Big Project ME April 2018

Publication licensed by Dubai Production City

145

APRIL 2018 meconstructionnews.com

THE BUSINESS OF CONSTRUCTION

“We’re not just a property developer, We’re a lifestyle developer”

Talal al Gaddah Tells Big project Me why MaG lifesTyle developMenT pivoTed Towards a new direcTion

Leaders in Project Management

www.hillintl.com

Contents

Issue 145 April 2018 09

16

18

26

36

50

06 MEConstructionNews.com

16 Price concerns & risky projects 50 Taking Flight Gaurav Bhatnagar says risk assessment must be a priority in tough market conditions

Sonya Benjamin and Michael Boyle of AESG discuss how drones are making an impact

08 Route 2020 progress update

18 MAG Lifestyle Development

52 Scarce or Bountiful Resource?

12 SGRE signs Turkey wind deal

26 Nature Therapy

58 Top Tenders

14 Dubai office market bulletin

38 Water in the Sand

64 Paving the way

OnlIne

The biggest stories from Big Project Middle East’s home on the web The bIg pIcTure

RTA provides update on construction work for the Dubai Metro expansion project InTernATIOnAl news

SGRE signs long-term deal to implement 1GW of wind power in Turkey MArkeT repOrT

Cluttons report examines the performance and challenges of Dubai’s office market in the spring of 2018

AnAlysIs

In prOfIle

Big Project ME speaks to Talal Al Gaddah of MAG Lifestyle Development sITe VIsIT

Big Project ME visits Dubai’s first natureinspired retail destination - Cityland Mall wATer InfrAsTrucTure

Gavin Davids profiles the Liwa Strategic Water Reserve, a project that is a crucial step towards the UAE’s water security

cOnsTrucTIOn TechnOlOgy

Mep sysTeMs

Barnie Bouwer outlines how collaborative design and engineering leads to effective MEP Tenders

Big Project ME lists the Middle East’s biggest construction tenders for April 2018 lAsT wOrd

Dr Adham Sleiman outlines how city planners and developers are using new technologies to drive customer satisfaction April 2018 1

© 2017 LACASA Architects & Engineering Consultants All Rights Reserved

I’m Rasha Al Khatib and I am an

Authorities relAtion MAnAger www.lacasa.ae

I believe that by working hand in hand with the authorities, we can continue to enhance the region’s construction standards.

Since heading up the department, I have strived to ensure that our designs not only meet the required standards, but exceed them in every aspect.

At LACASA, our architects and engineers have perfected a design formula that balances efficiency, sustainability, quality, and aesthetics while integrating the local authorities requirements.

Rasha Al Khatib

Authorities Relation Manager

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.

Introduction

taking a new approach

E

ver since Ski Dubai opened in November 2005, retail developers in the region have been trying to find ways to carve out their own niche in an increasingly competitive market. Over the years, we’ve seen the establishment of shopping malls that have aquariums and underwater zoos, malls that replicate the most exotic cultures in the world, and malls that have abras and canals.

The emphasis on these projects were to be retail destinations for both tourists and residents alike, and to be fair to them, they’ve certainly succeeded in that, with millions visiting and shopping over the years.

However, one thing these retail destinations don’t have is any element of nature about them. Of course, they try their best to mimic it, but ultimately, they remain artificial environments, isolated from the outside world.

However, this month’s site visit is a project that aims to challenge the preconception that nature and retail cannot mix, with a mall that is being built around a central garden hub.

Developed by the company behind Dubai Miracle Garden, the Cityland Mall promises to be a departure from the standard retail template.

It certainly is an ambitious project, and I’m looking forward to visiting it when it opens later this year.

Speaking of doing things differently, this month’s cover story is with Talal Al Gaddah, the CEO of MAG Lifestyle Development, which was formerly the real estate developer known as MAG Property Development.

Over the course of a fascinating chat, it was interesting to hear how Al Gaddah pushed for a change in name, branding and focus, as he

4 April 2018

GROUP MANAGING DIRectOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 eDItORIAL DIRectOR VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 eDItORIAL eDItOR GAVIN DAVIDS gavin.davids@cpitrademedia.com +971 4 375 5480 SUB eDItOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVeRtISING cOMMeRcIAL DIRectOR JUDE SLANN jude.slann@cpitrademedia.com +971 4 375 5714 SALeS MANAGeR CHERYLANN D’AbREO cherylann.dabreo@cpitrademedia.com +971 4 375 5482 DeSIGN

saw how the real estate market is changing. It’s certainly an interesting, if not bold, approach, and given the level of activity I saw at MAG’s sales office that evening, one that seems to be paying off!

Finally, I would like to mention that unfortunately, while we’ve been planning to hold our Value Engineering Summit in May this year, circumstances beyond our control necessitated a shift in dates to September.

Of course, I’m quite disappointed by this, but what it does do is give all of us here at Big Project ME more time to deliver an even better event than the one we had planned.

Do keep an eye out for our updates in the coming months, and as always, if you’d like to discuss how you could be a part of it, or have some ideas you’d like to share, feel free to get in touch!

ARt DIRectOR SIMON CObON simon.cobon@cpitrademedia.com DeSIGNeR PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOtOGRAPHY MAkSYM PORIECHkIN MARKetING MARKetING MANAGeR SHEENA SAPSfORD sheena.sapsford@cpitrademedia.com +971 4 375 5498 cIRcULAtION & PRODUctION DIStRIBUtION MANAGeR SUNIL kUMAR sunil.kumar@cpitrademedia.com +971 4 375 5476 PRODUctION MANAGeR VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 WeB DeVeLOPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI FOUNDeR DOMINIC DE SOUSA (1959-2015) PRINteD BY ALALEf PRINtING PRESS LLC PUBLISHeD BY

Licensed by tECOM to registered company, CPI trade Publishing fZ LLC whose registered office is 207 – 209, building 3, Dubai Studio City, Dubai, UAE

Gavin Davids editor gavin.davids@cpitrademedia.com @MecN_Gavin

www.cpitrademedia.com © Copyright 2018 CPI trade Media. 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.

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Online

MOST POPULAR

ReADeRS’ COMMeNTS

feATUReD

CONSTRUCTION

CYBeRSeCURITY

Construction of Dubai’s second

Educating and raising awareness of cybersecurity should be a major focus for the regional construction industry, given the emphasis and focus on BIM adoption.

While it is certainly a necessary step forward for construction firms, and will lead to greater success in delivering projects, it also opens up a number of concerns.

The story ‘Gulf economies vulnerable to cyber attacks’ touched upon this, when it said that financial losses due to cyber attacks on the oil and gas industry were as much as $1 billion in 2017.

If we are to move forward as a construction industry, then we need to embrace BIM, but the sharing and opensourcing of information between project partners and stakeholders also increases the need for strong cybersecurity, as all it will take is one slip in the chain for hackers to expose confidential data and information on projects worth billions of dollars.

I hope this is something authorities are focusing on while they implement their cybersecurity strategies in the country, and I hope the construction industry follows closely.

tallest tower given start date

CONSTRUCTION

Aldar and Emaar to form $8bn historic developer JV

In Pictures: RTA issues update on Dubai Metro Route 2020

CONSTRUCTION

Amana Steel Contracting starts MAF’s first Abu Dhabi mall

CONSTRUCTION

Al Rabat completes piling and shoring on Sabah Rotana

ANALYSIS

Significant airport expansion planned by 2025 in MENA

6 April 2018

Video: Site Visit – 1/JBR

Name withheld by request

The Big Picture

Route 2020 tunnel drilling work 50% done RTA releases update on construction progress for the Dubai Metro expansion Construction on track Construction work on Route 2020 is progressing on schedule, the RTA has said, with the viaducts to be completed by November 2018 and all rail works to be finished by July 2019.

Dubai’s Roads and Transport Authority (RTA) has announced that half of the tunnel drilling work on Dubai Metro’s Route 2020 has been completed, while the completion rate of the construction of stations ranges from 4% to 42%.

According to a report by WAM, Mattar Al Tayer, director general and chairman of the board of executive directors of the RTA, conducted an inspection tour of the stations of the Route 2020 project, which spans 15km from Nakheel Harbour and Tower Station up to the site of the Expo. He was also briefed on the progress of the main tunnelling works, which extend to 3.2km at depths of 12-36m and started in October 2017.

The giant tunnel boring machine, known as Al Wugeisha Expo 2020, commenced tunnel drilling work at Al Furjan. It passed across Discovery Gardens and reached the underground station near Jumeirah Golf Estates in February. It will continue tunnelling work up to DIP. 8 April 2018

All tunnel-related work is scheduled to be completed by December this year.

Al Tayer was also updated about the work progress of the metro stations. Currently, the architectural, constructional and electromechanical designs are being developed for the Expo station, the elevated and underground stations, along with Nakheel Harbour and Tower Station. The completion rate of the underground station at Jumeirah Golf Estates has reached 42%, while the DIP station has only reached 8% completion.

The elevated station at Al Furjan has reached 14% completion, while Discovery Gardens is at 12%. Expo Station is at 7%, while Nakheel Harbour and Tower Station is at 3%. However, the completion rate for the deep foundations at the latter has reached 50%. The footbridge linking the station and the Park-N-Ride terminal has been removed to start construction work on the new station.

PROJECT DETAILS Route 2020 tunnel drilling work: 50% complete Underground station at Jumeirah Golf Estates: 42% complete Elevated station at Al Furjan: 14% complete Number of installed viaducts: 60 Expected completion date for viaducts: November 2018 Expected completion date for rail works: July 2019 Scheduled test runs for Route 2020 Metro: February 2020

Furthermore, the project contractor has completed construction work on the deep foundations and pillars at the Gardens area, it said. Work is currently underway on the manufacturing of the metal structures of the elevated station at Discovery Gardens, where completion has reached 35%.

Work has started on casting reinforced concrete for the foundations of the main building of Expo Station, where the completion rate of casting concrete pillars has exceeded 70%. The completion rate of the construction of pillars and walls of the western gate of Expo Station has gone beyond 90%, while the eastern Gate has reached 40%.

As for the installation of the viaduct segments, 60 have been installed across various parts of the project. Construction works on the viaducts are expected to finish by November 2018, while all the rail works for the route are scheduled to be completed by July 2019.

The Big Picture

ARADA to launch Aljada Central Hub in Q4 Phase one of Central Hub is a critical part of the $6.5bn Aljada mega project Q4 2018 is when ARADA intends to launch phase one of its Central Hub, a critical part of its $6.5bn Aljada mega project.

Zaha Hadid Architects was awarded the design contract following a global competition, and is said to have designed the hub with significant environmental considerations, in line with ARADA’s goals of developing a vibrant and sustainable environment.

ARADA noted that the winning submission “conceptualised the first moment a water droplet strikes the Earth’s surface, captured in an array of elliptical buildings designed to channel prevailing winds into civic spaces and courtyards to facilitate cooling during the summer months”.

Explaining further, the developer says the hub’s central observation tower is surrounded by public squares that incorporate water features, which use recovered and recycled water. Tensile canopies are said to sustain a microclimate at ground level for gardens populated by species native to the region.

“Zaha Hadid Architects is globally renowned for forwardthinking and transformational urban design. While all of the companies in this design competition offered outstanding designs, Zaha Hadid Architects’ integrated design approach matched our vision for Aljada’s Central Hub as an interconnected destination.

“This approach is synonymous with ARADA’s mission to develop rewarding and engaging communities, building the Sharjah of

tomorrow,” said HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of ARADA. The developer says the 1.9m sqft Central Hub will be a new focus for leisure and entertainment in the UAE, and will be a significant addition to Sharjah’s landscape. The first phase of the project will incorporate an ARADA sales centre, an adventure activity zone, a food truck destination and outdoor event spaces.

Once launched, ARADA says the hub will create a fun and family-friendly destination for residents of Sharjah and the other emirates throughout the year.

Tariq Khayyat, head of region – Middle East, Zaha Hadid Architects, added, “Zaha

“While all of the companies offered outstanding designs, Zaha Hadid Architects’ integrated design approach matched our vision for Aljada’s Central Hub”

Hadid Architects is proud to partner with ARADA on a project designed for Sharjah’s community and its visitors. Applying all our knowledge and experience in creating some of the world’s most popular civic spaces, we look forward to working closely with ARADA to deliver the Central Hub, fostering Sharjah’s public realm as a truly global city.”

The firm’s design for the Central Hub is said to incorporate the use of treated wastewater to allow vegetation in the precinct to flourish, while the architecture will incorporate active and passive measures to lower the demand for indoor cooling.

Delivered in phases starting in 2019, ARADA expects the entire project to be completed by 2025.

Winning submission Zaha Hadid Architects’ winning design for the Central Hub conceptualises the moment when a water droplet strikes the Earth’s surface.

