Publication licensed by International Media Production Zone, Dubai Technology and Media Free Zone Authority
130
JANUARY 2017 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
Central destination
Big Project Me gets an exclusive look at al Futtaim carillion’s one central project at DWtc
Digitalization. A key enabler to a sustainable future The roadblock to a sustainable future is often communication gaps between and among machines and people. ABB connects our customers to the power of the Industrial Internet of Things and, through our services and expertise, goes further by turning data insights into the direct action that “closes the loop� and generates customer value in the physical world. www.abb.com/middle-east
World Future Energy Summit 16-19 January, 2017, Abu Dhabi Visit us at booth 5420, Hall 5
Contents
Issue 130 January 2017 07
16
18
24
32
42
16 Dubai to bounce back
42 Storage solutions
04 ME Construction News.com ONLINE
The biggest stories from Big Project Middle East’s home on the web
ANALYSIS
Experts tell Big Project ME that Dubai real estate market will swing upwards in 2017
COMMENT
Jonathan Cohen explains how energy storage can solve a number of infrastructure issues
07 Qatar rejects Amnesty criticism 18 Sobha Group
46 Middle East Electricity 2017
10 Jordan eyes solar power
48 Top tenders
THE BIG PICTURE
World Cup 2022 host nation rejects criticisms of its labour reforms INTERNATIONAL NEWS
Kingdom plans six new solar and wind energy power plants, with a total capacity of 300MW
14 Dubai residential outlook MARKET OVERVIEW
Cluttons’ property market outlook for the Dubai rental residential sector for winter 2016/2017
IN PROFILE
Gavin Davids meets Raj Chinai, managing director of Sobha Group, to discuss the developer’s growth in the Dubai market
24 A Collaborative Effort SITE VISIT
Big Project ME gets an exclusive look at the One Central project being built by AFC
32 Construction Technology TECHNOLOGY
Charles Dunk takes a look at the now and future of construction technology
SHOW PREVIEW
Big Project ME previews the next edition of Middle East Electricity TENDERS
Big Project ME lists the Middle East’s biggest construction tenders for January 2017
52 Engineering leadership LAST WORD
Dr Kourosh Kayyani makes a case for engineering designers to foster creativity to deliver new infrastructure January 2017 1
Introduction
Looking forward
I
t’s been interesting to hear people’s thoughts in this month’s issue of the magazine. While the bulk of 2016 was spent with people telling us about their concerns and apprehensions for the local and regional construction market, this month’s issue sees a more optimistic outlook, albeit one still tinged with caution. Speaking to Raj Chinai, the managing director of Sobha Group, for this month’s main interview, I was struck by how confident he seemed about his company’s prospects in 2017. While I still have my doubts about the strength of the market, I can’t help but be convinced that the approach Sobha has taken – of being a full backward integrated developer – is one that will stand it in good stead. The biggest issue has always been communication between the contractor and the client, so why not take that gap out of the equation, and become a company that does it all? Clearly, Sobha isn’t the only firm to think this, what with the news of Shapoorji Pallonji, the Indian contractor, now also entering the property development market. Other contractors are also following suit, in some form or another. Whether it’s financing projects or being a developer outright, it’s clear that this business model is one that a lot of very smart people are seeing value in.
eDItorIAL eDItor gAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 oNLINe eDItor BEN FLANAgAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE aelred.doyle@cpimediagroup.com
PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 Supported by
M
ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ
Middle East Solar Industry Association
Empowering Solar across the Middle East
2 January 2017
ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496 coMMercIAL DIrector MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498
It’ll be quite interesting to see how this growing interest develops. Talking of developments, I was delighted to be invited to see the work being done at the DWTC Phase Two project, or as it’s now known – One Central. Al Futtaim Carillion are doing a fantastic job there, and as a long-time Dubai resident, I’m quite excited to see what the final outcome of the expansion will be. The World Trade Centre – now Sheikh Rashid Tower – is where it all began for Dubai. Without it, we wouldn’t have the Dubai Marina, the Burj Khalifa or the towers of Sheikh Zayed Road. It really was the start of something special, and it’s finally getting an expansion plan to match. Finally, I’d like to wish all of our readers a very Happy New Year. Let’s hope the predictions for 2017 are right, and it turns out to be a fantastic year!
Gavin Davids editor gavin.davids@cpimediagroup.com @MecN_Gavin
DeSIGN
PUBLISHeD By
Art DIrector SIMON COBON PHotoGrAPHy MAkSYM PORIECHkIN cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL kUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIPIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI SHAHAN NASEEM
Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com FoUNDer DOMINIC DE SOUSA (1959-2015) PrINteD By PRINTwELL PRINTINg PRESS LLC © Copyright 2017 CPI. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
t a h t e r u s a e r t a is g Learnin e r e h w y r e v e r e n w o will follow its CCS Candy is the world’s leading construction estimating and project control system and we never stop improving. Our products are continually developed and enhanced in line with industry trends, user requirements and the latest technology. Register now and create your own opportunities and maximise your capabilities using the best construction software tool there is. In reponse to our client’s demands, we are proud to announce the expansion of the CCS Gulf office to include a much larger training centre in Dubai. We train you for success and nothing else. Candy CourSe Calendar 2017 - dubai
Win!
6 x 2-day Can d courses to be y won! To ente r, an swer th e fo llo
Course
Cost
Jan
Feb
Mar
apr
C201 Construction Estimating & Valuations
US$580
16-17
20-21
13-14
17-18
C202 Construction Planning & Programming
US$580
C301 Integration of Estimating & Planning
US$290
C305 QTO Workshop
US$290
15
C203 Contract Allowables & Cost Control
US$580
18-19
C205 MEP Estimating
US$580
6-7 19
15-16
wi ng qu estio n:
Which city in the Midd le Eas t is CC S’s new trai ni ng centre ? Se nd yo ur an sw er with yo ur na m e an d co nt act deta ils to : info @ cc sg ul f.c om
Online
MOST POPULAR
FEATURED
READERS’ COMMENTS
CONSTRUCTION
HYPERLOOP HYPE
Deals awarded for $125m Al Maktoum airport works
PROPERTY
Shapoorji Pallonji starts work on first ME project
In pictures: UAE’s KEF launches $100m manufacturing park in India
There is much excitement over the frequent suggestions that ‘hyperloop’ transport could come to the UAE (“Abu Dhabi to study feasibility of Al Ain Hyperloop”, December 12). But there are many questions over such a system, which has yet to be put into use on a large scale. Would such a system ever be as practical and straightforward to build, and as convenient and cheap to use, as a regular train network? Name withheld, via email
CONSTRUCTION
Dubai’s $40m Deira Islands bridge to set open
DUbAI’S RENT PRICE TREND
CONSTRUCTION
Work on Emaar’s Dubai beachfront hotel starts
INFRASTRUCTURE
Portuguese-Turkish team wins Oman port work 4 January 2017
Video: Autonomous prototypes on show at Volvo CE Xploration Forum
The UAE construction industry has its challenges. But the prospect of falling rents is not a symptom of this. As the Core Savills study (quoted in “Dubai rents ‘to fall by up to 4%’ in outer areas”, December 19) suggests, more than 20,000 new units are to be delivered to the Dubai property market in 2017. The supply is helping drive down prices in areas – but not to the same extent as we saw during the height of the financial crisis. Siraj Ahmed, via email
Big solutions for a growing planet
Dow combines the power of science and technology to help address many of the world’s most challenging problems. Together, the elements of science and the human element can solve anything.
®™The DOW Diamond Logo is a trademark of The Dow Chemical Company © 2014
www.dow.com
The Big Picture
Criticism rejected Qatar has rebuffed criticism from Amnesty International over changes made to its labour laws.
Qatar rejects criticism of labour reforms Gulf state has scrapped kafala sponsorship system for foreign workers Qatar has rejected criticism made by Amnesty International over changes the Gulf state has made to its labour laws. The country has ended its controversial kafala system, under which foreign workers are obliged to seek their employer’s permission to change jobs or leave the country. The system has been replaced by a contract-based law which came into force on December 13, which officials say ensures greater flexibility and protection. But Amnesty International says the reforms will not lead to significant changes. In a report entitled New name, old system? Qatar’s new employment law and abuse of migrant workers, the rights organisation said that the “meagre” changes do not go far enough. Changes to labour laws in Qatar “barely scratch the surface” and will continue to leave migrant workers, including those building stadiums and infrastructure for the 2022 World Cup, at the mercy of
“exploitative bosses and at risk of forced labour”, said Amnesty International in a briefing. “This new law may get rid of the word ‘sponsorship’, but it leaves the same basic system intact. It is good that Qatar has accepted that its laws were fuelling abuse, but these inadequate changes will continue to leave workers at the mercy of exploitative bosses,” said James Lynch, deputy director for Global Issues at Amnesty International. “Key problems that drive abuse remain. In practice, employers can still stop migrant workers from leaving the country. By making it easier for employers to confiscate workers’ passports, the new law could even make the situation worse for some workers. The tragedy is that many workers think that this new law will be the end of their ordeal. “FIFA, its sponsors and foreign governments seeking business ties with Qatar cannot and must not use this reform to claim that the problem of migrant
“These new legislative changes, combined with ongoing enforcement and a commitment to systemic reform not just in Qatar but also in countries of origin, will ensure workers’ rights are respected across the entire labour pathway”
labour abuse has been solved. If the reform stops here, workers across the country – building and working in the stadiums, hotels and transport network that every player and fan in Qatar will use – will be at serious risk of human rights abuse.” But the Qatari government “fundamentally rejected” Amnesty International’s claims, a statement carried by the official Qatar News Agency said. “We remain committed to the development of a labour system that is fair to both employers and employees alike,” the Government Communications Office said Monday in a statement. “These new legislative changes, combined with ongoing enforcement and a commitment to systemic reform, not just in Qatar but also in countries of origin, will ensure workers’ rights are respected across the entire labour pathway. We will continue to review and adapt our laws to ensure our approach to reform is fit for purpose.” January 2017 7
The Big Picture
Damac awards $343 million in contracts Developer awards 15 major contracts between August and November 2016 Damac Properties, a Dubailisted real estate developer, announced that it awarded 15 major construction and consultancy contracts, valued at a total of $343 million, between August and November 2016. This brings the total value of contracts awarded in 2016 to $1.77 billion for projects in Dubai and the UK. The awarded contracts are for the provision of services related to several projects in Dubai, including the developer’s two golf communities, Akoya by Damac and Akoya Oxygen, while two multi-tower projects – Aykon City and Damac Towers by Paramount Hotels and Resorts – were also included in the contract awards. For Akoya by Damac, the contracts cover the main work for construction of villas and apartments in several clusters of the masterplan community. Meanwhile, the contracts for Akoya Oxygen saw main works awarded for the construction of villas, in addition to piling, roads and infrastructure work. Consultancy agreements were also signed for the provision of design and supervision services related to the clubhouse and sub-stations within that project. “With the handover of 1,350 villas and apartments at Akoya by Damac in the last quarter of 2016, as well as the upcoming opening of the Trump International Golf Club, Dubai during the first quarter of 2017, Akoya by Damac is rapidly progressing and taking shape – on track to becoming a full-fledged community,” said Mohammed Tahaineh, senior vice president of commercial at Damac Properties. 8 January 2017
Contracts awarded Damac Properties awarded $1.77 billion in contracts in 2016.
$1.77 billion Total value of contracts awarded in 2016
“We work with reputable contractors that have vast experience in their areas of specialisation, and strive to mitigate risks in project delivery by awarding various components of the development to a host of contractors. The overall progress of the golf infrastructure work of Akoya stands at 95%. Trump PRVT, scheduled for handover during Q1 2019, will mark the completion of the entire Akoya by Damac master development. “In Akoya Oxygen, we continue to achieve significant progress, as we have appointed eight main contractors so far for the construction of 5,676 villas, and works have commenced for all,” Tahaineh concluded. The golf course construction packages for Akoya Oxygen have also been awarded and work is in progress on the site, Damac said in a statement. The backbone infrastructure design has been completed, while mobilisation works are finished and engineering work is in progress. The design of several clusters has been completed, and several main contractors have been appointed. To deliver these works, Damac Properties has appointed some of the industry’s major local and international names, such as Ghantoot Gulf Contracting, Al Arif Contracting LLC and National Piling (NPC). China State Construction Engineering Corporation was also among the key appointments during this period, with the largest contract valued at $150.8 million, comprising the main works package for the residences at Paramount Tower Hotel & Residences in Dubai.
The Big Picture
Emaar Middle East starts handover of offices at Jeddah Gate project Handover of Emaar Square offices began in December 2016, developer says Emaar Middle East, a subsidiary of Emaar Properties, said that the handover of Emaar Square offices in Jeddah Gate to investors and business owners commenced in December 2016. Located in central Jeddah, the dedicated office precinct is having its final touches completed and will offer investors 63 world-class office spaces in three buildings overlooking a central plaza, Emaar Middle East said in a statement. The developer has also launched a third luxury residential project in Jeddah Gate, under its Emaar Residences brand. The first residential project in the development – Abraj Al Hilal 1 – has been fully handed over and is now a fully operational family neighbourhood. “The handover of Emaar Square offices from this month, and the launch of the third
residential project, prove our commitment to deliver and create sustained value for our investors,” said a spokesperson for Emaar Middle East. “Emaar Square is an office precinct like no other in the city, with a central location and being part of an elegant master-planned community with all lifestyle amenities in walking distance. With the growth in demand for homes and offices in Jeddah, our projects are ideally suited for homeowners and investors for its exceptional designs, luxury services and amenities and the high quality of construction.” The three buildings that make up Emaar Square also
contain a number of luxury retail and F&B outlets, which are situated by the plaza. There is an executive office at the top of each building which will offer business centre amenities. Each office ranges from 239sqm to 400sqm, while the lobbies will have receptions, highspeed elevators and a selection of restaurants and retail outlets. Dedicated parking and roundthe-clock security services will also be available for tenants. Emaar Residences are set in three towers between 17 and 20 storeys high, with 283 oneto four-bedroom apartments and penthouses available to customers. The homes range from
413,000sqm Total area of Jeddah Gate development
69sqm to 298sqm, Emaar said. The residential project is part of the integrated development of Jeddah Gate and is close to King Abdullah Road. It faces Emaar Square and offers direct access to its community services and amenities. Spread over a total area of 413,000sqm, when completed Jeddah Gate will house 2,009 residential units, 230,000sqm of office space and 68,000sqm of retail space. Green walkways will link the entire neighbourhood, while public plazas will house retail outlets, restaurants and cafés. The development is also close to the new Jeddah Metro Station at Al-Muntalaq and in close proximity to the central business district, commercial institutions, banking headquarters, the Jeddah Islamic Port, educational institutions, hospitals, malls and governmental offices.
Handover commences Emaar Middle East began handing over office spaces to investors in December 2016.
January 2017 9
The Big Picture
1. Qatari Diar in talks for seconD tunisia project Qatari Diar, the Gulf state’s real estate investment company, is in talks with the Tunisian government to work on its second project in the North African country, while its first, the luxury Tozeur Desert Resort, heads for completion in 2018. Khaled Mohammed Al Sayed, group CEO, Qatari Diar, said that work on the $80m luxury hotel suites was on schedule and the resort would be open for visitors in 2018. He was also quoted by the Qatar Tribune as revealing that Qatari Diar is in talks with the Tunisian government to work on another project in the country. “We have sought permission from the Tunisian government to start another luxury project in Tunisia. Once we get the permission, we will announce further details about it,” he told the paper. According to reports in the paper, the Anantara-branded resort will offer 93 guest rooms and villas including pool villas, a selection of restaurants and bars, meeting and business facilities, a health club and spa, and is a reflection of Qatar’s strategic commitment to supporting development and growth in Tunisia.
10 January 2017
$301m
Loss suffered by Laing O’Rourke after being hit by poor performance of its $1.59bn JV hospital project in Canada
2. jorDan plans for 300mw of solar power Jordan plans six new wind and solar energy power plants with a total capacity of 300MW and has invited expressions of interest to build the projects, it has been reported. Experienced companies have been invited to apply for contracts for four solar plants with a total capacity of 50MW each and two wind plants with a 50MW capacity each, Energy Minister
Ibrahim Saif was reported as saying by the Jordan Times. The projects will boost renewable energy production in Jordan to 1,600MW by 2020, the newspaper said. The news follows the announcement in 2014 that Jordan had cancelled plans to accept proposals to build a series of renewable energy plants. Saif said that the ministry will soon complete the tendering procedures of a new project
to expand the grid’s capacity by an additional 1,000MW. The announcement comes in the wake of ACWA Power signing financial agreements for ACWA Power Mafraq, a planned solar plant also in Jordan. The financing comprises an ‘A’ loan of $27 million from the European Bank for Reconstruction and Development, and a ‘B’ loan from the Netherlands Development Finance Company (FMO).
