XX: XX, XX | XX

Construction in the Middle East is unlike that in any regional market in

the world. Though the region encompasses a broad range of economic,

political and social diversity, the oil-rich states of the Gulf Cooperative

Council (GCC) are leading a regional transformation that is turning the

Middle East into a global destination and test bed for cutting-edge,

innovative construction.

Harvey M. Bernstein | F.ASCE, LEED APVice PresidentIndustry Analytics, Alliances & Strategic InitiativesMcGraw-Hill Construction

Catlin O’Shaughnessy | LEED APResearch SpecialistGlobal Thought LeadershipMcGraw-Hill Construction

Harvey M. Bernstein, F.ASCE, LEED AP has been a leader in the engineering and construction industry for over 30 years. He serves as Vice President of Industry Analytics, Alliances and Strategic Initiatives for MHC, where he has lead responsibility for MHC’s green building initiatives, including the first-ever landmark studies on green construction and key market trends in the U.S. and globally. Bernstein was also one of the team members involved in launching MHC’s GreenSource magazine. Previously, Bernstein served as the President and CEO of the Civil Engineer-ing Research Foundation. He has written numerous papers covering innovation and sustainability in the built environment, and currently serves as a member of the Princeton University Civil and Environmental Engineering Advisory Council, the Harvard Joint Center for Housing Studies Policy Advisory Board, and as a visiting Professor with the University of Reading’s School of Construction Management and Engineering in England where he also serves on their Innovative Construction Research Centre Advisory Board. Bernstein has a M.B.A. from Loyola College, a M.S. in engineering from Princeton University and a B.S. in civil engineering from the New Jersey Institute of Technology.

Catlin O’Shaughnessy, LEED AP has been working in sustain-ability and global development for over 5 years. She currently serves as Research Specialist, Global Thought Leadership at MHC where she contributes to research and publications on emerging construction industry trends covering topics ranging from workforce and green building to global construction and corporate sustainability. Prior to coming to MHC, O’Shaughnessy worked on AIDS and public health policy with the USAID-funded POLICY Project, and spent time conducting research for the World Bank and living in Sub-Saharan Africa. O’Shaughnessy has a B.A. in International Development and International Economics from the George Washington University.

Spurred by the growing trend among these countries toward economic diversification from oil-based economies, and building on enabling assets such as available funding, supportive regulations and vast amounts of undeveloped land, countries here are aggressively investing their wealth into boundary-breaking, iconic projects aimed at transforming the role and perception of the Middle East on the international stage. The result is an exciting hub of innovation where construction firms are actively pioneering the cities of the future.

In the current fluctuating financial environment, the unique market activity in the GCC states of the Middle East is especially significant. Though the region has experienced the slowing effects of the global financial crisis, the GCC in particular represents a singular market opportunity for firms to engage in large-scale, highly visible projects that will give them a competitive edge in attracting new work and top talent.

At McGraw-Hill Construction (MHC), we have been tracking the evolution of this emerging market into a major player in the global marketplace. In our research, interviewing project managers, designers, engineers and thought leaders working in the region, we have identified a number of transformational trends and projects that are breaking boundaries in size, scope, process and iconic design.

As home to the most dramatic market activity in the region, the states of the GCC are setting examples for other cities and nations in the Middle East and emerging as global leaders in innovative construction. We have collected in this report a sampling of the most

transformational projects in these GCC states, as well as a few from other parts of the region, to paint a picture of the range of strategic market opportunities that the Middle East offers to the global construction industry.

Set apart by ambitious efforts to become leading international destinations for tourism, culture and business, the states in the GCC are challenging project developers, designers, engineers and contractors to reach new achievements in every building sector. Encompassing new innovations in master-planned communities, next-generation skyscrapers, world-class institutions, brand-name entertainment and cultural venues, and island developments on existing and manufactured islands, the construction projects in the Gulf are changing the very nature of construction activity in the Middle East and beyond.

As these markets continue to grow against a historical backdrop of vast opportunities and new challenges, the lessons and achievements in this region will generate critical new market intelligence for firms working in the Middle East region and around the world. In today’s rapidly changing market environment, MHC looks forward to continuing to monitor these trends and bring this critical market intelligence to the global construction industry.

…the construction projects in the Gulf are changing the very nature of construction activity in the Middle East and beyond.

“”

1

table of contents

2 Cities of the future: report highlights 4 Leader PersPectives: the role of Gcc Government Leaders in Market transformation

5 the MiddLe east: a regional Overview

7 Major trend areas in innovative Middle east ConstruCtion 7 MajOr trend area: eMerGence Of Master-PLanned cities

8 case study: al reem island, abu dhabi

9 thought Leader interview: frederic Berger, chairman of Louis Berger,

on Masdar city as a testbed for new innovations

10 sidebar: filling the infrastructure Gap

11 MajOr trend area: next-GeneratiOn skyscraPers

13 case study: Bahrain World trade centre, Manama Bahrain

14 thought Leader interview: George efstathiou, Managing designer, skidmore,

Owings and Merrill (sOM) on Building skyscrapers in the Middle east

15 MajOr trend area: cuLturaLLy-icOnic institutiOns and faciLities

17 case study: king abdullah university of science and technology, saudi arabia

18 thought Leader interviews: Majd abu Zant, chief development Officer for

united eastern Medical services; dr. emanuel Mikho, vice President and

director of healthcare-Middle east, hks; enrique Greenwall, Lead designer,

hks on the danat al emarat Women’s and children’s hospital, abu dhabi, uae

20 MajOr trend area: Luxury hOsPitaLity and entertainMent

21 case study: MGM sharm el sheik, egypt

22 thought Leader interview: Lee tabler, ceO, tourism development and

investment company (tdic)

23 MajOr trend area: isLand deveLOPMents

25 case study: yas island, abu dhabi

26 thought Leader interviews: irv richter, chairman and ceO, and raouf Ghali,

President of international Project Management, hill international

27 What’s next? future iMpliCations of Middle east ConstruCtion

29 resourCes

cover Photo: Bahrain World trade centre, Manama, Bahrain. courtesy of atkins.

2

cities of the future Report Highlights

Innovative buildings like Burj Dubai have brought global attention to the GCC region. Image courtesy of Harvey Bernstein.

Construction activity throughout the Middle east is transforming the industry and pioneering the cities of the future. this activity is led largely by the states of the gulf Cooperative Council (gCC)—which represents the six largest economies in the Middle east including Qatar, the united arab emirates, saudi arabia, Bahrain, Kuwait and oman—where a growing trend toward diversification of oil-based economies has led to increased investment in boundary-breaking, iconic construction.

enabled by vast amounts of undeveloped land and a supportive regulatory environment, construction in the gCC is transforming the role and perception of the region on the international stage and redefining the very nature of global construction. this market activity provides international construction firms with a unique and critical opportunity to undertake large-scale, highly-visible projects that can grow their global brand and provide a competitive edge in winning work and attracting top talent—particularly important in today’s global environment.

this report analyzes the major transformative trends in Middle east construction, with particular emphasis on the gulf states, and identifies some of the leading markets, projects and players and how they are shaping the industry of tomorrow.

gCC ConstruCtion MarKet overvieW Construction activity is occurring throughout the Middle East region, though the critical mass of sector activity is in the GCC countries. As can be seen in the chart at right, spending on building projects in the GCC has grown significantly in recent years, though this rise has been offset in 2009 by considerable slowing in markets like Dubai, which has bottomed out in the wake of the global financial crisis. Also in response to the crisis, overall residential and commercial activity in the GCC is projected to drop in late 2009 and 2010. However, infrastructure projects are expected to continue upward, likely reflecting

an increased demand for infrastructure construction and maintenance as GCC countries deal with an influx of population related to increased investment in tourism and real estate. The region’s top local markets include the region’s wealthiest countries: the United Arab Emirates (UAE), held afloat by steady activity in Abu Dhabi despite significant slowing in Dubai, as well as Qatar and Saudi Arabia. Though smaller in scope, construction is also slowly growing in the economies of Kuwait, Bahrain and Oman.

Source: Proleads Global, May 17, 2009

3

Master-planned developments like Saadiyat Island in Abu Dhabi are attracting leading global institutions and visitors. Image courtesy of TDIC.

Challenges and oBstaCles Working in the Middle East construction market entails an array of distinct challenges, including:

Workforce ❙ : Due to a lack of training and a small population, there is a very limited local supply of skilled construction workers. Many firms import their labor from neighboring countries, a temporary fix that affects housing costs and also amplifies human rights concerns.

infrastructure: ❙ The dramatic increase in investment and new buildings, and the corresponding population growth, has outpaced the construction and maintenance

of related infrastructure. The responsibility for maintenance and upgrades of municipal infrastructure and utilities poses a particular challenge (see “Filling the Infrastructure Gap” on page 10).

transparency: ❙ The public and private sectors are closely intertwined in this region, and a general lack of transparency can be a major obstacle to identifying and avoiding business corruption.

Climate: ❙ Extreme heat poses a major challenge to construction in the region, driving designers to create projects that include alternative solutions such as working

throughout the night or pushing for accelerated project schedules. Water scarcity is also a major concern, though recent efforts to promote green design and sustainable development could help alleviate some of the resource crunch.

Conservative Culture: ❙ Conservative policies in many countries, such as fully-covered dress for women and restrictions on alcohol and gambling, have created obstacles for the growth of tourism and education. In some locations, such as Dubai and Abu Dhabi, alcohol restrictions have been eased, though in other major markets, such as Qatar and Saudi Arabia, they remain.

