With many international construction companies working on projects across the Middle East, The SectorScope takes a look at what’s happening in the United Arab Emirates, with a focus on one of its most famous cities, Dubai.
Dubai is the United Arab Emirates’ most populous city with around 3.3 million inhabitants. That’s almost twice the number that live in the UAE capital, Abu Dhabi.
It’s also probably one of the best-known locations in the Middle East, attracting young holiday-makers, including an Instagram-crazy crowd who love to snap themselves in front of
the city’s many glamorous hotels.
Dubai was originally a small fishing village with a strong trade in local pearls going back almost to the first millennium. Through centuries of political and economic ups and downs, its leaders kept a firm eye on the future. The region is now considered one of the richest in the world. Little wonder then that its built environment reflects that wealth and ambition.
Its jaw-dropping skyscrapers dominate the architecture, including the Burj Khalifa, which, at 828m, is still the tallest building in the world. The Burj Al Arab isn’t as tall, but its distinctive sail design makes it one of the most recognisable buildings in the country.
However, while Dubai’s tourism and leisure sector is a mainstay of its economy, its core is still fossil fuels. Yet, with an eye still on the future, Dubai's leadership has its sights set on a low-carbon future that embraces renewables. This future includes new targets for energy and carbon reduction in the built environment.
A future that doesn’t rely on oil
In 2023, Dubai hosted the 28th Session of the Conference of Parties to the UN Framework Convention on Climate Change (COP28). It was an important moment for the UAE, one that cemented its commitment to a future that does not rely on fossil fuels.
This is not simply a case of a country which is seeking to make an economic shift in anticipation of a fall in demand for its main export. The UAE faces challenges from climate change. It's an arid country where water shortages caused by rising temperatures can quickly become life-threatening. Cooling is required in workplaces throughout the year, and office buildings are some of the largest water users. Equally, domestic air conditioning puts a strain on demand, with the OECD noting that on hot days in the region, air conditioning is more than 70% of electricity demand.
In addition, as Savills points out in its UAE 2023 report, 85% of the country’s people and 90% of its buildings are within a few kilometres of the coastline – high risk in a world of rising sea levels.
The government has already been working to transition away from fossil fuels. For example, the Mohammed bin Rashid Al Maktoum solar park in Dubai is the world’s largest single-site park of its kind. It has a planned production capacity of 5,000 megawatts by 2030.
But renewable energy generation is only part of the story. Reducing energy demand through efficiency measures and shrinking the country’s carbon footprint are central to its sustainable future. And that means a focus on the built environment.
A green future for Dubai’s buildings
In Dubai, the Supreme Council of Energy (DSCE) oversees policy development to deliver on the Dubai government’s low-carbon goals. The aim is that Dubai will become' a role model to the world in energy security and efficiency.’
Under that broad heading, there are four key objectives that will particularly impact the design and operation of buildings:
* Reduce Dubai’s carbon footprint – achieve 30% reduction by 2030
* Source 25% of the energy supply mix from solar by 2030
* Source 100% of the supply mix from clean sources by 2050
* Achieve a 30% reduction of electricity and water demand by 2030
Reducing energy (and water) demand is critical to achieving these objectives. Several policy strands are focused on achieving this Demand Side Management (DSM), including updates to the Dubai Green Building Regulation. The intention is to promote enhanced energy efficiency and prepare for a future of Net Zero emissions buildings (NZEB).
One important point to note is that the regulation updates will not only apply to new buildings. The DSCE also wants to reduce the energy intensity of 30,000 existing buildings in Dubai by 2030. This means that building retrofits are on the rise, with the aim of reducing both energy and water consumption.
In a country where the average temperature is around 30oC, with highs of more than 40oC, cooling is vital. Efficient cooling is high on the agenda, with coordinated urban planning for district cooling considered an important solution for the future.
Speaking at the 2024 Dubai Energy and Sustainability Summit, Senior Director of DSM for the DSCE, Eng, Faisal Ali Rashid noted several crucial steps for achieving net zero buildings.
* Passive design - improving the efficiency of the building envelope
* Active systems – efficient cooling technologies, lighting and appliances
* Controls and monitoring – BMS, Submetering, Setup temperatures
* On-site renewables – PV, solar thermal
* Clean grid – Dubai aims to decarbonise its grid by 2050
* Address embodied emissions
* Carbon offset
How the market is responding
Although the government setting out its sustainable pathway, the commercial property market in Dubai is slower to respond. Savills research highlights that of the total office stock in Dubai, only 22% has LEED certification. Less than 10% of retail stock across the UAE has a sustainability rating.
Office tenants in the region have so far been focused on properties that provide Grade A office accommodation in the city centre. Considerations of sustainability and energy efficiency are less obvious drivers than in London, for example.