1
The Big Picture
4. acc to builD europe’s tallest seafront resiDential tower in cyprus
19.9km 4 2
Length of a crossborder road bridge being built between Russia and China
3
52
Number of hospitality projects being built in Morocco
3. kef infra one inDustrial park opens KEF Infra has officially launched the KEF Infra One Industrial Park, billed as the world’s largest and first-of-itskind fully integrated offsite manufacturing park, in India. The KEF Infra One facility will be used for offsite manufacturing for hospitals, schools, hotels and homes, across a broad range of requirements including
structure, façades and fit-outs. The park, valued at $100 million, is in Krishnagiri in Tamil Nadu, according to a statement from the firm, the infrastructure subsidiary of the UAE-based multinational KEF Holdings. KEF Infra One spans one million square feet and features a diverse range of cuttingedge technology that will “revolutionise manufacturing and delivery processes in the construction industry”.
“Today, India is at the cusp of growth led by innovation. We are witnessing an age where technology is being effectively integrated into infrastructure for the first time – thereby heralding the Industrial Revolution 4.0. Our aim is to fast forward this progress through radically changing the infrastructure landscape in India,” said Faizal E Kottikollon, founder and chairman of KEF Holdings.
UAE-based contractor Arabian Construction Company said that its joint venture with Joannou & Paraskevaides Group has won a contract to build a 170m luxury residential tower in Cyprus. Known as One, the development will be the tallest residential seafront tower in Europe once it is complete in 2019. It is the company’s first project in Cyprus. Located on 28th October Avenue in Limassol, the project will be a landmark and a representation of the island’s progress, the contractor said. The 37-storey building will contain 83 apartments. A three-floor penthouse will also be part of the tower. “We are delighted to undertake our first project in the country. We are proud that the client has placed their faith in the combination of our highrise expertise and the local experience of our J&P Group partners, to build what will become one of the most iconic buildings in Cyprus,” said Maher Merehbi, CEO of ACC. The contractor has constructed a number of high-rise buildings across the GCC and Middle East, Merehbi added.
January 2017 11
Market Report
DUBAI RESIDENTIAL MARKET OUTLOOK Q1 2017
Cluttons’ property market outlook for Dubai residential rentals in winter 2016/17
Capital values slip further Residential values continued to moderate during the third quarter, slipping by a further 2.6%, taking the annual rate of change to -7.4%. This means that average home values in Dubai have now drifted even further away from the last market high and stand -26.7% below the Q3 2008 peak. Villa values receded by 2.6% during Q3, following a 2.5% contraction in Q2, taking the annualised rate of change to -7.8%. This figure does conceal the varied performance across the villa market in the third quarter. More affordable communities such as The Green Community and Jumeirah Village registered no change in values in Q3, while
14 January 2017
-2.6% Rate of change in residential capital values during Q3 2016
-7.4%
Annual rate of change in residential values at the end of Q3 2016 mid-range homes in locations such as Motor City, Emirates Living, Arabian Ranches, Victory Heights and Jumeirah Park recorded a negligible 0.1% increase in prices.
Top end of the market remains worst performing segment The average price of a villa in Dubai during Q3 (AED 1,300 psf ) was dragged down by the weak performance of the upper echelons of the market in locations such as The Palm Jumeirah (AED 2,250 psf ) and Hattan Villas at The Lakes (AED 1,850 psf ). The ongoing weakness at the top end of the villa property spectrum echoes the sharp slowdown in the appetite to purchase luxury homes. Over the last 12 months, villa values in these two locations have receded by 11.9% and 11.1%, respectively. On the apartment front, average prices dropped by 2.5% in Q3, the fastest fall recorded
since mid-2011, underscoring the ongoing market weakness. Unlike the villa market, the declines have been across the board, with The Burj Khalifa (-15.3%) and The Greens (-9.2%) registering the largest decreases over the last 12 months, corroborating our earlier expectation for corrections to persist across the market. More positively, five of the 19 submarkets we monitor registered no change in values, suggesting a new floor may be emerging in some locations. These apartment submarkets included Motor City, Uptown Mirdiff, high-end apartments at JLT, midrange apartments in Business Bay and Emaar developments in Downtown Dubai.
Source: Cluttons
Fragile conditions Dubai’s residential rental market values continued to slip in Q3 2016, slipping by a further 2.6%, taking the annual rate of change to -7.4%.
Market Report
Softer corrections ahead It’s clear the market is still softening and the magnitude of decline has, on average, intensified over the past six months, with average residential
Apartments
Villas/Townhouses
25%
Quarterly % change
20%
15%
10%
5%
Q3 2016
Q1 2016
Q2 2016
Q3 2015
Q4 2015
Q1 2015
Q2 2015
Q3 2014
Q4 2014
Q1 2014
Q2 2014
Q3 2013
Q4 2013
Q1 2013
Q2 2013
Q3 2012
Q4 2012
Q1 2012
Q2 2012
Q3 2011
-5%
Q4 2011
0
Residential transactions in Dubai Apartments
Villas/Townhouses
5
4
3
2
Q3 2016
Q1 2016
Q2 2016
Q3 2015
Q4 2015
Q1 2015
Q2 2015
Q3 2014
Q4 2014
Q1 2014
Q2 2014
Q4 2013
Q3 2013
Q1 2013
Q2 2013
Q4 2012
Q2 2012
Q3 2012
Q1 2012
Q3 2011
1
Q4 2011
Number of transactions (thousands)
Rental market remains fragile Following a sharp 4.4% fall in average rents across the city’s freehold areas in Q2, which was the strongest decrease recorded in five years, the rate of decline moderated to -1.5% in Q3. The latest change leaves average rents 8% down on this time last year. Positively however, apartment rents were unchanged in Q3 across all the submarkets we monitor, hinting perhaps that this segment of the market may be starting to flatten out. On an annualised basis, villa rents are down by 9.4%, while apartment rents are 5.8% lower than this time last year. Similar to the sales market, the top end of the villa market in locations such as the Palm Jumeirah, Jumeirah Islands, Hattan (The Lakes) and Hattan (Arabian Ranches) have experienced the strongest rental drops over the last 12 months (-11.8%).
Performance of capital values - villas and apartments
Dubai’s residential property supply pipeline Apartments
Villas/Townhouses
25
Number of units (thousands)
Transaction volumes remain weak Despite signs that some submarkets may be bottoming out, transaction volumes are still weak and reflect the general nervousness around commitments to purchase, while the wider issue of affordability remains a stubborn thorn in the market’s side. Overall quarterly transaction volumes slipped by 21% during Q3. This was led by a 22% fall in apartment deal volumes, which are down 26% when compared to Q3 in 2015. Interestingly, the average price of a transacted villa has also fallen by 28.1% since the start of the year to stand at AED 3.9 million.
20
15
10
5
2016
2016
2016
2016
2016
prices down 10.2%. There have of course been markets where values appear to have bottomed out, suggesting, as we previously highlighted, that some submarkets may have found their new price floor, but there remain a few quarters of further falls yet. The other issue is around supply, which continues to edge upwards. In fact, in the week leading up to Cityscape Global in early September, some 30,000 units were announced by developers, with 12,900 of those for Nakheel’s emerging residential rental portfolio. Overall, nearly 34,000 residential units have been announced so far this year. Our expectation for the total number of completions this year remains unchanged at 8,300 units. We now expect 2017 to see 12,212 units complete, with 20,915 completions in 2018, up from our earlier estimate of 20,600, due to recent announcements. As has been the case historically, while the number of project announcements is progressing at an uninterrupted pace, the delivery timelines of these new schemes remain unclear. Our experience has shown that larger developments are often phased, with handovers being stretched over a period of months, if not longer. With this in mind, we have limited our supply database to schemes where sales have commenced, ground has been broken, or the developer has announced development phases. Turnaround in 2017? For now, our view remains unchanged, with the residential sales market in Dubai likely to end the year with values down by close to 10% on average, and rents likely to be down by the same amount.
January 2017 15
News Analysis
DUBAI TO BOUNCE BACK Experts predict that 2017 will bring an upturn in fortune for the Dubai real estate market Despite the turbulence of 2016, industry analysts and developers have all begun looking at 2017 with a sense of optimism. A number of respected observers have predicted that the Dubai real estate market will in fact see an upturn in 2017, with the residential sector likely to experience a sustainable growth in supply.
In a report jointly published by dubizzle and JLL, it is predicted that the year-on-year increase in residential supply from 2017 to 2019 is expected to average 4% per annum, compared to an average of 3% in previous years. This modest improvement in performance in 2017 is predicated on several factors, the report said: increased investor confidence as they realise the market is close to its cyclical trough; improvements to the regulatory environment and increased transparency in the market; the gradual recovery of oil prices; continued government investment in hospitality, aviation, healthcare and other growth sectors; and finally, increased employment and construction activity in the lead-up to Expo 2020. The report predicts that a number of residential projects will be announced in 2017, with preparation for Expo 2020 gaining momentum. “We expect that most of the upcoming residential projects will be in the form of apartments where even the newer communities such as 16 January 2017
Al Furjan, once perceptive as a villa community, will grow to offer more apartments within the mid-market segment in the next few years,” said Ann Boothello, senior product marketing manager for Property at dubizzle. “dubizzle search volume data highlights an increased popularity amongst online property buyers in more affordable and mid-market communities like Al Furjan, JVC, JVT and Sports City, where JVC received 9.7 million searches for properties by dubizzle property seekers in the last quarter alone,” she asserted. These observations are backed up by Mahmoud Shehada, managing partner at Allegoria Properties, a real estate brokerage based in Dubai. “We should expect a decent correction in property prices with an influx of great new projects. With the increase in competition from developers here in Dubai, the opportunity for many new investors to purchase properties couldn’t be more attractive,” he told Big Project ME. “The coming year should hold an increase in the volume of transactions with more lenient payment plans and a variety of property types to suit almost every investor.” However, caution was also expressed, with the report pointing out that the greatest threats to the anticipated
News Analysis
recovery in 2017 would be a further slowdown in the Dubai economy or a major improvement in the materialisation rate, which would lead to oversupply. There were more than 11,000 units scheduled for delivery in the final quarter of 2016, while 2017 has more than 30,000 units planned for delivery. If these projects progress on schedule, there is a definite potential for oversupply, the report warns. “We believe that several factors will reduce the actual delivery of units. These factors include increased construction costs and competition for resources, as well as proactive measures being taken by developers who are phasing the release of units to avoid the possibility of oversupply,” it said.
Craig Plumb, head of research at JLL MENA, added that developers have traditionally overestimated levels of completion of homes in Dubai, with only around 30% of all announced projects having been delivered on schedule over the last few years. “We continue to see developers phase out the release of units to dampen the opportunity for oversupply. However, it is vital that developers remain conscious of this concern as we draw closer to Expo 2020, which could see a lot of new projects unveiled,” Plumb said. Shehada added that he felt one of the biggest challenges facing the real estate industry would be the high levels of
competition within the industry. “Being in construction myself, I see one of the major challenges facing the real estate and construction industry being the high level of competition that exists. Many developers are providing an array of options for their clients when it comes to payment plans and structures,” he points out. “However, there’s no doubt that, with the drop in oil prices, there is a slight impact on the region. Nonetheless, Dubai’s dependency on oil is dropping year on year and the market is expanding its economic offering through many different sectors and outlets. So, in short, I believe the impact will begin to diminish in the years to come,” he concluded.
Residential Sales Outlook (2016-2020) Bright Outlook
Mostly bright outlook with partial deterrents
Residential District
Mixed outlook, many deterrents
2016
2017
2018-2020
2016
2017
2018-2020
Emirates Hills Prime villa locations
Palm Jumeirah Al Barari The Lakes
Villas Mainstream villa locations
The Springs and The Meadows Arabian Ranches Dubailand Jumeirah Village Residential District Palm Jumeirah
Prime apartment locations
Dubai Marina Downtown Jumeirah
Mainstream apartment villa locations
Business Bay Source: Core Savills
Apartments
JLT Discovery Gardens Jumeirah Village January 2017 17
In Profile
“AS LONG AS YOU HAVE THE PROPER FINANCIAL ENGINEERING, THEN THE MATURE PLAYERS IN THE MARKET WILL SURVIVE. THOSE THAT ARE NOT PROPERLY FINANCIALLY ENGINEERED WILL HAVE A DIFFICULT TIME STAYING IN THE GAME” Big Project ME sits down for a chat with Raj Chinai, managing director of Sobha Group, to find out how the Indian developer is establishing its presence in the Dubai real estate market
18 January 2017
In Profile
January 2017 19
In Profile
‘I
f you want something done right, do it yourself’ is a phrase often heard when it comes to carrying out complicated or delicate tasks. In a real estate market as competitive as Dubai’s, it is a sentiment many a construction company can take to heart. Faced with mounting price pressures and squeezed margins, developers have to be very careful with whom they partner on their projects. As a result, choosing the right contractor or subcontractor can make or break a project, with the wrong choice likely to cause delays, increased costs and continued wrangles during the construction process. This helps no one, and is the main reason local and regional developers continue to have a select list of preferred partners whom they know they can rely on. However, one Dubai-based developer is choosing to go down a different route, embracing the full-service model and providing its clients with the entire package, from concept through to construction and finishing, through its various subsidiaries. “We’ve evolved into a fully backward integrated real estate developer,” says Raj Chinai, managing director of Sobha Group. “We’re the only company in the world that is fully backward integrated. This involves a fairly complex business model, where all elements of the value chain are controlled by us. Everything from interior design, through to construction delivery. Essentially, all touch points are controlled by us.” “We literally have everything, from floor to ceiling – it’s 20 January 2017
Focus on international affairs Sobha Middle East focuses on the developer’s non-Indian initiatives, Raj Chinai says.
controlled by us. If you look across the spectrum of real estate development companies – not just in this part of the world, but globally – there’s no other company that has this model. Some companies have tried it and it’s not worked out, others have a similar model, but it’s not the entire value chain.” Set up in 1976 by PNC Menon, the company started out as an interior decoration firm called Services and Trade Company in Muscat, Oman. Since then the group has grown into a multinational, multiproduct group, with interests in contracting, technology and architecture, among many others. Crucially, in 1995, the company’s engineering and contracting arm – Sobha Engineering & Contracting LLC – was set up, followed by the company’s real estate division – Sobha Real Estate LLC. This allowed the company to begin its property development operations, initially in India, before expanding
“We literally have everything, from floor to ceiling – it’s controlled by us. If you look across the spectrum of real estate development companies – not just in this part of the world, but globally – there’s no other company that has this model”
to Dubai with the Meydan Sobha joint venture, which was signed in 2013. This was then followed by the launch of the developer’s flagship development, the 734,224sqm Sobha Hartland project in 2014. “We have a business in India which we call, for all practical purposes, Sobha India. It is a publicly listed company and we had an IPO in 2006, which was 127 times oversubscribed. That business began 22 years ago by PNC Menon, Shoba India’s founder and chairman emeritus,” says Chinai, speaking to Big Project ME at the Sobha Hartland Sales Gallery. “In 2012, Sobha India was handed over to his son, Ravi Menon, who is the company’s chairman. Through that company, we’re fully focused on India. We’re in every major city in India, except for Mumbai.” “Coming to our presence here, which we refer to as Sobha Middle East, Mr Menon has been a resident of Dubai for the last 13 years. In the initial years, we began doing a lot of contract work. Since then, we’ve evolved into a full backward integrated real estate developer with the launch of two projects – Sobha Hartland, where we’re developing a township, while the second is the joint venture between Meydan and Sobha, which is known as District One and is being built on 4,180,636sqm of freehold land. “Sobha Middle East is a private company, with a focus on all nonIndia initiatives. So that means anything that is launched in the international market, be it Dubai, the UK or any other geography outside India,” Chinai elaborates. Turning the conversation to the company’s performance in 2016, Chinai says that although market forces have affected the local and regional construction industry, he feels that Sobha’s business model has protected it from the worst effects of the drop in oil prices. In fact, he says the progress made this year on
In Profile
Sobha Hartland has allowed the company to firm up sales and show the market what it has to offer. “The past year has been an exciting one for us for a couple of reasons. Firstly, we launched our model villas and apartments at Sobha Hartland. This has enabled us to give potential customers and investors a good feel of what it is that we’re actually delivering,” he says. “What’s happened with us this year is that through the ability of our customers to actually come in and see the product, they’ve come to appreciate what is actually different about Sobha in terms of our capability to deliver a differentiated product. This core differentiator is in a large part driven by our distinctive business model. “From my perspective, our business model allows us to
push the bar in terms of delivery quality at a level the market has not yet seen,” Chinai asserts. While the backward integrated model was developed for the Indian real estate market, it can be replicated for Dubai. However, because of the high-end nature of the Dubai real estate market, Sobha has had to tweak the model slightly to fit in with expectations and specifications. “In India, what we would define as luxury is where we’re delivering a luxury product for the Indian market. In Dubai, the definition of luxury and what it means is very different. In a sense, that means that the specifications we have to deliver to in Dubai are very different. “Delivering this type of product [Sobha Hartland] to the Indian market wouldn’t make sense at scale, because it wouldn’t match the demand and price points that would
make sense for India. So we’ve had to calibrate the model to fit with very high-end specifications, because the local luxury market demands that,” he concedes. “We recognise that we’re a relatively new entrant in Dubai, where several top-tier groups exist with longer track records, but despite our nascent phase of growth, we also have an extremely long and successful track record of more than 40 years, during which we’ve established a legacy of developing and delivering very high-end products to the market.” This track record refers to PNC Menon’s background. The first iteration of the company was as an interior decorator for very high-end projects, such as palaces, five-star hotels and mansions. Known in certain circles as the ‘palace-maker’, Menon’s expertise has been passed down through the company, putting
it in a strong position to deliver high-end villas and apartments to quality-conscious customers. Although there is a general sense of unease at the way the market performed in 2016, Chinai looks at 2017 with some optimism, pointing out that it is only natural for the market to experience some highs and lows over the course of time. “We have four decades of seeing different cycles and experiences in different markets. We’ve operated in different cities in India, we’ve observed what’s been happening in Dubai from afar before we entered, and we’ve looked at markets like London,” he explains. “What we feel is that as long as you have the proper financial engineering, then the mature players in the market will survive. Those that are not properly financially engineered will have a difficult time staying in the game.