Key MarKet driversMiddle East construction is driven largely by a unique combination of focused government planning and an enabling environment fostering a rise in iconic, cutting-edge construction projects. The key factors driving this regional activity include:

financial resources: ❙ Due to oil reserves, small populations and the concentration of wealth among a small portion of society, project financing and total costs are often virtually limitless. GCC countries have furthered this by enabling and attracting foreign investment, financing projects and encouraging expatriates to purchase real estate.

economic diversification: ❙ In an effort to diversify wealth built on diminishing oil supplies, many countries are investing aggressively in the construction of world-class residential and commercial real estate, educational facilities and tourism attractions.

regional transformation: ❙ Diverse investments are transforming the Middle East into a major player on the global stage, breaking down the previous barriers to the West and rebranding the Middle East as a hub of innovative, iconic construction activity. Updated visa policies and building codes and regulations are enabling an increase in global investors, tourists and residents in the region, which are spurring further market activity.

sustainability: ❙ As the Middle East gains global attention, there is mounting pressure for developers to take environmental and sustainability factors into consideration. Though slow, there is a growing trend toward green design and construction including efforts to maximize the region’s abundant sun as a renewable energy resource and a rise in to condensed, master-planned developments to promote sustainable lifestyles.

4

leader PersPectives: the role of Gcc Government leaders in market transformation

The dramatic transformation of the GCC countries into a global hub for tourism, finance and real estate investment in recent years has been promoted by the action and encouragement of local government leaders. In a regional market where the line is often blurred between public and private operations, this leadership is particularly influential in setting priorities and fostering a market environment that encourages innovation.

Leaders like Sheikh Mohammed Bin Rashid Al Maktoum, Emir of Dubai, have rearranged priorities by declaring “Dubai’s varied economic activities depend on a policy to decrease dependence on oil as the sole source of income,”1 a statement that played a critical role in bringing diversified investment to the top of the agenda. This approach has become visible throughout all of the GCC countries, with some leaders calling for aggressive real estate or infrastructure development and others emphasizing the importance of embracing sustainability, education and public-private partnership.

For many Middle Eastern countries, attracting and constructing world-class facilities for research, education and technology, as well as reducing the existing restrictions to visitors and business, are critical steps toward becoming leading global destinations and ensuring long-term growth. These priorities have been conveyed in speeches and addresses by leaders across every GCC country, fostering a region-wide movement that is turning the Middle East into a global hub of visionary and innovative construction projects.

Middle east market activity is transforming construction in the following key areas, which will be explored in the following sections of this report:

emergence of Master-planned ❙Cities: As the Middle East strives to attract global investors and new residents, master-planned cities are becoming visible throughout the region. Constructing entire cities in the desert provides the opportunity to experiment with innovative practices such as dense, multi-use planning, sustainable design and construction, and free-trade zones.

next-generation skyscrapers: ❙ Throughout the region, skyscrapers are going up that transform the very

nature of tall buildings, as well as the reputation of the firms and cities that build them. These structures are breaking boundaries in trends such as height, energy efficiency, iconic design and prefabrication.

Culturally-iconic institutions ❙and facilities: There is a growing emphasis on attracting a global population of residents and visitors with world-class institutions and facilities for healthcare, culture, religion and education. These projects feature innovative and iconic design, cutting-edge technology and partnerships with leading international architects and institutions.

luxury hospitality and ❙entertainment: Developers are driving tourism development by turning the Middle East into a one-stop location for affluent visitors from around the world. New large-scale hospitality and entertainment projects feature brand-name theme parks, luxury resorts, cultural attractions and waterfront development.

island developments: ❙ Driven by the desire to expand exclusive waterfront real estate and tourism, new and existing islands are being developed throughout the region. These projects are experimenting with innovations in iconic land design, community planning and exclusive tourism destinations.

major trend areas

5

the middle east: a reGional overview

a transforMing regional MarKetThe Middle East consists of a diverse group of countries reflecting a broad array of economic activity. Boasting a regional output of $1.9 trillion in 20082 and the world’s largest concentration of remaining oil reserves, this region represents a major market in the global economy.

Though much of the region’s economy has historically relied on oil wealth, recent economic growth in the Middle East has largely been driven by an effort to diversify investment into more reliable, long-lasting industries such as tourism and real estate. This activity began in Dubai, the smallest and most ostentatious of the United Arab Emirates (UAE), and has been adapted as a model for development in the other Gulf states and beyond.

defining the Middle east regionDue to its economic, social, political and geographical diversity, the Middle East can refer to several different countries or sub-regions. For the purposes of this report, the phrase includes the following key country groups:

gulf Cooperative Council (gCC): ❙Comprising the six largest economies in the region by per capita GDP, the GCC includes Qatar, UAE, Kuwait, Bahrain, Saudi Arabia and Oman, in order of wealth. Holding the majority of the region’s oil, these six countries are becoming major global economic players. The main focus of this report is on projects and trends in the GCC countries since they represent the regional hub of innovative construction activity.

north africa: ❙ Egypt and Libya also have growing economies, with rising activity in construction, tourism and higher education. They are often included as part of the Middle East due to similarities in governance, culture and economics.

other Middle east: ❙ Beyond the GCC and North Africa, other key countries in the region include Lebanon, Syria, Jordan, Yemen, Israel and Iran. Though these countries do not boast the same high levels of oil wealth as those in the GCC, there is noteworthy construction activity in each of these markets, and many are engaging in the trend of increased investment in tourism and real estate.

Source: IMF Global Outlook Database, April 2009

rebuilding nations: ❙ The war-torn countries of Iraq and Afghanistan are showing increased market activity due to an influx of rebuilding funds from international aid bodies like the World Bank, the United Nations and the U.S. Agency for International Development (USAID). Though these markets pose significant political risk, and they represent a critical piece of the regional market and a potential opportunity looking forward.

6

the Middle east and the gloBal finanCial CrisisAs in regional markets around the world, the impacts of the global financial crisis are evident throughout the Middle East. The fall in oil prices in mid- to late-2008 hit the region’s oil-exporting countries exceptionally hard, though the slowdown is expected to be similarly felt in non-oil-producing countries as well.3 The pressures of the sub-prime mortgage and related credit crises have also worsened the Middle East’s other previously favorable conditions, such as easy access to credit and liquidity, which have shifted dramatically with the mounting pressure of the credit crunch. In particular, explosive markets such as Dubai have experienced dramatic slowing. Growth figures for Dubai have been repeatedly revised downward as the local economy, driven to exorbitant highs in recent years by speculators and foreign investment, ground to a halt in early 2009. As of Spring 2009, the International Monetary Fund (IMF) expected the UAE’s economy to contract by 0.6% in 2009, following 7.4% growth in 2008.4

regional MarKet: Mixed foreCastsDespite weak spots like Dubai, the dip in the Middle East regional GDP is expected to be shallower than the downturn in global growth (see chart at far right). This could be due to a variety of factors, including the strong projected growth in markets like Qatar, which is expected to grow by 18% in 2009.

The regional forecast may also reflect the market correction that is occurring as a result of the widespread drop in property and materials prices, which is helping to offset exorbitant inflation rates.

The regional economy is also buoyed by continued government investment in widely neglected services such as municipal infrastructure, transportation and utilities.

workinG in the middle east: cultural considerations

Though the Middle East is increasingly opening its doors to global investors, working in this region still poses cultural considerations for many international firms. Each country and location is different, and many regional and local traditions have become increasingly flexible to accommodate international business and travelers. However, there are some key factors that should be addressed before conducting business in the region:*

Religion: ❙ The Middle East is predominantly Muslim, which impacts everything from finance (Islamic law prohibits charging and paying interest on loans and deposits) to the daily work schedule, often allowing for regular breaks for prayer. During the month of Ramadan, it is especially important to be sensitive to religious observances and avoid drinking alcohol in front of Arab counterparts.

Work Week and Concept of Time: ❙ Friday is the holy day for the Islamic faith, so the typical working week is Sunday through Thursday (though this does vary by location, firm type and individual preference). The Arab concept of time tends to be more flexible than in the West, and many meetings will start or end later than planned. Foreigners, however, should always be punctual.

Nonverbal Communications: ❙ Respect is extremely important in conducting business in the Middle East, and this is often conveyed through nonverbal cues. When exchanging business cards, for example, it is generally polite to receive it with the right hand and place it somewhere respectful. Also, Arabs tend to speak within a closer proximity than Westerners, and it can be considered rude to step back.

Gender Roles: ❙ Women traditionally have not been active in the workforce. Though this is changing, women working in the region tend to dress conservatively and, especially when meeting with Emirati men, wait to shake a hand until one is offered.

Professional Relationships: ❙ Relationships are extremely important in doing business in the Middle East. It is common to develop a personal relationship during or prior to conducting business in the region, and any gestures of hospitality should generally be accepted to avoid causing offense.

*Most of these considerations are common knowledge, and they vary across cultures and locations. For more information, see Communicaid’s overview Doing Business in the Middle East: Middle Eastern Social and Business Culture, available at www.communicaid.com

Source: IMF Global Outlook Database, April 2009

7

major trend area | emerGence of master-Planned cities

as countries strive to attract global investors and new residents, master-planned cities are emerging as a major trend throughout the Middle east. this model of planning—often featuring dense multi-use developments and free-trade zones for global businesses—is also gaining prominence with rising global trends toward green design, sustainable urban living and long-term economic viability of construction projects.

led by projects in the gulf, the Middle east has become a world leader in pioneering the concept of master-planned cities by combining natural advantages such as vast open space with large budgets and supportive government policies. this growing trend is driven largely by the desire to increase the population of more affluent residents and investors in the region, as well as increasing pressure on the petroleum industry and local governments to embrace sustainability.

New master-planned communities like Blue City in Oman, pictured here, are being announced throughout the region.. Image courtesy of Hill International.

development and living laboratories, support and build on the slow but growing priority of sustainability in this arid region.

living laboratories ❙ The incorporation of research and educational facilities in new communities enables ongoing monitoring and evaluation of new concepts and technologies. New schools such as King Abdullah University of Science and Technology (KAUST) in Saudi Arabia (see case study on page 17) and the Masdar Institute of Science and Technology (MIST)—both currently under construction—are dedicated to researching renewable energy, green design and technologies, and sustainable community development through the experiences of their own communities.