April 2018 9

The Big Picture

Kuwait construction sees slowdown

Total value of contracts awarded in Kuwait fell by 28% to $13.3bn in 2017 The total value of contracts awarded in Kuwait fell by 28% to $13.3bn in 2017, as compared to the previous year, and below the five-year average of $16.6bn, a report from the National Bank of Kuwait (NBK) has said.

In its latest Economic Update, the bank said the surge in contracts in the power and water sector – compared to previous years – was offset by the slowdown in projects across other sectors, mainly in transport and construction.

For 2018, the value of projects is expected to remain at 2017 levels, with the largest contribution coming from the construction sector.

Due to delays in the bidding phase last year, construction projects worth $6.67bn have been pushed out to 2018.

Additionally, delays in awarding transportation projects valued at $2.3bn could also take place this year.

The report added: “There are 26 anticipated deals under consideration, of which the Jahra Ministries Complex, valued at $866.9 million, could be awarded in the first half of 2018. MEED Projects reports that the lowest bidder is United Gulf Construction Co, and it is very likely it will be awarded the tender.

“This project was pushed to 2018 due to budgetary constraints.

$13.3 billion Total value of contracts awarded in Kuwait in 2017, a 28% drop from 2016

Slowdown in projects Kuwait has seen a slowdown in projects in the transport and construction sectors, while the power and water sector has seen an upswing in activity.

10 April 2018

The other noteworthy project that is expected in 2018 is the Kuwait National Guard’s Kazema Camp project, estimated at $1 billion.”

Despite a higher number of contracts, the total value of construction awards fell in 2017 to $1.6bn, the NBK report said. More than 30 contracts were awarded in the construction sector, but due to the small size of the contracts – only three were worth more than $100m – their value fell short of the 21 contracts awarded in 2016, which had a total value of $4bn.

As a result, a number of

construction firms in Kuwait are facing the prospect of declaring bankruptcy due to a lack of liquidity and an inability to meet their financial commitments for completing projects that have been suspended for more than three years, it has been reported.

According to Al-Shahed Daily, Kuwait’s Ministry of Commerce and Industry (MoCI) has refused requests for liquidation from 13 companies, so as to protect the rights of the shareholders and the funds of small investors.

Citing unnamed sources, the newspaper report revealed that weak cashflow and administration problems have led to some creditors asking the ministry to liquidate certain companies because their profit margins have dropped by 80% over the last three years.

The Big Picture

$50m

1. IndIan Investors pour $22bn Into dubaI property over last fIve years Statistics compiled by Dubai Land Department (DLD) demonstrate that Indian nationals, who form the largest foreign investor group in Dubai real estate, bought properties worth $22bn between 2013 and 2017.

According to DLD, they invested $4.25bn in Dubai real estate in 2017, $3.27bn in 2016 and $5.45bn in 2015 – their highest in a year. In total, DLD recorded 69,069 real estate transactions with a total value exceeding $77.6bn in 2017.

“Indian nationals are the largest group of foreign investors in Dubai’s real estate,” said Dawood Al Shezawi, head of the Organising Committee of Dubai Property Festival. “The majority of the property brokers and a number of property developers have been contributing to the growth of our economy.”

At $77.6bn, the value of land transactions in Dubai is higher than the GDP of 144 out of the 211 countries recognised by the UN. The $22bn invested

by Indian nationals in those five years is also close to the $25bn expected to be spent by foreign investors in the entire Indian market between 2015 and 2025.

12 April 2018

Home Depot is to donate $50 million to train 20,000 people in the US as construction workers over the next decade, to ease worker shortages

2. sIemens Gamesa sIGns turkey wInd power deal Siemens Gamesa Renewable Energy (SGRE) has announced that it has signed a longterm deal which allows it to implement up to 1GW of power in Turkey.

As per the terms of the deal, SGRE’s main scope of work includes the supply, installation and commissioning

of wind turbines in several farms across the country. The deal also stipulates that SGRE is responsible for the servicing of the turbines over a 15-year period.

Additionally, the agreement outlines the buying of power produced at the sustainable power generation facilities under a 15-year power purchase agreement (PPA).

SGRE is also locked in to build at least 700MW of new supply

in Turkey by the year 2022. In order to fulfil its obligations, the company will have to build an R&D centre and a turbine nacelle factory to meet local supply requirements outlined

by Turkish authorities.

SGRE is part of a consortium including Kalyon Enerji and Turkerler Holding and was awarded capacity following the country’s first wind auction in August 2017.

The Big Picture

6.1%

India’s construction industry is expected to grow by 6.1% in 2018, according to a note from BMI Research

4. abu dhabI Government sIGns nIne utIlIty deals wIth sInGapore The Abu Dhabi government has signed nine MoUs with Singaporean authorities to enable the development of joint projects to facilitate knowledge sharing in the power and water sectors. Additionally, the

2

agreement outlines joint research activities and a transfer of technology.

Singaporean authorities will

4

also help set up a development

1

centre in the emirate.

“The energy sector is constantly evolving, transforming and experiencing

3

the rapid pace of change

$55bn

it faces today as the ‘new normal’. The interaction between digital technologies and economic forces is catalysing the fast change. In

More than $55bn of priority projects are needed to shape Australia’s cities and regions over the next 15 years

line with our Abu Dhabi Plan 2030, we are pleased to sign these MoUs to upskill and augment our sector employees to prepare them for the evolving industry landscape.

This envisages creating a workforce empowered with critical technical skill

3. ethIopIa aGrees Infrastructure deal wIth dp world Ethiopia has signed an agreement with DP World and the Somaliland Port Authority which will see it acquire a 19% stake in the Port of Berbera as well as committing to developing the Berbera Corridor as a trade gateway for the inland country.

Under the terms of the deal, Ethiopia will have close to a 20% stake in the hub, while DP World

development, knowledge and will hold a 51% stake in the project and Somaliland 30%.

DP World said there are also plans to construct an additional berth at the Port of Berbera, in line with the Berbera master plan, while adding new equipment to further improve efficiency and productivity.

The first cranes are scheduled to arrive later this year.

“Both these ports and more capacity will be needed to serve the region’s growth

potential in the future. Having the government of Ethiopia as a partner will enable DP World to support the government in achieving its impressive development plans,” said DP World Group chairman Sultan Ahmed Bin Sulayem.

Ethiopian Transport Minister Ahmed Shide said the agreement will help Ethiopia secure an additional logistical gateway for its ever-increasing import and export trade.

capacity building,” explained Awaidha Murshed Al Marar, chairman of the Abu Dhabi Department of Energy (DoE).

April 2018 13

Market Report

OFFICE MARKET BULLETIN

Cluttons report examines the Dubai office market in the spring of 2018 Flat conditions While overall conditions appear to be flat, landlords are not yet at the stage where large discounts and extensive incentives need to be offered, the report says.

Rents continue to moderate As the market continues to adjust to a lower level of overall requirements, much of the activity we are recording stems from ‘right-sizing’. Rising costs, spawned by higher inflation levels exacerbated by a weaker US dollar and the introduction of VAT, have meant that many businesses remain nervous to expand, while others continue to consolidate operations, driven by risk aversion and persistent global economic risks. Indeed, inflation in Dubai rose to 2.7% at the end of January, up from 1.5% at the end of December, the highest level recorded since April 2016.

Exceptions remain Unsurprisingly, this has had an impact on prevailing upper limit headline rents, with occupiers either sitting tight, regearing

14 April 2018

leases or continuing to consolidate operations. In fact, 5 of our 24 submarkets registered minor downward adjustments during the final quarter of last year, with the weakness persisting into 2018.

It is worth noting that headline rents in the city’s top tier free zones have remained largely steady, bar one or two low quality buildings. Away from prime grade A buildings, which remain well let and in high demand, landlords are demonstrating greater flexibility and are largely receptive to rent reductions at renewal.

Further weakness likely This gradual ebbing of headline lease rates is expected to persist through 2018, particularly if demand does not accelerate. Even last year’s star performing sector, the technology-media-telecoms sector (TMT), has shown signs of a

more tempered rate of expansion.

While overall conditions may seem flat, landlords are not yet at the stage where large discounts and extensive incentives need to be offered. While absorbing the 5% VAT cost does not appear to have been considered by landlords yet, this may well emerge as an option should the weakness linger into 2019. For now, the CAPEX squeeze on occupiers means we are registering higher levels of interest in CAT A space, which includes suspended ceilings and raised floors. There appears to be a growing resistance among occupiers for anything less. We expect this trend to intensify as cost containment pressures linger.

This will likely lead to greater expectation from landlords to assist not only with CAPEX fit-out costs, but also to deliver space in CAT A condition.

Another phenomenon yet to gain traction is the rise of co-working and serviced office providers. US based WeWork, for instance, has emerged as the largest occupier of space in Manhattan and has been among the most active occupiers in London in recent months. The evolving definition of an office, along with the rise of remote working, is fuelling this trend globally. Landlords in Dubai can perhaps learn from this in order to generate more interest in vacant stock, although with work visa quotas still linked to the amount of space let, organisations operating with an ‘agile working’ policy may still need to let more space than they need. For now, it is our expectation that rents, on average, will trend downwards by AED 5-20 psf throughout 2018; however, core free zones are likely to buck this trend, with rents holding steady.

Market Report

Dubai ofďŹ ce market heat map (Q4 2017) KEY DEALS Deal Type

Deal size (sq ft) Location

Occupier type

Expansion

20,000

TECOM

Healthcare

Downsize

14,000

DIFC

Law Firm

Re Gear

13,000

DAFZA

Aeronautics company

Downsize

10,000

TECOM

Healthcare

Renewal

4,000

Sheikh Zayed Road TMT

Re Gear and Expansion

4,000

TECOM

TMT

New Entrant

3,000

DIFC

US Bank 1 2

3 5

4

CENTRAL DUBAI 6

NEW DUBAI

12 20

AED psf

9 8

7

11

15

14

16

10

17

13

OLD DUBAI 18

24

21

300+ 251-300

FRINGE DUBAI

201-250

19

151-200

22

101-150

Indicative map, not to scale.

Colours represent upper limit.

23

50-100

Lower limit (AED psf) New Dubai

Central Dubai

Old Dubai

Fringe Dubai

Source: Cluttons

12 month % change

Upper limit (AED psf)

12 month % change

1. Dubai Marina

95

-5.0%

120

-14.0%

2. JLT*

55

-8.0%

140

0.0%

3. TECOM DIC/DMC/DKV*

155

-6.0%

190

-10.0%

4. TECOM / Al Barsha Heights

65

0.0%

90

0.0%

5. Al Barsha

65

0.0%

90

0.0%

6. Business Bay

60

0.0%

140

17.0%

7. Downtown Dubai

120

0.0%

180

-5.0%

8. DIFC*

140

-13.0%

370

0.0%

9. Sheikh Zayed Road

95

-14.0%

275

0.0%

10. One Central free-zone*

170

0.0%

200

0.0%

11. One Central non-free-zone

150

0.0%

170

0.0%

12. Dubai Design District (D3) free zone*

130

-7.0%

160

0.0%

13. Dubai Design District (D3) non-free zone

135

0.0%

155

0.0%

14. Bur Dubai

60

0.0%

120

-14.0%

15. Deira

50

-17.0%

100

0.0%

16. Garhoud

60

-14.0%

90

0.0%

17. Dubai Health Care City*

120

0.0%

140

4.0%

18. DAFZA*

160

0.0%

180

0.0%

19. Dubai South*

65

-7.0%

70

-22.0%

20. Dubai Investments Park

45

13.0%

65

0.0%

21. IMPZ / Dubai Production City

60

0.0%

75

7.0%

22. Dubai Studio City

140

0.0%

160

0.0%

23. Dubai Silicon Oasis*

50

0.0%

90

0.0%

24. Dubai Science Park

120

9.0%

145

0.0% *Free-zone

April 2018 15

Analysis

Don’t Let Price concerns LeaD to risky Projects Being swayed by attractive contractor pricing without robust risk assessment could lead to riskier outcomes, says Gaurav Bhatnagar, head of Specialty and Construction Practice leader at Marsh As members of the global energy industry gathered in Dubai earlier this month for Marsh’s Energy Industry Conference, the mood was certainly more optimistic than during the previous edition of the conference.

This time around, there was more of a focus on the future and the new opportunities ahead.

This, for some, could lead to the consideration of new projects or restarting projects placed on hold.

Whether it’s expanding existing operations or considering new projects in areas such as renewable energy, construction investment now appears to be more prevalent.

The oil price environment, which reached a peak low of just below $30 per barrel at the 16 April 2018

start of 2016, placed a strain on energy companies in the Middle East, some of whom considered withdrawing investment in new projects. Projects going ahead had more restrained budgets, and there were fewer of the mega projects we witnessed in the past.