Global water, wastewater and processing storage solutions Epoxy coated steel tanks
Concrete tanks
Cylindrical steel tanks
Hot press GRP tanks
Hot press steel tanks
Balmoral Tanks Providing turnkey services to the water, wastewater and processing sectors, Balmoral Tanks offers what is potentially the widest range of accredited tanks from a single supplier in the world. When this is supported by unrivalled engineering design experience and industry-leading customer service, installation, maintenance and repair services, why consider going anywhere else? Balmoral Tanks: Not just another tank company.
Roof structures
Tank installation
Technical services
+44 (0)208 665 4100 watertanksales@balmoral.co.uk
www.balmoraltanks.com January 2017 21
In Profile
“We are hopefully coming out of what I would call a soft market. We have seen cycles play out in Dubai before, and for us, the down cycle began in the second half of 2014. Our internal philosophy is that we see two and a half years of a down cycle, followed by two and a half years of an up cycle. That could be plus or minus six months, because it’s impossible to have a crystal ball!” Moving into 2017, Chinai expects to see the positive cycle start in the coming months, with overall market sentiment continuing to turn for the better. Given the way Sobha Hartland has been performing, he says there is already significant traction in the market. “I think a lot of this market is sentiment driven. We are approaching 2020, which has a certain ramification on how people perceive when it’s a good time to get in. We see a lot of people who have been looking for the bottom and are now sensing that we may have touched the bottom on pricing, and that this is a good time to get in.
“And at the moment, you’re starting to see key individuals, or what I would call key influencers, entering the market. There’s a little bit of a herd mentality, depending on the project. In luxury real estate, we tend to see this at times – if one or two influencers invest in a project, then there is often a larger following of like-minded individuals who get motivated to also enter into the opportunity,” he adds. Chinai thinks 2017 will also offer a clearer picture as to what Dubai has to offer for the broader region. With Dubai situated in a key central location, he believes a return to form for the city’s real estate market will see increased interest from investors from further afield. “Dubai occupies a very special place on the global stage. If you look at where we are geographically, we cater to half the world’s population. If you look at the key markets – the Indian subcontinent, the Middle East, Africa and the CIS countries,
“I think we’re starting to see people realising the strength of Dubai - in terms of its infrastructure, in terms of quality of living and in terms of the forward thinking that the government has had” Growing presence Sobha Middle East is looking at ways to grow its presence in the region, with a third project in Dubai and one in Umm Al Quwain, Chinai says.
22 January 2017
that’s about three billion people. We don’t foresee any other city that can compete with Dubai in the next 15 years, from any of the neighbouring geographies,” he asserts. “I think we’re starting to see people realising the strength of Dubai – in terms of its infrastructure, in terms of quality of living and in terms of the forward thinking that the government has had, thanks to His Highness Sheikh Mohammed bin Rashid Al Maktoum, as well as the overall culture of innovation and entrepreneurship that we see across all sectors of Dubai’s economy.” Comparing this vision to that of Lee Kuan Yew of Singapore, Chinai adds that as Dubai continues to mature, the awareness of the city’s attributes will grow, meaning that Dubai will continue to remain an attractive investment destination for individual and institutional investors from across the world. What this means for Sobha Middle East is that the company is now looking at ways to grow its presence in the Dubai market. While District One and Sobha Hartland will be the immediate focus for the near future, Chinai reveals that another project is in the pipeline for the developer. “Firdous Sobha is an island project in Umm Al Quwain. It’s a joint venture with the government of Umm Al Quwain and it reiterates our commitment to the UAE. We’re extremely committed to Dubai, to the UAE and to the region, and this just reinforces that. “We do have a third project in Dubai as well, details for which I cannot share yet, but it will be another significant Dubai-based project, focused on affordable luxury. In essence, it will cater to a broader spectrum of buyers and investors than our existing projects. It’s going to be at the scale of Sobha Hartland, if not larger,” he concludes.
HOW DO WE ENSURE THERE IS SUFFICIENT SOUND INSULATION IN TALL TOWERS?
#LetsTalkAbout...Tall Towers
www.wsp-pb.com | www.wsp-pb.ae
Site Visit
A COLLABORA 24 January 2017
Site Visit
Big Project ME takes an exclusive tour of Phase Two of the Dubai World Trade Centre expansion project – One Central. Gavin Davids reports
TIVE EFFORT January 2017 25
Site Visit
B
ack in the 1970s, Dubai was far from the bustling metropolis it is today. The city was centred around the creek that sustained its trade and livelihood, with the majority of business and commercial activities taking place in the neighbourhoods of Deira and Bur Dubai. However, the late Ruler of Dubai, HH Sheikh Rashid Bin Saeed Al Maktoum, realised that in order for the emirate to grow and become a major centre for the regional and international economy, as he envisioned, there needed to be more than what existed. Thus, he commissioned the building of the city’s very first major high-rise business centre – the Dubai World Trade Centre (DWTC) building – hoping to attract international businesses to a free zone that offered the best commercial and business services in the region. Inaugurated in 1979 by the
visiting Queen Elizabeth, the tower was initially met with scepticism, as many early residents and observers doubted whether companies and organisations would see the value in relocating to an area that had literally nothing around it. Despite these early doubts, the 149m, 39-storey tower –in later years renamed the Sheikh Rashid Tower – very quickly became a symbol of Dubai’s ambitions, with a number of overseas businesses setting up shop within its premises, starting with British oil giant BP. In the years since that humble beginning, DWTC and the area around it has grown in size and significance to become more than just a place for companies to operate out of. Sheikh Zayed Road is now one of the most recognisable thoroughfares in the world, while the DIFC and Emirates Towers are iconic landmarks in their own right. As Dubai continued to grow, so did DWTC. Over time, the single tower complex expanded to become the city’s premier exhibition and trade show venue, with exhibitors and organisations using the space to bring the world to Dubai, and vice versa. Over the years, there have been numerous additions and
PROJECT DETAILS Project Value: $196.3 million (Phase Two only) Project Start: November 2015 Project Finish: September 2017 Scheduled Duration: 98 Weeks Main Contractor: Al Futtaim Carillion Lead Consultant and Architect: Hopkins Architects Consultant: WSP | Parsons Brinckerhoff Client: Dubai World Trade Centre Project Area: 176,000sqm (Phase Two only) Current Status: Phase Two under construction MEP contractor: Voltas Limited Formwork: Peri Cost Management Consultant: Mace
CBD destination Once complete, the One Central project will offer tenants and visitors a central location to work, relax and live in the heart of Dubai.
26 January 2017
inclusions, with exhibition halls and arenas being built, along with several commercial buildings to accommodate the growing demand. In 2006, however, that expansion stepped up a notch, with DWTC appointing Hopkins Architects and WSP (now WSP | Parsons Brinckerhoff ) to draw up plans for an expansion of the complex, comprising 2,000 apartments and 250,000sqm of office space with shops and car parks. The overall development would have a total gross floor area of 535,000sqm, DWTC said at the time. Plans for the expansion were progressing well, with ALEC being awarded a $925.7 million contract in 2008, but with the financial crisis hitting the Dubai economy, things went awry rather suddenly, with the contractor told to stop work on the project in 2009. However, this was never a longterm solution, since groundworks and construction on the lower levels were already underway. As such, in 2014 DWTC awarded Al Futtaim Carillion (AFC) a $115.3 million contract to build the first phase of the expansion, now named One Central. Phase one of the development involved the construction of an office block and a hotel. Work on this contract was completed in 2015, with DWTC saying the office tower has had a very positive reception from the market, as it is almost at full occupancy within a year of opening. Blue-chip tenants include law firm Pinsent Masons and oilfield services firm Schlumberger. Work on Phase Two of the project is now underway, with AFC awarded the $196.3 million contract to build two office blocks by the third or fourth quarter of 2017. With construction progressing rapidly, Big Project Middle East was invited to tour the site and see how work is progressing on this prestige project.
Site Visit
“The whole development is named as One Central. We have delivered Phase One on time in 2015 December, which is the 588room hotel operated by IBIS and a LEED Gold status A grade office space, which also incorporates retail and F&B outlets, with a total built-up area of 126,000 sqm,” says Anil Kumar, project director for Al Futtaim Carillion, speaking at the contractor’s site offices. “We have also negotiated and been awarded Phase Two in 2015 November, which is two buildings called C2 and C4 and a link building between C2 and C4 offices at ground floor. C2 comprises of five basements, ground floor, 12 office floors and two plant rooms at roof (19 floors), while C4 will have eight office floors with other similar arrangements of C2 (15 floors). This is an overall area of 176,000 sqm.” Kumar adds that the project is being financed through a loan arranged by Deutsche Bank, backed by UK Export Finance (UKEF), a British government branch that aims to boost exports. This loan was the first made by UKEF through a direct lending initiative launched by the British government. He adds that Phase Three of the project – buildings C3 and C5 – is currently tendering, with AFC having submitted its documents for the project. “The C3 and C5 buildings are similar to C2 and C4. C5 includes four basements and 19 floors, while C3 is 15 floors. Together, they are over 183,000sqm, which is slightly larger than Phase Two. The reason for that is because Phase Three has a car park extension which comes together and joins with the buildings.” While Phase Two is expected to finish late in 2017, Phase Three is pencilled in to be finished by December 2018. Also in the planning is a theatre and residential apartments. “The location of this place is
Designed with a view in mind The development was designed to maintain a view corridor from the DIFC Gate through to Sheikh Rashid Tower.
“The location of this place is key. It’s a highly sought after place, as we’re located between Emirates Towers and one of the biggest exhibition venues in the Middle East. So the location, location, location thing is very important, and it’s used as a driver to stimulate the development”
key to Dubai,” says Gary White, director at Hopkins Architects. “It’s a highly sought after place, as we’re located between Emirates Towers and one of the biggest exhibition venues in the Middle East. So the location, location, location thing is very important, and it is used as one of the drivers to stimulate the development.” “It becomes a destination. It’s not just an office, but a place to live and work, whilst also offering leisure activity from the restaurants and retail outlets being offered. The pending theatre is part of the master development as well and offers further leisure and entertainment opportunities. It therefore becomes a 24-hour destination, not just a place to go and work for eight to ten hours a day. “For the future, it is anticipated that there will be provision for apartments and further hotels, so that will enrich the current mixed-use offerings. “There are key views within the design that allow links to Emirates Towers, for example. We’ve designed it in such a way that the buildings step up from the front, because we have to maintain the view corridor from the DIFC Gate to Sheikh Rashid Tower. It has been very well thought out and it has gone through various stages and iterations to get it right.” White adds that once
complete, the development’s buildings will be in scale with the surrounding areas, with the space between the buildings creating well thought out walkways, landscaped areas and naturally shaded spaces to encourage the smooth flow of pedestrians and the continued use of the spaces. All of this is in the future, however. The focus for now is on the construction of Phase Two – buildings C2 and C4 – says Kumar. “We have completed 35% of the project, as per the schedule. Actually, we’re at 38%, which is ahead of the programme. For Phase Two, we have completed the structure two months ahead of the programme.” Kumar puts this rapid pace of progress down to the strong culture of collaboration on the project. With more than 2,000 workers on-site, working around the clock in two shifts, he explains that all the project stakeholders also make sure they’re available 24/7. “The good thing with the client and the consultant on this project is that they’re approachable 24 hours a day. There’s no restriction on us contacting them. We can call at any time, and they’re very keen to sort out [the issue]. The client [DWTC] and consultant were always one step ahead, compared to some of the other projects I’ve worked on.” While the buildings themselves January 2017 27
Site Visit
do not pose significant engineering challenges, both White and Kumar say issues needed to be overcome. They credit the early establishment of communication channels and a detailed planning process for being able to overcome these challenges, as Kumar explains. “There is restricted traffic on the roads between 6:30am and 8:30am in the morning, and 6:30pm and 8:30pm in the evening, so at these times we aren’t able to do any concreting works or delivery of materials, because the road is blocked. So we’ve very clearly planned around these times, while our deliveries are also adjusted. We have a weekly projection for our deliveries, and we have daily coordination with our suppliers and subcontractors to make sure that there won’t be any impact on their vehicles or on the project.” All of this is coordinated with the logistics controller for the project, Kumar says, adding that AFC has actually allocated a specialist coordinator to manage these things on a day-to-day basis, a lesson learnt from Phase One. Another challenge was the pre-existing work done prior to construction being halted. Both White and Kumar explain that not only did they have to ensure it was up to the mark when it came to strength and engineering requirements, they also had to make sure it met current standards. “One of the main challenges we faced when we restarted again in 2014 were the changes to various regulations, particularly relating to MEP, Dubai Municipality and Civil Defence, since 2009. That proved very difficult to accommodate in certain elements because we already had large parts of the basements built, and fitting new requirements into already constructed headroom spaces became a big challenge,” White says. Kumar adds that Phase Two construction also had to deal with 28 January 2017
Managing coordination Al Futtaim Carillion has worked to ensure that the project is coordinated and everything is managed on a day-to-day basis.
“The impact of Phase One has been very positive. Phase Two is following up with that positive impact quite nicely. It is currently ahead of schedule, and we’re targeting completion in the fourth quarter of 2017”
the issue of noise restrictions, due to the presence of an operating hotel right next to the site. Furthermore, with exhibitions and events going on year-round, care has to be taken to ensure minimal disruption of operations at the venue. White affirms that there has been a strong sense of collaboration throughout the project, and says that as the architect and lead consultant of the project, Hopkins considers it vital to work with the stakeholders to ensure a successful outcome for the project, while also making sure the client’s vision is fulfilled. “What we didn’t want to do was change too many things. That would have opened up a different can of worms. The first phase was a big learning curve for all of us. We all learnt from that. Phase Two is slightly different because we don’t have a hotel, but that brings with it a different set of challenges and parameters,”
he tells Big Project ME. “But everything is going well and on time. The quality of the workmanship is better and it is better planned in the contractor’s approach, in terms of how they are sequencing things. It’s not just the main contractor, but the subcontractors also, which is good. It is really a whole collaborative thing. “That doesn’t mean that AFC won’t come and ask us if they can do something differently. If we think that it can help us, the contractor and the project, then we have no problems with it. But equally, we’re very precious about what we want to see. So it’s part of the process that we have to go through, but generally, overall, the learning curve we’ve gone through on Phase One has stood us in good stead, and you can see the result of that now,” he asserts. One engineering challenge was the development of the formwork systems. With the buildings changing in profile from level six upwards, the team realised they would need to change it at every level as they went higher. In order to resolve the issue before it became something to worry about, Kumar says that AFC approached Peri, the formwork supplier, to finalise a formwork system – along with the support of AFC’s temporary works design team – suitable for the team on-site to alter as they ascended. “The design information was forwarded to Peri, who is the main designer [of the formwork], and we had a collaborative workshop in the beginning, to plan out how we can avoid the issues that cause additional time, rework and so on. This worked really well, and it was because of the long relationship we’ve had with Peri. That made our life a little bit easier, and the lessons learned will be utilised by us when and if we go to Phase Three.” Another engineering challenge was that there are four atrium
Site Visit
CENTRAL DESIGNS Gurjit Singh, senior vice-president – Real Estate at Dubai World Trade Centre, sits down for a brief chat with Big Project Middle East: What are your thoughts about the overall impact of the One Central expansion? This is a destination. The Dubai World Trade Centre itself is a key component of the overall GDP contribution to Dubai and a major economic multiplier. Our development here – the One Central development – is mixed-use in nature and it will bring across both commercial entities, as well as hospitality and residential entities, to complement the entire CBD destination positioning. What has the response to the expansion been like from the market? The impact of Phase One has been very positive. Phase Two is following up with that positive impact quite nicely. It is currently ahead of schedule, and we’re targeting completion in the fourth quarter of 2017. We’re in active participation with the market to lease the property out as well. There is a growing interest in Phase Two as there is a dearth of grade A office property, with only few locations able to offer that. The fact that we’re part of this very strong CBD location means that it’s a choice location for people to be here. Why did you choose Al Futtaim Carillion as the main contractor for this project? We needed an entity that would be able to deliver
for us a product that is of very high quality. That is what we find in AFC. The Phase One project that was delivered was of a very high standard. That in turn translates into the attractiveness of the property for office tenants that have come, for a lot of the guests who stay in the IBIS at One Central. Our involvement on an ongoing basis at the property relates a lot to the health and safety aspects, and we’re very happy with the fact that there is an inclusive approach by AFC to involve its operatives to take ownership of the development by awarding or recognising them for the health and safety work that they do. That is an extremely important thing, and it is sometimes a rarity with big contractors and their delivery partners. Furthermore, they have – together with us – taken the lead with regards to efforts related to sustainability. There are a number of sustainability efforts onsite and that provides a tick for us every time we talk about sustainability – whether it’s pre-project, during construction or after it’s completed. It all adds up to the LEED Gold rating that we’re looking for.
