With 2020 acting as a game changer for the built environment, Cityscape Intelligence takes a look at some of the major trends expected to shape the architecture industry in the MENA region in 2021.

SUSTAINABILITY: NET-ZERO BUILDINGS

With businesses reacting quickly to the pandemic in 2020, the real estate industry – which accounts for 40% of global greenhouse emissions – is looking to make major changes. A chief priority for the built environment and the architecture industry in 2021, sustainability will cease to become a branding exercise as the architecture industry looks to embed ambitious strategic design approaches.

In December, Grimshaw Chairman, Andrew Whalley laid out ambitious plans around the firm’s environmental strategy.

 “The United Nations has delivered increasingly dire warnings about our fragile planet. A performative design approach that searches for optimised building solutions is the critical and only way forward. This must be our generation's moonshot moment. Starting ambitiously and promptly in our own studios is the right thing to do,” he said in his opening keynote at the World Architecture Festival in Amsterdam.

Grimshaw has not only appointed a global practice leader of sustainability to lead the company’s green agenda, but has also signed the World Green Building’s Council Net Zero Carbon Buildings Commitment, challenging businesses, organisations, cities, states and regions to reach net-zero operating emissions in their portfolios by 2030 and to advocate for all buildings to be net-zero carbon in operation by 2050.

TECHNOLOGY AND BIG DATA

In 2020, the architecture industry realised that they needed a way to get ahead of the tech revolution. The proliferation of technology and AI has offered new and dynamic opportunities for the architecture profession to do their job more efficiently. With the rise of Generative Design – using an algorithm to illustrate multiple design options – and 3D printed technology, experts predict that the industry will look at incorporating these techniques into their business in 2021.

REPURPOSING & REDESIGNING ARCHITECTURE

Rethinking and repurposing architecture will become one of the central themes in architecture in 2021. Striving for sustainability, the industry will look at retrofitting and adaptive use as they look to reanimate unique spaces and revitalise communities.

Over the last year, Sharjah has been looking at ways to preserve buildings that were built in the 1970s and 80s. The Sharjah Architecture Triennial is located in two of these buildings from that era; a former school and a former fruit market build in the 1980s.

In 2020, the COVID pandemic changed the way offices, retail and the hospitality industry looked at space. This year, architects will look at how office design will need to support the strategy around an all-round best in class employee experience, looking at how more space will be needed for inhouse amenities, green space, and health and wellbeing. In addition, hotels will be looking at under-utilised spaces including the conversion of meeting and event space.

SMART CITIES

It is undeniable, urban design has been altered by the impact of COVID-19. For urban planners and architects, this year will mark an easing of the tension between densification and disaggregation, the separating out of populations, which is one of the key tools currently being used to hold back infection transmission.

The architecture profession has looked at the silver linings that the pandemic has brought with it and has looked at the crisis as a way of improving the way cities are designed and run.

From the length of sidewalks to introducing a touch free smart city lifestyle, architects will be using lessons learnt from the pandemic to improve the way cities are designed. 

 

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Doha Design District will enhance Msheireb Downtown Doha’s position as a district of art and creativity and serve as a state-of-the-art centre for local designers to flourish. It will also attract local, regional, and global reputable designers to be part of the new district.

Ali Alkuwari, Acting CEO, Msheireb Properties, said: “Doha Design District will be the new permanent home for ideas, innovations and projects, providing affordable workspace to all creative industries. Design Districts are important throughout the world. They are the face of their cities and a part of the people's culture and identity. Since inception, our city was intended to be not only smart and sustainable, but also a beautiful destination that reflects a design aesthetic that blends Qatar's past and future. We believe design is beauty, and cities should be beautiful - places to feel hope and happiness.”

Doha Design District will be home to galleries, showrooms, creative services, stores, and even eateries and cafes. Centred around innovation and creativity, Doha Design District aims to be a world-class destination that prioritises creativity. The new Doha Design District will be a landmark in Qatar and the region and attract local and regional designers to interact with their global peers.

Interior Design Manager at Msheireb Properties, Shaikha Al Sulaiti, explained that the new hub’s role is vital as a centre of collaboration with Arab and international designers to exchange expertise with the wider community.

_{Photo Credit: www.msheireb.com}

 

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Think back: it is the summer of 2014, the oil supply glut has finally, inevitably, triggered a crash. Global oil prices have collapsed. This decline will continue well into the early months of 2016 and will ultimately account for a 70% drop in oil prices — one of the three biggest such declines in modern history. Thereafter, the price of oil will never return to pre-crash levels.

For primarily oil-dependent economies, the 2014-16 price plunge cast a long shadow. In time, a growing urgency to restore growth, to drive fiscal sustainability begin to take hold. It was against this background, in 2016, that Saudi Arabia unveiled the early details of its Vision 2030 — a strategic framework for economic diversification, intended to minimise the kingdom’s reliance on oil.

In particular, Saudi Vision 2030 included hundreds of reforms to boost foreign direct investment (FDI). The nation’s target now is to grow FDI to 5.7% of its GDP by 2030. And according to Saudi Arabia's Ministry of Investment (MISA), so far over half of its 400 FDI regulations have been revised in service of this objective.