However, some countries in the region, including the UAE and Saudi Arabia, may see a rise in the number of renewable energy projects as governments look to diversify their energy mixes and reach their goals under initiatives such as Vision 2030 and UAE Vision 2021.

With oil prices now stabilised, budgets are increasing and investors are regaining confidence. As a result, we could

see the number of regional construction projects increase further in the next few years.

Risks remain a concern, particularly those that fall under the financial and credit risk umbrella. It is unclear whether the industry is placing enough emphasis on risk management in these projects.

For many contractors right now, liquidity remains tight and credit risks are an increasing concern. As companies look at their budgets to consider new projects and seek contractors, they will need to be careful and find the balance between staying within their budgets and not compromising on quality and robust risk management.

Due to the recent market conditions, it is no surprise that those arranging the construction of large projects in the region are increasingly focused on price. With steep competition in the region to win contracts, there is no shortage of companies trying to offer lower and lower prices that run the risk of reaching unworkable levels.

We have seen situations where clients have accepted what they believe is a credible bid, when it has in fact been lowered to the point that affects the quality and timing of the project, and in more extreme cases cannot be completed for the price agreed.

Organisations looking to develop new projects need to keep this in mind when considering

Analysis

“For many contractors right now, liquidity remains tight and credit risks are an increasing concern. As companies look at their budgets to consider new projects and seek contractors to carry these out, they will need to be careful and find the balance between staying within their budgets and not compromising on quality and robust risk management”

bids. The mentality of chasing the cheapest price should be addressed.

To avoid risks, we recommend working with trusted, credible partners that can deliver what has been promised. Careful and robust risk analysis and risk assessment should be taken at every stage of the project, to make sure quality is not compromised and to avoid any possible project delays.

Price matters, but it’s more important to ensure you are able to have the project completed in a way that is both sustainable and of high quality. Developing relationships with quality partners can help protect your project from delays and potentially large losses down the line.

The risks may not stop once the project has been completed either.

Take for example recent events in the real estate construction sector in the UAE, where several building fires have been linked to the materials used. Could such post-project defects start to be witnessed across other industries?

Could energy projects start to see issues with operations and equipment as a result of overly aggressive cost-cutting at the design and construction stages?

For energy construction projects in the Middle East, the need for a greater focus on risk management has never been more important. Considering this now will not only help organisations weather a tricky economic environment but also ensure they are prepared to take advantage of new growth opportunities once the effect of stabilised oil prices begins to manifest itself in the market.

This includes considering insurance in a timely fashion and of a high standard to cover all the financial, liability and physical risks a project faces, though it should be noted that relying on insurance without taking other steps to mitigate possible risks could mean it is already too late.

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April 2018 17

In Profile

18 April 2018

In Profile

“you don’t wear shoes that aren’t your size. i’m always aware that maG has built 40 years of trust throuGh the work of my father and Grandfather. but we always wear shoes that are our size” Gavin Davids sits down with Talal Al Gaddah, CEO of MAG Lifestyle Development, to learn how the real estate developer is building on its legacy and pivoting its focus towards creating lifestyle experiences April 2018 19

In Profile

w

hen you enter Talal Al Gaddah’s office at MAG Lifestyle Development’s headquarters in Emirates Financial Towers in DIFC, you quickly realise that he is a man fascinated by technology, from the state-of-the-art computer terminal at his desk through to the automated hidden door that allows entry and exit into the room. This fascination is especially obvious when you hear him discuss how he believes that the digital transformation happening in Dubai’s real estate industry will fundamentally change the way business is done in the sector.

Earlier this year, in a newspaper column, Al Gaddah highlighted how the rise of social media and the internet has created customers that are far more in tune and connected with the trends in the marketplace.

Buyers and investors now use the information at their fingertips to conduct research on the go and make decisions almost instantly.

Therefore, it is incumbent on property developers to respond quickly to the changing dynamics in the marketplace, or face being left behind, as he explains to Big Project ME when asked why he decided to rebrand and refocus his successful real estate company.

“The whole world is moving towards the ‘lifestyle’ concept, so we needed to connect our company to a new generation and a new way of thinking, which is that people are taking their lifestyles to social media, promoting themselves and showcasing how their lives are nice and peaceful,” he explains.

“Therefore, to keep our name 20 April 2018

keeping up with trends Talal Al Gaddah says that developers need to keep up on how digital trends and evolutions are changing the way real estate investors operate and make decisions.

as MAG Property Development, we felt that it sounded like it was purely for property development.

However, we’re not just a property developer, we’re a lifestyle developer. We develop towers and projects with the amenities and the facilities that [facilitate] the lifestyle of a community. That’s why we needed to change.”

Keeping that in mind, Al Gaddah says the rebrand, which took place at the tail-end of 2017, also includes the establishment of two sub-divisions – MAG of Life and MAG of Value – which will cater to all segments of society.

However, he asserts that while the company may have changed names and shifted focus, one thing that remains constant is its commitment to customers, and to providing a high level of service to investors. For him, this approach can be distilled down to one crucial element – delivery on time.

“The number one priority for

“We’re not just a property developer, we’re a lifestyle developer.

We develop towers and projects with the amenities that facilitate the lifestyle of a community.

That’s why we needed to change”

our customers is that they receive what they have bought on time.

When you invest, you need to have a return on income – so when an investor comes to buy a unit and then the developer does not deliver on time, he’s lost out on his investment. So, for me, this is the most important thing, and it is something that will always keep us going in the right direction – that we must deliver on time.

“Customers always need to have their products delivered on time, with a proper customer service for them – that means a proper handover and snag-list, and to give them a name behind the property. Sometimes you can deliver a product, but you don’t deliver the name with the product, you don’t deliver the quality [associated with the name]. If you don’t deliver proper quality, then your customers won’t be happy.”

As a developer, Al Gaddah says it’s crucial to deliver the right product for customers, especially given how the market has changed in recent years. Just a few years ago, three- to four-bedroom units were in high demand, but the studio and one-bedroom segment is currently seeing the strongest growth. Therefore, developers need to have a diverse portfolio that factors in changing trends in the market, he says.

“The market has changed and now has different segments of developments, from mediumclass developments through to luxury and high-end projects. You need to align with the segments of development in the market.

“There will be recessions that will come. As a property development company, you have to understand what will be the demand in the market, ahead of it. [You have to ask] what sort of collection you have in your development. Do you need more studios or one-bedroom units? Do you need to have two-, three- or

In Profile

four-bedroom units? Should you have a mix? And how should I split this mix over my strategy? Say my strategy is to have five projects over the next five years – how can I split these five projects over the next five years, and how can I put the mix of units in appropriately?

“As a developer, I need to understand how I can play this game. When the market goes down, I can have my mediumclass developments which will still move, and when it goes up, I have my luxury projects. You have to cater to all the sectors and understand the market,” he says.

To that end, the launch of the two sub-divisions last year will allow MAG Lifestyle Development to focus on both sectors of the market, he says.

Two stand-out projects for the developer are MAG Creek Wellbeing Resort in Dubai Healthcare City Phase II and MAG Eye in the massive

MAG EYE Value: $1.27bn Location: MBR City – Meydan District 7 Appointed Opal as interior design consultant and VX Studio as peer review consultant 3,952 studios and onebedroom apartments and 536 three- and fourbedroom townhouses The project features 4,800sqm of public facilities including a private clinic, nursery and mosque, around 5,000sqm of retail space, and 84,211sqm of public parks and green areas Completion Date: Q1 2022

Meydan development.

Both are huge developments that cover both ends of the market, while also positioning the company as a leader in the evolution of Dubai’s residential real estate landscape.

“MAG Creek Wellbeing Resort, I call it my baby. It’s a one-of-akind project that is the first resort in the whole world that is based on health, where your health is connected to all the technologies, from the facades through to the finishes, the materials, the air conditioning, even the water.”

Every segment of the development has been studied

by Delos, a leading wellness real estate and technology consultant, to provide residents with a holistic and healthy lifestyle by integrating the best of science, health and technology within the built environment.

One of its features is that it gives people the benefit of living

in a natural light system. Over the course of the day, the light changes from morning to evening; it’s responsive and connected to the wellbeing of mind and body.

“In addition, we have an agreement with Dubai Municipality to ensure that the water is already filtered and injected with Vitamin C to ensure that the development receives water that is 99% bacteria-free.

The air conditioning systems have filtration that also removes 99% of bacteria,” he says, adding that the facades and interiors have been chosen from natural colours, while all the furniture and materials have been chosen from natural sources.

“Plus, the technology that we’re using on the development will create a smart house system that is fully integrated, from A to Z for the whole house. That’s what we call wellness real estate.”

In addition, Talal Al Gaddah says that on projects like MAG

developing trust Al Gaddah says developers need to build and develop trust with their customers and project partners, and not build beyond their means.

April 2018 21

In Profile

Eye in Meydan, MAG 5 in Dubai South and MAG 318, the units there will have smart systems installed in them, while MAG Eye will have solar panels integrated into the development to reduce energy usage and electricity bills.

Having recently appointed Opal as the interior design consultant on the $1.27bn MAG Eye project, along with VX Studio as the peer review consultant, MAG Lifestyle Development is taking strong steps to ensure that the project will provide a maximum return on investment.

Billed as the only fully gated townhouse and villa community in Meydan District 7, it consists of 3,952 apartments and 536 townhouses. It also features 4,800sqm of public facilities, including a private clinic, nursery and mosque, along with approximately 5,000sqm of retail space and 84,211sqm of public parks and green areas.

“This is the first community we’re building with huge amounts of units in that area. It targets the young generation, between the ages of 20 and 45. It’s a community that’s being developed for a younger generation and for investors and end users to have a proper return of investment.”

Ensuring that his customers and investors get a proper return of investment is crucial to Al Gaddah, who expresses his concern about developers’ attitude towards the concept of affordability, pointing out that it is often misused.

“I hope every developer uses the word ‘affordable’ in the right way, because some of them, they use the word ‘affordable’ to describe a studio that’s 200sqft and then set the price at AED 1,500 per square foot. The price then comes in at AED 300,000 – that is not affordable! Affordable is to do things properly, to have proper sizing and proper pricing per square foot, so that the end 22 April 2018

shifting strategy Developers need to have a diverse portfolio that factors in changing trends in the market, so that they can adapt and shift their strategies quickly.

“The market is circulation.

It will always have its ups and downs, but you always have to understand where you are going and where you are today”

user can live in the unit happily.

“You need to give a proper size.

Our studios are standard between 35sqm up to 42sqm. We don’t go below that. Our one-bedrooms are 65-80sqm, while our twobedroom units are 100-120sqm.

We don’t go below that.”

The return on investment plays a major part in Al Gaddah’s concept of affordability. He points out that MAG Eye is being developed and priced with end user investment in mind, which he believes will be crucial to the success of the project.

“If you buy a studio for AED 500,000 in MAG Eye and then lease it for AED 25,000 a year, you’re still getting a 5% return on investment – and AED 25,000 for

MAG 318 Value: $149.7m Location: Business Bay Downtown Area Appointed Dutch Foundation as enabling contractor Mixed-use luxury residential tower 439 residential units including studios and one- and twobedroom apartments Completion date: Q1 2020

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In Profile

return on investment Talal Al Gaddah says that the concept of affordability must take into account that there has to be a return on investment.

a studio apartment in Dubai is non-existent! If you’re charging AED 40,000-50,000 a year, you’re getting returns of 8% to 10%.

“Even if there is a small crisis, if you do lease it for AED 25,000, you’re still making 5%. But if you buy a two- or three-bedroom in this area, where you’re putting in AED 2.5 million, today you’re getting a 5% return, but if there’s a crash, you won’t even get 2%.

“We see a future in this sector [medium-luxury]. I’m happy that we’re launching this kind of project in the market, because mainly I’m trying to reach out and attract the employees, the end users, the people who really love to live and work in Dubai. They need something with a good price to live here.”

In contrast, the MAG Creek Wellbeing Resort targets the luxury end of the market.

“I’m looking for customers that are looking to buy into health. At MAG Creek Wellbeing Resort, we’re not selling per square metre, we’re selling per unit. We ask [customers], ‘What is the price of your health?’ I’m not targeting people to come and negotiate anything with me. I’m targeting 24 April 2018

MAG CrEEk WELLbEinG rEsOrT Value: $599m Location: Dubai Healthcare City phase II Dar Alwd Contracting LLC was appointed as infrastructure contractor The project is considered the first wellnessinspired project in the region and will combine the highest standards of health and luxury facilities The gated, landscaped community spans over 83,500sqm and covers 550m of waterfront MAG Creek includes: A 11,148sqm WorldCare Wellness, the largest wellness centre in the world, a luxurious 96-room WorldCare Wellness Hotel, 17 waterfront mansions, 75 luxury apartments and 172 serviced wellness holiday homes

people to come and buy the product, because they care about their health, and they care about where they’re going to live.”