skylight beams to construct in the project, Kumar says. This meant the contractor had to work with Carillion’s UK-based design team, who have a temporary works department to check all the Class ‘A’ (high risk) temporary work design and approve it to assure its safety, while other Class ‘B’ and ‘C’ design (medium and low risk) were checked and approved by the temporary work department at the Dubai office. “We have a good design team in the UK and Dubai, which has a temporary works department. They were very involved with us, together with the site team. We initially had two or three workshops to design a cost-effective design solution to build the atriums. “Also, we had to consider that the primary objective was safety – more than anything. The team worked with us to develop a system without compromising on any of the safety aspects. We changed the design in two stages to make it work. We have four atriums [to build], and we’ve built two of them. We’ve planned it in such a way that we’ll build two atriums first, then the same materials will be used for the remaining two. “The planning was well thought out from the beginning, and we’ve achieved that perfectly on-site by doing the exact thing that we planned. Plus, we’ve got a very good planning and construction team, whose inputs are considered, along with the temporary works design team,” Kumar relates. It’s no surprise to hear that Kumar and his team place health and safety at the top of their priority list. Al Futtaim Carillion has worked hard to establish a reputation as a contractor that views safety as paramount. With more than 2,000 operatives on-site, along with 50 to 60 engineers (working across two shifts on a 24-hour cycle), Kumar says HSE is taken very
seriously indeed on the One Central project, as it is on any AFC site. “Health and safety has always remained a primary objective for AFC. Voltas who were our nominated MEP sub contractor in DWTC phase 1 works were again nominated by DWTC for carrying out Phase 2 works. The experience and knowledge gained by Voltas while working under AFC’s Health & Safety policies were quite useful in managing them for Phase 2 works. “ Kumar explains that AFC works with its subcontractors as a team. With quality job delivery and good safety culture depending on all parties collaborating, it makes sense to support subcontractors. “If they have a failure, then there’s an open discussion and we sort it out” he insists. “We’ve had a few subcontractors in the past that are not up to the level in terms of Health & Safety so we have not used them for Phase Two,” he says. “We’ve not considered the ones we could not improve. Most of the subcontractors – those who are keen on safety and who work with us – they are considered and we give them training. “It’s all about their involvement and intention, if their intention is good, then we’re happy to train them. If their intention is not to follow our safety procedures, then we can’t (work with them),” Kumar states bluntly. “Of course, sometimes, if a new contractor comes in, we’ll face some difficulties. But we have an in-house training system for safety, plus we train subcontractors for any specific tasks or oriented works. Because of that, it takes a while for them to settle in with us, but after a couple of months, it goes smoothly, he says, concluding the tour. Clearly then, DWTC’s expansion plans for the One Central development are in very safe hands. January 2017 29
Technology
Technology breakthrough In the Middle East construction industry, the biggest breakthrough technologies were UAVs, 3D printing and immersive technology.
THE NOW AND FUTURE OF CONSTRUCTION TECHNOLOGY
AECOM’s Charles Dunk does an exclusive round-up for Big Project ME, looking at the state of construction technology in 2016 and what lies ahead in 2017 32 January 2017
2016 was a year of political and humanitarian upheaval. News in the first half of the year was dominated by the Syrian refugee crisis. The latter half of the year saw major political upsets across many regions, including disputes in the South China Sea, sovereign debt crises in Europe, Brexit in the UK and the US presidential election.
Amidst media coverage of the US election, an article was published about an Indian computer scientist who accurately predicted the last four presidential elections by using an artificial intelligence machine to search the web, collating more than 20
Technology
million data points to accurately estimate voter decisions. Earlier in 2016, the issue of ‘evil’ artificial intelligence was heatedly debated in technology journals, with scientists claiming it represented an existential threat to humanity. For example, IBM’s Watson, a super computer for hire, demonstrates human-like behaviour, and Google is leveraging the power of quantum computing to solve complex puzzles that traditional computers would take years to complete. Last year also saw the Middle East construction industry continue to adopt cloud computing and
storage, enabling virtual teams and facilitating connected worksites. Cyber security and security in general became an important issue for governments across the Middle East. Regionally, the oil price continued to strengthen due to the cooperation of oil-producing countries. Set against this backdrop, technology continues to grow in the Middle East in areas such as BIM, data management, unmanned aerial vehicles (UAVs), virtual reality, autonomous vehicles and 3D printing. In the Middle East construction industry, the biggest breakthrough technologies were UAVs, 3D printing and immersive technology. Immersive technology, an umbrella term for technologies such as virtual reality, augmented reality and holographic projection, also saw increasing popularity this year with the release of VR headsets by HTC, Sony, Facebook, Samsung, Google and others. These headsets were accompanied by an influx of media attention driving growth of mobile technology in a faltering smartphone market. In July, Nintendo released the AR game Pokémon Go and saw its share price double in less than a month, despite only partly developing the app. Tech-savvy consultants and contractors embraced immersive technologies for marketing, training and collaboration across virtual teams. Smartphones and tablets are now ubiquitous, and many construction companies are integrating mobile technology into business workflows. Use of photogrammetric modelling (3D modelling) and UAV drone technology grew in 2016. The creation of the Dubai Innovation Council plus other regional initiatives saw drone technology take off. In
“The application of immersive technology will continue to be used on construction projects across the Middle East. Transportation authorities will experiment with autonomous and electric vehicles. UAVs and large-scale 3D models from photogrammetry will be used by planning authorities for infrastructure projects”
the construction industry, the main use of UAVs is to gather high-resolution images. UAV cameras can be very sophisticated, collecting not only visible light but also other electromagnetic frequencies, called hyperspectral imaging. This data is used for mapping, change detection, photogrammetry and security. Comparatively, other forms of surveying have been slow to be adopted in the Middle East, such as mobile laser scanning and robotic total stations. Visualisation experts have seen a growth of mobile technology in the Middle East, particularly for site inspections. The ubiquity of mobile internet and smart devices, combined with software from companies such as ACONEX and Trimble, makes the use of digital devices on-site a realistic proposition for projects of any scale. In the latter half of 2016, 3D printing surged in popularity. Rapid prototyping and 3D printing has been around for a while, but the creation of the Museum of the Future using 3D printing technology and media coverage in other manufacturing industries has led to a keen interest in the public and private sectors. Other technologies with much media coverage were transportation solutions such as Hyperloop and autonomous vehicles, making an appearance at multiple trade shows. Singapore has a small suburb using autonomous taxis and Dubai has shown an interest in duplicating its efforts. Hyperloop One and Hyperloop TT became established in the UAE. Ride sharing companies Uber and Lyft continue to grow across the globe and made a splash in the Middle East in 2016. In China, a prototype of an overhead bus/tram solution
January 2017 33
Technology
was created in a very short time, demonstrating the region’s ability to rapidly move from concept design to working prototypes. Modular construction also grew in China and across the region generally. According to experts, mobile laser scanning using SLAM technology is slowly making an appearance, with tech-savvy survey companies offering fast and affordable ways to provide indoor laser-scanned point clouds. Interest in the Internet of Things continues to grow, and exciting uses of interconnected sensors and control devices are appearing in projects across the Middle East, offering owners and operators a smart way to manage their assets. 2017: breakthrough and growth technology
This year, we can expect to see virtual and augmented reality more widely adopted. Concepts such as real-time design may make an appearance towards the middle of 2017. Wearable technology will be normalised through the spread of VR, AR and other head-mounted
displays. Other breakthrough tech to look out for will come from Apple in September. This technology giant has been very quiet on developments such as autonomous vehicles, virtual reality and, of course, its next-generation smartphone. Expect a media frenzy to start in the summer and reach fever pitch for the launch events in September. Mixed reality devices from other makers include Magic Leap, which will also make an appearance this year. Matthias Krampe, director and co-founder of auggd, predicts continued growth of augmented reality in 2017. He expects an explosion of mobile-based AR enterprise applications that add value to an enterprise’s supply chain with uses such as on-site visualisation, stakeholder engagement/ project team communication, site-planning and visualisation at the tender stage. Growth technology is much larger than breakthrough technology. In 2017, we will see the continued adoption of a range of technologies. Immersive
“We can expect to see virtual and augmented reality more widely adopted. Concepts such as real-time design may make an appearance towards the middle of 2017. Wearable technology will be normalised through the spread of VR, AR and other head-mounted displays”
technology will continue to be used on construction projects across the Middle East. Transportation authorities will experiment with autonomous and electric vehicles. UAVs and large-scale 3D models from photogrammetry will be used by planning authorities for infrastructure projects. The European Space Agency will start testing Galileo, its satellite network alternative to GPS. This technology has the potential to disrupt many industries across the planet when it goes online for commercial use in 2019-2020. There is a lot of hype around the Internet of Things and Smart Cities – these technologies, in partnership with telecommunication operators, will continue to grow across the region. Other technologies to appear in the Middle East include 5G mobile phone coverage, with influence from China, and the use of 3D printing for life-size prototyping. Technology will be an important part of the toolkit for contractors, consultants and clients to deliver successful
Hyperloop plans Dubai has shown an interest in developing and adopting Hyperloop technology.
34 January 2017
Technology
projects this year. Tight budgets will push companies to find more efficient ways to deliver projects in an increasingly value-driven market. A sensible and pragmatic approach to the use of breakthrough technology is likely for many players in the construction sector in 2017. Middle East companies will look towards proven technologies such as mobile and cloud computing. Apple may make a big splash in September, but the immediate effect on the construction industry won’t be felt for a while. Savvy consultants and contractors will continue to grow BIM in 2017, and forward-thinking clients will look to use innovative media campaigns to garner investor and stakeholder support, using virtual or augmented reality.
Forced to innovate Tight budgets will push construction companies to find more efficient ways to deliver projects in an increasingly value-driven market.
The world’s leading trade fair The Bathroom Experience, Building, Energy, Air-conditioning Technology Renewable Energies
Frankfurt am Main, Germany, March 14 – 18, 2017
We have the solutions: Efficiency, Renewable Energies, Comfort Partner country
www.ish.messefrankfurt.com
mary.ann.romano@uae.messefrankfurt.com Tel. +971 4 389 45 00
64005-002_ISH_Energy_BigProject_194x122 • FOGRA 39 • CMYK • cp: 22.12.16
DU: 10.12.16
Dubai-gb January 2017 35
T O G E T H E R
Automotive • Industrial • Aerospace
W E
M O
Schae
O V E
T H E
W O R L D
effler Middle East FZE • Tel. +971 4 8144 500 • E-Mail: info.ae@schaeffler.com
Power & Water
THE CHEMICAL IMPACT
Mohammad Safi, industry sector manager (O&G, Petrochemical, Power, Water and Metals Industries) at BASF, outlines the direct impact of construction chemicals on the region’s power and water industries
Improving performance The use of construction chemicals can improve the longevity of facilities and systems, if used correctly.
38 January 2017
GCC economic and demographic growth is leading to a strong increase in power consumption, and therefore energy-intensive industrialisation programmes continue to be created. As demand keeps growing, GCC countries are experiencing significant requirements for power sector development – new construction and maintenance of existing infrastructure.
On the other hand, the GCC is making use of advanced water technologies in the water management industries. There is a clear focus on this sector, with a trend towards sustainable
practices, wastewater treatment and recycling, and several utilities and water agencies projects have been announced in the region. Construction chemicals suppliers are well aware of this demand. BASF expert Mohammad Safi, industry sector manager (O&G, Petrochemical, Power, Water and Metals Industries), explains why the materials have a direct impact on the performance of the power industries and the water sector. Safi comments: “The different power facilities pose unique challenges and require expert construction solutions. Corrosion
Power & Water
attack and severe environmental influences can compromise the durability and negatively affect the service life of concrete in power and industrial facilities.” “Similarly, water treatment, water transportation and water storage industries need good maintenance. It is important to understand the unique chemical and mechanical aggressiveness of waste water, and search for product systems and application expertise in order to repair and protect the concrete in these facilities.” Safi further offers an insight into the different water
management facilities’ needs. “Some of the harshest and most demanding conditions for construction materials occur in the sewerage and wastewater treatment industry. The usual long-term problems of reinforced concrete apply: carbonation through CO2 or acid rain attack leads to reinforcement rusting and concrete spalling, and low cover and poor concrete mix design all affect structural integrity. In addition, wastewater and sewerage treatment installations face a whole new range of harsh conditions. Turbulent water flows and suspended solids lead to erosion and abrasion, while chemical attack from high sulphate levels and biogenically induced acid formation create an aggressive environment. These can lead to a rapid deterioration of concrete surfaces, corrosion of concrete steel reinforcement and steel structures. “In the same line, desalination plants are exposed to different kinds of environments such as seawater, salt-air aerosols, moving liquids and corrosive gases, which create a number of corrosion related problems. Demisters, water boxes, venting systems, deaerators, ejector condensers, pump valves, piping and the intakes are prone to be worn away, which can cause a variety of undesirable consequences, including unplanned shutdowns, equipment damage, leaks and product contamination. “For desalination plants in the GCC, the risk of corrosion is even greater because of the high temperatures, the highly saline atmosphere and the aggressive ground conditions. “Water reservoirs can be either situated at ground level or elevated into water towers to create hydrostatic pressure.
“Grouts are used as the vital link between critical equipment and the foundation, providing total bearing and dynamic load transfer to maintain alignment even under severe impact, torque and vibrational loads. Good quality grouts should allow for extended working time, withstand a wide temperature range and achieve a high strength”
Preventing water loss in storage tanks while also preserving water quality for human consumption requires the use of waterproofing membranes that can fulfil national regulations for contact with potable water. Reservoirs can also suffer from leakages, often through failed or poorly maintained movement or construction joints. Specific treatment procedures are required to allow the movement of the structure while retaining the necessary watertightness.” As manufacturers of construction solutions for new construction and maintenance, BASF’s portfolio can have an effect on the performance of water management plants. With a wide range of chemicals, along with a long track record of experience in the region and in these sectors, they support the industries by providing long-lasting solutions and recommending procedures that minimise downtime. Safi adds: “Environmentally hazardous chemicals and liquids are frequently an indispensable part of the production process. BASF understands the critical nature of secondary containment and offers high performance solutions for waterproofing of concrete used in these applications. Highly efficient and effective elastomeric membranes provide the desired protection properties, while also ensuring chemical resistance and superior durability.” “For example, our waterproofing systems for wastewater treatment and desalination plants, dams, water reservoirs, irrigation channels and aqueducts are tailored for the specific requirements of each project. MasterSeal waterproofing membranes, cementitious or resin-based, offer
January 2017 39
Power & Water
Increasing lifespan Precision grouting is a key element for industrial equipment and can extend working life.
the economical waterproofing of concrete and masonry surfaces, preventing loss of our precious water resources. “Furthermore, they are certified for potable water, thus protecting the quality of our drinking water. MasterSeal sealants complete the waterproofing system with a durable joint treatment. Additionally, the chemical and mechanical aggressiveness of wastewater damages the concrete structures, which require professional refurbishment, possible with our MasterEmaco repair mortars and MasterInject injection resins.” Regarding the power industry, Safi explains: “We recommend the best options for power and industrial construction, rehabilitation and project upgrades – coal and gas, nuclear, hydro and wind – as well as all types of industry, including chemical, petroleum and gas refining,
40 January 2017
processing and distribution.” “A key element for industrial equipment including turbines, generators, compressors, pumps, motors and fan housings, tank bases, and structural elements and precast panels is precision grouting. Grouts are used as the vital link between critical equipment and the foundation, providing total bearing and dynamic load transfer to maintain alignment even under severe impact, torque and vibrational loads. Good quality grouts should allow for extended working time, withstand a wide temperature range and achieve a high strength. “Our Master Builders Solutions epoxy grouts under the brand MasterFlow not only meet the mentioned requirements, but also provide very good chemical resistance and maintain a fluid consistency for easy placement and harden free of bleeding, segregation or settlement shrinkage. “Another critical part of
“It is important to understand the unique chemical and mechanical aggressiveness of waste water, and search for product systems and application expertise in order to repair and protect the concrete in these facilities”
the power plants is the floor. Materials and processes used in power generation and industrial facilities create a number of challenges for flooring. Applications such as wet process areas, tanker loading bays and secondary containment have requirements for broad spectrum resistance to acids, alkalis, oils and solvents. Anti-static properties are necessary in areas of organic powders or gases where there is risk of explosions. And the ability to withstand high impact, abrasion and elevated temperatures is common. The best flooring choices for critical areas are heavy-duty cementitious, polyurethane and epoxy solutions, which provide a dense and impermeable surface protection system. Easily installed and tolerant to a wide range of site conditions, our flooring systems minimise downtime and provide durable, costeffective flooring protection.”
thalesgroup.com
Ground Transportation solutions Wherever safety and security matter, we deliver PASSENGER SATISFACTION Offering real time information and ensuring security TRANSPORT SAFETY Automate critical decisions to eliminate human errors
OPERATIONAL EFFICIENCY Ensure optimised network management with minimal investment
NETWORK CAPACITY Improve flow with automated signalling for optimal train frequency
SEAMLESS JOURNEYS Unique fare systems for all transport modes
Millions of critical decisions are made every day in transportation. The ability to run networks smoothly and efficiently is crucial to economic growth and quality of life. Thales is at the heart of this. We design, develop and deliver equipment, systems and services, providing end-to-end solutions. Our integrated smart technologies give decision makers the information and control they need to make more effective responses in critical environments. Every moment of every day, wherever safety and security are critical, Thales delivers. Search: Thalesgroup
REVENUE PROTECTION Innovative solutions to collect revenues
Comment
Jonathan Cohen
STORAGE SOLUTIONS
Jonathan Cohen, head of Energy Storage at Eversheds, explains how energy storage can offer a host of benefits to governments, developers and consumers Last year’s COP21 climate change deal, signed in Paris, confirmed that the leaders of 200 nations are now committed to embracing renewable energy as an important tool for limiting the effects of climate change. The challenge now, for countries that have ratified the deal, is balancing this commitment with the growing demand for energy. Indeed, in a recent report, the International Energy Agency (IEA) estimated that the world’s growing need for energy will require an investment of $48 trillion over the next two decades. 42 January 2017
Nowhere is this challenge more acute than in the countries of the Middle East. Broadly speaking, many of these countries are richly endowed with renewable resources, benefiting from strong wind and sunshine as well as long daylight hours and the space to develop large power plants. However, for a long time now they have grappled with one common issue: How do you harness this energy? And how can you store it for the periods when it is needed most? The signs are that they are beginning to figure this out, with ambitious targets beginning to find their way into
the economic agendas of some of these cities and countries. Dubai, for instance, has set itself a goal to become the city with the lowest carbon footprint in the world, increasing its renewable energy targets to 7% by 2020, 25% by 2030 and a mammoth 75% by 2050. Its GCC neighbour Saudi Arabia, a country that had only 25MW of renewable energy generation capacity installed at the end of 2015, plans to increase that figure to 9.5GW by 2030. And Morocco, host of COP22, plans to derive more than half of its energy from renewable sources by 2030.