The results are undeniable: FDI into the kingdom doubled in 2018 and grew more than 10% year-on-year in the first nine months of 2019, to an estimated USD 4.6 billion. A total of 1,131 foreign companies were created in 2019, 54% more than that in 2018. And in spite of the COVID-19 pandemic slowdown, over 300 international companies were granted investor licences during the third quarter of 2020, up 96% from the previous quarter.

In total, MISA issued more than 800 licences in the first three quarters of 2020. Growth markets such as India and Egypt, with 30 companies each, and long-term economic partners such as the UK, with 16 companies, were the leading foreign investors in 2020.

So how exactly is Saudi Arabia drawing in international businesses? Simple.

MAJOR CUTS TO THE COST OF DOING BUSINESS

Saudi Arabia now allows for 100% foreign ownership in areas such as retail, real estate, healthcare and education. The Saudi Arabian General Investment Authority (SAGIA) has launched a specialised entrepreneur licence, allowing international entrepreneurs to set up wholly foreign-owned start-ups in the kingdom in a matter of mere hours.

More recently, Saudi Arabia has announced its decision to cease contracting with companies and commercial institutions with their regional headquarters not located in the kingdom by 2024. This decision is aimed at incentivising foreign companies that deal with Saudi Arabian government agencies, institutions and funds to shift their base of operations to the kingdom.

Saudi Arabia is also offering businesses that do set up their regional headquarters in Riyadh zero corporate tax for 50 years, as well as a waiver on mandatory quotas to employ Saudi nationals for a minimum of 10 years, and potential favour for government entity tenders and contracts, according to a brochure issued by Invest Saudi, the country’s investment brand overseen by MISA.

The Saudi Arabian government is also investing USD 220 billion to transform Riyadh into a global city by 2030. It expects Riyadh’s population to swell to around 20 million people by then, spurring subsequent growth in the private sector. According to officials, over 100 investment projects will be announced for Riyadh over the next couple of months, with a focus on finance, banking, industrial, logistics and biotech sectors.

Recently, during the Future Investment Initiative Forum, 24 international companies announced their intention to move their regional headquarters to Riyadh. So far, for corporate investors, the Saudi Arabian market certainly seems too big an opportunity to ignore.

 

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Leading construction company SSH has announced that it is working with Ajial Real Estate and Entertainment Company to design the new Al Andalus mixed-use complex, which will be built in Kuwait’s Hawally District.

Named after the historic Moorish southern region of Spain, the new building will mix Kuwait’s traditional architectural identity with modern designs.

“There will be lots for the public to enjoy, including food and beverage outlets, retail and entertainment spaces – including 11 cinemas and a gymnasium. There is also office and clinic space in the build. The project is spread across more than 40,000 square metres and is linked by a pedestrian bridge to an existing multilevel car park with approximately 1,200 parking bays,” a spokesperson for SSH explained.

   

Alongside the build, there will also be landscaped outdoor areas, including a square plaza, patios, walkways and balconies. Many of the food and beverage outlets will also come with outdoor seating options.

According to the most recent estimates, the project is now 50 percent complete. The main frame of the building (including all the structural work) is done, while architectural work is currently being completed on the interior.

“SSH is honoured to be working with Ajial Real Estate and Entertainment Company on a project of this stature, which is set to become a significant entertainment hub in Kuwait’s popular Hawally District,” said Khalil Alonaizi, Resident Director for Kuwait, at SSH.

“The fact that the client awarded us this project based on our experience and expertise in the design of mixed-use retail and entertainment complexes in Kuwait, further strengthens our vision and mission to deliver another landmark project and to exceed our client’s expectations,” Alonaizi continued.

_{Photo Credit: www.globalconstructionreview.com, www.meconstructionnews.com}

 

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The Monaco Pavilion is currently on track to be the first to be completed for Expo 2020. According to organisers, it’s set to be one of the first countries to receive the “Building Completion Certificate”.

THE FIRST PAVILLION TO LAUNCH

The world exhibition was due to open last year in Dubai, but was postponed due to the COVID-19 pandemic. The new dates for the festival are projected to be 1st October 2021 to 31st March 2022.

The Monaco Pavilion is situated in the ‘Opportunity district’ of the Expo site and is made up of various stations. Those include areas dedicated to penguins, digital transition, exploration, tropical corals, arts and culture along with an interactive bench. It also hosts a temporary exhibition space that is open to public organisations and private companies.

Modeled on the ‘Rock of Monaco’, the 14-metre-high exhibition is equipped with solar panels. There is also a French Riviera-themed harlequin vinyl which covers the entire external walls of the Pavilion.

The landscaping around the pavilion is also nearing completion with 90% of the Mediterranean greenery installed. Amongst them, is an ancient olive tree planted right by the entrance of the Pavilion.