Key trends in Master-planned CitiesBuilding entire new communities on a large scale provides developers and construction firms in the Middle East with the opportunity to experiment with a range of new concepts in urban planning, sustainability and community construction and economic development. The major trends that are visible in master-planned cities throughout the region include:

financial districts and ❙free trade Zones Many new cities aim to attract global investors through special zoning that enables ownership, as seen in Jeddah Free Trade City in Saudi Arabia, and districts designated for financial activity, often featuring iconic skyscrapers, such as the Gate District on Al Reem Island in Abu Dhabi on page 8.

Multi-use planning ❙ Self-contained communities will provide all amenities that new resident families might need or desire, including commercial real estate, entertainment, cultural and institutional facilities. For example, Qatar’s Barwa City, which will border nearby Barwa Financial District, will feature community centers, wireless internet, a pedestrian bridge and housing for 20,000 families when it opens in 2010.

dense development ❙ Countering the recent trend toward sprawling development, master-planned cities bring back the concept of dense development that enables car-free transportation. Masdar City in Abu Dhabi, a $22 billion community planned on only six square kilometers, will feature strategic placement of buildings to enhance street shading, with a metro system below street level (see project overview on page 9).

sustainability ❙ An ideal model for sustainable construction and living, master-planned communities are pioneering new approaches to green concepts such as mass transit, water conservation and zero-carbon or zero-waste developments. Many of the other trends, such as dense

8

thouGht leader interview: frederic berGer, chairman of louis berger | on Masdar City as a Test Bed for New Innovations

PlAN ABu DHABI 2030: PROjECT OvERvIEW Objective: A regulatory framework aimed at turning Abu Dhabi into a world-class destination through strategic, large-scale and planned development.

kEy GOAlS:• Cutting-edge urban design• Protecting cultural assets• Fostering Arab/Muslim-based communities• Engendering interaction between citizens and their built environment

long-range planning and fraMeWorKs: plan aBu dhaBi 2030 Long-range urban planning frameworks, such as Plan Abu Dhabi 2030 (see box at right), are beginning to emerge as GCC cities work to ensure sustained economic and population growth. These strategies serve as a way for cities to endorse planned, large-scale development through regulatory frameworks and investment zones that help liberalize the historic restrictions on foreign ownership in the region.

The concept of community-focused development is at the center of planning for Abu Dhabi and is increasingly present in similar plans throughout the UAE. These plans are having a visible impact as master-planned communities crop up throughout the Middle East.

case study: SHAMS Abu Dhabi on Al Reem Island

Building on the priorities established in Plan Abu Dhabi 2030, the emirate is in the process of developing many of its over 200 islands into large, multi-purpose projects (see “Island Developments” on page 23). Some of these islands, such as Al Reem Island right off the shore of the capital city, are being developed as master-planned communities.

On Al Reem, local developer Sorouh Real Estate is in the process of building

SHAMS Abu Dhabi, a self-contained community that will feature 65 million square feet of residential, commercial, entertainment and institutional facilities. The project broke ground in March 2006 and is designed to house 100,000 residents. SHAMS will be home to eight towers including the iconic Tameer Towers, the green Sky Tower and the Gate District residential high-rises (see image at right).

Other key features include mixed-use facilities meant to support family lifestyles, such as a theater district, institutional facilities and 18 mangrove parks. A central park, complete with an air-cooling system, aims to attract year-round tourists by combating oppressive summer heat, a concept that has previously been applied cool beaches at area hotels. This approach provides a stark contrast to emerging

Construction broke ground on SHAMS Abu Dhabi’s financial Gate District, which is marked by these iconic towers, in 2006. Image courtesy of Hill International.

SHAMS ABu DHABI: PROjECT OvERvIEW location: Abu DhabiProject Area: 1.3 square metersCompletion: 2011Developer: Sorouh Real EstateProject Manager: Hill International

kEy FEATuRES:• Multi-use development including office, retail, healthcare and religious space• 22,000 luxury residences and 100,000 total resident capacity• 1-million-square-foot central park• Two new bridges to connect island to mainland

efforts to promote sustainability in other GCC projects, serving as a reminder that priorities in tourism growth and sustainability do not always match.

The innovation and lessons learned from projects like SHAMS will have far-reaching implications. “Today, you have to have multidimensional developments,” says Uzair Wassif, project manager at SHAMS Abu Dhabi for Hill International. “These types of developments will play a major role in future projects.”

9

thouGht leader interview: frederic berGer, chairman of louis berger | on Masdar City as a Test Bed for New Innovations

Masdar City, a six-square-kilometer development in abu dhabi, is pushing the envelope on master-planned cities in the Middle east by pioneering new innovations in sustainability, renewable energy, and green design and construction. frederic Berger, Chairman of the louis Berger group, project management consultants to the Masdar team, recently shared his insights on the groundbreaking project.

how will Masdar impact city construction in the Middle east and beyond?The Masdar initiative is a thesis. It’s a question: Can you build a six-square-kilometer new town that will have a zero-carbon footprint, be energy positive, produce more energy than it consumes, consume more black water than [it] produces…and try and do this in a way that will produce exportable, transferable technologies? These are the cutting-edge issues that are really trying to solve the problems of tomorrow.

how will this thesis be tested? [Masdar] is going to center itself on a university structure called MIST, the Masdar Institute of Science and Technology, that will team with MIT to grant only Masters and PhD degrees. MIST will be linked to an R&D program focused on renewable energy and other energy initiatives, some of which don’t even exist yet.

The [Adrian Smith + Gordon Gill– designed] Headquarter building will be a testing ground for all the new devices that are created by the R&D program. They want to see what component [of energy savings] is coming from the new products, so they can modify those products to make them user-friendly and move those innovations [into the market]

in a non-culture-dependent way. They are also looking at the savings from changing the behaviors of the inhabitants.

how do you change human behavior to impact energy savings?They’re trying to figure out how to design the building to encourage people to walk up a floor and down two. Instead of half a dozen elevators easily available with lovely marble fronts, maybe you have the service elevator so that it’s there when you need it, but you’ve got marvelous Gone with the Wind kind of staircases that encourage people to walk up and down. You could [also] make the landings between floors large enough that you could even have tea and coffee service there. It’s a genuine experiment.

Why are these sorts of experiments happening in the Middle east rather than the united states?There’s a lot of political energy in the [United] States that can’t be controlled in the same way that it’s controlled in a place like the Emirates. The [creators] of Masdar worked on it for probably five years before they were able to sell it to the [government leaders], but once

Masdar City occupies six square kilometers in Abu Dhabi. Image © Masdar.

MASDAR CITy: PROjECT OvERvIEW location: Abu Dhabi Developer: Abu Dhabi Future Energy CompanyProject Area: 6 square kilometers Master Planners: Foster + PartnersTotal Cost: $28 billionPlanned Population: 50,000 residents; 40,000 daily visitors

INNOvATIvE FEATuRES:• Designed to be a self-contained, zero-carbon, zero-waste and no-car city• Strategic shading of sidewalks to encourage walking in extreme heat • Renewable energy drawn from wind farm, a variety of photovoltaic technology and concentrating solar power (CSP)• Cooling provided by deep geothermal borehole and evacuated thermal tubes• Waste streams to be sorted, recycled and reused as compost and for waste-to-energy plant• Special Economic Zone to draw in world-class institutions and investors

they sold it, it was sold. And then it goes ahead. You can’t do that in the U.S. I just don’t think that the political will is there.

I think [Masdar] is going to be very seductive, because of what it’s trying to do and because it’s funded. They’ll have no trouble encouraging some of the best and the brightest researchers in the area to come in. I think it will be an incredibly multicultural, multinational place.

10

fillinG the infrastructure GaP

as the Middle east construction market evolves, a critical challenge facing developers is the dramatic increase in demand for infrastructure, ranging from roads and transport to electric, water and sewage utilities. in this region, the challenge to ramp up and maintain infrastructure is exacerbated by an unprecedented scale and pace of new construction. the effort to bridge the infrastructure gap in the Middle east faces major obstacles including management and financing of infrastructure projects, which is further burdened by the pressure of the global financial crisis.

years of unregulated, unplanned urban growth in places like dubai have led to an imbalance in development, with the plethora of new high-rises growing faster than the sidewalks, roads and even sewage and waste-management systems needed for the related boom in urban population. however, market data show that countries in the region are in fact investing in infrastructure projects. in 2009, Gcc countries are forecasted to invest over $133 billion in infrastructure alone.5

despite this investment, a recent study by ernst & young found that countries in the region are still struggling to fund enough infrastructure projects to meet growing demand.6 Public spending in Gcc states has fallen, and governments are looking at ways to boost private investment for infrastructure projects. this has been done through channeling funds into independent utilities providers, encouraging investment in infrastructure and private equity funds, and initial public offerings (iPOs) of state-owned infrastructure companies.7

puBliC-private partnerships*Public-Private Partnerships (PPPs), which have gained prominence around the world, have not been widely used

in the region, partly due to cultural and regulatory obstacles. The lines between public and private entities in the region are often blurred by Sovereign Wealth Funds (SWFs) and historic relationships between privately owned businesses and government.8 However, the PPP model is beginning to be tested in projects like the Dubai Metro and other major infrastructure projects in Saudi Arabia and Oman.9 Depending on the success of these projects, and as countries in the region continue to feel the pressures of the global financial crisis, PPPs will likely become a more common solution in the Middle East.

planning and MaintenanCe The planning, maintenance and upgrade of infrastructure remains a troubling oversight in Middle Eastern community-development projects. Though many projects do include provisions for new roads and utility stations, there remains a disconnect between developers and municipalities in determining who will manage, operate and maintain the infrastructure once the new community becomes operational.10

*Public-Private Partnership is an increasingly common mechanism for financing infrastructure projects. See Public-Private Partnership: Accelerating Transportation Infrastructure Investment, McGraw-Hill Construction, May 2009.