The country at present imports over 90% of its energy supply. The shift to renewables, while positive, only accelerates the need for effective storage solutions. Where previously governments could burn more fossil fuels to feed growing demand, with many renewable technologies you are at the mercy of the elements. There are a few options currently available to developers and governments in the region. Concentrated Solar Power (CSP) is a relatively expensive technology that uses built-in thermal storage to allow solar power to be fed into the grid even in the absence of sunlight.
Comment
Adoption forecast Eversheds forecasts broader and deeper adoption of energy storage solutions by governments globally.
“We forecast a broader and deeper adoption of energy storage solutions by governments globally, especially in the Middle East”
There are also a host of battery storage options, such as lithium ion batteries, that can be used with photovoltaic (PV) solar power plants, the more commonly deployed of the two solar technologies. With battery storage costs coming down rapidly, its economic viability is increasingly beginning to look more and more attractive. Energy storage offers a host of benefits to governments, developers and consumers, including: • Price arbitrage – electricity is stored when it is cheaper, and exported to the grid when power prices are high
• Ancillary services – storage can provide ancillary services such as frequency response and voltage control, both valuable services for a network operator • Grid reinforcement and deferral – through reducing peak demand and generation, storage provides an alternative to reinforcing the grid (or discharges electricity when the grid is down because of a blackout) • Demand reduction and peak shaving – storage can reduce the imports of energy consumers at peak times, thereby reducing demand charges
At Eversheds, we forecast a broader and deeper adoption of energy storage solutions by governments globally, especially in the Middle East, where the growing demand for energy is even more acute. The value these solutions will have may be difficult to quantify currently, but what is clear is that these countries will be better served as a result, ensuring sustainable development and future growth. And so, as governments in the region push through with their ambitious renewables reforms, the coming years look to be auspicious for the Middle East power industry. January 2017 43
Advertorial
LAUNCH OF A NEW GENERATION
IE5 classified MGE motors from Grundfos will be launched during WFES 2017 Grundfos, the award-winning world leader in advanced pump solutions, is pleased to announce that its latest generation of MGE motors will be launched at the World Future Energy Summit (WFES) scheduled to be held 16-19 January in the Abu Dhabi National Exhibition Centre.
Grundfos MGE motors achieved a remarkable world class rating with their IE5 classification, offering 10% energy savings and up to 25% reduction in payback time of controlled E-pumps compared to IE3 solutions. The latest generation maximises the benefits of extreme energy efficiency and outstanding pump performance, providing another testimony of the company’s sincere and deeply rooted commitment towards sustainability and the environment. “The new motors are the result of our continuous development efforts and our extensive experience in the pumps sector, and come in line with our sustainability plans that are an integral component of Grundfos strategies,” says Henning Sandager, Grundfos area managing director, Middle East and Turkey. He adds: “The launch of the new generation during the WFES 2017 is uniquely significant as it stresses the company’s global involvement in sustainability, and
44 January 2017
Optimised performance The combination of pump and customised software optimises the system’s performance for any load point, resulting in a reduction of energy consumption.
“Since their introduction in 2013, the motors have set the standards in the business, and the updated version has raised the bar even higher”
sheds light on the benefits the company can offer to the UAE and the wider GCC markets. The new IE5 classified MGE motors have a wide range of applications in industrial and commercial building sectors, making them the ideal solution of choice for businesses in the thriving market of the UAE.” The IE5 level has been attained by all MGE motors in the 0.75-11kw range, and came into effect on January 1, 2017. These ground-breaking motors by far exceed the coming legislative demands to meet
the strictest criteria of the highest energy efficiency level for electrical motors. Notably, all Grundfos MGE motors in the 0.75-11kw range have successfully attained IE5 status. The IE5 motor with integrated frequency converter connects the accumulated pump experience of Grundfos into the dedicated control software. This combination of pump and customisable software optimises the system’s performance for any load point, delivering an unsurpassed reduction of energy consumption. The key to these MGE motors’ unparalleled performance lies in their state-of-the-art intelligent components. These adapt to the surrounding system and, coupled with the highefficiency IE5 motor, drive energy consumption down considerably. “Reliable, customisable and energy sufficient are the words that connect to the MGE motors from Grundfos. Since their introduction in 2013, the motors have set the standards in the business, and just recently, the updated version has raised the bar even higher. Their energyefficient attributes, including the frequency converter, have made it possible for motors to exceed the previous versions and can now be marked IE5, the highest energy efficiency level worldwide for electrical motors,” concludes Sandager.
Show Preview
MEE WORKS TO BOOST SMART CITY COLLABORATION
Middle East Electricity joins forces with Dubai Municipality to increase focus on the future of smart cities at this year’s event
Smart Cities Dubai Municipality is supporting Middle East Electricity in 2017 as it looks to focus on the topic of Smart Cities.
Middle East Electricity (MEE), one of the world’s leading power exhibitions, has announced its theme for the 2017 edition. Alongside Dubai Municipality and the Environmental Centre for Arab Towns, who are Strategic Partners for the event, the organisers will be creating a series of new features, conferences and activations, all focusing on the future of Smart Cities and the innovations set to lead the way both locally and internationally in the coming decade. Developing Smart Cities is a key focus of the Middle East energy industry, with key government projects such as the Smart Dubai initiative driving growth in this area. Dubai Municipality is partnering with this year’s Middle East Electricity on the Smart Cities theme. 46 January 2017
According to a recent Ventures Onsite report created specifically for MEE, in a period of economic slowdown the public and private sectors are looking for renewable energy solutions that will have a positive impact on the bottom line. In the GCC, the trend of linking Smart Cities to the agenda of economic diversification is fast gaining ground. Initiatives have been implemented in the GCC region, with three countries announcing projects for future Smart Cities: six greenfield economic cities in KSA (complemented by efforts to uplift cities such as Mecca toward Smart City status); three projects in Qatar (Lusail’s Smart and Sustainable City, Pearl-Qatar Island and Energy City Qatar); and two projects in the UAE (Masdar City in Abu Dhabi and Smart Dubai).
“The Dubai Plan 2021, which plans to develop Dubai into a ‘smart, integrated and connected city’, has a strong focus on energy sustainability and using renewable energy sources”
Dubai’s Smart City strategy plans to transform a thousand government services into smart services. The project aims to encourage collaboration between the public and private sectors to achieve targets in six particular focus areas: Smart Life, Smart Transportation, Smart Society, Smart Economy, Smart Governance and Smart Environment. The strategy will rely on three basic principles: communication, integration and cooperation. Another important aspect of Smart Cities is transportation, an area in which technology has advanced dramatically. The UAE is encouraging the use of electric cars and building the necessary infrastructure to support them. The Dubai Plan 2021, which plans to develop Dubai into a “smart, integrated and connected city” has a strong focus on energy sustainability and using renewable energy sources. Integration of Smart Cities plans with GCC housing projects will lead to the economising of energy use at large. Therefore, with the rapid advancements in technology and the commitment of GCC governments, we may soon be seeing several Smart Cities in the GCC, creating benchmarks for cities worldwide. The UAE, KSA and Qatar are expected to witness a raft of successful Smart City implementations over the next couple of years. Middle East Electricity 2017 takes place February 14-16 at the Dubai World Trade Centre
FOR 2 01 EME 7 TH
•
FOR 2 01 EME 7 TH
WORLD TRADE CENTRE, DUBAI, UAE
•
14 – 16 FEBRUARY 2017
T R A M S S CITIE
FOR 2 EME 01 7 TH
ENERGISING THE INDUSTRY
•
•
FOR 2 EME 01 7 TH
Energising the industry… …with Smart City information, innovation and collaboration. At MEE 2017 you will discover what is changing in the power industry as a result of the focus on Smart Cities.
Discover: • Smart Cities Innovation Zone • Consultants’ Arena • Energising the Smart City Conference • MEE Awards for Smart City pioneers • Society of Engineers Workshop
FIND OUT MORE: WWW.MIDDLEEASTELECTRICITY.COM/SMARTCITIES
Tenders
Top tenders MARINA MALL EXPANSION PROJECT – PHASE 2 Budget $816,000,000 Project Number WPR1013-U Territory Abu Dhabi, United Arab Emirates Client National Investment Corporation (Abu Dhabi) Phone (+971-2) 681 8900 Fax (+971-2) 681 8700 Description Expansion of an existing shopping mall comprising a food island plaza, an entertainment city, food court, department stores, an increase in retail facilities as well as additional service apartment and office towers, including increase in car parking facilities. Period 2017 Status Current Project Tender Categories Construction & Contracting, Leisure & Entertainment, Prestige Buildings Tender Products Commercial Buildings, Residential Buildings, Retail Developments
residential complex comprising three high-rise buildings, villas and a series of landscaped terraces dropping towards the sea, including one- to four-bedroom apartments and leisure and retail facilities. Status Current Project Tender Categories Construction & Contracting, Hotels, Leisure & Entertainment, Prestige Buildings Tender Products High-rise Towers, Hotel Construction, Retail Developments
Fax (+971-4) 332 9102 Email info@aziziinvestments.com Website www.aziziinvestments.com Description Construction of a hotel apartment building comprising 10 floors offering (178 Nos.) fully-furnished and serviced residences, divided into (120 Nos.) one-bedroom, (54 Nos.) two-bedroom and (4 Nos.) threebedroom apartments and penthouses. Period 2018 Status Current Project Tender Categories Construction & Contracting, Hotels Tender Products Hotel Construction, Residential Buildings
RAMLA RESIDENTIAL TOWER PROJECT MINA BY AZIZI HOTEL APARTMENTS PROJECT – PALM JUMEIRAH Budget $204,000,000 Project Number WPR1456-U Territory Dubai, United Arab Emirates Client Azizi Investments (Dubai) Phone (+971-4) 332 2460
Budget $160,000,000 Project Number WPR222-SA Territory Saudi Arabia City: Riyadh 11411 Client Naif Saleh Alrajhi Investment (Saudi Arabia) Phone (+966-11) 444 4499 Fax (+966-11) 444 4999
Email info@nalrajhi.com Description Construction of a residential tower comprising 40 floors with a height of 150 metres. Period 2018 Status Current Project Tender Categories Prestige Buildings Tender Products High-rise Towers, Residential Buildings
AQUA RAFFLES JEDDAH PROJECT Budget $150,000,000 Project Number WPR285-SA Territory Saudi Arabia Client FRHI Hotels & Resorts (Saudi Arabia) Phone (+966-800) 897 1458 Website www.frhi.com Description Construction of a new hotel comprising 181 guestrooms and 188 branded residences. Period 2018 Status New Tender Tender Categories Construction & Contracting, Hotels Tender Products Hotel Construction, Residential Buildings
VILLAMAR RESIDENTIAL COMPLEX PROJECT – BAHRAIN FINANCIAL HARBOUR Budget $650,000,000 Project Number MPP1666-B Territory Bahrain City: Manama Client Gulf Holding Company KSCC (Bahrain) Phone (+973) 1755 8455 / 1755 8355 Fax (+973) 1755 0638 Website www.gfholding.com Description Development of Villamar
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
48 January 2017
Tenders
Middle East tenders UAE GULF PARADISE BUILDINGS PROJECT – SAADIYAT ISLAND Project Number WPR1460-U Territory Abu Dhabi, United Arab Emirates Client Tourism Development & Investment Company – TDIC (Abu Dhabi) Address Behind Khalifa Park, Eastern Ring Road (Salam Street) Phone (+971-2) 406 1400 / 800 8342 Fax (+971-2) 406 1500 Email info@tdic.ae Website www.tdic.ae Description Construction of two commercial and residential buildings, each comprising 9 floors, offering a total of 78 units. Status New Tender Tender Categories Construction & Contracting Tender Products Commercial Buildings, Residential Buildings
THE CAVE OF MIRACLES & GLASS HOUSE PROJECT – QURAN PARK
Cave of Miracles and Glass House. Period 2017 Status Current Project Tender Categories Agriculture & Irrigation, Construction & Contracting, Leisure & Entertainment Tender Products Gardens/Parks Development & Maintenance, Museums/Art Galleries
a residential tower comprising a ground floor and 36 additional floors offering a total of 591 apartments. Period 2019 Status New Tender Tender Categories Prestige Buildings Tender Products High-rise Towers, Residential Buildings
MIRACLZ TOWER PROJECT
Bahrain MARASSI RESIDENCES PROJECT
Budget $27,000,000 Project Number WPR1453-U Territory Dubai, United Arab Emirates Client Dubai Municipality Phone (+971-4) 221 5555 / 206 3670 / 206 4552 Fax (+971-4) 224 6666 Email info@dm.gov.ae, e_service.help@dm.gov.ae Website www.dm.gov.ae Description Construction of a
Budget $125,000,000 Project Number WPR1458-U Territory Dubai, United Arab Emirates Client Danube Properties (Dubai) Address Office 1701, API Trio Tower, Sheikh Zayed Road, Al Barsha 1 Phone (+971-4) 399 8333 Fax (+971-4) 399 8222 Email enquiry@danubeproperties.ae Website www.danubeproperties.ae Description Construction of
Budget $50,000,000 Project Number WPR1440-B Territory Bahrain, City: Manama Client Diyar Al Muharraq WLL (Bahrain) Email info@diyaralbahrain.com Website www.diyaralbahrain.com Description Construction of two 11-storey residential towers. Period 2018
Status Current Project Tender Categories Construction & Contracting, Prestige Buildings Tender Products Residential Buildings
Qatar BARZAN MILITARY HOSPITAL PROJECT Budget $130,000,000 Project Number BPR719-Q Territory Qatar Phone (+974) 461 4111/ 461 2398 Website www.gov.qa Description Construction of a military hospital comprising 40 beds. Period 2019 Status New Tender Tender Categories Construction & Contracting, Medical & Healthcare Tender Products Hospital Construction
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
50 January 2017
Tenders
ZULAL DESTINATION SPA & FAMILY RESORT PROJECT Budget $5,000,000 Project Number WPR1463-Q Territory Doha, Qatar Client Msheireb Properties (Qatar) Phone (+974) 4459 0459 Fax (+974) 4421 6125 Email info@msheireb.com Website www.msheireb.com Description Construction of a 5-star spa and family resort. Period 2018 Status Current Project Tender Categories Construction & Contracting, Hotels Tender Products Construction & Addition Works, Hotel Construction
Oman MAZAYA RESIDENCE MIXEDUSE DEVELOPMENT PROJECT Budget $15,000,000 Project Number WPR1452-O Territory Oman Client Mazaya Real Estate Company LLC (Oman)
Address Villa 2, 1st Floor, Way No. 2114, Bldg No. 704/1, Near Oman Oil Petrol Stn, Madinat Sultan, Qaboos Phone (+968) 2460 5777 Fax (+968) 2460 5772 Email info@mazayaoman.com Website www.mazayaoman.com Description Development of a mixed-use project comprising 120 residential units, including one-, two- and three-bedroom apartments, 28 shops and landscaped areas. Period 2019 Status Current Project Tender Categories Leisure &
Entertainment, Construction & Contracting Tender Products Mixed-use Developments, Residential Buildings, Retail Developments
MINERAL RAILWAY NETWORK PROJECT Project Number WPR954-O Territory Muscat, Oman Client Oman Rail Company (Oman) Address Beach 1 Bldg, 3rd Floor, Qurum Phone (+968) 2230 8900 Email info@omanrail.om Website www.omanrail.om Description Construction of a 605km domestic railway network for the heavy haulage of mineral commodities to a port. Period 2021 Status New Tender Tender Categories Public Transportation Projects Tender Products Railways
STRIP MALL PROJECT – AL MANUMA Project Number WPR1443-O
Territory Oman Client Private Investor (Oman) Description Construction of a new shopping mall comprising a ground floor and 1st floor. Period 2017 Status Current Project Tender Categories Construction & Contracting, Leisure & Entertainment Tender Products Retail Developments
Saudi Arabia PHOTOVOLTAICS FACTORY PROJECT Budget $75,000,000 Project Number WPR1455-SA Territory Jeddah, Saudi Arabia Client Al Afandi Group (Saudi Arabia) Website www.afandigroup.com Description Construction of a 120MW photovoltaic (PV) factory for the production of 450,000 solar panels per year. Period 2018 Status New Tender Tender Categories Industrial & Special Projects, Power & Alternative Energy Tender Products Photovoltaic Plants, Power Generation Plants
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
January 2016 51
Last Word
Leadership through engineering Dr Kourosh Kayvani makes the case for engineering designers fostering creativity for a holistic understanding of technical specifications, and applying this knowledgeably and imaginatively to deliver new infrastructure As the world becomes increasingly complex, riven with ambiguity and volatility, creative and innovative design must underpin the way we frame and solve problems facing humanity and our environment.
