engineering & Contracting. Enabling works began on-site in September last year and the first phase is said to be on track to be delivered to buyers by the end of 2018.
ON TOPIC
KEO achieves ISO certification for PMCM services
P+W says mid-market projects are a key trend Middle-income development projects will be a key trend in 2018, according to Perkins+Will. The global architecture firm noted that population growth, urbanisation and tourism will put more pressure on the UAE to accommodate the evolving needs of residents and visitors. According to Euromonitor International data from 2017, 20% of adults in the UAE accounted for the bottom income, while top-income residents formed 32% of the country’s adult population, which left the middle-income group at 48%. “This trend emerging in the market primarily encapsulates the residential and hospitality sectors. It’s important to make clear this growth area will not supplant existing high-end projects, it is simply evolving to include a previously underserved market. We expect residential developers to increasingly target mid-income investors with one bed and studios around the $136,000-163,000 mark,” said Roger Wilson, managing director at Perkins+Will Dubai. Wilson also says that 2018 will continue to see high-end luxury development announcements but noted that developers will be looking to deliver more investment and leisure opportunities catering to the middle-income market. A similar focus is also expected in the hospitality sector, as operators look to cater to a wider range of price points for travellers who visit the region.
KEO International Consultants has achieved ISO 9001:2015 certification for the delivery of project management and construction management (PMCM) services across the GCC. The certificate was issued by Lloyds Register of Quality Assurance (LRQA), a body accredited by the UK Accreditation Services (UKAS). The certification is in line with its goal of delivering the highest quality services, while simultaneously adapting to the rapidly changing business environment in the region. “This achievement aligns with our vision of leveraging compliance and quality of service across all of our markets to provide our clients with the highest quality of service possible. As we continue to foster a commitment to client satisfaction, we are very proud of this achievement by our project management/ construction management teams, which underscores our drive for excellence. The ISO certification is a strong signal that our clients and partners can trust KEO to deliver projects to the highest quality of services,” explained Tahsin Al-Fakir, senior VP of PMCM at KEO International Consultants.
MARCH 2018 11
ON TOPIC
Saudi Aramco and Alphabet in talks to build tech hub in KSA A large technology hub could take shape in Saudi Arabia, if talks between Saudi Aramco and Google parent company Alphabet result in a deal. Should the two firms come to an agreement, Alphabet will support Aramco in building data centres around the Kingdom. Senior executives at both companies are said to have been engaged in talks for months. The deal is being driven by Saudi Crown Prince Mohammed bin Salman, who is keen to bring technology expertise to the Kingdom. The partnership is expected to boost the development of Saudi Arabia’s technology sector, a key part of the Saudi Vision 2030 initiative announced by Prince Mohammed in 2016. A joint venture with Aramco would give Google a foothold in the region. Google has been competing with Amazon and Microsoft to rent out computing power and storage. Currently, none of the companies run data centres in the Middle East, according to the Wall Street Journal. However, Amazon has announced its intention to launch a data centre in Bahrain and is rumoured to be close to finalising a $1bn deal to build three data centres in Saudi Arabia.
12 MARCH 2018
ARADA awards Aljada design contract to JEG Sharjah developer ARADA has awarded the design contract for its mixeduse Aljada mega project to Jacobs Engineering Group (JEG). Under the terms of the contract, JEG will manage all aspects of infrastructure delivery including roads, water, power and drainage. The firm will also ensure integration with the development’s master plan. The contract is part of a $326m package for infrastructure in the $6.5bn mega project. “This is a significant milestone for Aljada, as we continue to work towards breaking ground on this mega project by the end of the first quarter. We are pleased to be partnering with Jacobs, a company with an excellent track record in delivering world-class projects around the world,” said HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of ARADA. The contract award follows an announcement by ARADA in early January that it had secured a $272m Islamic financing facility with Abu Dhabi Commercial Bank and Dubai Islamic Bank to develop the project. Neil Stevens, project director with Jacobs Engineering Group, added, “We are extremely happy to be working closely with ARADA on the development of Aljada, a landmark project both for Sharjah and the UAE. We are looking forward to bringing our expertise and skills to this inspiring project and help deliver innovative yet sustainable infrastructure for this exciting development.” Set to be delivered in phases starting in 2019, construction on Aljada is expected to be complete by 2025.