The first line of Dubai’s Metro is expected to open to riders in late 2009. Image courtesy of Catlin O’Shaughnessy.

Recent developments such as the incorporation of infrastructure planning into Abu Dhabi’s Plan 2030 and Dubai’s Strategic Plan 2015 suggest that the issue may be rising in priority. However, these gestures are paralleled by events like the downsizing of the Abu Dhabi Municipality staff in the wake of ambitious efforts at population growth. On the developer side, there is a lack of management as well. Though six facilities-management companies have been established in Dubai for overseeing municipal infrastructure in new communities, there are concerns such as the scope and capabilities of these new players, as well as a lack of support from the legal framework for civil infrastructure, which may undermine the effectiveness of these efforts.11

leader PersPectives: community“[Bahrain’s] national planning development strategy aims to ensure decent housing for

all, provide harmony between economic development and proper use of land, in addition

to providing modern infrastructure.”

dr. juma ahmed al ka’abi, Municipalities and Agriculture Minister, Bahrain

11

major trend area | next-Generation skyscraPers

as the Middle east, and the gCC in particular, transforms into a global leader in innovative and iconic construction, skyscrapers are going up throughout the region that transform the very nature of tall buildings as well as the reputation of the firms and cities that build them. these structures are breaking a variety of boundaries, claiming superlatives as the tallest, greenest, fastest, and most innovative and iconic skyscrapers in the world.

though the majority of the region’s skyscrapers have been built or designed for sites in dubai, the tall-building boom is spreading throughout the region, driven by the focused ambition of gulf state governments intent on becoming world leaders in real estate and positioning their cities to attract attention from global investors and tourists.

the emergence of this trend has also fostered a competitive environment for architects to explore new limits in design and for contractors and engineers to speedily make those ambitious plans into a reality. for all firms working in the region, the opportunity to work on attention-grabbing iconic skyscrapers helps improve competitive positioning to attract top talent and new work, which is especially critical in a down economy.

a neW paradigM: the daWn of the starsCraperToday’s towers are transforming the traditional model of square, static structures, engendering the next generation of design and engineering. The shifting marketplace is also fostering a new form of competition that will lead to further innovation throughout the region. This new era in tall-building construction has been referred to by Dr. Sadek Owainati, an engineering consultant based in Dubai, as the dawn of the “starscraper.”

Designing and executing such super-tall buildings will require vast achievements in innovative engineering and construction. As buildings like the Burj Dubai open for business, the operational experiences of these next-generation skyscrapers will have powerful influences on the design industry. “Certainly new techniques and original technologies will be borne out of the experience of constructing these super-tall buildings,” says Owainati.12

Doha’s Al Bidda Tower was designed to resemble a twisting tornado. Image courtesy of Hill International.

leader PersPectives: iconicism“Dubai is already home to people from different nationalities and cultures who live in friendship and peace. And I believe we can deepen this respect and mutual understanding if we work together to achieve something spectacular and meaningful.” sheikh mohammad bin rashid al maktoum, Emir of Dubai

12

Key trends in sKysCraper design and ConstruCtion With the push for iconic, record-breaking skyscrapers in the Middle East, firms working in the region have been able to put old and new technologies to the test in unprecedented ways. Major innovative trends include:

historic heights ❙ The Middle East is the latest region to host the tallest building in the world with the topping out of the Burj Dubai. The building stands at an undisclosed height of over 800 meters and has led to the announcement of a number of ever-taller designs planned throughout the region such as the Infiniti Tower and local developer Nakheel’s 180- to 229-story Tall Tower. However, the global financial crisis has put most of these ambitious plans on hold, and the Burj Dubai is likely to retain its title for several years at least.

iconic design ❙ Developers are seeking iconic designs for new skyscrapers to give the Middle East’s emerging cities distinctive, world-class skylines. The Burj Al Arab in Dubai stands on its own island and resembles a sail in the wind, while the 215-meter Al Bidda Tower in Doha was inspired by a twisting tornado (see image on page 11).

renewable energy ❙ Reflecting the growing pressure to mitigate the environmental impact of the region’s rapid construction, some owners and designers are experimenting with renewable-energy technologies in skyscrapers. By building tall and utilizing wind or solar energy, green skyscrapers can minimize their carbon footprint while

vertically maximizing commercial and residential space. This concept has been pioneered by the Atkins-designed Bahrain World Trade Center (see case study on page 13), which features three 275-kW turbines that were commissioned in April 2008, and the design for the upcoming Dubai International Financial Center (DIFC) Lighthouse Tower, which incorporates solar and wind-power technologies (see image above).

rapid Construction ❙ Given the frenetic pace of construction and generally limited interference from planning authorities in markets like Dubai, the design and construction of skyscrapers have been completed at record speeds. In some cases, pace has been prioritized over infrastructure or even quality. However, with the slowing of the market due to the global financial crisis, this priority is likely to shift.

David Fisher’s rotating Dynamic Tower would be prefabricated off-site to decrease on-site labor costs. Image courtesy of Dynamic Architecture.

prefabrication ❙ Off-site pre-engineering and modularization of building components is a newly emerging trend in the Middle East. This technique offers a logical solution to several challenges, including fast pace of projects, the lack of skilled local workers and the high risk associated with skyscraper projects.It is likely to grow if demonstrated successfully. Some projects have incorporated prefabrication, such as Italian architect David Fisher’s concept for the ambitious rotating Dynamic Tower, which is designed to feature 80 prefabricated floors assembled in Italy. Fisher’s pre-assembly plans would increase construction speed while decreasing risk and on-site labor costs (see image below). Each floor is designed to rotate at varying speeds, aimed at making the tower the world’s first “building in motion,”13 never taking the same form twice. Fisher’s design also incorporates 79 horizontal wind turbines between each floor and solar panels on each rotating roof to provide 100% of the building’s energy.

Planned Projects like the lighthouse Tower in Dubai hope to earn lEED certification. Image courtesy of Atkins.

13

“In plan and elevation, the building has been sculpted by the wind,” says Killa. With elliptical floor plans, the towers are linked by three bridges spanning over 30 m with a 29-m-dia wind turbine at their centers. The towers are orientated to funnel wind into the turbines, raising its speed. Shaped like aerofoils, the towers create negative pressure on the leeward side, accelerating the wind even further. Tapering as they rise, the towers reduce this funnel effect, countering the increasing wind speeds with height, and making conditions around the turbines roughly the same.

“This has never been done before, so I had to find somebody to help us,” says Killa. Several months of searching led to a Danish team of the design firm Rambøll Denmark A/S and turbine

manufacturer Norwin A/S engineering the three bridge/turbine assemblies. Rambøll and Atkins’ global engineering team identified and resolved numerous potential technical problems, says Killa. Among the most serious was vibration, cured by inserting rubber bearings at the bridges’ ends. Costing 3% of the building’s undisclosed total, the generating system has a payback period that could be as little as 2.5 years, hopes Killa. If Bahrain’s embargo

case study: Bahrain World Trade Centre, Manama, Bahrain

A deep understanding of wind behavior, gained from 25 years of sailing, prepared architect Shaun Killa to successfully promote the largest-ever integration of electricity-generating turbines into a building, the Bahrain Word Trade Centere.

The three 275-kW wind turbines were commissioned in April 2008, and were officially certified by the Bahrain’s Electricity Distribution Directorate in January 2009. They are now running on auto-mode, and are providing 11% to 15% of the tenants’ energy demand. The undisclosed developer grabbed the chance of owning the uniquely energized, 240-meter-tall twin towers offered by its architect, says South Africa-born Killa. He heads the 150-person architecture unit of Atkins Middle East Ltd., Dubai, which handled the project’s total design.

The Bahrain World Trade Centre has become a new icon for Bahrain. Image courtesy of Atkins.

on exporting to the grid persists, surplus power generated by the turbines in non-working hours may produce chilled water instead, he says.

Bahrain World Trade Centre has triggered a local debate about alternative energy, demonstrating that turbines are neither dangerous nor noisy, believes Lars Thorbek, Rambøll’s project manager. The turbines also enhance the building’s prestige, adds Blair Hagkull, managing director of leasing agent Jones Lang LaSalle MENA, which is not involved in the project. “In a region of iconic development, the [building] has achieved what all others have strived for: distinctive architecture with truly sustainable features,” he says.

BAHRAIN WORlD TRADE CENTRE: PROjECT OvERvIEW location: Manama, BahrainHeight: 240 metersProject Area: 120,000 sq. m.Completion: 2009Project Team: Atkins Middle East, Rambøll Denmark A/S, Norwin A/S

INNOvATIvE FEATuRES:• Nautical-inspired design with two sail-shaped buildings• Three wind turbines providing 11-15% of building energy• Turbines placed between buildings to funnel ocean breezes and accelerate wind velocity• Tapered tower design and placement of turbines maximizes wind velocity

By Peter Reina, Reprinted from Engineering News-Record, January 12, 2009; Updated May 5, 2009.

14

thouGht leader interview: GeorGe efstathiou, managing designer of the burj dubai, skidmore, owings & merrill (som) | on Building Skyscrapers in the Middle East

skyscraper construction in the Middle east is unlike anywhere else in the world. george efstathiou, managing designer of the Burj dubai for Chicago-based soM, recently shared his experiences working on the world’s tallest building.

What sets the Burj dubai apart from other skyscrapers?The height itself really sets it apart from anything else. The components of the building, when you really talk technology, are pretty much standard building components put together in a customized way.