Engineering design has always had a vital role to play in delivering our constructed environment and infrastructure. It is true that as engineers we help deliver projects that are technically sound, cost-effective and fit for purpose. However, we can and should have a bigger image of our role. I believe that as consulting engineers, we are undervaluing the opportunities created by embracing engineering-led design, where grand challenges and deep aspirations are solved in the macro scale through the system thinking ingrained in
52 January 2017
“As engineers, we must question everything and seek to understand change. Our industrywide philosophy must be to embrace, not to fear, business and marketplace disruption�
engineering design. However, for that to hold true, our profession needs to embrace the view that delivering truly meaningful design solutions requires acknowledging that human-centric thinking is as important as system-thinking. Historic precedents
Consider how Rome, Istanbul and other cities of the former Roman Empire still use the sophisticated systems of underground aqueducts and cisterns built some 2,500 years ago to serve their populations today. Many areas in the Middle East continue to rely on the traditional falaj (qanat or canal) for irrigation and cooling. In the recent past, we have allowed our professionals to become less recognised, even undervalued. The power of engineered design
has been subsumed across our profession by too much focus on delivering conventional systems and operating within narrowly defined functional elements. Great engineering visionaries and designers must not remain discipline-bound; they should become discipline integrators. Change is being forced upon every one of us. In the same way that computing and robotics have disrupted blue-collar businesses, these advances are disrupting professional services like ours. In our profession, this disruption comes in many forms. Engineering at the cross-roads
As engineers, I believe we have two options: Continue as we are and be commoditised, or embrace a disrupted future and become better
designers and innovators. We must question everything and seek to understand change. Our industry-wide philosophy must be to embrace, not to fear, business and marketplace disruption. Our challenge is to focus on problem-finding and problem-solving for clients and to explore the essence of great design, just as the best design engineers did in the past. This means building strong, design-focused relationships with the marketplace that empower our best designers and allow them to imagine and connect deeply with projects. Our creative objective should be to better conceptualise, provoke, refine, plan and deliver excellence across the lifecycle of projects, for whomever they resonate with or have an impact on.
Bringing the latest
construction news from across the GCC
www.meconstructionnews.com
BIG PROJECTS. BIGGER DATA. TURN DATA INTO PROFITS.
a supplement of:
Fire SaFety & Building Security REPORT lESSONS FROm ThE UK wHAT wE CAN LEARN FROM THE REGULATORY REFORM ORDER 2005 lIFE SAFETY IN SmART CITIES HOw LIFE SAFETY SYSTEMS CAN BE INCORpORATED INTO SMART CITIES
DESIGNING FOR SAFETY AND SECURITY OUTLINING THE CHALLENGES FACING THE INDUSTRY AS IT DESIGNS BUILDINGS IN TROUBLED TIMES
World Class Leaders in Fire Detection Since 1918
January 22-24 2017 Dubai, UAE
Complete Fire Detection Systems Wide Product Range Easy to Install EN,UL & FM Approvals Specialist Applications
Find us at Intersec 2017 - Stand Number: 3-F12 For more information visit - www.hochiki.ae
Introduction
PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 eDItorIAL eDItor GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 oNLINe eDItor BEN FLANAGAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE aelred.doyle@cpimediagroup.com ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496 coMMercIAL DIrector MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DeSIGN Art DIrector SIMON COBON cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI SHAHAN NASEEM PUBLISHeD By
Safe havens
2
LESSONS FROM THE UK
T
his year’s Fire Safety and Building Security Report takes a wideranging look at how the landscape of safety and security is changing rapidly. Given how we’re now living a world where threats and danger can arise at a moment’s notice, it pays to design and build structures – and cities – that are intelligent, responsive and secure, providing safety to the people that shelter within them. We also look at how local companies are waiting to hear what the new rules and regulations are when it comes to fire safety. What’s been most interesting is that these companies – and their experts – are calling for greater clarity and information sharing. Clearly there is a strong desire within the industry to improve and do better. It’s now time that desire is acted upon so that we can have the buildings and cities that our populations deserve.
Registered at IMpZ pO Box 13700
4
8
SAFETY ON THE RISE
16
18
UNDER SIEGE
22
BUILDING SAFE CITIES
Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com Founder Dominic De Sousa (1959-2015) Printed by printwell printing press LLC A supplement of Big project Middle East © Copyright 2017 CpI. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
Gavin Davids editor gavin.davids@cpimediagroup.com Security & Fire Safety Supplement 2017 1
Fire Safety
Lessons from the UK
Paul Madden, senior project manager of Fire and Rescue Services for Restrata, explains what the UAE can learn from the UK’s introduction of the Regulatory Reform Order 2005
ith the pending release of the 2016 UAE Fire and Life Safety Code, Dubai Civil Defence (DCD) Lieutenant Colonel Jamal Ahmad Ibrahim states, “Dubai is not just a city. It is a brand that means value for investors and residents alike. This is the reason why we need to create a safe emirate. Not just in terms of saving lives, but securing properties as well.” The DCD is set to launch the 2016 UAE Fire and Life Safety Code in the coming months as the UAE seeks to reduce fire
incidents in the country. Built on the 2011 version, the updated code prescribes guidelines for builders and consultants to ensure a fire-safe environment. With a new chapter dedicated to responsibility in the 2016 UAE Fire and Life Safety Code, the DCD now aims to hold people accountable for fire accidents in the future. This means that owners, builders and even occupants will all be answerable to the DCD. “The biggest responsibility will rest with consultants who approve faulty structures. There is a legal requirement to carry out a fire risk assessment in almost all workplaces,” Lt Col Ibrahim warns. The code has been designed in cooperation with contractors, construction equipment
2 Security & Fire Safety Supplement 2017
manufacturers and building experts. The DCD plans to take tough measures, including levying fines on those who fail to comply with fire safety standards. New clauses and amendments that will be included in the updated version of the UAE Fire and Life Safety Code will have a similar impact to that of the Regulatory Reform Order 2005 when it was introduced in the UK. The new legislation will put the burden of responsibility for fire safety on a named individual, the building owner or occupier, and require them to carry out a Fire Risk Assessment (FRA). This presents a number of difficulties for the responsible person, mainly the fact that most building owners or occupiers have little or no experience with fire safety issues. To ensure compliance with
legislation, and avoid fines and damage to reputation, the responsible person will need some professional assistance. This will guarantee that hazards and people at risk have been identified, and solutions to remove or reduce the risks recommended. High-profile cases from the UK suggest that if building owners do not take their responsibility seriously they will face prosecution. New Look Retailers Ltd – which has more than 600 stores in Britain and abroad, 20,000 employees, and is 30th in the Sunday Times 100 Top Track list of private companies – pleaded guilty to two counts in 2010. It was fined £250,000 for failing to provide a “suitable and sufficient” fire risk assessment for the premises
Fire Safety
“The new legislation will put the burden of responsibility for fire safety on a named individual, the building owner or occupier, and require them to carry out a Fire Risk Assessment”
and a further £150,000 for inadequate staff safety training. The £400,000 total is not only the largest imposed on a company in Britain for fire safety contraventions since new legislation came into force in 2006, but is thought to be the biggest ever financial penalty for such breaches. Following the conviction, Councillor Brian Coleman AM FRSA, chairman of the London Fire and Emergency Planning Authority, commented: “Good business management includes taking responsibility for fire safety, knowing the law and acting on it. This conviction shows that large companies are not exempt from prosecution and that the London Fire Brigade will take action when businesses do not take their fire
safety responsibilities seriously. Failure to comply with the law can, as this case has shown, result in a substantial fine.” Previously, the Co-operative Group – the UK’s largest mutual retailer – was fined £210,000 after pleading guilty to six breaches of fire safety legislation at Southampton Crown Court. The 2010 prosecution was the result of a 2007 investigation at one of the Coop’s Southampton branches. Officers from Hampshire Fire and Rescue found that the store had failed to keep the rear emergency exit doors unlocked, and had fitted a lock on the exit doors that required a security code – making the exit harder to open in an emergency. In addition, the fire alarm call point was found to be
obstructed and the alarm had not been tested regularly, while the store’s manager was not instructed in fire safety. A spokeswoman for the Co-operative Group said: “As a responsible retailer, the Cooperative Group takes health and safety issues very seriously. At the time of these incidents, the Group was introducing substantially more stringent health and safety procedures, investing heavily, both in time and money, in all aspects of fire safety.” “The Co-operative Group deeply regrets the breaches but reiterates that its rigorous measures, now established and continually reviewed in conjunction with fire authorities across the country, ensure the safety of its valued customers and staff.”
Security & Fire Safety Supplement 2017 3
Comment
Craig Ross
Designing for safety anD seCUrity Craig Ross of Cavendish Maxwell outlines the challenges facing the industry as it designs buildings and spaces in troubled times In designing competitive new build and refurbishment schemes, we face a number of challenges in terms of both regulation and practicality, while maintaining the type of contemporary and attractive aesthetics we enjoy in the region.
Good design is always a compromise and balance between factors, and the security measures for a building are no exception. Security should always be designed on assessment of the building’s unique merits and requirements, rather than just a blasÊ copy-paste style following of regulation, taking into account
such factors as purpose group, occupancy, location and the environment in which we build. Often the minimum standards do not apply, and a good designer will take into account their own risk assessment and consider if the minimum standards are really adequate. Unfortunately, we have recently been exposed to situations where the need for a robust fire risk assessment has been demonstrated, and we do not need to labour this point. However, one form of risk is rarely touched on, a risk factor that must consider fire risk, active security
4 Security & Fire Safety Supplement 2017
taking practical steps Building designers need to take into account some practical steps to ensure that the correct level of threat assessment is in place.
risk and disproportionate structural collapse – that is the risk of terrorism. There are some obvious reasons for this particular security factor seldom being a point of discussion in building design, mainly that the UAE enjoys a safe environment which thankfully has been relatively free from the threat within its borders. In other regions, designing for counter-terrorism (CT) is now a normal phase in the design of a building of a certain size or stature, with specific guidance issued by the police and security
services and a well developed consultation process. We should consider that although this region has proven safe thus far, we should not become complacent. It would be foolhardy to assume that a local terrorist threat is never possible, and we should therefore reflect upon and take into account some practical steps to ensure that we have the correct level of assessment in place. And by correct, I do not mean adopting a mentality where we retreat into concrete bunkers. To quote Ruth Reed, former president of the Royal
Comment
“Good design is always a compromise and balance between factors, and the security measures for a building are no exception”
Institute of British Architects, “It is important that our built environment continues to reflect that we are an open society, and that in interpreting these new requirements our buildings do not convey that we are driven by security measures.” A sensible place to start is understanding some characteristics of terrorism. Without getting too bogged down in trying to find a definition which varies from region to region, the main point to understand in this context is that terrorists aim to convey a political, religious
or ideological message to a target audience wider than the immediate victims or incident. Traditionally this has been through the mass media, but now includes the internet and various web 2.0 unregulated social media platforms, meaning that competition to get their message across with something noticeable is becoming harder. Therefore, the shock factor required to gain the public’s attention means resorting to ever increasing extremity. And this is where we have to consider our built environment, because where we have a
multitude of inhabited tall, iconic buildings which are well-known worldwide, these can be used as tall, iconic soft targets to create media attention. Think about the Address new year 2016 fire being broadcast around the world. The best time to consider some practical CT measures is in the early stages of the building planning process, during the Strategy, Preparation, Design and Pre-Construction stages of the Plan of Work. It’s far easier to include passive and easy-toadopt CT strategies in a building if they are taken into account before the design process gets too far, and this will ensure that these measures are stated in the project brief, well communicated throughout the evolution of design and not overlooked. It’s also best to consult the local authorities, police or any government CT advisors at an early stage, bearing in mind that designing for CT goes far beyond structural engineering or disproportionate collapse models. As we already touched on, the CT strategy is tailored to the building and follows an appraisal of the risk profile, so the CT strategy can be considered in parallel with access, fire and life safety, means of escape, passive and active security (e.g. the DPS security camera requirements) and so on. Our main objective in these early stages is to define some physical, technical and procedural mitigation factors that will not inhibit the great architecture we enjoy living and working in. Understanding the risk profile of the building early will assist in creating a holistic security strategy and a sensible place to draw the line; done right, sensible CT strategies are barely noticeable, and remember: a resilient building doesn’t mean an uninviting fortress.
Security & Fire Safety Supplement 2017 5
Cladding and Facades
SPREADING THE WORD
Experts tell Big Project ME that greater communication and enforcement is needed from authorities, to ensure the new fire codes for cladding are followed
6 Security & Fire Safety Supplement 2017
Speakers and attendees at this year’s Middle East Facades Summit all had a similar message when it came to the recent moves to improve fire safety in high-rise buildings in the region – namely that tougher building regulations must be enforced.
With a renewed focus on fire safety in Dubai following four major high-rise fires in four years, experts have called on the construction and real estate development industries to follow safety rules to the letter. The proper installation of non-flammable and fire retardant materials, and the regular maintenance of buildings, are crucial to preventing fires
from spreading, speakers said at the event, which was held alongside the Windows, Doors and Facades Event 2016. “The designs are put together well enough to prevent a fire, or to prevent the fire from getting into the façade,” explained David O’Riley, managing partner of Britannia International, a fire engineering company, during his presentation at the summit. “But the major problem in this part of the world is that those elements that are designed specifically to mitigate the fire are invariably left out or not actually installed properly.” “Just approving the system does not actually suffice; you have
Cladding and Facades
to have all the operatives trained by factory trainers, so that they know how to install it, why they’re installing it and what is important in that installation process.” Following the release of the new fire code by the UAE Civil Defence, the summit comes at an important time for the country’s purveyors of fire safety. With the authorities determined to crack down on materials that don’t meet standards, manufacturers, contractors and consultants have all had to reassess how they go about installing and specifying projects. In August, it was revealed that more than 270 building projects across Dubai had handover delays due to authorities not being satisfied with the ratings of cladding systems. With the new building codes currently in development and likely to be introduced next year, the Civil Defence has been far more stringent about making sure the existing codes are met. “With the UAE Civil Defence, if you see the new code, there are four requirements and three standards that need to be met,” says Zohaib Rahman, division head of Alucopanel Middle East. “These are ASTM E84, which is to test your core material; EN 13501, which is the European standard; and then there’s ASTM 1929, where the minimum requirement to pass is an ignition temperature of 343°C.” Speaking to Big Project ME at the event, Rahman and his associate Intisar Andra, the technical business development manager for Alucopanel Middle East, both assert that the biggest challenge facing the industry at the moment is a lack of clarity surrounding the new codes. While she is quick to acknowledge that the Civil Defence has been proactive in the introduction of the new fire code, Andra points out that there could be greater engagement with the industry.
Greater clarity required Experts have called for authorities to provide clear and concise guidelines for the industry to follow.