ON TOPIC
SHOW PREVIEW
Cityscape Abu Dhabi
Market conditions point to new and attractive off-plan deals
N
ew reports on the Abu Dhabi and UAE real estate market have cited developers introducing attractive payment plans in light of current market conditions. JLL and Cluttons have reported that 2018 will likely witness attractive offplan pricing deals, as developers work harder for investment. Many of the UAE’s prominent real estate developers, particularly those based in Abu Dhabi, are gearing up to create and unveil new pricing strategies for investors at Cityscape Abu Dhabi, which takes place 17-19 April at Abu Dhabi National Exhibition Centre (ADNEC). “With the market conditions highlighted in the JLL and Cluttons reports, such as the sustained drop in demand and the knock-on effect of VAT for property owners, we expect to see developers being more competitive at Cityscape Abu Dhabi, with the introduction of a wave of new attractive plans. While selling properties on-site is not a new feature for the show, we do expect to see an increased level of competition among developers this year, which can only be good news for investors,” said Carlo Schembri, exhibition manager for Cityscape Abu Dhabi. Several Dubai developers will make their first appearance at the exhibition, set to capitalise on the opportunities the capital presents as an emerging market and international hub for decision-makers. Farhad Azizi, CEO of Azizi Developments, said, “With Abu Dhabi being the capital city, Cityscape is the premiere real estate and infrastructure event that brings together a powerful network of buyers,
investors and developers looking for residential and commercial real estate opportunities in the region.” Other developers attending Cityscape Abu Dhabi include Danube, Kleindienst and Tiger, with Binghatti Developers and MAG Properties joining for the first time this year. Both reports note a decrease in prices for Abu Dhabi, with Cluttons stating a 4.1% decline in house prices from the previous 12 months and a further predicted decrease in rents of 5-7%, which has incentivised developers to craft new ways of attracting investors. While the reports suggest a future decline in prices and rents, they also suggest future gains for investors with foresight could be made for those purchasing now. Held under the patronage of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, the show will see the return of the Cityscape Abu Dhabi Conference, which will feature a range of topics and speakers providing insight into the capital’s real estate market. Established as the UAE capital’s largest and most influential property investment and development event, Cityscape Abu Dhabi brings together investors, developers, government officials and real estate professionals. Cityscape Abu Dhabi returns with support from Platinum Sponsor MAG Property Development. For more information, visit www.cityscapeabudhabi. com or call +9714 336 5161. MARCH 2018 13
IN PRACTICE
OPINION 01 Prakash Senghani is Project Management and Construction lead, Digital Project Delivery at AECOM.
The Digital Transformation of Construction AECOM’s Prakash Senghani speaks about three different technologies that he expects will impact the construction industry in the coming months and years
01
D
igital transformation is one of the most popular topics in construction, which is uncovering potential solutions for several challenges. The subject is complex but, at its core, it is about the introduction of tools to improve the safety, quality and efficiency of a notoriously inertial industry. Common consensus is that the industry has been slow on digital uptake. This can be attributed to the fact that construction is heavily regulated, for good reason, but that is no excuse. The financial industry is also heavily regulated but most of us now rarely need to go 14 MARCH 2018
to a bank because we can easily access services from our smartphones and computers, while algorithms now execute trades on behalf of fund managers. So, transforming a regulated industry is a matter of will and necessity. There is widespread acknowledgement of the chronic productivity shortfalls in our sector. An influential report commissioned by the UK government in 1998 titled ‘Rethinking Construction’ highlighted areas of improvement and created some traction for change, BIM being one of these changes. However, over the past 19 years not much has changed and the productivity gap to other industries has widened, as they have embraced technology to become more efficient. Appreciation of the importance of safer projects, increased competition and client demand are further driving the desire to bridge this gap. This combination of factors, willpower and necessity is helping to introduce and drive digital innovation in construction. There are many technologies either breaking or about to break through, but there are three which I feel will have the biggest impact over the short, medium and long term. We have already seen the impact of BIM on the way we deliver projects, and this is just
the beginning of a data-driven transformation which has the potential to completely change the way we design, procure, construct and decommission the built environment. In the short term, data capture is an area already being explored by many in the industry. This is evident on project sites, where the combination of mobile and cloud technology is being used to digitise paper documents. Similar to the way in which logistics firms now allow you to sign on a mobile device for parcels delivered, the construction industry is increasingly seeing mobile and tablet apps used to complete forms, attach photos and get approval signatures. This reduces the need for multiple revisits to the work area, minimising risk as well as making the approval process much more time-efficient and reducing the amount of paper produced. These apps started off to assist in the arduous tasks of generating and tracking snags at the end of projects, but have become more sophisticated to include full work inspections, safety inspections and many other previously paper-based processes. In the medium term, we will see a fundamental change in the way that we construct. 3D printing will revolutionise the way we build and consequently how
IN PRACTICE
we approach design. We are already seeing 3D-printed lighting fixtures, furniture and architectural elements, but the ability to print structures is where the revolution lies. 3D printing of structural elements is a lot more advanced than most people think. The general perception is that this is a futuristic pipe dream, but companies are already printing large-scale construction elements and entire structures. There are two main areas of innovation here: one is the mechanics or equipment for depositing the material, which is fairly well advanced and is borrowing robotics technology from the manufacturing and automotive industries. The second is the material science, where I believe the true value lies. The most prevalent method of 3D printing is known as additive manufacturing. Here, the material needs to be flexible enough to be deposited though a nozzle, set quick enough so that it doesn’t end up in a puddle, not setting too quick that the subsequent layer above cannot adhere to it, yet strong enough to support that subsequent layer. This complex set of seemingly contradictory requirements continues to be heavily researched, and there is also an opportunity here to use materials that are
sustainable, recycled, recyclable or exotic, such as carbon fibre or nano materials. The Middle East is quickly becoming the hub for 3D printing. Dubai has a vision to have 25% of building elements using 3D printing technology by 2030, with incremental targets, the first being 2% by 2019. In the long term, parametric and generative design will be used, initially to supplement the expertise of engineers and architects, but eventually to redefine their roles altogether while producing designs currently unimaginable. The premise of parametric design is to use algorithms with parameters to iterate every combination of variable within the defined set of rules; the results can then be filtered to give the optimal required design. Similarly, generative design uses algorithms with nature as its inspiration. Whereas parametric design algorithms are constrained by the number of rules input by the author, generative design algorithms generate the rules themselves, using evolutionary principles found in nature. As such, depending on the number of variables, the number of permutations can be immense. Generative design requires the use of cloud computing and the algorithms
themselves are considered to be primitive AI. The benefits of generative design are that numerous options can be generated in a very short space of time, many of them beyond what humans could have imagined. With this powerful tool, it is easy to see how the role of an architect or engineer will change, together with their outputs. These traditional sources will no longer be solely depended on for inspiration and ingenuity, but that does not mean they will become obsolete. The results of generative design will produce a lot of noise and will still require a human to input their intuition and provide context, both important requirements that computers are unlikely to fulfil. Often, the optimal results of generative design are organic shapes which are difficult or impossible to construct using traditional techniques; conveniently, 3D printing is a solution to this. Technology is not only a tool to help improve the safety, efficiency and productivity of our industry; it will also change the composition of the people we employ, and the way we design, procure, construct and eventually decommission what we build. We should be mindful and embrace it lest it leave us behind.