[The design] gives proper respect to the physical forces of the building, which include gravity, wind, the heat in the desert climate, and also getting people up and down the building. Those are really the kinds of things that set it apart from anything else we’ve done.

how was your work on this project different from other skyscrapers you have worked on at soM? Dubai has a goal of marking its place in the world. [Typically], you have to go through a fairly rigorous process to get a building like this done. However, in Dubai this was easily approved by the highest levels in government. We had support from all of the city departments and the utility companies to make that work. Cooperation from the city side made life a little bit easier as we designed the building

[The Middle East market] has a totally different way of doing things—the contracts are a lot different and there are certain other things that are less of an issue as well. They tend to be less litigious so the risks there are not as great from a legal standpoint, but from a

relational standpoint, they are absolutely key to maintain performance.

how might the Burj dubai impact construction of tall buildings around the world?I think that it’s going to have a big impact on the quality of architecture in general. The quality of the [curtain] wall and the workmanship are much better [than other tall buildings in Dubai], and that is coming from the detailing we put in there. This takes it up a couple notches in terms of quality, I think.

do you anticipate that this shift toward higher quality will take place throughout the regional construction market?Yes, I think that moving forward the focus is shifting from height to quality. You will see the quality of developments from a real estate standpoint becoming greater too. There will be a lot more thought given to buildings and the use of buildings now.

When I first came to the Middle East maybe six or seven years ago, everyone was trying to make a mixed-use tower no matter how tall it was. You would always see them putting in a hotel, residential

At over 800 meters tall, the actual height of the Burj Dubai remains a secret. Image courtesy of Harvey Bernstein

BuRj DuBAI: PROjECT OvERvIEW location: Dubai, uAE Owner: Emaar PropertiesProject Area: 5,000,000 square feet Completion: 2009Total Cost: $684 millionProject Team: Skidmore, Owings & Merrill llP; Turner International; Samsung Engineering & Construction Corporation; Arabtec Construction llP

INNOvATIvE FEATuRES:• One of the largest condensate-recovery systems in the world• Active stack effect control, aimed at minimizing energy loss• “Y-shape” structural concrete design to reduce wind forces on the tower• “Buttressed Core” structural system, by which each wing buttresses the others via a six-sided central core or hexagonal hub

and office space in really small buildings. It doesn’t make sense. You need a certain size building to do that. I think you can see more thought in the quality of building going on and also what comes with that—the competition becomes greater. Now that the market has slowed, you will see people paying more attention to the quality of design and the quality of construction.

15

major trend area | culturally-iconic institutions and facilities

as the Middle east increasingly transforms into a global destination for investment and tourism, there is also a growing focus on institutional and cultural facilities to serve and attract a growing population of educated, literary residents and visitors. in many locations in dubai, the rapid, unplanned construction once seen has been replaced by an emphasis on the more balanced creation of cities with world-class facilities for healthcare, museums, religion and education.

reflecting the gCC countries’ tendency to build the best and the biggest, the institutional facilities being developed in the gulf region are beginning to incorporate a range of distinctive and innovative traits that are changing the nature of institutional construction in the region and around the world. using creative tactics such as strategic global partnerships and cutting-edge technology, cities in the gulf, and increasingly throughout the Middle east, are emerging as top international cultural, educational and residential destinations.

Key trends in institutional and Cultural ConstruCtionThe major innovative trends characterizing construction and development in this building sector include:

global partnerships ❙ As demonstrated by Abu Dhabi’s Tourism Development and Investment Company (TDIC), developers are using ambitious and innovative partnerships with world-renowned institutions to establish a brand as an international destination. Abu Dhabi’s Saadiyat Island has attracted such names as the Louvre (the first time this name will be used outside of Paris) and the Guggenheim to draw attention. Meanwhile, global educational facilities such as New York University and the Massachusetts Institute of Technology (MIT) are lending their reputations to other developments in the region.

Abu Dhabi’s Saadiyat Island Cultural District will feature names like the louvre and the Guggenheim, plus designs by jean Nouvel and Frank Gehry. Image courtesy of TDIC.

leader PersPectives: education“We seek a quality education system [which] can lead kuwait in line with scientific and technical development as an active participant in advancement of the modern era.” sheikh sabah al ahmad al jaber al sabah, Emir of Kuwait

thouGht leader interview: GeorGe efstathiou, managing designer of the burj dubai, skidmore, owings & merrill (som) | on Building Skyscrapers in the Middle East

16

World-renowned architects ❙ In a similar vein, leading architects have been hired to bring global prestige to the design of the region’s cultural institutions. Qatar’s government hired Chinese-American designer I.M. Pei to give Doha’s new Qatar Museum of Islamic Art an iconic look, while Saadiyat Island has famously attracted Frank Gehry, Jean Nouvel, Tadao Ando and Zaha Hadid. The worldwide publicity these projects have attracted will likely inspire other similar endeavors throughout the region.

Culturally-iconic design ❙ As the landscape of the Middle East transforms, some local leaders and developers recognize the importance of preserving the region’s cultural heritage. Some innovative projects have addressed this through designs that reflect symbols and iconography of Middle East culture in the construction of new institutional facilities. This emerging trend is particularly visible in Abu Dhabi’s upcoming Danat Al Emarat (DAE) Women’s and Children’s Hospital, which was inspired by the flowing veils of Arab women (see project interview and case study on pages 18-19).

sustainability ❙ As the core of community activity, institutional facilities are logically adopting sustainable features ranging from energy conservation measures, as seen in Kuwait’s Central Bank, to sustainable community efforts at the American Universities of Beirut and Cairo.

The Central Bank of kuwait incorporates solar collection and double-glazed windows. Image courtesy of HOk.

The Grand Mosque features the latest in satellite and energy-saving technology. Image courtesy of Harvey Bernstein.

innovative technology ❙ In a combined effort to modernize Middle Eastern institutional facilities while also serving a growing population, projects such as the Sheikh Zayed Bin Sultan Al Nahyan Mosque incorporate the latest in satellite systems and energy-saving technologies. Employing cutting-edge construction and research technologies also helps in the effort to attract top minds and visitors from around the world.

research facilities ❙ Leading research facilities are incorporated in many of the new institutional facilities in the Middle East, leveraging global partnerships, specialized institutions and the latest technologies to attract top researchers and students to the region. This approach is being pioneered at Masdar City’s MIST research institute, healthcare projects such as the DAE Women’s and Children’s hospital, and other educational institutions such as Saudi Arabia’s King Abdullah University of Science and Technology (KAUST) (see case study on page 17).

17

Given the region’s extremely arid climate, water conservation is of critical importance on the project. Stormwater and condensation are captured and stored, and gray water is used for irrigation of the native vegetation. The coastal campus uses seawater and includes several coral and mangrove ecosystems, which will be protected and used for future study by researchers.

The project team focused on using as many local materials as possible, especially those with recycled content. French contractor Oger International worked to find local sources and encouraged the creation of new local sources for materials. Building Information Modeling (BIM) was used to

help reduce construction waste, at least 95% of which will be recycled or donated for future use.

Among the greatest challenges in bringing the design to reality was the project’s aggressive schedule. The entire project, including planning, design and construction, is scheduled for completion in 2.5 years, nearly half the time HOK anticipates it would take for traditional delivery of a campus of its size.

Driven by a mission to usher in a new age of scientific achievement in the Kingdom of Saudi Arabia—particularly in the area of alternative energy—the King Abdullah University of Science and Technology (KAUST) is set to open its doors in September 2009 as a model of sustainability for students, faculty and the region at large.

HOK of St. Louis designed the 6.5-million-square-foot, 26-building campus to achieve USGBC LEED Platinum certification—a daunting task given the area’s harsh climate and limited existing resources for green construction. The 8,900-acre campus sits on the shore of the Red Sea at Thuwal, 80 kilometers north of Jeddah.

Despite intense climate challenges, the campus is designed to realize 40% energy savings, plus additional savings created by renewable energy sources. The university buildings, which span 4,000 acres of the campus, were oriented to limit eastern and western sun exposure and clustered close together to allow for shading between adjacent buildings.

case study: king Abdullah university of Science and Technology (kAuST), Saudi Arabia

Core buildings at kAuST are slated to open in September 2009. Image courtesy of HOk.

Saudi Aramco, HOK and Oger established a very integrated design-build team to expedite decisions. A total of 800 designers, engineers and planners worked on the project. HOK used 300 people in 11 offices in North America and Europe. At the height of construction, nearly 25,000 laborers were on-site. The core of the four research buildings will open in September 2009, with 20% to 30% of lab space occupied at opening. A town is also being built to accommodate the approximately 20,000 people expected to live in the campus community. In addition to constructing homes, crews are building schools, retail centers, hotels and amenities such as a golf course, yacht club and marina.

kING ABDullAH uNIvERSITy OF SCIENCE AND TECHNOlOGy (kAuST): PROjECT OvERvIEW location: Thuwal, Saudi Arabia Owner: Government of Saudi ArabiaDesigners: HOk (St. louis, MO) Project Area: 8,900 acres Construction Start: july 2007 Occupancy: 20,000 residentsCompletion: Core buildings in late 2009

SuSTAINABlE FEATuRES:• Sustainable Features:• 40% energy savings plus 8%-10% renewable energy• Photovoltaic and solar thermal roof panels, solar farms on open land• Natural ventilation and low-velocity HVAC system• Comprehensive stormwater collection, water treatment and conservation systems• Locally sourced building materials• 95% construction waste recycled• Dense construction to enhance shading

Water is prominently featured throughout the design, which includes stormwater collection, water treatment and seawater. Image courtesy of HOk.