“The biggest challenge is that the ideas are not clear. We’re really trying and depending on ourselves for the research and to find out what other people are doing – all over the world, not just in the UAE. In the UAE we’re the first to do this, so we can’t depend on the experience of people here. We’ve even checked with consultants and subcontractors, and nobody really has [anything to share]. So we’ve taken on the challenge to do the study and utilise our own experience. “I’m an architect who’s worked for nearly 20 years in the subcontractor field, so I know what the problems are and how the industry is. When you get something approved or passed, but it’s not meeting your budget, what will you do? You don’t follow it,” she says, referring to the budgetconscious construction industry. It’s this attitude that necessitates greater enforcement by the authorities, backing up the views of the experts at the summit. Rahman says he believes use of fire-rated and approved materials will become mandatory, given how
“Just approving the system does not actually suffice; you have to have all the operatives trained by factory trainers, so that they know how to install it, why they’re installing it and what is important in that installation process”
serious the authorities are about it. However, he does point out that greater communication between all parties would go a long way towards reducing the reticence and confusion in the industry. “You have to push the Civil Defence to publish their codes and regulations. After a fire incident, everyone reads the papers and the papers say that the fire code is still to come in, that it’s yet to be released. And to date, people are still waiting for the fire code to be released. “As a manufacturer, because we’re hungry to be in compliance, we’ve visited the Civil Defence and they’ve given us the fire codes, but people are still expecting the Civil Defence to release it officially, either on their website or in the press. “[So I think] the Civil Defence has to release it publicly. Until now, it hasn’t been released on their website. But they’ll tell us, during meetings, that this is the official code, you just do what’s written here. You have to approach them to take the information, but otherwise, you won’t find it published anywhere.”
Security & Fire Safety Supplement 2017 7
Show Preview
Safety on the RiSe
The Middle East’s security, safety and fire protection markets are on track for double-digit growth ahead of Intersec 2017
8 Security & Fire Safety Supplement 2017
Show Preview
t
he Middle East market for security, safety and fire protection is on track for double-digit growth over the next four years, as regional governments and the private sector look for improved technologies to better protect assets, people, businesses and borders. Led by the Gulf nations of Saudi Arabia and the UAE, regional countries are making rapid strides to upgrade infrastructure and secure their countries, with research from analysts Frost & Sullivan (F&S) highlighting the tremendous potential that remains to be unlocked in the region. An industry white paper published by F&S outlines the latest trends and opportunities in the market, with spending in Middle East commercial, cyber and homeland security, along with fire protection and smart home building automation, on a steep upward growth curve. According to F&S, the Middle East commercial security market, which includes intruder alarms, CCTV surveillance, electronic locks, perimeter protection, door alarms, access control and identification systems, is expected to be worth $10.2 billion by 2020, growing annually by 24% from its $3.8 billion value in 2015. Similarly, the region’s homeland security market is forecast to grow annually by 21% up to 2020, with market revenues increasing to $34.2 billion, driven predominantly by investments in critical infrastructure, major events and the need to counter perceived threats. Fire protection also has
huge growth potential, with the Middle East’s fire safety market estimated to grow annually by 12.5% from 2012 to 2020. During this period, the market will grow from $1.6 billion to $4.2 billion, making it one of the world’s largest fire safety markets. The latest figures come in the final countdown to Intersec 2017, the world’s leading trade fair for security, safety and fire protection, which is scheduled to be 10% larger year-on-year when it takes place 22-24 January at the Dubai International Convention and Exhibition Centre. The 19th edition of the annual three-day event will feature more than 1,300 exhibitors from 52 countries, while over 31,000 visitors from 128 countries are expected to attend as they seek the latest solutions across seven show sections: Commercial Security, Fire & Rescue, Safety & Health, Homeland Security & Policing, Perimeter & Physical Security, Information Security, and Smart Home & Building Automation. Ahmed Pauwels, CEO of Messe Frankfurt Middle East, the organiser of Intersec, says: “Middle East organisations and end users realise the impact of security and fire safety on their overall productivity and bottom lines, while regional governments have always been committed to protecting critical assets and people in the face of perceived threats, along with social and commercial interests.” “In this respect, the region has carved out a niche for itself in the global security, safety and fire protection industries, and Intersec, as the leading global trade platform with a pronounced regional focus, remains the natural vehicle for international manufacturers to showcase their wares to regional buyers. “The coming edition will be even wider in scope and reach
Security & Fire Safety Supplement 2017 9
Show Preview
“Middle East organisations and end users realise the impact of security and fire safety on their overall productivity and bottom lines, while regional governments have always been committed to protecting critical assets and people in the face of perceived threats” and will provide trade visitors a comprehensive look at what’s available to suit their varied needs, whether that be for governments and authorities or for private sector end users in aviation, oil & gas, construction, finance, hospitality, logistics, retail or healthcare,” adds Pauwels. With more than 580 exhibitors, Commercial Security is the largest section at Intersec 2017, with more than two thirds of the world’s top 50 security solutions players on board, including Hikvision, Bosch, Dahua, Assa Abloy, Tyco, FLIR, Hanwha Techwin, Axis Communications, Avigilon Panasonic, Infinova, IDIS and Milestone Systems.
Promise Technology, a leading developer of storage solutions for the surveillance industry, is a returning exhibitor in 2017, and will use the show to introduce some of its most exciting solutions yet. John van den Elzen, Promise Technology’s Surveillance Business Unit GM, explains: “Promise Technology has been developing NVRs [network video recorders] and storage optimised for surveillance for years, and now we’ll launch a complete new product line with a management server, analytics server and recording server.” “With our business taking off in the Middle East due to
the strong demand for storage, we’ll also introduce a new highcapacity surveillance storage block solution, which is ideal for deployments requiring a large centralised storage solution, offering an open platform, simplicity, optimisation and the most comprehensive partner ecosystem. “The Middle East is showing very strong interest in cloudbased storage solutions, and we’re working on this with an eye towards the growing trend of smart cities. With the Dubai Expo 2020 coming up and the 2022 World Cup in Qatar, there are certainly opportunities for Promise to work together with
Middle East Homeland Security Market ($ billion)
Middle East Fire Safety Systems Market ($ billion)
40
4
30
3
20
2
10
1
2012
our partners to further develop surveillance cloud solutions.” With more than 50 exhibitors, Information Security has been one of the major growth sections at Intersec and has doubled in size every year since it was first introduced to the show in 2014, as security threats to businesses spread beyond the physical realm. Headline exhibitors confirming their participation early next year include Agility Grid, AlMazroui – ICAS, Commend, Dell, Easy World, Hanvon, Infosec, Matrix, Netronics, Quantum IT and Rittal, a manufacturer of IT networking and data centre physical infrastructure solutions. Joseph Najjar, MD at Rittal
2020
2012
2020
Middle East Commercial Security Market Forecast ($ billion) 10
Source: Frost & Sullivan
8 6 4 2 2012
2013
2014
10 Security & Fire Safety Supplement 2017
2015
2016
2017
2018
2019
2020
Show Preview
Middle East, says: “Intersec, with its global recognition, elevates Rittal strengths on its IT physical security offerings to the market. Acknowledging the growing need for physical security for IT, our display of physical security offerings (IT Security Room and Micro Data Centre) will be a strong resilient proposition to the leading security consultants and clients who value their critical IT equipment and data centres. The physical display of the IT Security Room on our stand at Intersec 2017 will be one of the realistic touch-and-feel showcases to experience our promise: ‘Our Expertise – Your Benefit.’” Smart Home & Building Automation is the most recent show section added to Intersec’s vast product scope, as urbanisation and a new age of ICT (information and communications technology) aids the march toward smarter integration of different functions like electro-mechanical controls, fire and safety security systems, and energy management. According to F&S, the Middle East building automation market is anticipated to grow 7.32% annually, with a revenue projection of $560.5 million by 2020. Saudi Arabia and the UAE, with their large projects for housing and commercial construction, will drive demand for smarter, control-enabled buildings. Among the 50-plus leading players in this section at Intersec 2017 are Fermax, Somfy, HDL, Videocom, Techcom, Hunt and Teleste, all of which will present their latest solutions to a regional market that’s beginning to demonstrate interest in the benefits of home automation and systems integration. Fire & Rescue (400 exhibitors), Safety & Health (100 exhibitors), Homeland Security & Policing (100 exhibitors) and Perimeter &
Physical Security (50 exhibitors) wrap up the dedicated show sections at Intersec 2017, firmly underlining its position as the world’s most influential exhibition dedicated to security, safety and fire protection. The show’s strong international flavour will be further enhanced by 14 country pavilions from Canada, China, the Czech Republic, France, Germany, Hong Kong, India, Italy, Korea, Pakistan, Singapore, Taiwan, the UK and the US. Returning features to Intersec 2017 include the Safety Design in Buildings Pavilion in the Fire & Rescue section, which has doubled in size and will shine the light on fire-rated building materials such as facades, fabrics, doors, windows, paints, stucco and egress systems. A Techtextile Pavilion in the Safety & Health section will also present the entire spectrum of technical textiles and nonwovens for professional and protective clothing, as well as the latest laminating technologies for coating, printing, finishing and other products and services. A GPEC (General Police Equipment Exhibition & Conference) Pavilion at the Homeland Security & Policing section; a Job Pavilion, bringing thousands of professionals together with specialist securityrelated recruitment companies; and three industry conferences held in cooperation with the Dubai Police and Dubai Civil Defence wrap up the host of additional features. Intersec 2017 is held under the patronage of His Highness Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum, and officially supported by Dubai Police, the Dubai Civil Defence and Dubai Police Academy. More information is available at www.intersecexpo.com.
For industry-leading elevators, escalators and innovative solutions for maintenance and modernization. Visit www.kone.ae
A
B
+25o
Cautious use of lifts and escalators ensures a safe and comfortable ride for everyone. Security & Fire Safety Supplement 2017 11
Comment
Rob Head
Life Safety in Smarter CitieS
Rob Head, assistant managing director at Hochiki Middle East, discusses how life safety systems can be incorporated into the smart cities movement, and how this trend is transforming urban development across the Middle East Smart devices have already begun to transform our daily lives, helping us do everything from controlling our heating to checking what is in the fridge, but these smart technologies are not yet globally integrated into the planning of our towns and cities.
The smart cities movement offers an opportunity to streamline the provision of services such as education, transport and waste management. By increasing efficiencies in these public services, urban planners are able to design cities which
not only help to create more sustainable communities but also make cities more liveable for residents, enhancing their health and wellbeing in the process. Life safety in smart cities
While the benefits of smart cities are much discussed, one area where the spotlight is only just beginning to shine is life safety and the role it can play in this integration of systems and technologies. But with the way we use our towns and cities constantly changing, a number
12 Security & Fire Safety Supplement 2017
addressing the gap A survey carried out by Hochiki Europe found that there is a gap in understanding as to what a smart city is and its potential impact on urban planning and development.
of questions are being raised as to what is really required to keep people safe. More specifically, is the life safety industry ready to respond to the demand for highly connected, responsive technologies? According to a recent survey of life safety professionals from across EMEA and India, carried out by Hochiki Europe, there is a gap in understanding as to what a smart city is and its potential impact on urban planning and development. The survey, predominantly of
life safety installers, found that over half (57%) of respondents had not heard of the term ‘smart city’, and only a third (33%) knew what one was. That said, when provided with a definition of smart city, only 14% of respondents were worried about the future of the life safety industry, which could reveal a confidence among life safety professionals that the industry will be able to adapt to the smart cities movement. This is evidenced further with almost a fifth
Comment
“From the integration of intelligent fire safety systems to the interconnectivity of services, the smart cities movement presents urban planners with an opportunity to make our towns and cities safer, and build them intelligently from the ground up�
(18%) of respondents saying they thought people would actually be safer in a smart city. One of the key defining characteristics of a smart city is the control of systems and services from a single and centralised location. Modern life safety systems already allow all of the fire safety and emergency lighting equipment in a building to be managed from a centralised control panel. As a result, facilities managers can monitor the performance of their entire life safety network
from a single location, helping to save significant time as they carry out the regular inspections as required by law. Moreover, innovative life safety systems such as linear heat detection technologies are capable of pinpointing the location of a fire. This, combined with targeted fire suppression systems like sprinklers, can not only help minimise the risk of a fire spreading, it can prevent damage to intact, unharmed property elsewhere in a building.
Smart cities in action
Lusail City, a smart development in Qatar, is one urban development already making the most of the smart cities movement. About 23km north of the Qatari capital of Doha, Lusail boasts marinas, exclusive holiday resorts on four manmade islands, commercial districts, luxury shopping and leisure facilities, and residential zones capable of catering to an expected future population of some 450,000 people. To tie these various activity
zones together and ensure the entire settlement is sustainable and energy-efficient in the hot desert environment, the architects designing it have been careful to incorporate smart technology into the fabric of its infrastructure. This includes a comprehensive fibre optic network which links Lusail’s many services and systems to a central command and control centre (CCC). As well as controlling the traffic management network and municipal systems like water,
Security & Fire Safety Supplement 2017 13
Comment
waste and telecommunications across the city, the CCC also provides a centralised monitoring system for law and order, ensuring police services can be deployed quickly in the event of an incident to keep residents as safe as possible. The building management systems of municipal and private buildings throughout the entire city are also under the control of the CCC. This includes monitoring ventilation, lighting, power and security equipment in each development
and ensuring the efficient distribution of limited energy and water resources, while also allowing city authorities to plan future maintenance. Qatar is not the only country making the most of smarter cities. In Dubai, a number of new communities that will incorporate many of the principal benefits of a smart city are being planned. It is hoped that every aspect of these new communities, from energy provision to public transport, will be
interconnected, and effective control and management will ensure the services are delivered as efficiently and sustainably as possible. The future of urban development
While the creation of truly smart cities may be a distant vision, it’s clear that there are many benefits. From the integration of intelligent fire safety systems to the interconnectivity of services, the smart cities movement presents urban planners with an opportunity to make our towns
and cities safer, and build them intelligently from the ground up. That said, the smart city of the future won’t look too dissimilar to the traditional city of today. There will still be buildings, roads and railway lines, there will still be traffic. However, with smart technology incorporated into the city’s infrastructure, all the services the community needs to function, such as transport, utilities and life safety systems, will be delivered that little bit more effectively and efficiently.
“Urban planners are able to design cities which not only help to create more sustainable communities but also make cities more liveable for residents, enhancing their health and wellbeing in the process” Building safe cities The smart cities movement presents urban planners with an opportunity to build towns and cities that are safer.
14 Security & Fire Safety Supplement 2017
Your partner in creating a safer world •
Performance Testing
•
Fire Safety Testing & Certification
•
Field Labeling of Fire Doors On-site
•
Existing Building Fire Risk Assessment
Dubai Tel: Fax:
•
Façade Consulting and Engineering
www. intertek.com me.contactus@intertek.com
www.intertek.com/building
Abu Dhabi Tel: +971 2 613 1000 Fax: +971 2 642 8009 +971 4 317 8777 +971 4 331 6719
Security Systems
understanding the working of a building Nusrulha Wani says that it is crucial to understand the working or functionality of a building, and how it will be used in the future, when designing security systems.
Security integration
Big Project ME speaks to Nusrulha Wani, product marketing manager – MEA for dormakaba, about how security systems can be integrated and used in the building and design process
16 Security & Fire Safety Supplement 2017
What are some of the core ways in which security systems can be integrated into the design of a building or space?
For us, a security system means peace of mind and comfort for end users. People want security in a smart and secure way, which is not complicated but is convenient, innovative and enjoyable, while also being the right fit for any modern building. When it comes to designing security systems, it is very important to know the working or functionality of the building or space in the present scenario, and also how it will be used in future. This also defines the different levels
of security we need to consider. For example, a security system design for a bank or data centre will be different to an office or commercial building. If there is a panic or an emergency situation in a bank, the security system should be able to allow entry or exit from the building only by showing valid credentials. Whereas in the same situation, if it is a normal office or a commercial building, then people should be able to evacuate without any restriction. What are some of the security features in dormakaba’s portfolio, and how do they function in tandem
Security Systems
with a building’s security system?
dormakaba makes access in life smart and secure. We have more than 150 years of experience and millions of installed products and solutions worldwide, from push-button locks and door closers to highly complex networked access solutions, where everything is under the control of one system called Exos. Exos is our holistic access management system for handling all access applications simply and securely. It forms the basis of any company-wide access management solution. It is a modular standard system that not only covers all the necessary access control and logging functions, but can also be customised and extended to suit any demands and processes. So it is ideal for both groups with lots of sites and small to medium enterprises (SMEs). It also affords maximum safety and investment security at all times, even if the future requirements are different than what it is today. The system also provides more flexibility for the future. With our wide range of access components, irrespective of the access scenario, one can enjoy our products that are from one single source. Or, in other words, quality from one provider, from software to a mechanical key to a standalone access control, going further to a complex security management system. We not only provide the innovative products and technologies but also consultations on how to plan and implement these systems. On a related note, we will be displaying our latest version of Exos at Intersec Dubai, along with our comprehensive portfolio of smart and secure access solutions. What are some of the major challenges when integrating security and access control
solutions into a building or space?
The major challenge that we face is the balance between security and access control systems with safety systems like the fire alarm and escape route system. Most of the time, security and access control systems mean restricting people from entering or going out of the building. And safety systems are designed to allow people to go out or move into the building very easily. To achieve this, the security and safety codes need to be understood first, and then we can use the right products for the particular application. How can building management and security systems improve the performance of a structure or space?