MARCH 2018 15
ON TOPIC
16 MARCH 2018
ON TOPIC
INTERVIEW
Positive Trajectory Following a recent brand refresh, Jason Saundalkar sits down with CKR Consulting Engineers’ Anil Menon, Jeán van Loggerenberg and Mike Berry to chat about the realities and challenges of the Middle East market and sustainable growth through competencies KR Consulting Engineers (CKR) was founded in Johannesburg, South Africa and over its 35-year history, the firm has grown its service offering significantly. Originally an electrical consultant firm, the company now specialises in green design, electrical and energy management solutions, fire and safety, ICT and mechanical services. As a result, its portfolio of work is staggering, spread across multiple sectors including commercial, leisure and hospitality, retail, residential, public facilities and infrastructure, back-up generation and data centres. The company established an office in Dubai in 2001, which was perfect timing as the emirate’s construction segment was also moving into high gear. Thanks to its service offering and its experience on international projects of varying sizes, the firm was quickly contracted on several high-profile projects, including the Bab Al Shams Desert Resort & Spa, Madinat Jumeirah, Park Hyatt Dubai, Royal Mirage Resort, the Al Manzil and Qamardeen hotels, as well as the Golden Mile Apartments and Fairmont Hotel and Residence on the Palm Jumeirah. The consultancy has enjoyed recent successes in Dubai as well, despite the fact that 2017 was quite tumultuous. Commenting on the last year, Mike Berry, partner at CKR Consulting Engineers says, “2017 was quieter than what we anticipated. We thought that it would pick up in the later quarter, but it didn’t. We’re now looking forward to the market picking up sooner or later in 2018.” Berry elaborates, “In saying that, we’ve been involved in some fairly decent projects – Jumeirah Al Naseem was completed in the early part of 2017 and that was quite a successful and award-winning project. We also did a significant amount of work on the Bluewaters island, with regard to its hospitality and residential components –
that should be completed later this year. We were also appointed on a significant project going forward in 2018, and that’s something that should be ready in time for Expo 2020.” The company was also involved in the delivery of Drift Beach Dubai, a new luxury beach club that opened in the last quarter of 2017. Speaking about the club and dealing with fast-tracked projects, Jeán van Loggerenberg, partner at CKR Consulting Engineers, notes, “We did the Drift Beach Club at the One & Only Royal Mirage, and that was done in about three months. That was another stand-out project and it was all about procurement. We worked with the contractor closely, and that demonstrated early procurement working properly. It was very successful and if clients are going to shorten the programme, that’s what you have to do.” Registered as a green building and renewable energy consultant, the company anticipates a lot of opportunities in the green building space in the near future. Anil Menon, partner at CKR Consulting Engineers, reckons that recent government initiatives have helped develop the segment. “Since you’re now able to connect back to the grid, we’re seeing more and more buildings with solar systems on the rooftops. We were involved with a 700KW solar installation as solar PV consultants for Al Tayer’s pre-owned car showroom on Sheikh Zayed Road,” he says. “We definitely see ourselves getting more involved with sustainable projects, especially those that follow municipality guidelines and are part of the Shams Initiative. Earlier it used to be about attaining LEED certification, but now it’s about seeing what can be achieved within local regulations. That’s definitely an area of interest, and it’s a mix of two approaches in the market: looking at existing buildings and at new builds. Earlier you couldn’t connect back to the grid, so people were reluctant to have a stand-alone installation, but now with Shams, it’s encouraging people to invest in rooftop solar installations and more.” MARCH 2018 17
ON TOPIC
01 Working on Jumeirah Al Nassem, CKR delivered MEP, IT and AV services on the project. 02 The firm was contracted for MEP, IT and AV deliverables on Madinat Jumeirah. 03 Drift Beach Dubai is a new beach venue in Dubai and CKR was responsible for specialist lighting, MEP, IT and AV. 04 The firm also offered MEP, IT, AV and specialist lighting on 01
Market Challenges and Realities
2017 was a challenging year for the construction industry in Dubai and the wider GCC. While mega projects and global events such as Expo 2020 and Qatar 2022 loom on the horizon, political turmoil, depressed oil prices and other issues have forced players within the construction industry to deal with several challenges. Van Loggerenberg explains, “We realised quite early on that 2017 was going to be a pretty flat year, so we had to be careful about what we were doing. Getting payments in was quite challenging, and I don’t think that’s necessarily changed today. That said, 2017 ended quite well for us, with a lot of work and we had a lot of good potential, some of which we still have. But what we also saw was that clients didn’t have the same budgets as they used to – so if projects were going to go ahead, they were going to go on an extremely tight budget.” “The result of that was that some of the projects never made it through the feasibility or concept stage. We actually had two projects that were put on 02 hold because of that, which is probably not a bad thing in terms of the project – it’s better to stop it earlier. We did some exciting work, and as Mike said earlier, we’ve got another lovely project. But sitting here now, it’s probably not as positive as it was end of 2017. What happened in 2017 carried on for a bit longer than we anticipated or hoped,” he states. Menon suspects the market may start picking up later in 2018. “We’re not too sure whether it’s a wait and watch game, with stakeholders wanting projects to be fresh by 2020. It’s hard to say if they’re waiting for the third quarter before pressing the ‘go’ button. One thing that we’re seeing 18 MARCH 2018
the One & Only, The Palm.