18

thouGht leader interviews: danat al emarat women’s and children’s hospital, abu dhabi, uae, Majd Abu Zant | Chief Development Officer for united Eastern Medical ServicesDr. Emanuel Mikho | vice President and Director of Healthcare-Middle East, HkSEnrique Greenwall | lead Designer, HkS

What inspired the cultural design of the building?greenwall: We wanted to pay tribute to women in the Middle East. There is a certain degree of mystery about women in that area of the world, and we wanted to dispel that notion. One of the most recognizable features is the flowing veil, but we felt that [it’s] what lies behind the veil that was extremely important.

We wanted to [convey] transparency, so we felt that texture played a major role. This concept was incorporated with a metal skin which will behave like a solid element during the daytime and morph into a lamp-light quality at nighttime, partially revealing the inside.

as owners, what drove ueM to undertake a high-profile project like this for your first building? Zant: Abu Dhabi is [now] operating on a 100% private health-insurance platform.

To compete in this environment, you need to deliver something special since the people have so many choices and price is not the driver anymore. You need to raise the bar to be able to attract clients to your facility.

This hospital is indeed our flagship project. We wanted a facility which looks

Danat Al Emarat is the first culturally iconic hospital structure in the Middle East. Image courtesy of HkS.

good but also operates very efficiently and is able to deliver a good return on investment to the investors and the owners. We are the only hospital in the private sector in Abu Dhabi to be designed and managed by an international firm of such high caliber as HKS. This concept is brand new [for the Middle East healthcare market].

inspired by the very population it is intended to serve, the danat al emarat (dae) Women’s and Children’s hospital represents an innovative effort to bring world-class design and five-star amenities to the Middle east’s healthcare sector. the building, designed by dallas-based architects hKs for client united eastern Medical services (ueM), pays tribute to the femininity, beauty and mystique of women in the Middle east.

representatives from the project team recently shared their insights and experiences on the groundbreaking project.

19

for hKs, as an american firm working for the first time in this region, how was this project different from others you’ve designed or managed? Mikho: One important aspect was the readiness of the client and the client team to accept all the ideas put forward to them. They were ready to watch, they were ready to hear, they were ready to discuss and accept new ideas in design on every level, which was really part of what you see now as a landmark in architecture and healthcare. We were given sort of carte blanche to really innovate, to design and provide anything we would like, of course with the approval of the client. So by acting as one team, UEM and HKS, we were always sharing ideas, always accepting others’ ideas, and the outcome was this beautiful design.

have you seen any impact from this project on other business in the region?Mikho: People seem to recognize [DAE] as something they want. They want the same sort of attention to detail, so it has opened quite a few doors in the UAE and hopefully soon outside the Emirates. We’ve had some good calls from Oman, Qatar, and Saudi Arabia.

DANAT Al EMARAT (DAE) WOMEN’S AND CHIlDREN’S HOSPITAl: PROjECT OvERvIEW location: Abu Dhabi, uAE Owner: united Eastern Medical ServicesDesigners: HkS Architects, Inc. (Dallas, TX) Size: 671,000 square feetOccupancy: 1260 beds Cost: $205 millionCompletion: 2011 INNOvATIvE FEATuRES:• Five-star hospitality amenities including valet, concierge and spa • 22 VIP and Royal suites with separate entrances, to accommodate Abu Dhabi’s wealthiest clientele• Materials and interiors designed to create a soothing atmosphere specifically for childbirth • Top-line technology to treat high-risk pregnancies • Green roof with indigenous, drought-resistant vegetation core or hexagonal hub

how is institutional construction different from other sectors in the Middle east?Zant: This sector has a certain element of sustainability, so projects involving social infrastructure, such as education and healthcare, are able to weather the storm. And we’ve seen in this particular financial crisis that many of the organizations that were not as affected by this downturn were related to healthcare services. For DAE, we also wanted this project to become the center of the community. Maternity, delivery,

birthing is more of a celebration and not so much an illness, so we actually wanted to invite the community into this wonderful place and into this beautiful environment to celebrate life.

This sector has a certain element of sustainability… so [institutional projects] are able to weather the storm.

“”

Suites at DAE are designed to be light and reflective of the joyous occasion of birth. Image courtesy of HkS.

20

major trend area | luxury hosPitality and entertainment

the diversification efforts of the gCC are perhaps most visible in the ambitious and creative hospitality and entertainment projects in these countries and increasingly in other parts of the Middle east region. as developers strive to attract global visitors to previously remote countries, they are forging partnerships with brand-name leaders in entertainment such as formula one, universal studios, dreamWorks and MgM to transform the Middle east into a one-stop international destination for visiting families.

in dubai, attractions such as the hotel atlantis and the upcoming seaWorld and Busch gardens are drawing in visitors, as are large-scale projects like the expansive dubailand, expected to become the world’s largest theme park at three billion square feet. the project was envisioned by dubai’s ruler, h.h. sheikh Mohammed bin rashid al Maktoum, to position dubai as a family-friendly destination, with features such as six flags, dubai golf City, the 3.4-million-square-foot spa compound Beautyland, and islamic Culture and science World.14

though many of these projects have experienced delays due to the financial climate in dubai, similar projects are appearing in other regional locations such as Qatar, egypt and abu dhabi.

Key trends in entertainMent and hospitality The major trends in entertainment and hospitality construction include:

Brand-name entertainment ❙ Similar to the institutional projects described on pages 15-19, entertainment and hospitality projects in the Middle East are gaining a competitive edge in the tourism market through strategic partnerships with leading brand names. For example, Oryx Holdings’ $275 million Qatar Entertainment City was developed in partnership with Six Flags as one of the American theme park company’s first overseas projects. The 50,000-square-meter theme park is set to open in 2012.15 Yas Island, off the coast of Abu Dhabi, will feature a Formula One racetrack and Ferrari theme park (see project case study on page 25).

luxury hotels ❙ Throughout the region, leading international hotel groups are opening flagship locations. In Sharm El Sheik, Egypt, for example, Four

Plans for the 3-billion-square-foot Dubailand include Six Flags and a golf course. Image courtesy of Halcrow.

leader PersPectives: tourism“We have a strong belief in the importance of the tourism sector, since it is an emerging industry at the international level, and because God has bestowed our country with …essential elements, that makes it a favorable tourist destination in the region.” sultan Qaboos bin said, Sultan of Oman

Seasons and MGM have recently invested in new luxury projects to captured the influx of tourism and business travelers to this scenic city overlooking the Red Sea. Similar investments are occurring in Dubai, Abu Dhabi and Bahrain.

Cultural Modifications ❙ The translation of global entertainment and hospitality venues to the conservative Middle East has required creative changes and solutions. Though Dubai and Abu Dhabi have passed legislation allowing alcohol consumption at hotels, projects in other locations such as Qatar, Kuwait and Egypt have had to eliminate alcohol and gambling (see MGM case study on page 21).

island developments ❙ The region’s growing trend of developing new and existing islands has centered on entertainment and hospitality venues. For more details on this trend, see the “Island Developments” section on pages 23 to 26.

21

points out. So while the resort will include alcohol-free rooms and zones for religious observation, it will not feel overwhelmingly geared to Muslim guests. “We have to give everyone a sense of place without being too heavy on a particular way of life. It’s a real blend so that individuals with different requirements can enjoy the resort on their level.”

MGM Sharm El Sheikh stresses the individual experience architecturally as well as programmatically. A majority of guests will occupy freestanding one-unit bungalows that measure about one and a half times the size of a Western guestroom. Each of these mini-villas incorporates layers—entry courts, covered patios, bathrooms that open to protected gardens, full-size pools—and enjoys unobstructed views to the water.

If Saint Tropez were combined with Davos, the result could be Egypt’s Sharm El Sheikh. Located near the southern tip of the Sinai Peninsula overlooking the Red Sea, the scenic city with its almost constant dry warmth attracts a range of visitors, including political leaders who have held several peace conferences there. Since the Sinai Peninsula returned to Egyptian control in 1982, the government has actively promoted development in Sharm El Sheikh, sometimes assuming the role of development entity, much like members of royal families do in other Middle Eastern states. Construction and visitation figures have increased exponentially.

While attending peace meetings and similarly high-profile events in Sharm El Sheikh, participants have often spent working and leisure hours at the Four Seasons resort completed by HKS in 1999, says Nunzio DeSantis, executive principal and director of hospitality of the Dallas-based design and engineering firm. Eight years after the opening of Four Seasons, the Egyptian tourism agency, acting as developer, tapped HKS to design the forthcoming MGM Mirage resort called Bellagio Sharm El Sheikh. Preparation of the steeply graded site is underway, with the property set to open in 2011.

The 170-unit Bellagio Sharm El Sheikh will be one of that company’s first resorts that does not include a gaming component. Yet the absence of gambling is not a response to Sharia law, but rather MGM’s attempt to broaden its image. “The project is designed around an international client,” DeSantis also

case study: MGM Sharm El Sheik, Egypt

The design of MGM Sharm El Sheikh incorporates traditional Arabic features. Image courtesy of HkS

A small number of rooms will be located in three-story buildings that hug the 136-acre site, ostensibly creating a boundary that “turns our backs to the neighbors and really focuses on the environment and controls its sensuality,” DeSantis says. Occupants of these larger buildings also will be afforded privacy, thanks to staggered facades that prevent neighbors from peering on adjacent balconies, for example, and several infinity pools that replace a large common pool. Of these secluded features DeSantis says, “We’re talking about some of the most significant guests in the world, people who don’t really want to mix with others.” Throughout, terraced hardscaping and gardens will resolve the gradient, with water features cascading toward the seashore.

22

thouGht leader interview: lee tabler, ceo | of Abu Dhabi’s Tourism Development and Investment Company (TDIC)

Capitalizing on abu dhabi’s natural resource of over 200 islands positioned along its shoreline, the government of the uae’s capital city has invested in a variety of innovative tourism projects. Many of these projects are overseen by the privately owned tourism development and investment Company (tdiC), a development arm of the abu dhabi tourism authority.