25 MILLION VISITORS EXPECTED

 “This space has been designed to allow Monaco to present displays to thousands of visitors. We’re talking about 50,000 visitors a week – that’s 1.25 million people expected to attend during the course of the Expo” said Albert Croesi, Managing Director of Monaco Inter Expo (MIE).

Despite the ongoing disruption caused by COVID-19, organisers for Expo Dubai 2020 have said they expect 25 million visitors over the festival, with more than 9,000 events taking place over six months with1 92 participating countries.

_{Photo Credit: www.expo2020dubai.com}

 

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PropTech has been gathering pace over the past few years, but – like in many other sectors – COVID-19 has provided a catalyst for transformative change. The need for digital technology to continue business operations in the real estate industry has caused the sector to lean heavily on PropTech innovation.

“The entire MENA region has been on an upswing for a while now in terms of PropTech. But COVID-19 has certainly acted as an accelerator,” says Sajid Azmi, CEO of technology insights firm, Yegertek. “Because of the pandemic, several large Saudi Arabian real estate brokerages have increased their investment in digital analytics, cloud-based solutions and AI-led services, more than ever before” he continues.

SAUDI ARABIA AND VISION 2030

Since Saudi Arabia’s Vision 2030 was first launched in 2016, the Kingdom has been powering ahead with digital innovation – which in turn has been a key part of the new city real estate infrastructure being developed in the country.

Indeed, as Sanjeevv Bhatia, CEO of SB Group & Netix Global BV explains “The Middle East is one of the most proactive regions in the world in terms of developing smart cities which are led by PropTech innovation. Nowhere is this more apparent than with developments in Saudi Arabia like Neom and the Red Sea Project.” Both developments are planned megacities in the Kingdom which are due to open in the next few years. Each will incorporate smart technology like never before, as Bhatia continues: “At the heart of these cities will be state-of-the-art solutions featuring IoT, AI, and Machine Learning. Cloud connectivity will mean that new services and systems will be seamlessly added and updated, as new innovations emerge. The result will be disruption-free, sustainable and energy efficient cities, that deliver exceptional user experiences for residents.”

THE NEW EGYPTIAN BOOM

2016 also saw the launch of Egypt’s own Vision 2030 strategy, with similar long-term goals to innovate and revolutionise the country’s digital infrastructure, boost the economy and create innovative new city spaces and transport links. Many of these projects are now underway, or nearing completion: “The New Administrative Capital in Egypt is a great example of PropTech innovation to create smarter spaces. Like the developments in Saudi Arabia, there is a renewed focus on building operational resilience through strong data and technology foundations. Digital occupant experiences and customer satisfaction is becoming a core competency for real estate owners and operators to deliver differentiated services in today's world,” explains  Prabhu Ramachandran, CEO of AI property operations platform, Facilio.

A POST COVID-19 WORLD

Indeed, according to Ramachandran, PropTech is bringing a welcome disruption to the GCC region: “In a post-COVID-19 world, there will be an even greater appetite for smart technologies, and smart living and working spaces. We are witnessing renewed interest towards an agile, connected model of building operations harnessing IoT and Cloud to remotely operate the building systems efficiently, exceed sustainability goals, and elevate the occupant experience. This paradigm shift could indeed reposition the regional markets in the changing global real estate dynamic."

 

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A new study by database software company Oracle has shown a strong uptake and trust in digital technologies in the UAE, in light of the COVID-19 pandemic.

The organisation polled responses from business leaders in November and December last year, following nearly 10 months of disruption caused by the pandemic.

THE COVID-19 CONCERN AND FUTURE PROOFING BUSINESSES

The study showed that an overwhelming majority of UAE business leaders (97 percent) are concerned about the impact of the pandemic on their organisations. However, the study also showed that companies are willing to use and invest in technology to manage the crisis.

Indeed, these digital advancements are something many businesses plan to build on, after the pandemic too. Out of those polled, 94 percent of UAE business leaders said in the long term they would entrust robots to help improve productivity at their organisations, while 70 percent said they would trust robots to manage their company finances. Out of those polled, 64 percent of businesses said they believed robotic technology would replace financial professionals in the next five years – higher than the global average of 56 percent.

Commenting on the results of the report, Juergen Lindner, Oracle’s senior vice president for global marketing, said: “Digital is the new normal and technologies such as artificial intelligence and chatbots play a vital role in managing finance.”

Other concerns from business leaders in the UAE included a slow economic recovery (61 percent), cuts to company budgets (54 percent) and the potential for their company to go bankrupt (21 percent),

THE RISE OF PROPTECH

Within the real estate industry, the most direct impact COVID-19 has had on business operations is through the rapid increase and expansion of PropTech.

Indeed, a recent report on PropTech by global consulting and audit firm Deloitte said “the global COVID-19 pandemic is already accelerating this disruption, given some of the challenges of executing real estate transactions and operating properties remotely, as well as the impact the pandemic will have on how real estate is used in the future.”

Although the PropTech revolution was well underway prior to the pandemic, the need for social distancing and the resulting increase in digital communication has no doubt accelerated the process, starting a large scale disruption that is unlikely to be reversed once the pandemic is over.

 

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