– I’m not sure if it’s a cyclic trend – but clients are looking more at feasibility and budget. And because they want to rush to 2020, they’re looking more and more to design and build (D&B) or they are asking for early contractor engagement. We’ve seen a lot of projects go that way.” Van Loggerenberg agrees: “The other thing that’s starting to happen in the RFPs is that the programmes are getting tighter. And I think that’s one of the reasons – because of the shorter programmes – that there’s so much talk of D&B. You could spend an hour talking about that in terms of its pros and cons.” He notes that design and build has its place, but that there are also projects where this project delivery system doesn’t quite work. “D&B has become popular, but I think we have to be careful about it. It can be good but it depends on the project. For example, on highend hospitality, I can’t see D&B ever working. Repetitions on high-rise projects, probably. But in terms of where the value lies in working with
ON TOPIC
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“We definitely see ourselves getting more involved with sustainable projects, especially those that are part of the Shams Initiative. It used to be about attaining LEED certification, but now it’s about seeing what can be achieved within local regulations” contractors, absolutely, getting early involvement from the contractor at the end of detail design certainly has its advantages.” With tighter client budgets, cost-cutting masquerading as value engineering (VE) continues to be a challenge. Berry clarifies his firm’s approach: “We try to value engineer from day one. So if you’re looking for the most cost-effective design for that particular application, when it comes to cost-cutting later, it’s not as simple because we’ve already incorporated as much as possible early on. In the market, generally, it’s more about looking at a client and saying reduce the specification and things like that, which is not really value engineering.” Menon explains further: “We’ve been in the business in Dubai for 17 years now, and VE started from day one, on early projects like Royal Mirage and Madinat Jumeirah. We did those projects under time and under budget and within specifications, which were still industry standard and regulatory-compliant. We’ve proven that we have the capability, so for us VE is business as usual, but for others in the market, it’s more if the tender comes back at a higher rate or a higher price, then they go for cost-cutting – and that’s not value engineering.”
Potential in Dubai
Despite challenges in the industry, CKR is confident that Dubai continues to offer potential for business growth, so much so that geographical expansion isn’t an imminent focus. “If you look at the region as a whole and where Dubai is situated with regard to development over the last 15 years, even going forward, the majority of work is all happening here. To set up somewhere else costs money, so your margins aren’t going to be as good. It’s better to expand in this city rather than going somewhere else,” says Berry. Menon elaborates: “We are positive about Dubai, and we’ve been positive about it from day one. For us, this is where dreams are lived. If you look at what’s going on now, there’s talk of driverless taxis, air taxis and new metros. There’s also talk about AI and other futuristic technology, so this really is the place where it’s all happening, so we will definitely keep our base here and push forward where we see opportunities for business.” With regard to working on projects outside Dubai, he points out that CKR will continue to deliver projects through its existing MARCH 2018 19
IN PRACTICE
offices. “What we’ve seen is that whichever country you want to grow into, you need to have a full presence there. Instead, we would like to serve our local clients who go to those markets, and we actually do a lot of projects in that way. We have never stayed away from any region or city, it’s more the clients that drive the business, but in terms of geographical growth per se, I don’t think we’re looking at any particular country. The kind of business that we want to run, it’s hands-on. For us, it’s about value growth towards competencies rather than geographical growth.” A Focus on Competencies
Last month, the consultancy announced that it was refreshing its brand logo, saying: “The name of the company now forms the focal point of the logo, and the yellow line is a link to the past – because our fundamentals remain the same. The logo resembles our ideals and our strong passion – we are a multi-disciplinary and futuristic engineering company.” In line with this, Menon comments: “If you watched our growth, it’s been sustainable and stable, and we’ve been here for 17 years now. The attrition rates are very low, and on top of that, our competency has always gotten better. When we started off in South Africa 35 years ago, we were an electrical consultant firm, but now we’re a fullblown MEP consultant, DEWA Shams-approved consultant, EHScertified green building consultants and EHS-certified commissioning 04
20 MARCH 2018
consultants, and we have a very strong IT consultancy arm. We also have a specialist lighting studio, so the entire gamut of systems is covered quite nicely.” “We’re going to embrace competencies more and more going forward, and what we are looking at now is big data analytics. We’re meeting with a few clients and looking at cluster management and looking at how you can use big data analytics to help cluster management. We’re also looking at the Internet of Things (IoT) for smart cities and smart buildings.” He continues, “It has been a sustainable but constant refresh of our capabilities. That’s something that’s enviable in terms of what we are doing, and it keeps us as a niche consultant. We recently handed over the design of a 600-rack data centre – we were the lead consultants, and we did everything from MEP to hire an architect and structural engineer for that project. This data centre was Uptime Tier 3 design-certified as well.” Van Loggerenberg adds: “If you look at how the staff has grown and the team we’ve got today, it’s a very competent team all the way through. Individual or personal involvement from each of us is very high and we’ve got a great level of technical directors through to senior engineers within our organisation.” “The strength of the organisation is there, and that’s what the clients and project get – the best of what we have to offer. Most of our projects are from repeat clients,” concludes Menon.