Back in 2014, the developer announced that it was dedicating $4bn to an investment strategy that will continue through to the year 2020.

By the end of 2017, the company’s UAE investments had reached close to $2.66bn.

With several projects underway, the company is well positioned to continue its impressive performance, Al Gaddah says.

“Construction has started on MAG Creek Wellbeing Resort. MBL Residences is 22% completed, as is MAG 230.

MAG 318 has also just started construction, we’re at around 5%, as we’ve just started the piling.

MAG 5 is about 90% completed for Phase 1, with six buildings of 525 units, in addition to the seven units that will be handed over in the year ahead. So, as for 2020 [with regard to the investment strategy], that’s the portfolio for the $4bn which has been spread over all our UAE developments.”

Given the slump in the market in recent years, one might

question the number of projects the company has underway.

However, Al Gaddah reveals that a crucial element of the company’s success is the way it plans and spreads out its projects, with each having its own financial plan.

“The market is circulation, it will always have its ups and downs, but you always have to understand where you are going and where you are today,” he asserts, referring back to his earlier statement about aligning with market trends.

In addition, he believes a hallmark of MAG’s success has been its honesty and transparency with contractors, which has ensured that projects are built and delivered according to a clearly set schedule, laid out at the very beginning.

“The most important thing you can do as a developer is that you don’t wear shoes that aren’t your size. I’m always aware that MAG has built 40 years of trust in the market, through the work of my father and grandfather. But we always wear shoes that are our size.

“I don’t go and sign contractor contracts when I don’t have the financials, I don’t go and buy land and open an escrow account

In Profile

MAG 5 bOuLEVArD Value: $217.8m Project offers residents quality amenities in a fully integrated modern community First phase of MAG 5 Boulevard incudes six buildings that will provide the market with 528 units Second phase includes seven buildings The project covers over 74,322sqm of land in the Dubai Greenbelt The first phase of MAG 5 Boulevard will be handed over in Q2 2018 Second phase is expected in Q2 2019

and sign up a contractor, and then say that based on sales, I’ll fund my project,” he asserts.

“We open, for each project, its own financial model. The cash allocated for this project will stay on this project. It doesn’t go left or right. That’s what makes us good with contractors.

That – and you have to make your payments on time!

“When we want to develop a project, we make sure that when we sign a contract with a contractor, we regard it like signing a cheque. That’s how serious we take it. You can’t sign a contract based on your name and based on trust. You need to pay your contractor. You can’t go and sign it, do everything and then not have the funding,” he emphasises.

Highlighting MAG 5 as an example, Al Gaddah says that when the project was launched in 2015, there were 13 originally buildings planned.

However, in order to make the construction process more

“We see a future in this sector [mediumluxury].

I’m happy that we’re launching this kind of project, because I’m trying to reach out and attract the people who really love to live and work in Dubai”

manageable, the package was split into two projects of six and seven buildings respectively.

“When we started to work with the contractor, I gave him my financials. I told him, ‘Listen, I want to do this project over three years. What can I pay you per month? This is the cash flow, attach it to my contract.’ Why did I do this? Because sometimes, contractors go to site and while the timeline of the project is two years, they work in advance and reduce their time to 18 months.

They then increase the monthly invoice to the owners, and then, as per the FIDIC, the owner must pay him for the work done on-site.

“But if the owner is smart and gives him his cash flow in the beginning, and makes the contractor sign on to that, then the contractor needs to work according to that cash flow. That way, he doesn’t make the owner pay for something extra. You must work according to your cash flow,” he stresses in conclusion.

Pay your contractor Al Gaddah insists that whenever MAG starts a project, funding should be in place to pay their contractors.

April 2018 25

Site Visit

26 April 2018

Site Visit

Nature therapy

Big Project ME visits the Cityland Mall, Dubai’s first nature-inspired retail destination, to find out how Cityland Group’s first mall project aims to reshape the retail landscape April 2018 27

Site Visit

D

ubai’s fascination with shopping malls is well documented, with the city home to some of the largest retail destinations on the planet, with plenty more in the pipeline. Whether it’s the gargantuan Dubai Mall – now undergoing an expansion to make it even larger – or the vast Ibn Battuta Mall, the demand for going big seems to be insatiable.

However, developers have also cottoned on to the fact that offering shopping is no longer enough for their customers. Aside from

offering a spot of retail therapy, modern-day shopping malls must now also be destinations where visitors can spend the entire day, with entertainment activities and attractions across the board.

This approach is why the Mall of the Emirates has Ski Dubai and the Dubai Mall has the Dubai Aquarium and Underwater Zoo, while even smaller local malls have entertainment options like Magic Planet or cinema multiplexes. As a result, developers are constantly looking for the next big attraction or marquee destination to tie into their retail offerings, creating spaces that will not only attract visitors but also keep them there.

This is the reasoning Fahimuddin Sharfuddin, CEO and board member of Cityland Group, provides when Big Project ME meets him at the construction

tapping into the area Cityland Mall’s location opens it up to a market of more than 150,000 residents who don’t have a destination mall close to them.

28 April 2018

CitylanD Mall FaCts anD FiGures: total Development area: 204,386sqm Gross Floor area: 148,644sqm Gross leasable area: 104,515sqm total no. of shops: 350+ no. of Parking spaces: 6,000+ total Development Cost: $326.7 million

site for Cityland Mall in Dubai.

Located off Sheikh Mohammed bin Zayed Road, behind Global Village, the mall is an ambitious concept developed by the group behind the likes of Dubai Miracle Garden, Dubai Butterfly Garden and Al Ain Paradise.

Designed as a family-oriented shopping mall with leisure and entertainment options, Cityland Mall is centred around an expansive and distinctive lush garden area that aims to become a must-see tourist attraction in Dubai. Covering an open-air area of 18,580sqm, the garden will be the hub around which the rest of the mall’s retail, dining and entertainment facilities will be built.

“Nature has been a core part of our business, and with this in mind, we have designed this retail facility,” Sharfuddin says. “Cityland Mall

Site Visit

“In today’s market, people don’t only look for shopping. They want an experience, they look to spend the day at the mall. Today’s developers are diversifying from a pure retail concept to one where they can offer retail and entertainment under one umbrella to fetch the interest of visitors” is not just a mall, it’s a destination.

We’re building with an element of nature that is attached to a retail landscape. It’s an innovative concept, and that’s what we’re known for – we always try to bring unique experiences and concepts to people, always inspired by nature.”

Cityland Group’s background has always been in landscape development, he adds, pointing out that its parent company is Akar Landscaping, a leading contractor specialising in landscaping and

design services, with projects in Al Ain and Abu Dhabi.

“The vice-chairman and founder of Cityland Group – Abdul Naser Rahhal – is the person who commenced the business back in 2005. He is an agricultural engineer by profession and nature is in his blood. That’s why he started building the empire of Cityland Group [in Al Ain].

“We belong to a city [Al Ain] that is known as the greenest city in the entire region. The main

inspiration [for our projects] comes from a city that is green, while the background of the creator of the group is agricultural, so over the years we’ve done a lot in this field.”

The group’s first project was a flower garden called Al Ain Paradise in 2009, which achieved two Guinness world records for the largest vertical garden in the world and the most hanging baskets in a garden. Within three months, the project had managed to drive visitor traffic up to more than

half a million visitors, Sharfuddin recollects, adding that this success continued into the next year, when the group brought back the Al Ain Paradise project.

“We then moved to Dubai to do this project on a much larger scale, with a lot of creative ideas – that was the Miracle Garden, which was done in 2013. That was our first project in Dubai. The main reason we did it was because Dubai is a dynamic city with a lot of visitor influx. We wanted to

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Site Visit

Being sustainable Cityland Mall will recycle 100% of its wastewater, with treated water used for irrigation of the garden and any excess used to top up the mall’s firefighting systems.

capitalise on this opportunity.

“I think we have been quite successful with the Dubai Miracle Garden, and over the years we’ve been learning with experience and getting more and more ideas.”

One of these ideas was to move into retail development, and thus the idea to build Cityland Mall was formed. Having invested tremendous time and money in the study of the retail business, its science and inner workings, Sharfuddin asserts that Cityland soon came to the conclusion that if it wanted to succeed in this hugely competitive sector, it needed to stand out from the crowd.

“We concluded that if you want to do a stand-alone retail project, it’s not going to be successful.

That’s because trends in society and the tastes of people are rapidly changing. There was a time when shopping centres used to only have retail experiences, and people would go to shop and return home.

“In today’s market, people don’t only look for shopping.

They want an experience, they look to spend the day at the mall.

Today’s developers are diversifying from a pure retail concept to one where they can offer retail and entertainment under one umbrella to fetch the interest of visitors.

“We thought that since nature is something that fascinates people, and we have experience in delivering projects in the past 30 April 2018

that are doing fantastic in terms of footfall, then it’s a testament to people loving nature.”

By combining the elements of nature and retail, the hope is that the mall will capture people’s attention and create an experience that will be one to remember, he says, adding that the project’s location will also help answer the needs of the surrounding community.

“Cityland Mall is located on a highway that has a catchment area of 150,000 people. This area is not served by any superregional shopping destination.

We believe that the commercial

aspect has been well studied and taken care of, while we’re also studying how to align nature with the shopping experience. We believe that nature and retail will complement each other. The way we have put it together on the ground, it will definitely be a lovely experience for people,” he asserts.

With the project scheduled to finish by the end of the year, construction work is well underway, with nearly 60% of the overall development completed. In terms of structural work, Sharfuddin says that more than 80% of the total development structure is ready,

while MEP is also progressing well.

In February 2018, Dubaibased Al Shirawi Interiors was awarded the complete interior fit-out contract for the mall, working on 41,806sqm of space, including all entrances, pavilions, a hypermarket and washrooms.

In order to ensure completion by Q4 2018, Hill International has been appointed as project manager, while the main contractor on the project is Chinese-owned CATIC, he adds.

“The Central Park is the main USP for the project, we’ve broken ground there as well, and we’re going to start construction there within the next two or three weeks. It should be ready within three to four months,” Sharfuddin says, adding that the total cost of development for the project is $326.7 million.

The MEP and HVAC systems will be key elements. Given that the landscaped garden – which is an outdoor space – is the centrepiece of the mall, the project team will be tasked with finding a way to keep it operational all year round, even during the summer months, when temperatures can reach 50°C.

Meeting the requirements The main contractor for the project - CATIC - was chosen following an extensive process in which participants and bidders had to meet stringent requirements.

Site Visit

Central to the plan The centrepiece of the mall will be a massive,lush garden that will be the hub for all the mall’s activities and visitors.

“With regard to MEP and HVAC, we have kept a provision to tap off chilled water for the garden as and when it may be required. It will even be used to cool certain parts of the area during the summer months, just by throwing cold air in that [area], because it’s open to the elements.

“Apart from that, the infrastructure is just like any other mall. It’s fairly simple.”

When it comes to the maintenance of the garden, he explains that Cityland wanted to create a sustainable design for the irrigation, keeping in mind the group’s commitment to nature.

“What we’re doing in this instance, because we wanted to ensure a sustainable design, is that we’ve got a treatment plant so that all the wastewater from the mall gets treated and then gets recycled back for irrigation. All of this is going to be stored underground so that the temperature of the water won’t be that high.

“Also, the additional treated water that we may have [after irrigation] will go into storage

“We have certain criteria that need to be fulfilled.

We look at the credentials of each and every stakeholder, and before being selected, every contractor had to satisfy certain procedures and criteria set out

by Cityland”

for our firefighting systems, and if we do get some extra surplus even after that, then I think the idea will be to sell it to whoever will buy it. That way, 100% of the wastewater is being reused.”

From a construction and engineering point of view, a major challenge the project team faced was incorporation of the garden elements on the roof of the food and beverage units, Sharfuddin says. The design of the project called for the inclusion of all the services you would normally find in a dining outlet, in a huge garden area that runs 360 degrees around the central core of the mall.

“To incorporate all the services that have to be provided there, for a huge 360-degree garden on the roof of the F&B units, overlooking the central garden, was quite challenging to integrate.

It has trees, walkways, grass areas, bushes and everything.

“Furthermore, because of the way the mall has been designed, with landscaping on the roof and all that, we had to go through various iterations with the authorities

just to get structural approval.

“In fact, the approvals were very challenging. It’s such a large development, with so many intricacies. With the kind of layouts that we have, the process was very cumbersome and we had to have dedicated staff to ensure that we got approvals from all the relevant authorities.”

Another challenging aspect of the project was the infrastructure.