TDIC is integral to the emirate’s strategic growth strategy as outlined in Plan Abu Dhabi 2030, which “focuses on creating a dynamic, diverse economy, which will see over time an empowered private sector, a sustainable knowledge-based

TDIC’s Desert Islands development includes luxury offerings such as this resort and spa, which opened in Fall 2008. Image courtesy of TDIC.

economy, a transparent regulatory environment, the development of industrial sectors, and first-class residential and tourist infrastructure,” according to TDIC CEO Lee Tabler.

Boasting a portfolio of over 14 major projects just three years after its inception, TDIC is sponsoring a range of mixed-use urban developments, business tourism centers, waterfront resorts and cultural districts. Similar to the large-scale entertainment projects throughout the region. TDIC is leveraging strategic partnerships with globally recognized brands to make Abu Dhabi “an international destination of distinction,” and deliver 2.7 million hotel guests per year by 2012.

TDIC’s mixed-use, cultural tourism projects are expected to transform this traditionally quieter Emirate city into a sophisticated rival to its more ostentatious neighbor, Dubai. Unlike its sister Emirate, Abu Dhabi’s plans appear to be progressing. “Despite the global economic downturn,” says Tabler, “all our current projects are still on track.”

TDIC is leveraging strategic partnerships…to make Abu Dhabi ‘an international destination of distinction.

“”

23

major trend area | island develoPments

running parallel to the race to reach new building heights is an equally dramatic effort to create new lands in the Middle east. launched in 2001, the distinctive palm-shaped palm islands were designed to emulate the palm tree, which is one of the major symbols of the uae. this project turned the global spotlight on dubai’s development and served as a precursor for the dramatic growth yet to come in the region.

driven by the desire to expand the uae’s waterfront property and to reinvest the country’s oil wealth in real estate and tourism, the concept of creating islands as high-end tourism and residential destinations has spread rapidly. Beyond dubai’s ambitious plans to increase its shoreline from 42 to 972 miles (see image above), other efforts at land reclamation and developing existing islands into hospitality and tourism destinations are planned throughout the region.

Key trends in island developMentsIsland creation and development has taken off in the UAE and increasingly throughout the Middle East region. Major trends in these construction projects include:

high-end residential property ❙ As part of the larger drive to diversify oil wealth by investing in real estate, the creation of new islands provides prime waterfront residential property which can be sold at premiums to high-end investors and residents from around the world. The 1,730-

Government-owned Nakheel Properties, Inc. now has seven projects underway to increase Dubai’s waterfront real estate. Image courtesy of Nakheel Properties, Inc..

acre Palm Jumeirah, Dubai’s first new island to open for business, sold its 80,000 residential villas and apartments within 72 hours of release in January 2003, five years before the island was even complete. Developer Nakheel Properties hopes Palm Jebel Ali and Palm Deira, designed to be 50% and seven times larger than Palm Jumeirah, respectively, will perform similarly. However, the dramatic market slowdown in Dubai and around the world is expected to cause major delays to the construction and sale of these properties.

exclusive tourism destinations ❙ New and existing island developments are also contributing to the development of the region’s tourism industry, attracting visitors from around the world by offering a range of entertainment, hospitality and cultural venues. Nakheel’s The World development, comprising 300 constructed islands, is intended to attract high-end tourists by offering private islands and sea-plane access. In Abu Dhabi, TDIC is in the process of planning similarly exclusive resorts and venues on the city’s 200 existing islands, such as the eight-island Desert Islands project.

thouGht leader interview: lee tabler, ceo | of Abu Dhabi’s Tourism Development and Investment Company (TDIC)

24

leader PersPectives: island creation“When I was young, playing at the beach with my friends, they used to build houses and sandcastles on the beach while I was trying to build in the sea.” sheikh mohammad bin rashid al maktoum, Emir of Dubai

iconic design ❙ The creation of new islands allows developers to incorporate the iconic design that is visible in the region’s skyscrapers and institutional facilities. Nakheel’s Palm Islands were famously modeled after the region’s symbolic palm tree, and their newer projects draw inspiration from the outlines of the world and the universe. Noor International Holding in Lebanon recently followed suit with the April 2009 announcement of cedar-shaped islands to be constructed off the coast of Beirut, designed in the likeness of the country’s national symbol.

Community facilities ❙ Though many islands are dedicated exclusively to tourism and luxury residences, some projects are designed to foster community life with retail, institutional and transportation facilities. The Palm Jumeirah includes a monorail which will eventually link into Dubai’s citywide metro system, and islands like Al Reem in Abu Dhabi (see page 8) are designed as fully self-contained communities.

island developMents and sustainaBilityAs the island development trend has grown in popularity and visibility throughout the Middle East and beyond, these projects have also raised some critical concerns from sustainability experts. In response, some major players have taken measures to demonstrate a new commitment to environmentally sensitive construction. In 2007, Nakheel developed a Sustainability Advisory Group to evaluate waste management, energy use, worker rights and other elements of responsible business in its island developments such as Palm Jumeirah and Dubai Waterfront. Other projects such as Al Reem Island and those developed by TDIC are planting or conserving indigenous vegetation such as mangrove trees.

The World’s 300 islands will be exclusive tourism destinations for the world’s wealthiest clientele.Image courtesy of Nakheel Properties, Inc.

These steps, along with the increased green building and renewable energy use seen in other sectors, demonstrate an emerging consciousness of sustainability in the region. However, many in the local market agree that a vast cultural shift is going to be needed before green becomes a core value in Middle East construction.

A vast cultural shift is going to be needed before green becomes a core value in Middle East construction.

“”

25

Yas Island is conveniently located near the Abu Dhabi airport. “Yas Island was one of approximately six sites under consideration,” Mackie says. “We chose it principally for its strategic location beside the international airport and the link to Saadiyat Island, which is due to become the arts and cultural destination of Abu Dhabi.” Partnerships with Formula One and Ferrari were signed prior to site selection.

Unlike Dubai’s Palm Islands or The World, the Yas Island formation was preexisting. Aldar’s director of mixed-use development for Yas Island, Steve Worrell, says that similar dredging techniques were used for reclamation, opening new channels, deepening existing watercourses, and providing golf-course topography, as permitted by the Environmental Agency Abu Dhabi. “Hydrodynamic modeling was undertaken to ensure no significant changes to the hydraulic regime surrounding Yas Island will take place as a result of opening and widening of channels,” he adds.

Abu Dhabi is actively investing in innovative entertainment projects as part of its long-range plans for growth. Local developer Aldar Properties’ Yas Island project will focus closely on attractions and activities for tourists. At a cost of approximately $45 billion, the local developer is transforming the 6,177-acre island into a destination that include a Ferrari theme park, a Formula One racetrack that will host the first Etihad Airways Formula One (F1) Abu Dhabi Grand Prix this November, more than 3.2 million square feet of retail space, as well as golf courses, hotels, marinas and multiple theme parks.

According to projections, Yas Island will ultimately welcome 300,000 visitors every day, while its housing and other services will accommodate 110,000 residents. “Aldar works very closely with the Abu Dhabi government across all its developments to ensure they fit in with Plan Abu Dhabi 2030,” Aldar’s Ian Mackie says of public-private collaboration.

case study: yas Island

Aldar’s yas Island master plan includes brand names like Warner Brothers and Formula One. Image courtesy of Aldar.

By the time vehicles cross the starting line of November’s Grand Prix, hotels and the Yas Marina will be completed, in addition to the dedicated race circuit itself. Says Aldar deputy director Lee Kandalaft, the development includes extensive infrastructure including a 10-lane freeway featuring 14 bridges and one tunnel, as well as miles of secondary roads, sewers, gas and power lines, and irrigation mains.

yAS ISlAND: PROjECT OvERvIEW location: Abu Dhabi, uAEOwner: Aldar Properties, PjSCMarine Works Consultant: Halcrow (u.k.)Project Manager: kBR (Texas)Project Area: 25 million square feetCost: $45 billion Occupancy: 110,000 residents and 300,000 visitors annuallyEstimated Completion: 2014

INNOvATIvE FEATuRES:• Brand-name attractions such as Ferrari and Warner Brothers theme parks and a Formula One racetrack• Public-private collaboration designed around Plan Abu Dhabi 2030• Hydrodynamic modeling used in opening and deepening of existing channels and waterways• Host to Formula One Abu Dhabi Grand Prix upon opening in November, 2009

26

thouGht leader interviews: irv richter, chairman and ceo, and raouf Ghali, President of international Project management, hill international | on Iconic Construction

What are the strategic advantages for a global firm like hill to working in the Middle east?ghali: There are a lot of key benefits. We are able to be part of constructing something that is completely innovative and new and has never been constructed before, on a magnitude that’s only seen in very few parts of the world. Everywhere else where we do business, there are usually one or two iconic buildings in a country.

In the Middle East, one in every ten buildings is iconic. It’s not just in Dubai—Abu Dhabi has lots of iconic buildings [and] Qatar is starting to follow suit. It started with buildings, and now it’s more than just buildings: It’s bridges and light rail systems.”

the unprecedented, iconic projects in the Middle east offer global construction firms a unique market opportunity. irv richter, Chairman and Ceo, and raouf ghali, president of international project Management at hill international—project managers on the palm islands—recently shared their perspectives on the marketplace.

Why are these iconic projects happening in the Middle east? What market conditions are creating this unique opportunity for you? richter: Many Middle Eastern countries want to create an identity as a world-class destination to attract short- and long-term visitors and businesses. Many owners have a secured funding source and a pro-Western attitude. There are many innovative projects underway that need the [project management] expertise that Hill provides.