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INTERVIEW
A New Lease on Life Middle East Consultant talks to Drees & Sommer’s Stephan Degenhart about building revitalisation, which can help developers and landlords maintain their return on investment in a highly competitive market rees & Sommer (D&S) is a Stuttgart consulting, planning and construction firm founded in 1970 by Gerhard Drees and Hans Sommer. Over the last 48 years, the firm has worked closely with clients to add value to projects through a variety of services including asset and portfolio analysis, general construction management, BIM solutions, facility management consulting, integrated construction management, project management and sustainability consulting. As a result, what began as a small three-person team has grown into a global multinational with over 2,400 employees and 41 offices around the world. In 2016, the company was involved in some 3,260 construction projects; with regard to the Middle East, it began commercial operations in the UAE in 2003, focused on the growing real estate and hospitality sectors. Last month, the firm organised an industry roundtable to discuss the issue of asset depreciation in Dubai, with panellists agreeing that revitalisation is critical to solidifying the value of property for developers and landlords. Building revitalisation is something D&S specialises in, with a multi-pronged approach to help clients generate maximum value from assets. “We have a holistic 360-degree view on revitalisation of projects, with the aim to create maximum value and ROI for clients. Revitalisation covers traditional refurbishment aspects such as energy, façade and safety issues but also includes additional consideration of design, usage, operation and digitisation of real estate assets,” said Stephan Degenhart, managing director, Drees & Sommer ME. Degenhart began his career with D&S as a project manager in the early 2000s and has held multiple positions within the organisation. 22 MARCH 2018
Discussing why developers and project owners should consider revitalising assets, he explains: “Considering the fact that 95-98% of buildings will stay operational for several decades and only 2-5% will be demolished and replaced with new developments, revitalisation of buildings is vital to maintain asset value. Replacing old facades, implementing energy enhancements, better technology and specifications are only imminent reasons for revitalisation and relate more to traditional refurbishment. The core reason for the revitalisation of buildings is to implement new life into the asset, which could be a complete transformation of the business including change of space usage, operational elements or digitisation.” Revitalisation in Dubai
Recent reports show a 74% increase in commercial and residential buildings in the last decade in Dubai, with the number of hotel and hotel apartment buildings increasing by 38% during the same time frame. Given these stats and the fact that Dubai’s construction segment remains vibrant, the market is perhaps more competitive than ever for developers and landlords looking to maintain income from assets. Revitalisation is one way to breathe life into assets, and benefits can extend beyond increasing rental values, according to Degenhart. “The revitalisation effect can be multifaceted to include major cost savings in maintenance, operational costs, lifecycle cost of up to 50% or gaining additional net floor area of up to 15%.” He continues: “‘Userbility’ is an industry term we coined and it refers to a building’s ability to adapt to its residents and operators. With that said, consider a shopping and entertainment development which is no longer operationally effective because it can no longer boast ‘userbility’. Now think about the return on investment if it was transformed into an operational success. Take Dubai Festival City Mall – it went through a big transformation through an apt redevelopment
IN PRACTICE
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MARCH 2018 23
IN PRACTICE
01 On the 95m, 33,700sqm Dreischeibenhaus office tower, the firm’s scope of work was façade enhancement and green
programme, which vastly improved the layout and traffic flow for units, making it more attractive and more convenient for the mall’s visitors. This has increased footfall and consumer spend, in turn raising the value of unit prices.” Degenhart points out that revitalisation can even help an older project achieve current sustainability and green buildings goals. “In line with Dubai’s 2030 sustainability goals, revitalisation should also be considered for its green effect. On certain projects, revitalisation has helped reduce energy consumption by up to 70%.” With that said, some of the main reasons assets are revisited post-construction in the region include damage repair and compliance with new building codes and regulations. Degenhart notes that this isn’t really revitalisation but rather an important necessity. “Currently, the main reasons behind façade upgrades are damage or compliance issues. It would be ideal to have the support of the government to drive preventive laws in terms of safety and operation. That said, the change of non-compliant façade materials is neither refurbishment nor revitalisation. It is imperative to comply with applicable building codes and regulations during the construction phase, for the safety of the building’s inhabitants. The government and relevant authorities already play a vital role to ensure compliance with latest regulations, codes and best practices and we’d like to see more of this.” Speaking about assets in Dubai and how developers and landlords approach revitalisation, Degenhart adds, “Revitalisation is already taking place in Dubai and, to a certain extent, also in the wider GCC. Major
building design. 02 Stephan Degenhart, managing director, Drees & Sommer Middle East. 03 D&S was contracted for façade enhancement on the 22-storey tower in the Dusseldorf district of Carlstadt.
operators in Dubai have refurbishment programmes underway across their key developments. We have reached a point in this country where revitalisation is becoming a cure. Ultimately it will turn into prevention but we still have some way to go before we 02 reach that point.” Referencing iconic Dubai projects, he explains: “Real estate landmarks in Dubai like Jumeirah Beach Hotel and the Burj Al Arab are turning 20 years old, and major real estate developments such as DIFC, Dubai Marina and Jumeirah Lakes Towers started 10 to 15 years ago. Around 55% of all residential and commercial multi-storey buildings and 70% of all hotels in Dubai are older than 10 years.” While building age is one factor, Degenhart says cost-cutting during the construction process is perhaps more responsible for a building needing refurbishment. “Many have been built during a period of excessive cost-cutting disguised as value engineering, affecting the quality, especially in critical trades. So, what we are facing more and more frequently today are buildings in urgent need of revitalisation, so I’d say it’s been a natural progression so far. Awareness about the benefits of revitalisation as well as the demand for it is steadily growing in the region and becoming the hot topic in our industry.”