Since the project is a large ground-floor facility, managing the infrastructure around it was crucial, especially given its size.

“There is a huge network – you have the drainage that goes to the treatment plant, you’ve got the treated water that has to come back. You’ve got the storm water collection – these days, you have to harvest storm water, so we have that facility as well. Then you have the electrical systems running all over, the chilled water systems as well. This entire network was quite challenging to incorporate.”

Sharfuddin points out that everything in the design is fully compliant with Dubai Civil Defence April 2018 31

Site Visit

approval challenges Getting approvals from the relevant government authorities was a challenge for the project team, due to the nature and complexity of the project, says Sharfuddin.

“What we’re doing, because we wanted to ensure a sustainable design, is that we’ve got a treatment plant so that all the wastewater from the mall gets treated and then gets recycled back for irrigation” regulations, and that at every stage, with every modification made to the retail layout, the Cityland team went to the relevant authorities to get the approvals.

“This facility, between one end and the other, there is almost 1.5 metres of difference in height.

So storm water approvals were a huge challenge. While our mall was at one level, the parking which surrounds the mall must be at a different level. For that, we had to appoint a road consultant, who had to get us storm water approvals,” he explains.

Despite aiming to be as sustainable as possible, Sharfuddin reveals that the project isn’t actively pushing to achieve any green ratings at the moment. However, he does confirm that everything that has been done complies with the green building regulations in place, as is standard now.

“The most power-consuming item in the facility is the chilled water. That is being procured through district cooling, and it makes the chilled water that we get extremely sustainable.

Secondly, all the chilled water that we get is recycled. It’ll be 34 April 2018

used for all our landscaping and firefighting systems and all that.

“With regard to our electricity, since it’s the retail industry, you have to provide what’s required.

How we manage is that in all the common areas, we’re using extremely energy efficient light fittings, procured from the best manufacturers in Europe. Thereby, by reducing our lighting load, we can provide for the people who require more load, like the restaurants and the showrooms and all that. They require more power so as to ensure their facility looks bright and beautiful.

“I’m sure with the kind of provisions we have, we could definitely achieve very good green ratings,” he asserts.

This careful and considered approach is also evident in the way the developer chose the stakeholders on the project.

Although CATIC has been chosen as the main contractor, extensive steps were taken by Cityland Group to ensure it was the right fit.

“We have certain criteria that need to be fulfilled. We look at the credentials of each and every stakeholder, and before being

selected, every contractor had to satisfy certain procedures and criteria set out by Cityland,” he explains. “As far as selection of the main contractor is concerned, we have personally visited China to see the work that CATIC has executed. They’re a huge company, a state-owned company with huge amounts of resources.

“We have seen the projects they have delivered in the region, that they have delivered in China. They are a huge contracting company, with a proven track record of deliverability. That was one of the basic requirements. Technically, they’re very capable of handling projects that are 10 times bigger than Cityland Mall. That was one of the reasons why they were participants and bidders who were selected for this project.

“Of course, commercially they were quite competitive in terms of their prices, but that comes second, after satisfying the technical capabilities and showcasing their abilities towards the Cityland Mall project,” Sharfuddin adds.

As the deadline for completion approaches, operations on-site are stepping up to ensure that all

targets are met, he says. At present, the construction schedule allows for two shifts and work until 10pm.

Once construction reaches its peak, he says there will be more than 2,000 workers on-site, with logistics and site management plans already in place to ensure that there is minimal disruption to both their own operations and to their neighbours in Global Village.

“There are two aspects to this project, in order to make it successful once it’s completed.

One is the technical aspect, and the other is the operational aspect. We have made sure that every stakeholder that joins us has relevant industry experience and that they are a leading company in this business.”

This explains why Hill International was hired, he says.

Although the project is also being overseen by Cityland’s own project team, Sharfuddin says Hill’s remit is to act as an independent project manager and cost consultant that oversees the entire construction project and all stakeholders, including the main engineer. This is to ensure that the project is delivered on

Site Visit

time and to a technically sound level, while also ensuring that all stakeholders perform to their best.

Furthermore, in order to ensure the commercial success of the project, Cityland has brought in a specialist consultancy to help manage operations in the mall itself, as Sharfuddin explains.

“Since this is the first retail project for Cityland, we have brought in the right experience from the market, to ensure that we run it right. McArthur + Company, who are shopping centre specialists and are among the most wellknown companies in the field, are present on this project and in this development. They have delivered more than 40 mall experiences in their past, so I believe that we’re in safe hands when it comes to the operation of the mall.

“From a design aspect, McArthur + Company have been present since the inception of the project. They were first involved in the design phase, because we have achieved the layout and floorplan

“The Central Park is the main USP for the project, we’ve broken ground there as well, and we’re going to start construction there within the next two or three weeks.

It should be ready within three to four months”

of the mall in close coordination with the main engineer and architect, and the experts from McArthur in the leasing field. They are the persons who have helped design the floor, the circulation of visitors and the distribution of the elements of the mall.

“We understand that Cityland Mall is not just a mall, it’s a destination, but we also understand that while there’s entertainment, there’s also a big commercial aspect which we are banking on. We have to ensure that it’s being designed in line with international mall standards, as well as to Dubai standards.

“McArthur + Company has played their role from day one.

They’ve been part of the design process and we have retained them for the exclusive leasing of the entire mall, which they are currently progressing with. They will also be managing the mall, so as to ensure that we accumulate enough experience to ultimately take over,” he concludes.

Best in the business CItyland Group has hired McArthur + Company to oversee the development of the mall, right from design all the way through to operation when it opens later this year.

April 2018 35

Technology

Steve Cockerell

GoinG DiGital

Steve Cockerell, industry marketing director, Rail and Road at Bentley Systems, highlights how the tech giant is spreading the use of BIM methodologies on railway projects Ever since the first railways were constructed, rail professionals have focused on improving this method of travel to be the safest, fastest and smartest means of moving people and products. In an ever-evolving digital world and economy, however, the only way for our industry to advance is by embracing digital technologies throughout the planning, delivery and operation of existing and future networks, plus the systems that support them.

A significant part of what I would term a digital journey 36 April 2018

for many organisations today is establishing or adopting building information modelling (BIM) standards and procedures. BIM adoption, of course, is much more than using the latest software or digital technology.

It is about the people involved, the processes they follow and, where appropriate, the supporting technology they use to achieve the required outcomes. If embraced by all, BIM methodologies can transform traditional project management – where data is unstructured and team members

information handover Crossrail’s integrated approach to BIM standards and processes is providing streamlined creation and management of information during its design and construction, and will ensure the efficient and effective handover of information to the railway’s future owner.

work independently – into a truly collaborative environment.

In a study, Bent Flyvbjerg, an expert in project management at Oxford’s business school, estimated that nine out of 10 projects that cost $1 billion or more go over budget, with rail projects in particular going over budget by an average of 44.7%.

It could therefore be argued that the topic should be front of mind for many of us, as time and cost over-runs on large new capital projects, or when upgrading and maintaining existing rail networks, tend to affect our everyday lives.

Widely considered a global exemplar for its work in digital information management, Crossrail is busy constructing London’s soon-to-beoperational Elizabeth Line.

Crossrail’s integrated approach to BIM standards and processes is providing streamlined creation and management of information during design and construction, and will ensure the efficient and effective handover of information to the railway’s future owner.

Today, its connected data environment, which uses Bentley technology, is

Technology

“BIM adoption, of course, is much more than using the latest software or digital technology. It is about the people involved, the processes they follow and, where appropriate, the supporting technology they use to achieve the required outcomes”

provisioned in Microsoft’s Azure cloud computing platform. It provides the organisation with a single location for storing, sharing and managing information for approximately one million assets. The project remains on time and on budget, and is on track to be the first major UK infrastructure project to fully realise the value of BIM methods across the whole asset lifecycle.

China Railway Eryuan Engineering Group is another example of a leading organisation that has

revolutionised its processes and is going digital in this way. “By using the Bentley platform, the 3D collaborative design of the whole project was completed efficiently and rapidly, which brought hope and confidence for our future intelligent railway construction,” said BIM Centre director Dong Fengxiang.

When complete, the railway will incorporate the world’s longest span on a railway arch bridge and be Asia’s longest railway tunnel. It was designed and is being constructed with the help of an integrated 3D collaborative design model.

While Bentley has a proven history of accomplishment in this sector, it’s only the start.

I firmly believe that with our depth, breadth, scalability and pedigree in rail, our users can be assured that we will deliver the digital innovation they need to succeed.

One such innovation is the recently launched OpenRail suite of software and services.

This technology offers a holistic approach from requirements capture to asset disposal, via a systems engineering methodology that provides compliance and

assurance for complex rail project delivery and operations.

Going digital in rail means your data is mobilised, your people are connected and your processes are enabled through technology that allows your team to do what they do best even better – from planning to performance. Ensuring that digital context, data and workflows become part of your rail and transit network’s DNA, leveraging your existing investments in BIM technology, processes and standards, going digital helps you take the next step in your digital journey.

April 2018 37

Water Infrastructure Underground network The reserve has a network of 315 recovery wells which lie up to 80m below the surface of the desert.

water in the sand

Big Project ME profiles the Liwa Strategic Water Reserve, the world’s largest reserve of artificially desalinated water, which is intended to provide water security for the emirate of Abu Dhabi 38 April 2018

Water Infrastructure In September 2017, the UAE’s Ministry of Energy and Industry unveiled the country’s Water Security Strategy 2036, a comprehensive plan to ensure sustainable access to water during both normal and emergency conditions, in line with local regulations and standards of the World Health Organisation and the UAE’s own vision and goals.

The overall objectives of the strategy are to reduce total demand for water resources by 21%, increase the water productivity index to $110 per cubic metre, reduce the water scarcity index by three degrees, increase the use of treated water by 95% and, finally, increase national water storage capacity up to two days, according to a statement on the UAE government’s official online portal.

A crucial step towards meeting the objectives of the strategy was unveiled in January 2018 at the International Water Summit in Abu Dhabi. There, the Abu Dhabi Water and Electricity Authority unveiled a major project that aims to ensure the water security of the emirate’s residents – the world’s largest reserve of artificially desalinated water.

Speaking at the event, government officials said that construction on the project had been completed, resulting in the creation of a reserve holding high-quality desalinated water in an aquifer under the Liwa desert, in the Al Dhadra region of Abu Dhabi.

Located 160km from desalination plants along the coastline, officials added that it has 5.6bn gallons of water stored in it, enough to provide one million people in Abu Dhabi with 180 litres per person for up to 90 days. Abu Dhabi’s daily water consumption is 980 million imperial gallons per day

BUIldIng tHE pIpElInE: The 160km pipeline from the strategic water reserve site to the Madinat Zayed distribution network in Abu Dhabi City consists of more than 9,000 sections of welded pipe, some measuring 1.2m in diameter and up to 18m long, a Gulf News report says. Each of the sections had to be transported into the desert and put together with highprecision welding, taking up to five hours per section. Following this procedure, the project team conducted a stringent X-ray inspection to ensure that the sections were leak-proof and could withstand the prevailing water pressure for at least 50 years.

Furthermore, due to concerns about aquifer contamination from large animals such as camels, the team worked with nature to create a groundwater protection buffer zone made from locally produced palm frond, while solar panels power wellhead monitoring equipment, the report adds.

(MGID), says Dr Saif Saleh Al Seairi, acting director general of Abu Dhabi Water and Electricity Authority (ADWEA), according to a report by Gulf News.

Razan Al Mubarak, secretary general of the Environment Agency – Abu Dhabi (EAD), adds that the water is secured in a network of 315 recovery wells which lie up to 80m below the desert. She explains that the water was gradually added from the Shuweihat desalination plant over the 22 months through the longest network of pipes in the UAE, at a rate of seven million imperial gallons – approximately 32,000m3 – per day.

Costing $435.6 million, the strategic water reserve is a joint project developed in cooperation with ADWEA and TRANSCO (Abu Dhabi Transmission and Despatch Company). EAD’s role on the project was to offer scientific support in the supervision and review of the consultant and contractor submission materials and documents related to groundwater activities and subsurface infrastructure, such as recharge basins, abstraction wells and monitoring wells.

As the reserve is connected to the UAE’s water grid, Dr Al Seairi points out that water can be retrieved as and when required, with the retrieval rate faster than feeding. He adds in the report that the reserve has unlimited capacity and more water can be fed into it whenever there is a surplus.

Developed over a period of 15 years, Liwa Strategic Water Reserve is crucial to Abu Dhabi’s water security. However, constructing it has been no easy task, with the project team having to deal with harsh desert conditions and a landscape that is constantly shifting, creating

April 2018 39

Water Infrastructure

several major engineering and construction challenges, says Dr Mohamed Abdel Hamyd Dawoud, advisor – Water Resources, Environment Quality at the EAD, speaking to Big Project ME about the reservoir.