However, global requirements for measuring corporate carbon emissions are starting to change this, as tenants seek to reduce their carbon footprint and seek out low-carbon workspaces.
So, as carbon and energy targets tighten, there is certainly a gap to be filled. For building designers and contractors, delivering future buildings must include considerations around these issues, as well as water use during construction and occupation.
There is likely to be strong demand for designs and systems that provide energy efficient approaches to cooling, and particularly those which can make use of district cooling.
Just like in the UK, Dubai and the wider UAE will have to find ways to measure complex issues such as the embodied carbon of new builds and retrofit projects. While international standards exist, the unique weather characteristics of Dubai mean that one size doesn’t fit all.
Local sustainability standards are likely to continue growing in importance. For instance, in the UAE capital, Abu Dhabi, the Estidama Pearl Building Rating System is currently mandatory for proposed projects.
In Dubai, the local sustainable building rating system is Al Sa’fat. To achieve a Siver rating, there are mandatory requirements, with further steps for Gold and Platinum. The requirements are focused on reducing energy, water, and materials consumption while improving public health, safety, and welfare.
Future growth
Law firm Clyde & Co predicts that construction in the UAE will see considerable growth during 2024. The UAE government is partly driving this, with plans to increase its construction spending by 34% in 2024. There is a focus on energy and public infrastructure.
Major public projects include:
* Al Maktoum Airport
* Dubai Metro Blue Line
* Hessa Street improvements
* Etihad Rail
It’s important to note that construction costs in Dubai are expected to increase by 2% to 3% in 2024, following increases of 3% last year. The primary driver of these rises is inflation. Other factors include the area’s tightening sustainability requirements accompanied by skills and materials shortages, much of which were caused by geopolitical issues.
Dubai Timeline
18th Century – Dubai is a small fishing village with a well-established trade in local pearls, going back almost to the start of the first millennium.
1822 – Recorded as a town with around 700 population
1833 – Maktoum bin Butti becomes the founder of the Maktoum dynasty in Dubai
1901 – Maktoum bin Hasher Al Maktoum establishes Dubai as a free port with no taxation
on imports or exports. He also gave merchants parcels of land, which attracted more merchants to the area.
Early 1900s – Dubai becomes a key trading port with 70,000 tonnes of cargo passing through it in 1906 alone.
1908 – a great storm destroys many pearl fishing boats, killing 100 men. A major setback for the town.
1920s - Dubai is an important trading town an important for foreign tradespeople. Many Iranians settle in Dubai.
1930s – The Great Depression irreparably damages Dubai’s pearl trade, leading to economic collapse for Dubai. Many residents emigrated to find work elsewhere.
1937 – An oil exploration contract is signed with guaranteed royalty rights for Dubai. But due to World War II, oil is not discovered until 1966.
1950s – in spite of a lack of oil revenues, Dubai’s ruler Sheikh Rashid bin Saeed Al Maktoum uses trading revenues to build infrastructure. John Hariss of Halcro is commissioned to create the city’s first masterplan.
Early 1960s – Although oil is not yet found, Dubai’s leadership continues to build, including an airport, new houses and offices. Gold becomes an important trading item for Dubai.
1966 – oil is found in Dubai’s territorial waters, leading to an acceleration of Sheikh Rashid’s development plans and a major construction boom.
1971 – Dubai with Abu Dhabi, Sharjah, Ajman, Umm al-Quwain and Fujairah joined the Act of Union to form the United Arab Emirates. Ras Al Khaimah joins in 1972.
1972 – Port Rashid opens as a 16-berth deep water free port constructed by Halcrow. The port was extended in 1975 to 35 berths.
1980s – Dubai continues to grow, with establishment of the Jebel Ali Free Zone around the Jebel Ali deep-water port adding to its global trading standing.
1991 - the Gulf War has a negative financial impact on Dubai, but creates an influx of businesses relocating from Kuwait and Bahrain.
1990s – a boom for construction in Dubai. Burj Al Arab, designed by Atkins, started in 1994 and was completed in 1999. Although not as tall as the Burj Khalifa, it can claim to be the world’s tallest hotel.
2000s – Burj Khalifa is completed and is the world’s tallest structure at 829m. It was designed by Adrian Smith of Skidmore, Owings & Merril. It’s a mixed use building include a hotel, offices and private residences.
2017 - HH Sheikh Mohammed bin Rashid Al Maktoum inaugurates the 200MW second phase of the solar park. By 2023, this achieves Stage 5, at 900MW, providing energy to around 270,000 residences in Dubai.
2023 – Dubai hosts the COP28 summit, cementing its commitment to a sustainable future.
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