Green building to the United Arab Emirates

(Last updated: 10 June 2008)

Trends and opportunities

The market

There has been a rapid increase in momentum for green building in the United Arab Emirates (UAE) since mid-2007. The sheer size and scale of developments in the UAE, which often cover areas the size of small cities, creates a unique opportunity to apply green building principles to whole communities, rather than stand-alone buildings.
 
Austrade believes that the combination of large projects, similarity of climatic conditions and openness to Australian technologies, creates substantial opportunities for Australian suppliers of green products or services.

It surprises many that despite the UAE’s vast hydrocarbon reserves, the support for green building principles and increased use of renewable energy is on the rise. To some degree the UAE is responding to its global responsibilities. In 2005, the UAE ratified the Kyoto Protocol. However, a more pressing concern is that without steps to address energy, water and waste issues, the region’s infrastructure will not be able to match growth projections which predict US$500 billion of development in the seven years to 2015. Water is a particular concern. In October 2007, the government announced plans to reduce water consumption by almost half. In Abu Dhabi, the government will reduce water consumption from 2,081 litres per head a day to 946 litres over the next five years.

In late 2007, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and ruler of Dubai announced that all new buildings in Dubai would be green commencing from January 1, 2008. In Dubai, legal change is lagging behind Sheikh Mohammed’s vision, however environmental and planning laws are being reviewed and will increasingly reflect sustainability principles. Although Abu Dhabi and the other five Emirates have not made such ambitious statements, Australian companies should not limit their interest to Dubai. Abu Dhabi is also showing strong commitment to green principles.

The infrastructure to support green initiatives is also evolving. For example, the Emirates Green Building Council (EGBC) was established in 2006. It has decided to use the US LEED system as a basis for UAE guidelines. In late 2007, the EGBC released an Emirates LEED scheme and currently the UAE has a small number of LEED accredited facilities, but more are in the pipeline. Because legal frameworks are still evolving, developers are the key drivers of green projects. They are making voluntary decisions about whether to incorporate sustainable design principles into new projects and already, a number of developers are embracing the opportunity to differentiate themselves from their
competitors.

Projects

There has been a spectacular growth in announcements of environmental projects in recent months.

The UAE currently has two buildings with a LEED certification, but a number of others at various stages of completion. Completed buildings include the headquarters of the building automation specialist, Pacific Controls, which opened its new LEED platinum-rated headquarters at Techno Park in Dubai in October 2007. All water in the building is recycled and the roof of the building has photovoltaic cells supplying lighting during the day. Solar air-conditioning satisfies 25 per cent of the building's 400 tonne cooling requirement.

The second completed green establishment is the District Cooling Plant at Shopping Centre Wafi City, which was awarded Gold LEED status in February 2008. It is the first building in the Middle East to be awarded the gold rating under the USA Green Building Council's scheme and one of only two utility buildings worldwide to achieve the rating.

Other buildings shortly to join the list will be headquarters of Metito, a designer and supplier of water/wastewater treatment and desalination systems, whose headquarters will also be at Dubai’s Techno Park. In addition, ground has been broken at the construction site of the headquarters of the Abu Dhabi Tourism Development Investment Corporation (TDIC). The building, which aspires to meet gold LEED standards, is designed by Singapore’s Surbana Consultants.

A defining characteristic of the UAE green building industry is the number of whole communities being developed along sustainable lines. In Abu Dhabi, government-owned Furture Energy Company, MASDAR, is aiming to develop the world’s first carbon zero city which will cover an area of six square kilometres. It will be a commercial and residential development and aims to become a cluster for research, development and investment in clean and green technologies.

In Dubai, TECOM Investments owns and operates a number of free trade zones designed for knowledge-based industries. In 2006 they announced that all their developments would be green, and they are now developing Enpark, an eight million square feet renewable energy and environment business park. Finally, one of the largest Dubai developers, Nakheel, is promoting the sustainable development of UAE coastal areas. It will invest money into a scheme under which local and international experts will establish a set of standards for the development of coastal areas. The scheme will be called Blue Communities and will have a charter and a governing body.

Opportunities

Given Australia’s strong track in green building, as well as the environmental similarities with the UAE, Australian companies are well placed to supply products and services.

Australian companies active in the UAE are already playing an influential role. Austrade sees a vast array of opportunities for companies in the green space, in engineering and design, specialised green building consultancy, energy and water monitoring and management systems and facility/building management systems. There is also scope for any products that help score well under the LEED rating scheme.

Tariffs, regulations and customs

As is the case in Australia, compulsory minimum environmental requirements for buildings are promulgated by the regulatory authorities. In the main, these are the municipal governments in each Emirate. In Dubai, however, there are also many Free Trade Zones whose management authorities exercise a large degree of independence over planning within their confines. This means that the minimum green building requirements vary according to the location of the proposed development. Some Free Trade Zones have chosen to set their own standards which exceed building regulations. For example, US LEED standards are the minimum criteria for all Dubai World developments, whose subsidiary TECOM, is responsible for the development of a number of areas.