“This project was unique and the first of its kind in the region. This is the first time that huge volumes of desalinated water are being injected and stored into native groundwater in an arid region. So, as a result, there were many challenges.

“These include the site selection, where we had to choose the most suitable site based on many economic, technical and environmental conditions, including the availability of desalinated water, groundwater

“The nature of the site [was another challenge] as the selected site is a remote sandy dune area, which makes it very difficult for the movement of equipment and machinery”

Planning in phases The project was planned over four phases in 15 years, with a feasibility study first carried out between 2002 and 2003, followed by a small-scale pilot project between 2003 and 2004.

40 April 2018

KEy StAtS: 980 MgId: Amount of water consumed by Abu Dhabi on a daily basis 5.6bn: Number of gallons that can be stored in reserve 160km: Distance from the coastline 315: Number of recovery wells in the project 9,000: Number of welded sections in the pipeline

aquifer hydraulic properties, native groundwater quality and existing man-made activities which could impact the storage of the water. The nature of the site [was another challenge] as the selected site is a remote sandy dune area, which makes it very difficult for the movement of equipment and machinery.”

Furthermore, the project team also had to monitor the injected water movement, both horizontally and vertically, Dr Dawoud says. This included monitoring the interaction between the injected desalinated water and the native groundwater, while also making sure that quality was maintained during the recovery process.

EAD’s role also extended to

Water Infrastructure

Meeting standards A five-day recovery test was conducted and completed in mid2017, and the recovered water was found to be in compliance with Abu Dhabi drinking water quality standards.

“This project was unique and the first of its kind in the region.

This is the first time that huge volumes of desalinated water are being injected and stored into native groundwater in an arid region” including simulations and models of groundwater flow and quality, so as to predict the behaviour of the aquifer during desalinated water injection, long- and shortterm storage and during the recovery process. They were also tasked with determining what sort of technology should be used for the injection and recovery – recharge basins versus injection wells, and so on.

The Liwa Strategic Water Reserve project was planned over four phases, Dr Dawoud says, stressing that the entire process used environmentally friendly materials and technologies over the 15-year development.

“From 2002 to 2003, a feasibility study was conducted to assess and evaluate the feasibility of the project, including different storage

alternatives,” he says. “From 2003 to 2004, there was a small-scale pilot project that was implemented using both a recharge basin and five injection wells to assess different technologies, and to evaluate the injected water in terms of quality and quantity.

Between 2005 and 2008, the team monitored and assessed the results of the pilot project, before implementing the full scheme between 2010 and 2017.”

“We have learnt some important lessons from this project. Firstly, it proves that aquifer storage and recovery is a technically and economically viable tool for a strategic water reserve in arid regions. Secondly, it also shows that selection of the site based on hydrogeological aquifer parameters is very

important, as it can affect the overall efficiency of the project.”

With infrastructure completed

by December 2017, the entire project consists of three recharge basins, 115 rockery wells, 117 monitoring wells and three on-site pumping stations. Dr Dawoud reveals that a five-day recovery test was completed in mid-2017 and the recovered water was found to be in compliance with Abu Dhabi drinking water quality standards.

“A control base model should be developed to control the groundwater quality during recovery, to be sure that the water pumped to the potable water network is in compliance with the potable water quality standards.

“The design of the groundwater monitoring system is a very important part

of the process, so as to assess and evaluate the movement of injected freshwater plume within the aquifer horizontally and vertically. A good groundwater flow model should be developed carefully to simulate the groundwater flow and quality during the injection, storage and the prediction during the recovery mode.”

With the project now operational and established, the focus now turns to ensuring that it can deliver a fallback pumping capacity of 100m gallons of water per day to the emirate. There are already plans in place to increase the capacity of the project so as to supply water during an emergency for at least one year, signifying that this ambitious project may just be the beginning.

April 2018 41

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Industry focus Leading by example ABB has installed one of the region’s largest privately owned solar panel rooftops on its Al Quoz office in Dubai.

chasing the sun

Big Project ME speaks to Dr Mostafa Al Guezeri, managing director of ABB UAE and its Oversight Countries, about the company’s ambitious plans to tap into the solar power solutions industry 44 April 2018

Can you give us an overview of the acceptance of solar power solutions, particularly from ABB’s perspective?

The region has shown its commitment towards renewable energy, with various government bodies encouraging the use of gridconnected renewable resources.

Shams Dubai initiatives and energy visions from the other GCC countries are acting as catalysts in encouraging residents and

Industry focus

ABB is a global leader in renewable power integrations; we have been integrating solar power both in utility and infrastructure scale. Our micro-grid solutions help remote locations to be energy self-reliant by integrating solar power to the grid. Our installations across the globe, from within the region and across the world, have helped realise a vision for sustainability.

Earlier solar installations were expensive, calling for huge investments, and had a longer return on investment period; however, now technology and mass production has made installation of a solar rooftop within the reach of a common man. This transformation is not only for the region, but also across the globe. We see a definite cultural shift favouring renewables in the GCC in the last decade.

Effective solar installations also need robust grid infrastructure and investments in renewables by the government bodies, which have strengthened over the last years.

While we have sunlight all through the year, we also have a lot of dust and sand that can coat mirrors and reduce their efficiency. Is there a way to get around this challenge?

The prevalence of dust in the Middle East cannot be avoided.

However, today there is available technology which tells you about timely maintenance and schedule for cleaning when output is below the desired level. There are also other companies who provide robot-based solutions for cleaning.

utilities to switch to solar energy.

ABB has been leading by example by installing a solar roof in its own premises in Al Quoz, Dubai, which is one of the largest privately owned solar rooftop installations in the region.

Current solar panels are less than 20% efficient – when do you think they will be more efficient? Is ABB working with solar panel manufacturers to drive this forward?

There are new technological updates by the solar panel manufacturers, with bifacial solar PV modules that will increase the efficiency. ABB is working closely with some of the solar panel manufacturers to help consumers integrate solar power more efficiently.

Considering we have almost 365 days of sunlight a year in the GCC, why has it taken so long for solar power to become a viable source of energy?

What is the biggest barrier to the acceptance of solar power across the GCC? How can authorities push acceptance forward?

A shift from the use of fossil fuels

“Effective solar installations need robust grid infrastructure and investments in renewables by government bodies, which have strengthened over the years” as the main source of energy to gradually integrate solar power is ongoing within the region.

Increasing price of fossil fuels and increased government commitment towards a sustainable environment are incentive enough for both industries and residents to opt for renewable power.

How is ABB adding value to solar power ecosystem through its various components?

What opportunities do you see for ABB in the solar power ecosystem?

The use of microgrids is increasing throughout the world, and they act as great sources of energy self-sufficiency for remote places where electricity cannot be provided by the grid. We also foresee increased use of solar in transportation, for example cars which can be charged with EV chargers powered by solar energy.

Is ABB investing in R&D with regard to components in the solar ecosystem?

With seven research centres worldwide, more than 8,000 technologists and an annual investment of $1.5bn, our R&D efforts ensure that our products and services are among the best in the world. Our R&D engineers and scientists develop breakthrough technologies that change the way the world works and industries do business. Solar is obviously a part of this.

Even now, we have announced a new product – ABB’s new REACT 2 inverter and energy storage solution includes a highvoltage Li-ion battery with a long life and a storage capacity of up to 12kWh. The modular solution can grow with the needs of any household from 4kWh to 12kWh and significantly reduce electricity charges, thanks to an achievable energy self-reliance of up to 90%.

The inclusion of a high-voltage

April 2018 45

Industry focus

“This transformation is not only for the region, but also global. We see a definite cultural shift favouring renewables in the GCC in the last decade” battery (200V) delivers more reliability and up to 10% more system efficiency compared to lower voltage alternatives (48V).

Based on the combination of REACT 2 and ABB-free@home, home owners can make the best use of the electricity generated by their photovoltaic system, avoiding consumption peaks by spreading the electricity load and keeping usage within the capacity of the energy harnessed.

REACT 2 transfers the information on solar energy, home consumption and battery status over a wireless network to the ABB-free@home system access point, which can then control other ABB-free@home devices including heating, lighting and music. It can even be used to power electric vehicle charging solutions such as the new ABB AC wallbox, and activate new smart functionalities based on energy information.

Can you share some details about the power generated and the

savings ABB has realised through the installation of a solar power system at its premises in Dubai?

Over 216 metric tons of carbon dioxide has been saved to date, which is the equivalent of removing 46 cars from the roads of Dubai.

Discuss ABB’s partnership with DEWA. Are you working with other energy authority bodies in the region?

ABB has been working very closely with DEWA on various projects. ABB has successfully installed a 400/132kV gasinsulated switchgear (GIS) substation at the MBR solar park, and ABB’s solar rooftop facility in Al Quoz was one of the pilot projects under the Shams Dubai rooftop solar initiative.

Can you discuss the Hatta Village solar power project?

What sort of impact has it had, and what was ABB’s involvement with the project?

Providing a full service ABB integrates grids with new forms of energy, providing a full service from consulting, generation and connection to transmission, monitoring and control, as well as maintenance and optimisation.

46 April 2018

ABB supplied 600 inverters to the Hatta Village project, including the remote monitoring software ABB Aurora Vision.

The project will prove that the technology to integrate solar power to your residence is available today and is economically viable. Effective solar installations also need robust grid infrastructure and investments in renewables by government bodies, which have strengthened over the last few years.

providing a full service from consulting, generation and connection to transmission, monitoring and control, as well as maintenance and optimisation.

ABB is very much at home in the area of grid integration. It can draw on well over 100 years of experience in developing and improving transmission and distribution grids.

In addition, ABB’s FACTS and HVDC technologies are helping reliable power transmission across the globe.

How is ABB working to solve the challenges around integrating renewable energy with main power grids?

The growth of renewable energy means that grids need to adapt to changing energy sources, such as wind and solar. Some grids may have limited capacity to cope with larger amounts of energy or unpredictable weather patterns. ABB integrates grids with new forms of energy,

How can homes and offices use technology such as big data to improve utility performance?

With the help of the internet connectivity of components, we can bring various components into harmony. With the new ABB Ability, a unified cloud platform, our solar inverters can be integrated into a building management system in perfect synchronisation, to maximise output and reduce wastage.

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Advertorial

Boosting EfficiEncy

The Grundfos Hydro MPC booster system provides MEP engineers with a solution that is efficient, intelligent and cost-effective

Ensuring optimisation The booster system can be integrated into modern building management and SCADA systems, ensuring easy monitoring and optimisation of the system controls over time.

Having water at the end of a tap in your kitchen, washrooms, irrigation systems, washing machines, dish washers etc. is something we all take for granted in any building whether residential or commercial, but what is not visible is the boosting system that runs behind the scene to deliver the pressure required at any point of time in a busy environment or during low activity.

modern building management and SCADA systems, ensuring easy monitoring and optimisation of the system controls over time.

All critical components of the system are produced by Grundfos to ensure maximum hygiene and the highest quality of the overall system.

These are some of the key advantages of the Hydro MPC booster system:

This is where the Grundfos Hydro MPC booster system comes into play. With highly efficient pumps, the most efficient motors in the world (rated IE5 for efficiency), and the most advanced multipump microprocessor-based controller (Grundfos CU 352) available, the system optimises operation to ensure maximum comfort, efficiency and safety.

Furthermore, the booster system can be integrated into

CONSTANT PRESSURE

48 April 2018

By continuously adapting the speed of the pumps to the flow demand, the required pressure is kept constant despite fluctuations in flow.

This ensures that the consumer has the highest comfort levels at any time of the day.

Starting and stopping the speed-controlled pumps is done in a manner that minimises pressure surges and protects the piping.

EASY TO OPERATE

The most advanced controller on the market does not have to be the most complicated. The CU 352 controller is equipped with a big colour screen that communicates in plain text and with intuitive icons. The start-up wizard makes commissioning quick and easy and the interactive help texts ensure that explanatory text is never further away than the press of a button.

APPLICATION OPTIMISED FUNCTIONS

The CU 352 controller is more than parallel operation of pumps at best efficiency. It is filled with special features that makes sure that the system performs perfectly in any application.

These special features can be set up so that the behaviour of the system exactly fits the needs of the application requirements.

MONITORING

ENERGY REDUCING

Using the best pumps and motors is no guarantee of low energy consumption. The ability to choose the optimum number of pumps to continuously optimise energy usage is just as important.

The CU 352 uses the performance curve of the pump to determine the most efficient speed and number of pumps, in order to meet the desired flow and pressure.

The CU 352 controller incorporates a log feature that makes it possible to monitor the performance of the system.

The logged data can be graphically displayed on the large colour screen or exported to a PC for further analysis.