“The core reason for the revitalisation of buildings is to implement new life into the asset, which could be a complete transformation including change of space usage, operational elements or digitisation” 24 MARCH 2018
IN PRACTICE
He also points out: “We mentioned value engineering being a big issue previously. Developers that are selling off-plan tend to implement this as a cost-saving measure at the construction and MEP stage; remove this option and your building will fare infinitely better over the years in delivering ROI.” Prevention Better than Cure
While building revitalisation can help developers and landlords maintain the value of their assets, Degenhart insists that there are a number of steps that asset owners can take to stave off the need for early revitalisation. “Prevention is better than cure, as they say, so we recommend 03 stakeholder focus on the following key areas, mainly with regard to technical standards: professional feasibility study or highest and best use study prior to the start of any project; analysing project needs and operational requirements; adherence to strict specifications and design criteria; peer reviews; professional review and approval of materials before shipment to site; strict supervision and inspection of construction; proper testing, commissioning and handover; and the implementation of high-level FM requirements.” On the impact of costcutting under the guise of value engineering, Degenhart reveals some startling facts. “In many cases, so-called value engineering is merely a cost-cutting exercise that tremendously affects the quality and therefore the lifecycle cost of a building. We have examples of projects in Dubai where initial fitout refurbishment works resulted in a complete refurbishment of the main MEP installations due to the poor quality of material and installations of main elements. Ideally, value engineering should define all sectors and parameters that are important to the client, and the focus should be on improving
all aspects of the building. For example, an inefficient layout can be modified and improved to add 15% more net area, which in turn will result in increased ROI. That is what I consider value engineering to be, not quality-cutting.” Degenhart also notes that the full lifecycle of a building should be a consideration right at the design stage, to avoid issues later. He concludes: “A professional consultancy firm should consider the whole lifecycle of a building and therefore any potential future revitalisation in general. This would relate more to usage and operation and less to future technologies at the design stage. At Drees & Sommer, we also consider the sustainability aspect.”
MARCH 2018 25
ON site
“this technology is one of the most powerful market forces in today’s economy, as it will allow creators and innovators across the globe to add and capitalise on ingenious ideas and designs, while also ensuring they are capable of cutting down production costs” 26 MARCH 2018
ON site
iNteRVieW
3D Printing in Focus We catch up with Autodesk’s Louay Dahmash on 3D printing technology in the GCC’s construction industry and discuss its acceptance and penetration D printing technology dates back to the 1980s, but has only become popular in the built environment space in the last few years. Since that initial breakout, interest and the use of 3D printing technology in the construction market has ramped up significantly; today, several buildings and even bridges have been built around the world using large-scale 3D printers. As the technology continues to evolve, it is expected to gain wider acceptance, which means it could radically change the construction landscape of tomorrow. GCC countries have been quick to jump on the 3D printing bandwagon, even as discussions about the applications and potential of the technology take place. Early in 2017, a Saudi Arabian contractor signed a $1.45bn deal with Chinese company WinSun that could see the printing of 1.5m affordable homes. In 2016, Dubai made headlines with its Office of the Future, the world’s first fully functional 3D-printed building, and the government has since announced that it aims to have 25% of the city’s construction 3D-printed by 2030. Here, Middle East Consultant speaks to Louay Dahmash, director of Autodesk Middle East and Turkey, about 3D printing technology within the regional construction industry. What is the state of 3D printing in the GCC construction industry and how do you think it will affect the world we live in?
At present, there is still an ongoing debate as to if 3D printing is sufficiently developed as a technology to be a game changer to the enterprise. Be that as it may, governments and companies are already investing significant amounts of capital to ensure they have the necessary infrastructure to adapt to and integrate 3D printing.
Even though the concept of 3D printing has been around for decades now, the technology gained momentum only a few years ago. As always, when it comes to new innovations, it takes some time to be adopted and there’s a waiting period before the technology can improve. Judging by today’s numbers and the cases of 3D printing usage around the world, we can be confident that the technology will change the way we do things and will eventually change the world we know. According to a recent report by International Data Corporation (IDC), spending on 3D printing in the MEA is set to increase from $470m in 2015 to reach $1.3bn by 2019. Dubai is one such city in the region that understands the significance of 3D printing. In fact, it is the first city in the world to have developed a fully functioning 3D-printed office, early in 2016. Furthermore, a great support and incentive for the adoption of technology was set by the government with its 3D printing strategy – to have 25% of Dubai’s construction be 3D-printed by 2030. A great vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, for building the city of the future, and 3D printing is definitely one of the key pillars for building this future. 3D printing will also allow construction companies to create unique architecture and skyscrapers that will beautify the skylines of tomorrow. Not only that, with 3D printing, construction companies will be able to significantly reduce wastage, as parts will be printed as opposed to being ordered in bulk. This in turn will keep costs low in the long run, while helping companies and countries realise a highly productive and sustainable future. Are enterprises in the region fully convinced or aware of what can be achieved with 3D printing?