What is driving the market for iconic projects in this region?richter: [The local industry’s] goal is to provide state-of-the-art amenities and a synchronized infrastructure for business and residential life.ghali: You allow one architect’s fantasies to wander off, and they [all] will want to outdo one another. You’ve

got the developers that all of a sudden want to start outdoing one another, and it’s creating innovative and sustainable designs. It started in Dubai and it’s migrated to Abu Dhabi, and now it’s gone to Qatar and Oman.

how do you see the global financial crisis impacting your business opportunities in the Middle east?ghali: We have continued to grow despite the financial crisis. Our Middle East business has continued to grow in the last eight months. It may not have grown in Dubai, where a lot of things have been delayed and put on hold for a while until the crisis goes over, but I think that’s going to come back. But other pockets in the Middle East have continued to show a lot of opportunities, such as Saudi Arabia, Qatar and Bahrain. There’s still activity going on.

Palm jumeirah was the first of the three Palm Islands to be completed. Image courtesy of Hill International.

Many Middle Eastern countries want to create an identity as a world-class destination.

“”

27

what’s next? Future Implications of GCC and Middle East Construction

the gulf states of the Middle east have become regional leaders, creating a global test bed for innovation in iconic design, sustainability and tourism development. the historic and transformative market activity in the region today will have strong implications on future construction trends both in the region and around the world.

Below are some of our predictions for market trends we might expect to see in Middle East construction in the future:

sustainability ❙ The growing global and regional pressure to conserve nonrenewable resources and invest in renewable energy, and the success of high-profile projects like the Bahrain World Trade Centre and Masdar City, will drive growth in green building practices throughout the region. The movement will be strengthened by the emergence of national and regional Green Building Councils and advocacy organizations as well as the widespread adoption of green building standards.

infrastructure ❙ With slowed market activity in the fallout of the global financial crisis, the frenetic pace of construction projects will be replaced with an increased focus on development and maintenance of municipal infrastructure and utilities. Developers and local government leaders will begin to prioritize these considerations earlier in the process of building new communities and developments.

transparency ❙ The growing presence of global firms in the Middle East region will place mounting pressures on local governments to be more transparent in their budgeting and development. This will coincide with an effort to decrease project risk.

Building sectors ❙ As the region’s construction activity continues, investment will continue to grow in family-centered projects such as entertainment centers, shopping malls, sporting venues and housing.

research & development ❙ The completion and opening of facilities such as KAUST and MIST will transform the Middle East into an international hub of research and development in renewable energy and innovative construction technologies. Global firms will take advantage of the region’s free trade zones, research facilities and growing population of graduate researchers to set up production facilities and headquarter offices in the region.

emphasis on quality ❙ With the fallout of the economic downturn, it is likely that Middle East developers and contractors will place a stronger emphasis on quality in the building and construction management process.

training ❙ The trend toward constructing quality buildings could result in a focus on staff training that covers health and safety, construction practices and sustainability issues. This is already evident in Abu Dhabi, which is in the process of developing a building code which will bring about rules on health and safety, building practices. This measure represents an increasing focus on quality issues.

prefabrication and preassembly ❙ As firms struggle with skilled labor shortages, management of on-site safety concerns and ambitious project timelines, the off-site prefabrication of building components will become a common practice on projects of all size.

references

1 Sheikh Mohammed bin Rashid Al Maktoum, “His Highness Quotes,” Sheikh Mohammed Website. Accessed Online 18 June 2009 at www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?vgnextoi d=2b44142042525110VgnVCM1000007064a8c0RCRD&QueryPage-page=72 IMF, World Economic Outlook Database April 2009, Accessed 18 May 2009 at www.imf.org/external/ pubs/ft/weo/2009/01/weodata/index.aspx3 IMF, “Middle Eastern Economies are Buffering Global Shocks,” World Economic Outlook April 2009. Accessed 9 May 2009 at www.imf.org/external/pubs/ft/weo/2009/01/index.htm4 IMF, World Economic Outlook Database April 20095 Proleads global, May 20096 Lucki, Mike. Bridging the Gap: Private Investment in Middle East Infrastructure, Ernst & Young, 2008 Access online 8 May 2009 at www.ey.com/Global/assets.nsf/Middle_East/Middle_East_ Infrastrucure/$file/Middle_East_Infrastructure.pdf7 Ibid.

8 Ibid.9 Ibid.10 Charles Oldham, Halcrow, interview, (date)11 Ibid12 Owainati, Sadek, “Reaching for the Stars,” Middle East Architect Magazine, 3 November 2008. Accessed Online at www.arabianbusiness.com/537095-reaching-for-the-stars?start=013 Fisher, David, Dynamic Rotating Tower, Dynamic Architecture Fact Sheet, 2009 14 “Dubailand: Project Details,” Dubailand Website, Accessed 12 May 2009 at www.dubailand.ae/project_ details.html15 Howe, Michael, “Qatar Entertainment City to Build US$275m Theme Park,” ConstructionWeekOnline.com, 19 January 2009. Accessed Online 4 May 2009 at www.constructionweekonline.com/article-4200-qatar_entertainment_city_to_build_us275m_ theme_park/

28

resources

organizations, Websites and publications that can help you get smarter about global construction and the Middle east marketplace

Main Website: ❙ construction.comresearch & analytics: ❙ analytics.construction.comarchitectural record: ❙ archrecord.comgreensource: ❙ greensourcemag.comengineering news-record: ❙ enr.comsweets: ❙ sweets.comsmartMarket reports: ❙ analyticsstore.construction.com

Main Website: ❙ ciob.org.uk Middle east region: ❙ ciob.org.uk/regions/middleeast Middle east neWs and data proleads global, Middle east construction data: ❙ projectsandleads.com Middle east Business intelligence: ❙ meed.comarabian Business: ❙ arabianbusiness.comZawya Middle east Business and finance news: ❙ zawya.comemirates green Building Council: ❙ emiratesgbc.orgabu dhabi urban planning Council: ❙ upc.gov.ae gloBal resourCesinternational Monetary fund (iMf): ❙ Main website: imf.org global economic outlook data: imf.org/external/data.htmWorld Bank: ❙ worldbank.org World green Building Council: ❙ worldgbc.org

ACkNOWlEDGEMENTSThe authors wish to thank our partners at the Chartered Institute of Building for their support, including Fabio Casula and Sarah Peace. We would also like to thank Professor Ghassan Aouad, university of Salford; Carol jewell and Roger Flanagan, university of Reading; and Dr. Sadek Owainati for taking time to review the report.

Special thanks to everyone who agreed to be interviewed and those who helped arrange these conversations, including Irv Richter, Raouf Ghali, Uzair Wassif and John Paolin from Hill International; Fred Berger and M.J. Stiff, Louis Berger; Gordon Gill and Kevin Nance, Smith+Gill; Charles Oldham and Matthew Wernham, Halcrow; George Efstathiou and Amy Hawkinson, SOM; Bill Odell and Mike Plotnick, HOK; Ian Mackie, Aldar Properties; Lee Tabler and Maan Hamzi, Tourism Development and Investment Company (TDIC); Majd Abu Zant, United Eastern Medical Services (UEM); and Dr. Emanuel Mikho, Enrique Greenwall, Nunzio DeSantis and Mark Kiszonak, HKS. Thanks to Emil Rademeyer, Proleads Global, for providing data, and to Donna Boyd and Helen Dixon, Atkins; Kelly Townley, TDIC; Christina Straughan, HKS; Oula Gharbi and Meral Niazi, Hill International; Jocelyn Moriarty, Smith+Gill; and Garry Whitaker, Halcrow for providing images for the report.

Finally, we would like to thank the MHC staff who contributed to the report, including Jenna McKnight, David Sokol, Bruce Buckley, Valerie Beard and Monica Andrews.

McGraw-Hill ConstructionPresident: Norbert W. Young, Jr., FAIA

McGraw-Hill Construction Research & Analytics/AlliancesVice President, Industry Analytics, Alliances & Strategic Initiatives: Harvey M. Bernstein, F.ASCE, LEED AP

Senior Director, Research & Analytics: Burleigh Morton

Director, Green Content & Research Communications and SMR Editorial Director: Michele A. Russo, LEED AP

Director, Market Research: John DiStefano, MRA, PRC

Director, Industry Alliances: John Gudgel

Cities of the Future: Pioneering Innovation in the Gulf Countries of the Middle EastEditor-in-Chief: Catlin O’Shaughnessy, LEED AP

Contributing Editor: David Sokol

Contributing Editor: Bruce Buckley

Reproduction or dissemination of any information contained herein is granted only by contract or prior written permission from McGraw-Hill Construction.For further information on this SmartMarket Report or for any in the series, please contact McGraw-Hill Construction Research & Analytics.

1-800-591-4462 34 Crosby Drive, Suite 201, Bedford, MA 01730construction_intelligence@mcgraw-hill.com

MCGrAw-HiLL COnStruCtiOn SMArtMArkEt rEPOrtS™

You can find more information on any of these reports at: www.analyticsstore.construction.com

SmartMarket Reportswww.analyticsstore.construction.com

About McGraw-Hill ConstructionMcGraw-Hill Construction (MHC), part of The McGraw-Hill Companies, connectspeople, projects and products across the design and construction industry, servingowners, architects, engineers, general contractors, subcontractors, building productmanufacturers, suppliers, dealers, distributors and adjacent markets.

A reliable and trusted source for more than a century, MHC has remained NorthAmerica’s leading provider of construction project and product information, plansand specifications, industry news, market research, and industry trends andforecasts. In recent years, MHC has emerged as an industry leader in the criticalareas of sustainability and interoperability as well.

In print, online, and through events, MHC offers a variety of tools, applications, andresources that embed in the workflow of our customers, providing them with theinformation and intelligence they need to be more productive, successful, andcompetitive.

Backed by the power of Dodge, Sweets, Architectural Record, EngineeringNews-Record (ENR), GreenSource and 11 regional publications, McGraw-HillConstruction serves more than one million customers within the $5.6 trillion globalconstruction community. To learn more, visit us at www.construction.com

.

$99