I always say that a building is like a human body. Each part acts like one system, and all the parts should be healthy to work properly. The most important part is the brain, and the brain of any building is the control room, where all the information is collected and the actions are taken accordingly.
“We have more than 150 years of experience and millions of installed products and solutions worldwide, from pushbutton locks and door closers to highly complex networked access solutions”
The Building Management System mainly consists of the HVAC, lighting and elevator control systems, while the security systems consist of the Access Control System, CCTV, Intrusion Detection System, car park and barrier systems, etc. When it comes to improving the overall efficiency of the building or a space, all the systems must be integrated to each other, and all the systems should be monitored and controlled by a Common Command Centre or Control Room. For example: in case of any threat of intrusion or an attack, the CCTV or the Intrusion Alarm System will notify the Access Control System, and then the Access Control System will take an action. The same thing happens if there is a fire in the building. The fire alarm system will notify the HVAC and the elevator systems to stop. Also, in many cases the supply air will be stopped, but the exhaust fans will be turned on to vent out the smoke. In this way we can say that the integration of the security and safety systems with the BMS holistically improves the efficiency of the building. Describe dormakaba’s collaboration process with contractors and consultants.
We have architectural and security consultants in our organisation. They meet the end user directly so as to understand the entire scope of the work, whether it is related to security or safety, and to determine whether it’s for a new building or an existing one. Then the client refers them to the appointed architect and consultant, or the architect and consultant themselves approach us to help them in designing the system, as per the local and international building codes.
Security & Fire Safety Supplement 2017 17
Cyber Security
under siege
There has been a dramatic increase in cyber attacks on critical infrastructure, but regional organisations remain unprepared. Jeevan Thankappan talks to cyber security experts to find out what needs to be done Protecting infrastructure Critical infrastructure such as power grids, water supply systems and oil & gas plants could be at risk from a major cyber attack.
18 Security & Fire Safety Supplement 2017
The threat against critical infrastructure such as power grids, water supply systems and oil & gas plants is getting greater, and at the same time potential adversaries are learning techniques from the exposure of sophisticated state-sponsored cyber attacks.
Recently, Eugene Kaspersky, founder and CEO of Kaspersky Lab, famously remarked that “a bad, bad incident” awaits critical infrastructure, as cyber terrorism attacks could become a harsh reality before slowmoving government agencies act to better secure it.
Organisations with critical infrastructure to protect are often even slower to move on security infrastructure upgrades than corporate enterprises. Just how much at risk is our region’s critical infrastructure? “These days, critical infrastructure everywhere in the world is a potential target. Cyber attacks on critical and industrial environments are on the rise, and Kaspersky Lab has detected incidents in every corner of the world. As the world’s largest exporter of oil and gas, the Middle East is a particularly attractive
Cyber Security
target for threat actors, whether it’s state-sponsored or criminally minded,” says Matvey Voytov, solution business lead, Critical Infrastructure Protection Business Development, Kaspersky Lab. He cites the examples of the highly complex Shamoon attack on Saudi Aramco and other incidents including the attack on RasGas. “In addition to these outside attacks, the Middle East has its own dangerous cyber gangs such as Desert Falcons – cyber mercenaries operating exclusively in the region and attacking a number of different
industries, including military and government organisations as well as energy and utilities providers.” Adam Philpott, director – EMEAR Cyber Security, Cisco, agrees that attacks on critical infrastructure have become a growing cause of concern for governments and private providers around the globe, whether inflicted by cyber criminals seeking financial gain or by hackers as political acts. “The trepidation around these threats is justified, as research demonstrates that attacks on critical infrastructure have increased in both prevalence and sophistication and will continue to grow in the near future,” he adds. Ryant Brichant, CTO for Global Critical Infrastructure, FireEye, echoes him. “Critical infrastructure faces a substantial level of risk across the world. Unfortunately, hackers are not just motivated by monetary gains but also notoriety and credibility – it’s very appealing for a hacker to attain fame among his/her circle of peers for carrying out a certain attack, especially if it’s a high-profile incident. The ramifications behind hacking the world’s most critical infrastructure and assets are far more severe to national economies than any other type of hacking attempt we have seen today.” One reason the region’s critical infrastructure is susceptible to cyber threats is the fact that the organisations that run these facilities using supervisory control and data acquisition (SCADA) gear are still gathering data about threats and aren’t close to implementing new defences to counter them. “If you look at the control systems for critical infrastructure, such as within the utilities sector, historically they were asynchronous control sessions to
“The sharing of threat intelligence will be vital for protecting critical infrastructure and governments have to take an active leading role, setting an example and encouraging the private sector to step out of the shadows and share threat intelligence that they have derived from their own environments” a main frame unit and security was pretty straightforward to achieve. However, the adoption of IP in most organisations means that the control networks in production facilities have become interconnected and could potentially be subject to the same attacks as any other systems in a connected world,” says Nicolai Solling, director of Technology Services, Help AG. Today, any SCADA or DCS system will be based on protocols such as IP, MPLS and other normal network technologies, plus
standard operating systems such as Windows, Linux and Unix – thereby creating a similar threat picture as any other connected system. But there is a much higher impact, as production is controlled by the system, which if affected can lead to decreased productivity. Solling warns that the lack of productivity, or in the worst case, an overload of the production environment, could cause larger scale damages. Security experts say the emphasis should be on detection and rapid response rather than prevention when it comes to critical infrastructure security. “The prevention and preventive protection mindset has recently failed us at almost every occasion. This is why organisations and CISOs are shifting to a detection and response mindset. They acknowledge the fact that breaches are very likely to happen, and it’s a question of how quickly you can close the gap and respond, and how you can adapt your defence strategy to the evolving threat landscape,” says Roland Daccache, senior systems engineer, Fidelis Cybersecurity. The real issue is that, in most cases, conventional prevention technologies can’t be used efficiently inside critical and industrial environments. These technologies weren’t designed for the unique conditions of critical infrastructure environments, such as airgaps, technological processes continuity and highly specialised software and hardware. Voytov from Kaspersky says that while traditional prevention approaches aren’t always appropriate in critical/industrial environments, that doesn’t mean we should rely on detection and response to make up the gap. The key difference between traditional information security and industrial cybersecurity is the high stakes:
Security & Fire Safety Supplement 2017 19
Cyber Security
A framework of collaboration The key to being prepared for a major cyber attack is to create a framework that fosters collaboration between private and public sector partners.
a successful breach of critical infrastructure can have an impact far beyond information or financial damage – it can cost lives or result in environmental destruction. “Prevention is better than cure, and rapid response is always required, because you don’t know when threats can affect your organisation’s investment. There needs to be the right technology investment in place, and neither end user or vendor can have the slightest idea of the severity of a threat. We also have to understand that when a device is compromised, how much of that compromise can actually be mitigated. The last thing one needs is a broken down system. That’s why security is always implemented as layers,” says Nader Baghdadi, regional enterprise director, Fortinet. Tareque Choudhary, head of Security and BT Advise at BT Global Services, agrees. “With cyber attacks growing more and more sophisticated, you need to detect problems earlier and at a greater distance from your perimeter, to protect your key
infrastructure and operations. If you want to manage and pre-empt attacks, you need a clear understanding and visibility of the global threats you’re facing as they emerge.” The key to being prepared for massive cyber attacks on critical infrastructure is creating a framework that fosters collaboration between private and private sector partners, as no single business or single level of government has sole ownership or control over critical infrastructure. “Countries and companies must collaborate now more than ever, to protect the services essential to a nation. Threats to a company’s information systems and assets could come from anywhere. Whether the incident comes as a direct physical attack or an electronic one, the nature of these events is essentially borderless. No single company could possibly possess all of the intelligence, expertise and resources needed to combat threats originating from such a plethora of fronts,” says Philpott from Cisco.
20 Security & Fire Safety Supplement 2017
“These days, critical infrastructure everywhere in the world is a potential target. As the world’s largest exporter of oil and gas, the Middle East is a particularly attractive target for threat actors, whether it’s state-sponsored or criminally minded”
The strategic approach to cyber security is based on the hard reality that it is not possible to defend all of a country’s digital assets without the collaboration and integration of all of the primary stakeholders –the private and public sectors, and citizens using the nation’s digital networks. “The US government have shown through the Automated Indicator Sharing Program and the recent cyber security law signed last December that governments have to take an active role in supporting the private sector in general and specifically those engaged in critical infrastructure. The sharing of threat intelligence will be vital for protecting critical infrastructure, and governments have to take an active leading role, setting an example and encouraging the private sector to step out of the shadows and share threat intelligence that they have derived from their own environments,” says Cherif Sleiman, GM – Middle East, Infoblox.
Bringing the latest
construction news from across the GCC
www.meconstructionnews.com
Comment
Mohammad Allataifeh
Building Safe CitieS
Mohammad Allataifeh of Huawei Middle East explains how governments are narrowing their focus on public safety and security, using safe city services The world is moving into an era of urbanisation; for the first time, more people live in towns and cities than in rural areas. The attraction of urban living is plain to see.
Cities offer an excellent standard of living with greater employment prospects, instant access to quality medical care, and a vibrant social life. But as cities and populations grow, added strain is placed on infrastructure, while opportunities for criminals are also more abundant. This is why governments are narrowing their focus on public safety and security, and setting aside more funds to help keep citizens safe.
In 2015, more than $5.5 billion was spent on public safety solutions, and this figure is predicted to reach over $8 billion by 2019. At Huawei, we’ve experienced the growth of public safety solutions firsthand, as our safe city services now serve more than 400 million people in 100 cities across 30 countries. All of these figures make something quite clear: governments recognise the need for private sector collaboration when it comes to public safety, for a number of reasons. The first is the extra value that private sector collaboration can extract. Competition is a
22 Security & Fire Safety Supplement 2017
driving force behind innovation in the private sector, as the threat of rival organisations prompts businesses to constantly find ways to improve their offering. In the public safety space, this means more effective and costefficient ways of preventing and responding to threats from both criminals (social threats) and natural disasters. It also means a shorter development cycle for these types of services, which speeds up the time it takes for a city to become smarter and safer. The Internet of Things (IoT) is a perfect example of this quickened innovation cycle. IoT will have a massive impact on
safe cities of the future, as almost universal LTE connectivity becomes a reality and inexpensive sensor solutions drive the integration of connected devices across metropolitan areas. Anything from traditional CCTV cameras to devices designed to detect the sound of gunshots can send information to a city’s central control platform for analysis, helping public security agencies be better informed and quicker to respond. Yet steps are already being taken to commercialise IoT in the form of NarrowBand IoT (NB-IoT), which will allow the technology to be accessed
Comment
Sending information back Anything from traditional CCTV cameras to devices designed to detect gunshot noises can send information to a city’s central control platform.
via low-power wide area networks (LPWANs) and will provide increased connectivity volume as well as enabling better network coverage. NB-IoT will empower organisations – both public and private – to implement smart services without the need to set up their own Wide Area Network (WAN), services which could be focused on better public safety and security that will result in more automation and much faster transaction, which means much faster responses to incidents and quicker crime investigations. Technologies such as IoT are just one piece of a bigger
public safety puzzle. As a result, governments and public bodies need to invest in endto-end solutions that cover all requirements. Integration is therefore a fundamental part of the Safe City concept. The idea is that public security technology such as video surveillance, access control and perimeter protection can be combined with safety elements including weather sensors and even social media analysis on one consolidated private cloud-based IT platform. From this centralised place, public security agencies and all other stakeholders are given a
“Technologies such as IoT are just one piece of a bigger public safety puzzle. As a result, governments and public bodies need to invest in endto-end solutions that cover all requirements. Integration is therefore a fundamental part of the Safe City concept”
complete overview of the city’s safety and security status. With a broad view, intelligence can be gathered from security and safety sources, analysed via a big data solution, and acted upon instantly and even sometimes ahead of incidents that could happen. For example, licence plate recognition (LPR) and face recognition could be used to identify suspect vehicles and people so that police forces can take rapid real-time action. Then, with all this data recorded, authorities can quickly go back and examine the information to speed up the post-event investigation. Not
only can integrated ICT such as this save lives, it also helps cities maximise their existing infrastructure and budget. If a sophisticated, consolidated platform like this is to have the desired impact, public and private organisations must work together to tie a city’s safety needs and challenges to the right ICT options. One of the most valuable outcomes of this process is that threat prevention becomes the focus, rather than cure. While services like our Convergent Command Centre and visualised dispatching can reduce response times significantly, prevention must always be the priority, as this is what ultimately saves more lives and properties. End-to-end solutions support threat prevention by plugging the gaps in a city’s security infrastructure. Gaps like surveillance blind spots, intermittent LTE network connectivity, big data analytics and slow decision-making are all hurdles to preventing threats. Overcoming them with innovative technology can reduce incidences of crime and help minimise the human impact of a natural disaster. These outcomes are especially beneficial to cities in today’s increasingly urbanised world. Everyone wants to live in a safe environment, so when a city excels at threat prevention, it becomes a selling point to flaunt when trying to attract potential citizens. As urbanisation grows, so too will the Safe City and the public-private partnerships that make it a reality. And as society and the threats we face change, technology must keep up. Businesses like Huawei have a responsibility to help new leading ICT emerge for the good of a city’s citizens and infrastructure, ultimately creating a safer and better connected world.
Security & Fire Safety Supplement 2017 23
Last Word
The Growth of Fire Safety Rajat Kharbanda, senior consultant, 6Wresearch, outlines how rising infrastructure investments, government regulations and upcoming mega events are driving the GCC fire safety market Fire safety equipment is the core building block in modern building infrastructure. The growing number of high-rise buildings, the increasing number of fire incidents, stringent government regulations, and the rise in public and private building infrastructures have spurred the market for fire safety equipment across the Gulf Cooperation Council (GCC).
According to 6Wresearch, the GCC Fire Safety Market touched $1.1 billion in 2015, registering marginal growth over 2014 due to a decline recorded primarily in the Saudi Arabian market. The market growth previously estimated in 2015 was in double digits, but that was significantly downgraded to single digits in recent updates, due to weak economic conditions. Various projects have been halted in Saudi Arabia, and there was a sharp decline
in the number of new construction contracts in the first half of 2016. This factor has had a significant impact on the growth of the entire GCC fire safety market. The market is forecast to grow at a compound annual growth rate (CAGR) of around 8% during 2016-2022. Saudi Arabia will maintain its market leadership, followed by the UAE, over the next six years. The UAE and Qatar are anticipated to be the key driving countries for the growth of the GCC region overall, due to upcoming mega events such as Dubai Expo 2020 and the 2022 World Cup in Qatar. More than $350 billion will be invested to build the supporting infrastructure for these upcoming events. Apart from infrastructure development activities, the rising number of fire incidents in various
24 Security & Fire Safety Supplement 2017
chemical plants and residential complexes has led governments to revise the existing fire safety regulations. Significant changes in fire safety norms are expected, especially in the UAE, to replace outdated fire safety equipment. In the GCC fire safety market, fire protection systems are the leading revenue generating segment, led by fire extinguishers, fire suppression systems and fire pumps and controllers. However, key growth is exhibited in the fire detection segment – smoke detectors, gas detectors, heat detectors and so on. Among all applications, the residential and industrial sectors have captured the majority of the pie in the overall market. In the coming years, the growth of the fire safety systems market will depend on the construction
industry, investment, government regulations and replacement of existing infrastructure. Iran, meanwhile is one of the most untapped markets in the entire Middle East. The country is the second largest economy in the Middle East and North Africa (MENA) after Saudi Arabia and has the second largest population. Over the years, the Iranian economy has been adversely affected due to UN sanctions. Further, since the country’s economy depends on the export of hydrocarbons, with the recent oil price turmoil market conditions are expected to remain challenging. However, with the easing of sanctions, the country anticipates new business opportunities due to a flow of fresh investment. These developments will spur the construction industry in Iran, primarily driving
expansion activities in the transportation, energy, residential and hospitality sectors. According to 6Wresearch, Iran’s fire safety market is projected to grow at a CAGR of more than 10% during 2016-22. Over the next six years, with the growth in the construction market, demand for fire safety equipment will increase. Iran’s construction market is forecast to grow at a CAGR of 5.9% during the same period. The fire safety market growth depends on new construction, with fire detection emerging as the key growth segment. Replacement of old equipment in existing infrastructure will be led by stringent government rules and regulations. In the coming years, many new players are expected to enter Iran’s fire safety market; competition will surge, leading to a decline in prices.
Int & erse Cy c C b 23 er S ritica – 2 ecu l In 4 J rity fra an Co stru ua nf ct ry ere ure 20 nc 17 e The world’s leading trade fair for Security, Safety and Fire Protection
22 – 24 January, 2017 Dubai, UAE
www.IntersecExpo.com
Rock-solid security solutions for the Construction industry Explore the most comprehensive range of industry-specific products and solutions: • Safety Design in Buildings • Critical Infrastructure Protection • Intruder & Burglary Alarm Equipment, Perimeter Security and Guarding Services • Monitoring Systems, Surveillance / CCTV / DVR Access / Entrance Control • PPE, Safety at Work and Environmental Protection • Rescue • Emergency Alarm & Warning Systems • Fire Fighting Equipment • Fire Prevention & Protection
Register online today www.IntersecExpo.com/R