Enterprises are aware of what can be achieved with 3D printing. However, the challenge is to get the wider pool of professionals MARCH 2018 27
01
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By leveraging 3D printers and robots, foundation structures, walls and even bridges are being built around the world. 02 3D printing technology can be used in the on-site and off-site fabrication of buildings and construction components. 03 Dubai’s Office of the Future became the world’s first fully functional and inhabited 3D-printed building in 2016.
within the industry to expand their thinking and open up to the ideas and opportunities that 3D printing can provide across a variety of industries, whether it is design, manufacturing, construction and so forth. Our role is to align with the respective visions of each country within the Middle East and equip them with the knowledge and tools to take advantage of 3D printing, to help lower costs, minimise wastage and promote sustainability within the region. For example, Autodesk has aligned with the Dubai Futures Foundation to catalyse the 3D printing revolution in Dubai through the Forge Fund – an investment fund of up to $100m to accelerate advances in the future of making things. As pioneers in changing the way the world is designed and made, we look forward to helping drive change and empower leaders and decision-makers within the region by further accelerating 3D printing and the future of how things are made. How can decision-makers justify the investment needed to procure 3D printing solutions?
3D printing has the promise to change the world, elevating both what we create and how it’s created. This technology is one of the most powerful market forces in today’s economy, as it will allow creators and innovators across the globe to add and capitalise on ingenious ideas and designs, while also ensuring they are capable of cutting down production costs. 3D printing solutions allow for early development and more frequent prototypes from developers, laying the groundwork for a more effective product 28 MARCH 2018
02
launch. Having a life-size prototype of the product sitting 01 right in front of you can also help the ideas of developers to flow more easily than when working with plain drawings. A lot of economies around the world are accustomed to operating within margins, without thinking of the social and environmental advantages of applying 3D printing to product design and city landscape, as it reduces a significant amount of time, waste and budget. Since the possibilities are endless, creativity has a strong potential to increase exponentially as jobs will be created, industries will grow and investors will profit. is there a gap in the market that 3D printing services companies should be looking to exploit?
As the technology is still quite new, there are a plethora of opportunities in the market that 3D printing service companies can look to exploit, and in fact, some industries are already trying to fill in these gaps with this revolutionary technology.
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“Autodesk has aligned with the Dubai Futures Foundation to catalyse the 3D printing revolution in Dubai through the Forge Fund – an investment fund of up to $100m to accelerate advances in the future of making things” 3D printing in construction has powerful potential; projects like the 3D-printed office in Dubai and the upcoming first 3D-printed laboratory are just snippets of the future of construction, as well as a future with greater environmental, labour and cost efficiencies. It is an exciting time for 3D printing growth. In fact, last year it was announced that all Dubai hospitals run by the Dubai Health Authority will adopt 3D printing technology from 2017. Using this technology, hospitals will be able to print artificial limbs, denture moulds, fracture casts and models of organs for patients to simulate surgery before the actual procedure – saving a countless number of hours, resources and potentially even lives. Our aim is to lay the foundation for the future of 3D printing, to make it a norm and achieve sustainable development across the Middle East. The UAE is on track to become a global capital for 3D printing, with the region using the country as a blueprint to follow. in your opinion, which GCC project currently under construction would benefit from 3D printing?
A recent report published by Frost & Sullivan stated that the total waste generated in the GCC is likely to increase from 94m tonnes in 2015 to 120m tonnes by 2020. In the GCC, waste composition has predominantly been construction, demolition and municipal. Furthermore, approximately 30% of material on every construction site is wasted. As mentioned earlier, one of the main benefits of 3D printing is less waste. So, by prefabricating only parts that are necessary, almost every construction project of today can benefit from the technology by building better, and more, with less negative impact on the environment. What other industries do you believe should be looking to embrace this technology?