Monitoring the performance makes it possible to react to problems before they occur and gives valuable data about changes in demand.

Construction Technology

Taking FlighT

Sonya Benjamin and Michael Boyle of AESG outline the environmental and sustainability applications of drones in the construction industry

The Rise of the Consumer Drone

Drones, also referred to as unmanned aerial vehicles (UAVs), have been gaining popularity in recent years, due to the proliferation of models aimed at the recreational consumer. Drone technology has advanced, becoming more autonomous and less technical, allowing the casual user to pick up a unit and quickly learn how to operate it. This is in contrast to early models, which were primarily military grade and required extensive training to learn to pilot.

With this new target market comes new price ranges.

Consumer drones are more affordable than ever, as well as readily available to purchase from a variety of electronic shops, no longer being limited to speciality stores. This ease of procurement and the availability of budget-friendly options mean drones are being considered for more than simply recreational fun; they can now be used in a wide variety of applications, from cinematic photography to remote surveillance.

Environmental Surveying with Drones

One such application which is rapidly expanding is the use of drones in environmental surveying. The ability to gather photography and other remotely-sensed data from above provides a unique perspective previously only acquired via the use of

50 April 2018

“Drones can be used to survey the built environment as well as preconstruction land. In terms of sustainability, drones can be used both in new construction as well as retrofitting to help enhance energy efficiency of new and existing buildings”

chartered aerial surveys or purchased high-resolution satellite imagery.

Drones equipped with high-resolution cameras can capture high definition, georeferenced aerial photos that can be used to create digital elevation models. These DEMs can be created using software to stitch together spatially referenced, orthorectified raster images and can be used to create topography contour maps, which otherwise require an expensive and effort-intensive survey.

High-resolution imagery can also be used to create classified land cover mapping, which can aid in identifying environmental features of interest as well as potential risks, such as zones prone to flooding. In combination with GIS software, spatiallyreferenced drone imagery can be used to create habitat maps and buffer zones, and analyse shading and thermal comfort zones during urban planning.

Drones can be equipped with sensors other than cameras, to undertake active sensing as well as passive. Light detection and ranging (LIDAR) is a remote sensing method which ‘pings’ pulsed laser to measure variable distances, providing an extremely accurate surface representation. LIDAR is traditionally deployed via satellite. By deploying LIDAR via drones, the study area of interest can be surveyed at the

Construction Technology

Eagle eye view Drones equipped with high-resolution cameras can capture high-definition, geo-referenced aerial photographs that can be used to create digital evaluation models.

April 2018 51

Construction Technology

exact timings required and can be repeated as needed.

Repeatability is one of the key benefits that drones hold over satellite or manned aerial survey – the exact study area can be surveyed repeatedly for a fraction of the cost. This can prove especially helpful in ongoing monitoring of construction progress, for example an application that has been gaining traction in recent years.

Energy Efficiency Testing with Drones

Drones can be used to survey the built environment as well as pre-construction land. In terms of sustainability, drones can be used both in new construction as well as retrofitting to help enhance energy efficiency of new and existing buildings.

Ensuring an Airtight Building

A requirement of the Dubai Green Building Regulations is to test the building envelope for airtightness upon completion

“Repeatability is one of the key benefits that drones hold over satellite or manned aerial survey – the exact study area can be surveyed repeatedly for a fraction of the cost”

of construction. An airtight building not only ensures that conditioned air is kept inside the building, thus saving energy in the HVAC system, but also helps to mitigate against condensation forming on the inside of the vapour barrier, which can lead to mould build-up inside the building. Mould within buildings can cause serious health risks and affect the lifespan of building materials.

Generally, an airtightness test is conducted by pressurising a building to a set pressure, typically 50Pa, and calculating the amount of air leaking through the envelope area to determine the leakage rate.

On large high-rise buildings, detecting the location of the leaks can be difficult and time-consuming, as there may be hundreds of cracks and leaks in numerous locations throughout the entire façade.

One way to detect leaks is to have people physically scale and examine the external envelope for detectable cracks and leaks,

a tedious and potentially unsafe task. By incorporating thermal imaging cameras on drones, these leaks could be identified in a more efficient, safe and precise manner. This allows the building envelope to be safely and quickly surveyed from the optimum distance to get accurate thermal readings. The envelope specialist can then use these images to detect even the smallest of defects in the façade and target troublesome areas, thus reducing the time required to fix the leak and optimising the areas to be repaired.

The same principle can be used on existing buildings.

In one recent example, the facilities management team responsible for a high-rise tower in Abu Dhabi had noticed water droplets forming on the inside of windows. The FM team employed a company to conduct a thermal imaging survey of the towers using a drone, thus allowing the team to find and detect the location of leaks accurately, which reduced the time and effort required for the maintenance of the building.

Optimising Solar Panels

Checking the envelope Drones can be used to assess building envelopes through the incorporation of thermal cameras that can identify leaks in an efficient, safe and precise manner.

52 April 2018

Using renewable energy is an increasingly important target, and solar energy is a mainstay of the region, given the prime conditions for solar power.

Solar photovoltaic panels can be installed on existing building rooftops to provide energy for hot water demand.

However, the deployment of panels has varying success rates, depending on the roof layout and the shading effects from surrounding buildings.

Preliminary surveying with drones can be used to undertake an optimising exercise to determine the best locations for solar panel deployment,

Construction Technology

Untapped potential The increased use of drones could see the construction sector tap into the technology’s potential in the application of constructionrelated environmental and sustainability surveying and testing.

“Drones are clearly a technology that will continue to grow in importance, with ever-expanding applications. However, there are many constraints to drone deployment, which limit the current usability of this technology� to ensure the panels have been effectively placed for the maximum energy generation.

Limitations and Constraints

Drones are clearly a technology that will continue to grow in importance, with everexpanding applications.

However, there are many constraints to drone deployment

which limit the current usability of this technology. There are a variety of legal requirements and repercussions associated with drone flights, due to the security issue raised by potentially unskilled drone operators. Several incidents where drones were flown accidentally into airport air space caused the temporary

shut-down of activities, costing millions. These incidents have prompted quick action in the form of legal requirements for drone owners and pilots, including somewhat restrictive mandates. These policies, when over burdensome, may prevent the use of drones in favour of traditional methods of surveying and testing.

Clearly, there is untapped potential in the application of drones in construction-related environmental and sustainability surveying and testing.

Hopefully, the push forward for this efficient and effective tool will result in simplified permitting processes, allowing the full potential of drone applications to be realised.

April 2018 53

MEP

Barnie Bouwer

Water, a scarce or bountiful resource?

Barnie Bouwer, technical director at CKR Consulting, outlines how collaborative design and engineering can lead to MEP systems that conserve and use water efficiently Although water is a natural resource, depending where in the world you are right now, you may have the luxury of opening your tap and water will flow; or you may have severe water restrictions that may require you to have a bucket in the shower to reuse the water for flushing your WC or to keep plants alive. There is also the most extreme, where running water is not available and people need to walk kilometres to get it. Water conservation and sustainability should be a collaborative effort 54 April 2018

from all stakeholders, from local authorities through to developers, designers and ultimately end users.

Local authorities have the ongoing responsibility to manage water resources and consumption of various consumers from across the board.

For that, various UAE water authorities, in collaboration with municipalities, have put in place clear consumption guidelines and water conservation measures through design guidelines and green building codes such as Al Safat and Estidama. These local authorities are further leading

clear guidelines Various UAE water authorities, in collaboration with municipalities, have put in place clear consumption guidelines and water conservation measures through design guidelines and green building codes.

by example by stipulating that all new authority buildings shall not only comply to the minimum green building codes, but go beyond that. For example, Dubai requires all new buildings constructed for the local authorities to comply with Al Safat Silver.

Developers in turn could consider investing in on-site water treatment facilities to reuse waste water for WC flushing and irrigation requirements.

This would require a higher capital investment from the developer, but by demonstrating to their tenants that this would

provide them with lower utility bills, it could yield higher rental incomes over the long-term lifecycle of a development.

There are various design parameters that could be considered by designers during the design process to ensure water conservation is taken into consideration, although the local authority green building requirements set the guidelines.

However, designers could take this to the next level by offering their clients solutions that not only meet the requirements of the local authorities, but actually further enhance them.

MEP

“Local authorities are further leading by example by stipulating that all new authority buildings shall not only comply to the minimum Green Building Codes, but go beyond that. For example, Dubai requires all new buildings constructed for the local authorities to comply with Al’ Safat Silver”

Working closely with the architects and interior designers in the selection of the final sanitary and brassware could have an impact on the overall water consumption of a development.

This is not only limited to the flow rates of showers, sinks, wash basins, etc, but also the volume of the baths finally selected.

Showers with aeration technology not only reduce the amount of water consumed but also provide a better experience for end users.

The reduced consumption not only saves water, but also in turn reduces the energy required to heat up the water, especially with

centralised hot water production.

Collection of condensate water to be reused for either WC flushing or on-site irrigation is one of the local authority requirements which, with some minor additions to water distribution design, can easily be implemented.

This should be taken into consideration by the designer throughout the design process, however, to investigate the possibility for the HVAC equipment to be located at higher locations and where possible in a central location, to reduce the number of pump

stations required and collect as much of the condensate produced as possible.

Drainage water from planter drains can also be collected and reused for irrigation. The drainage collected from the planter boxes should be treated to remove unwanted dissolved and undissolved solids from the water, to ensure it is suitable to be reused.

During the lifecycle of a building, the FM company or the on-site maintenance team will have an ongoing responsibility to ensure water is preserved and the efficiency of the water conservation measures put

in place are maintained.

This is not only the maintenance of the equipment – water filtration equipment, pumps, valves, taps, etc – but goes a bit further, to the water quality being produced.

The water quality should be tested regularly to ensure that the product water produced is suitable for the required application. The facility managers or on-site maintenance team usually engage with a water treatment specialist to maintain and test the water quality being produced by on-site water treatment facilities.

April 2018 55

Tenders

Top tenders Felix Pharmaceutical Plant Project – Salalah Budget $365,000,000 Project number WPR2994-O territory Oman client Felix Pharmaceutical Industries (Dubai) address Al Garhoud, Near RTA Headquarter, Dubai Building Co-operative Society city Dubai country United Arab Emirates Phone (+971-4) 250 0183 / 250 0185 Fax (+971-4) 250 0171 email info@felixpharma.com Website www.felixpharma.com Period 2021

Status New Tender technical consultant CTCBio (South Korea) tender categories Industrial & Special Projects tender Products Pharmaceutical Manufacturing Plants

maraSSi marina Project – PhaSe 1 Budget $260,000,000 Project number WPR2826-E territory Egypt client Emaar Misr for Development (Egypt) address Mokattam

city Cairo Postal/Zip code 229 country Egypt Phone (+20-2) 16116 Website www.emaar.com Period 2020 Status Current Project main contractor Arabian Construction Company – ACC (Egypt) main contractor (2) Orascom Construction Industries (Egypt) tender categories: Marine Eng Works & Seaports, Construction & Contracting, Leisure & Entertainment tender Products: Marina Development, Residential Buildings

SWiSS international al QaSSim hotel Project Budget $70,000,000 Project number WPR2976-SA

territory Saudi Arabia client Zamil Group (Saudi Arabia) city Al Khobar 31952 Postal/Zip code 9 country Saudi Arabia Phone (+966-13) 882 4888 Fax (+966-13) 882 2509 email info@zamil.com Website www.zamil.com Budget $70,000,000 Period 2020 Status New Tender Design consultant Atkins & Partners Overseas (Saudi Arabia) tender categories Hotels, Leisure & Entertainment, Construction & Contracting tender Products Hotel Construction

the royal hoSPital exPanSion Project – al GhuBrah Budget $35,000,000 Project number WPR2926-O territory Oman client Ministry of Health (Oman) address Opp. Khoula Hospital, Bldg No. 105 city Muscat PC 113 Postal/Zip code 393 country Oman Phone (+968-24) 602 177 Fax (+968-24) 602 647 Website www.moh.gov.om Period 2019 Status Current Project main consultant Khatib & Alami Consolidated Engineering Company (Oman) main contractor Oman Shapoorji Company LLC (OSCO) meP contractor International Electric Company LLC (Oman) tender categories Construction & Contracting, Medical & Healthcare tender Products Hospital Construction