The EGBC has produced voluntary green building guidelines for the UAE, based largely on the US LEED system. In consultation with industry, it has developed a draft Building Sustainability Assessment Tool (BSAT). There are some differences between the BSAT and the US LEED system, particularly in the area of water conservation, where more points are allocated.

The EGBC is trialling the system on about 25 projects currently in the design phase in order to ensure the tool is both suitable for UAE conditions and internationally congruent. The aim is to having the LEED Emirates rating system ratified by September 2008. In Abu Dhabi, the Urban Planning Council is developing guidelines for that Emirate.

Marketing your products and services

Cityscape Dubai
6-9 October 2008
Dubai International Exhibition Centre

Cityscape Dubai is an annual exhibition and conference at which some of the UAE’s largest property development projects are announced. It is an exhibition targeting companies who provide the myriad of services necessary to the property development industry. 

Architects, engineers, designers and financiers use the exhibition to visually promote their services to the wealthiest and most liquid group of investors.

To find out more about the exhibition, visit www.cityscape.ae
To find out more about activities for Australian companies taking place, visit last year’s link: www.austrade.gov.au/cityscape2007 
To organise exhibition space contact Mr Keith Stubbs of the Master Builders Association of Victoria on tel: +61 3 9411 4555 or email: kstubbs@mbav.com.au

The Big 5 Exhibition
23-27 November 2008
Dubai International Exhibition Centre and Airport Expo Dubai

A trade exhibition for products related to building and construction. It features seven major exhibitions and more than 2,000 exhibitors from 67 countries. Focus areas include Building and Construction, Water Technology and Environment, Air Conditioning and Refrigeration, Cleaning and Maintenance, Glass and Metal, Bathrooms and Ceramics and Marble and Stone. In 2007 the organisers added The Big 5 PMV (Plant, Heavy Machinery and Large Vehicles) and a satellite show which takes place at another location in conjunction with the Big 5.

Austrade works with the Australian State Governments to assist Australian companies by arranging a briefing on ‘Doing Business in the United Arab Emirates’, a networking event, and a seminar outlining opportunities in other markets in the region. Austrade business development managers bring their key customers from markets as far away as India, Saudi and Russia to the Big 5.

To find out more about the exhibition visit www.thebig5exhibition.com and www.big5pmv.com
To find out more about activities for Australian companies taking place at the Big 5, visit last year’s link: www.austrade.gov.au/thebig5exhibition2008 
To organise exhibition space contact Mr Keith Stubbs of the Master Builders Association of Victoria on tel: +61 3 9411 4555 or email: kstubbs@mbav.com.au

The World Future Energy Summit
19-21 January 2008
Abu Dhabi National Exhibition Centre (ADNEC)

This exhibition has arisen out of the work being done on the Masdar City, Abu Dhabi’s carbon neutral city. The inaugural conference and exhibition in 2007, attracted 11,000 visitors, over 400 exhibitors from 77 countries.

This year’s conference and exhibition is designed to attract companies with expertise in energy policy, investment and funding, green buildings, clean transport, solar, wind, biofuels, ocean power, geothermal, nuclear, waste-to-energy, fuel cells, carbon management and environmental strategy.

To find out more about the exhibition visit www.worldfutureenergysummit.com

Cityscape Abu Dhabi
12-14 May 2009
Abu Dhabi National Exhibition Centre

This exhibition focuses on Abu Dhabi development which is undergoing rapid expansion. This will be the second annual exhibition and conference at which some of the largest property development projects are announced. It is an exhibition targeting companies who provide the myriad of services necessary to the property development industry. 

Architects, engineers, designers and financiers use the exhibition to visually promote their services to the wealthiest and most liquid group of investors.

To find out more about the exhibition visit www.cityscapeabudhabi.com 
To find out more about activities for Australian companies taking place at the Big 5, visit last year’s link: www.austrade.gov.au/cityscapedubai.com
To organise exhibition space contact Mr Keith Stubbs of the Master Builders Association of Victoria on tel: +61 3 9411 4555 or email: kstubbs@mbav.com.au

Links and industry contacts

Green building-related resources

The Emirates Green Building Council (EGBC) – www.emiratesgbc.org
 

Founded in 2006, and affiliated with the World Green Building Council, the EGBC has a growing number of corporate members, including some of the biggest developers from Dubai and Abu Dhabi. In consultation with industry the EGBC has produced LEED guidelines for the UAE. Although UAE LEED is based on the US model, it has 72 points, rather than the 69 points under the US system. The extra points are the result of a stronger emphasis on water conservation.