3D printing is set to leave the biggest impact as it continues to evolve and affect various industries including healthcare, sports and construction, allowing possibilities like 3D-printed shoes, jewellery, buildings, even airplanes and vehicles. This is what makes it such an exciting prospect – its versatility. MARCH 2018 29
ON SITE
Educate ME Under One Roof
Patrick Bean, Interior Design – director, and Nadin Al Kayyali, senior FF&E designer, discuss LACASA’s Interior Design department within the context of the Mall of Palestine
How has LACASA changed since you became involved with ID and FF&E? Patrick Bean (PB): We now have a solid interior design team and we’re able to stand on our own two feet commercially, which is a big plus. The advantage of working within LACASA is that we can get involved in a project at the concept stage and influence it. That’s great because we can prevent issues ahead of time. Nadin Al Kayyali (NK): I’m educating everyone about the importance of materials because it’s critical. Now, we start designing with materials in mind, so we consider, for example, the type of tiles, the colours, the finishing. We decide on this and we can see 30 MARCH 2018
how it will affect the space and project exactly what it will look like in 3D. The Mall of Palestine is one of your key projects. What was your approach and what inspired the interior design? PB: We thought about how the mall would be viewed and believed it should be the soul of the community. It’s a retail space but we also wanted it to be a social sanctuary. In most malls, you have families, teenagers etc, and we wanted to offer a community experience that everyone could enjoy. With that in mind, we looked at the history of Palestine to better understand the culture. This is when Nadin introduced the
olive tree idea and what we’ve achieved is an interesting space. NK: The olive tree is one of the oldest and most powerful symbols in Palestine. It’s part of the culture and a symbol for a lot of things in the country. Olive trees create a sense of family and community and they mean a lot to people. PB: I remember Nadin talking about the olive trees and when you think about Palestine, it’s a great country with four good seasons. So, we asked ourselves, “Why can we not create an indoor/outdoor space that families can use?” We took the olive tree in an almost literal sense to our designers to develop ideas around. We tried to make the designs more organic
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than they originally were, to fit in with the architecture, so we could create this sense of people using the environment and give them a feeling of joy and entertainment. What was your approach to materials? PB: When we started to think about the retail
spaces, we said, “Okay, we’re going to have shops here but how can we create them in a better way?” This is where Nadin introduced the idea of something more organic. NK: There’s a lot of modernity in this project but we also didn’t want to shock the community. Today, it’s popular to have supermarkets that look rustic, where people can go and chat and shop for their groceries. We wanted to tie this into Palestine, where the vegetables are locally and organically produced. The idea was to have an open market but make it modern. PB: We started thinking about materials we had not considered before. We thought about wooden floors, which isn’t really a big thing in supermarkets but we thought that it would bring a heritage feel to the community. NK: We didn’t use real wood however, we
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used tiles which look like wood, so they can be maintained and kept clean but give that warm, organic feeling. This takes us back to the olive tree concept – we’ve got greenery in the mall which echoes the evergreen olive tree, as well as floors that look like wood. We’re using a lot of glass, aluminium and stainless steel and we’ve given the exterior a strong stone look. Palestine is famous for certain stones, so we incorporated that aspect into the mall as well.
interior design, MEP, so it becomes one cohesive model. As a department, we would like to start branching out and offering the service independently as we develop, and I think that will happen eventually. I think the fact that we can show strength in this discipline means that clients are very happy to come to us. It’s also more economically viable to achieve results with a single company rather than going to multiple firms.
What else influenced the mall’s design?
So the mall has served as a proof of
PB: We had to step the mall down since it’s
concept, where you’ve been able to
sitting on the side of a hill. What this does when the weather is right is create these great vistas. As you come out onto the mall’s terrace, you really get that inside/outside experience. I think the mall also advertises itself in its own way but it’s in a kind of domineering position that it holds within the area.
demonstrate your capabilities?
It sounds like your projects will now have an even more cohesive feel, since you can get involved right at the start of projects. PB: The beauty is we can now do architecture,
PB: It was an opportunity to show what we
can do. Now, with a lot of our clients, even on the smaller projects that we’ve been dealing with, they’re able to see that there is a dramatic change in what we’ve been doing because we’ve brought fresh experience into the team. We’ve got people who’ve done this for a lot of years and know what they’re doing. As a company, LACASA realises that it’s financially sensible and a good idea to invest in it since it gives a lot of benefits.
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THE BACK PAGE
LAST WORD
01 David Clifton is regional development director at Faithful+Gould.
Alternative Funding Models Require Culture Change GCC governments are keen to fund social infrastructure via alternative financing models. There’s a substantial skills gap to be filled first, says F+G’s David Clifton
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A
ll GCC governments have published visions for their people’s futures, encompassing economic diversification and placing infrastructure at the forefront of development plans. The region has traditionally approached any built environment programmes with few caps on spending, particularly on high-profile projects. Times have changed, however, and a significant infrastructure investment gap has emerged. Many government departments are looking towards private sector involvement as the solution and are now considering alternative financing models for major 32 MARCH 2018
projects. Sectors such as water, power and aviation already have an established precedent for private sector involvement but we can expect to see transport, education, telecommunications and healthcare move into the alternative financing space. The benefits are certainly attractive – the private sector expertise and the opportunity to transfer employment costs to the private sector, while building capacity and capability in specialist areas for the economy – though cheaper finance is not necessarily a given. The concept of alternative finance is not unfamiliar in the region: most countries have some experience of implementing (or attempting to implement) projects using the PPP model and principles. The concept of a prescriptive PPP legal framework is relatively new, however, though Dubai and Kuwait already have a legislative process in place and KSA is working towards this. Furthering the PPP agenda will require a shift in expectations on the part of many government departments. Part of the learning curve is to achieve a clearer understanding of the risks and how these should best be allocated. The principle of incentivising contractors and suppliers can seem very alien
in the local market. Likewise, the prospect of paying more for materials and equipment, to bring lifecycle cost benefits across 25 years, may run contrary to local practice. Structuring a project to ensure the required revenue mechanism is another area where the region lacks expertise. There are pockets of understanding throughout the region but the challenge is for this understanding to permeate the supply chain. Hopefully the year ahead will bring a greater commitment to finding common ground between private and public sector partners. This will enable partnership agreements, which incentivise partners to work together to find efficiencies and methods that are beneficial to all stakeholders. Our experience suggests that successful PPP projects have clear objectives from the outset, with a transparent evaluation criteria and process defined at a very early stage. Finance options should be carefully considered, allowing flexibility between capital markets and debt, ensuring that the best model is selected. This process can be expected to take time, possibly a minimum of 12 months – a challenge to the Middle East culture of immediacy.
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