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58 April 2018

PROJECT INTELLIGENCE, TENDERS & SUPPLY CONTRaCTS IN ThE MIDDLE EaST

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Tenders

Middle East tenders UAE the GranD toWer Project – DuBai creek harBour Project number WPR3000-U territory Dubai client Emaar Properties PJSC (Dubai) address Emaar Business Park, Bldg No. 3, Near Interchange No. 5, Shaikh Zayed Road city Dubai Postal/Zip code 9440 country United Arab Emirates Phone (+971-4) 367 3333 Fax (+971-4) 367 3000 email customercare@emaar.ae Website www.emaar.com Description Construction of a residential tower comprising 62 floors Status New Tender tender categories Prestige Buildings tender Products High-rise Towers, Residential Buildings

reSiDential BuilDinG conStruction Project – jumeirah VillaGe circle Budget $15,000,000 Project number WPR3185-U territory Dubai client Nakheel PJSC (Dubai) address Jebel Ali city Dubai Postal/Zip code 17777 country United Arab Emirates Phone (+971-4) 390 3333 Fax (+971-4) 390 3314 email info@nakheel.ae Website www.nakheel.ae

Description Construction of a residential building comprising a ground floor, a podium and five floors Period 2019 Status Current Project main consultant Emsquare Engineering Consultants (Dubai) meP consultant Emsquare Engineering Consultants (Dubai) main contractor Dubai Walls Constructions LLC (Dubai) meP contractor DRC International Electromechanical (Dubai) tender categories Construction & Contracting tender Products Residential Buildings

anantara Sharjah reSort Project Project number WPR2956-U territory Sharjah client Arada (Sharjah) city Sharjah country United Arab Emirates Phone (+971-800) 27232 / (+971-6) 562 3865 email info@arada.com Website www.arada.com Description Construction of a resort comprising 233 deluxe rooms and luxury suites Period 2020 Status New Tender Design consultant DSA Architects International (Dubai)

tender categories Construction & Contracting, Hotels, Leisure & Entertainment tender Products Hotel Construction

Oman nujum al amerat mall Project Budget $5,000,000 Project number WPR2875-O territory Oman client LuLu Group International (Abu Dhabi) address Y-Tower Building, Al Nahyan Camp city Abu Dhabi Postal/Zip code 4048 country United Arab Emirates

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60 April 2018

Tenders

Phone (+971-2) 418 2000 / 443 9111 Fax (+971-2) 642 1716 email headoffice@ae.lulumea.com Website www. lulugroupinternational.com Description Construction of a shopping mall Period 2019 Status Current Project main architect Engineering Innovation Design & Consulting (Oman) meP consultant Engineering Innovation Design & Consulting (Oman) Structural consultant Engineering Innovation Design & Consulting (Oman) Project manager Engineering Innovation Design & Consulting (Oman) interior Design consultant Engineering Innovation Design & Consulting (Oman) Quantity Surveyor Engineering Innovation Design & Consulting (Oman) main contractor Sam Engineering LLC (Al-Taher Group) – Oman meP contractor Electro Mechanics LLC (Al-Taher Group) – Oman tender categories Construction & Contracting, Leisure & Entertainment tender Products Retail Developments

main contractor BENAA Trading & Contracting Company (BETCO) – Saudi Arabia tender categories Construction & Contracting tender Products Commercial Buildings

Bahrain Burj al Saya toWer Project – BuSaiteen Project number WPR2866-B territory Bahrain client Social Insurance Organization (Bahrain) address Diplomatic Area city Manama Postal/Zip code 5319 country Bahrain Phone (+973-17) 532 222/520 525/520 537/520 487 Fax (+973-17) 530 209

email public.relations@ mail.gosi.org.bh Website www.gosi.org.bh Description Construction of a residential development featuring two twin towers comprising a total of 128 apartments, a twostorey parking podium and 13 retail units on the ground floor Status Current Project main consultant Gulf House Engineering Consultants (Bahrain) Design consultant SFMGC WLL (Bahrain) main contractor Al Ghanah Group WLL (Bahrain) tender categories Construction & Contracting, Leisure & Entertainment tender Products Residential Buildings, Retail Developments

KUWAIT jayeD reSiDential toWer

Project – Salmiya Project number WPR2957-K territory Kuwait client Jadeite Group (Kuwait) address Sharq, Jaber AlMubarak Street, AlShorouq Tower 2, Floor 11 country Kuwait Phone (+965-2) 246 5925 Fax (+965-2) 249 3427 email info@jadeitegroup.com Website www.jadeitegroup.com Description Construction of a residential building Period 2019 Status Current Project main architect Studio Toggle Architects (Kuwait) main contractor Back Combined Co (BCC) – Kuwait tender categories Construction & Contracting tender Products Residential Buildings

Saudi Arabia al SaGhir commercial & aDminiStratiVe toWer Project Budget $20,000,000 Project number WPR3015-SA territory Saudi Arabia client Private Investor (Saudi Arabia) city Riyadh country Saudi Arabia Description Construction of a commercial and administrative tower Period 2019 Status Current Project main consultant Dar Al Mamlaka Consultants (Saudi Arabia)

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April 2018 61

Supplier Focus

Capitalising on positive experience The launch of the new facility and offices will allow MAPEI to capitalise on the positive experience it has built up over the last ten years in the region.

PreParing for oPPortunities Big Project ME gets a first look at MAPEI’s new facilities in Dubai Investment Park 2, following the Italian giant’s decision to extend its reach in the regional construction chemical market Construction adhesives, sealants and chemical producer MAPEI officially opened its newly expanded production facility and offices at Dubai Investments Park (DIP) on March 21. The Italian company said that the expansion cost $6.5 million and enables an additional 5,200sqm of covered warehousing and a new epoxy resin production line that will allow it to enlarge its portfolio in the region.

Veronica Squinzi, global development director of MAPEI, remarked during the inauguration that the company wants to reinforce its presence in the region, supporting the constant economic development 62 April 2018

by enhancing its production capacity. She added that Mapei Construction Chemicals has recently been appointed as the regional headquarters for the development of the group’s operations in the Middle East and Eastern Africa regions.

“We are sure that capitalising on the positive experience achieved in the UAE, MAPEI will succeed in other markets within the region. Only by being closer to the local needs and combining an efficient logistic, high-quality products and customer service excellence, MAPEI has been able to gain the position of one of the preferred suppliers to the industry.

“The United Arab Emirates continues to present important opportunities, such as Expo 2020 with its visionary approach ‘Connecting minds, creating the future’. MAPEI, of course, is ready to support these projects’ realisation thanks to its previous experiences as a supplier of high-quality system solutions.”

Speaking to Big Project ME on the sidelines of the event, she added that the facility offered the MAPEI Group a great opportunity to see new development and investment come onboard while also reinforcing the company’s presence in the UAE. “We are very excited about

this opening. Not only for the enlargement of the factory, with a new production plant, but also because of these very nice offices, which will become the regional headquarters of the Middle East and East Africa regions for MAPEI,” she asserted.

“I believe that [having these facilities] is very important – maybe not in terms of size, because the Middle East still represents only a small part of our global turnover, but in terms of the importance of the projects that we are facilitating in the area.

These are really stimulating our capabilities of construction. For this market, for these projects, we are creating new products

Supplier Focus

and we have always used the best technology available in our group. We consider it a window of opportunity.”

Stefano Iannacone, regional director for Middle East & East Africa, MAPEI, is optimistic about the company meeting the increased demands in the construction market.

“Our newly expanded facility will help in supporting and serving important projects and the region’s ambitions and vision,” he said at the launch, adding that the company intended to continue its investments in the region, supporting the local markets. “$6.5 million was invested in the erection of more than 5,000sqm of new warehousing space. We have installed a new production line for epoxy resins, and we have built this 2,000sqm office and technical centre, which will be our hub for developing business in the region, in other countries, where we will be investing more money according to the opportunities in the market,” he said.

However, Iannacone was also keen to stress that the regional hub would not deviate from the group’s philosophy,

which is to be local and to design products according to the local requirements of the construction industry.

“We have recently opened a new subsidiary in Egypt, and with others to come, we continue with our objective to be locally present and become a leading supplier in all the markets within the region,” he pointed out, adding that MAPEI for Construction Chemicals would start to trade in April, but that the company was already looking at how and where to invest in local manufacturing.

“After Egypt, as I said, we will follow the market and its demands, and we will be ready to ask our shareholders to invest in those countries.”

Furthermore, he sees growth opportunities for MAPEI, and pointed out that the new facilities will allow the company to exploit its competencies and grow its market share.

“I see four opportunities,” he told Big Project ME. “First and foremost, we have the large infrastructure projects, which are in need throughout the region. Some of them are ongoing. Infrastructure to me are the roads, the railways, the

“The United Arab Emirates continues to present important opportunities, such as Expo 2020 with its visionary approach ‘Connecting minds, creating the future’.

MAPEI, of course, is ready to support these projects’ realisation”

bridges, ports and airports.

Then we have the schools and obviously the Expo.”

“Then there is another opportunity, which is housing.

The region has a very young population, so that means in 10 to 15 years there will be a need for housing, not only for people that see the region as a new home, but for local people – you need to be able to provide housing for people that are already living here. This is the second opportunity.

“The third opportunity is that some of the buildings in the region are getting old, so there is an opportunity in renovation.

Until a few years ago, it was easier to tear down a building and build a new one. Now there are home owners in the region, and they maintain what they have.

“Finally, with this retrofitting, another route to market opens, which is the fourth opportunity – that of resellers and distributors.

It’s not a project market anymore; increasingly, there’s a chunk of business that goes through the resellers sector.

“These are the opportunities that we see, not only in the UAE, but also in the wider region,” he concluded.

Window to the region Veronica Squinzi says that while the regional Middle East market represents only a small share of the company’s global turnover, it remains important due to the scale and ambition of its projects.

growth opportunities The newly expanded facility will allow MAPEI to exploit its competencies and grow its market share, says Stefano Iannacone, regional director for Middle East and East Africa.

Best technology MAPEI’s new facility utilises some of the best technology available in the group as it looks to become a hub for the company’s regional business operations.

April 2018 63

Last Word

Paving the way for a smart future City planners and developers are embracing new technologies to drive customer satisfaction and environmental sustainability, writes Dr Adham Sleiman, vice-president, Booz Allen Hamilton MENA Water and electricity are fundamental resources for any city, and managing them efficiently has become more crucial today than ever before. The energy and utilities sector in the region is already harnessing innovative strategies to overcome some of the greatest sustainability challenges in the GCC, especially as declining reserves and revenues, along with increased consumption, are testing the region’s capacity. This requires an integrated process that facilitates early detection of problems to minimise environmental impact and drive customer satisfaction.

In this regard, the application of advanced analytics and machine learning or AI in the utilities sector can play a pivotal role in measuring and controlling water and energy consumption in cities. AI is already being harnessed by some countries in the region.

In the UAE, for instance, the government launched

64 April 2018

the UAE Strategy for Artificial Intelligence (AI) in 2017. In fact, the AI market in the Middle East and Africa (MEA) is expected to reach $114 million by 2021, according to IDC, with governments and the private sector exploring opportunities to enhance customer experience in public services, transportation, utilities and retail.

In addition to artificial intelligence, other technologies are being leveraged to develop much more accurate trends in energy and water consumption for both existing and new city areas.

For example, advanced metering infrastructures (AMI) employ superior telecommunication networks to gather and share detailed information from smart water and electricity meters.

AMI technology is hugely beneficial for city planners, who can combine sources of information in relation to water and energy

consumption with advanced analytics and artificial intelligence. This can be further leveraged on social media, where developers can use advanced social media platforms to interact with end users and other stakeholders to ultimately deliver more personalised experiences.

The information can also be used to analyse and predict household electricity and water consumption patterns, which ensures that the authorities are better prepared to measure and evaluate the effectiveness of new building codes and educational and behavioural stimulus programmes. This in turn works towards reducing consumption of electricity and water and drives overall sustainability.

Developers and city planners can even draw comparisons between buildings and areas across different social groups by using data. So, for instance, a developer would be

able to predict how much electricity or water is consumed in a particular neighbourhood, and create heat maps that could potentially help encourage efficient electricity and water consumption habits.

A smart city council can also monitor exact water and electricity consumption at any given point in real time, allowing an operating system to take instant action and effectively influence and control the water and electricity flow in the city.

While a utilities management company can determine load trends and usage profiles over different periods of time, water management companies can combine information from water control systems, social media platforms, customer service information, information from building automation systems and advanced analytics, for a detection process of water losses and leakages. Blending these detection systems

together with workforce management tools not only ensures early detection, but also reduces the response time. Similarly, combining the information from these systems on the electricity side allows swift detection of system instabilities before they create power outages.

In conclusion, better integration of technology enables a more robust smart city development programme. This wealth of data can be leveraged to optimise the consumption profiles of consumers, their neighbourhood and the community at large, leading to the development of a sustainable and efficient city.

As the GCC embraces technological development with IoT-enabled platforms, AI and automated systems integrated into broader domains of industry, commerce and civil life, the utilities sector will play an integral part in ensuring that the smart city vision truly comes to fruition.

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