An engineer peers through a level during the construction of New York's Empire State Building in 1931.
An engineer peers through a level during the construction of New York's Empire State Building in 1931.

Returning from fantasy land



A year ago Bernardo Fort-Brescia, a renowned architect and founder of the firm Arquitectonica, was getting exasperated. No matter what his team came up with, many of his clients in the Gulf wanted something bigger and brasher. "We have a reputation for being a very avant-garde, creative firm," he says. "But they would tell us 'that's not enough, we want more'. Everyone wanted to stand out in the market and budget was never an issue."

If artists' renderings were to be a guide to the future of the world's fastest growing cities, the residents of places such as Dubai in the year 2020 would work in ultra-modern towers so high it would be hard to see the ground. They would live in all-glass buildings with amorphous shapes that seem physically impossible and spend their leisure time travelling between themed master developments the size of small cities.

A bridge might also have a hotel suspended over it. But in the aftermath of the global financial crisis, the philosophy of architectural fantasy has changed sharply. Mr Fort-Brescia, whose firm designed the Sun and Sky towers on Reem Island and the Al Manhal project for downtown Abu Dhabi, says he now finds "a certain resistance to extravagance" from his customers, even those with deep pockets. "The era of shock architecture is over," he says. "The propositions today have to be responsible. There is a consciousness of people not wanting to do something that is not sustainable and economically responsible." The state of the economy has impact on everything, from the life of a construction labourer to fashion and who is elected to political office. But few things have such an enduring physical presence as the buildings we erect on the skyline. In New York, the era of skyscrapers in the early to mid-20th century came alongside an economic boom and speculative frenzy. The race came to a halt with the Great Depression, but not without leaving three of the city's tallest buildings as memento: 40 Wall Tower in 1929, the Chrysler Building in 1930 and the Empire State Building in 1931. Likewise, the Burj Dubai will be seen as the reflection of an era of exuberance in the Gulf, architects say. Whatever its final height, it is one of the most imposing and grand structures in the world today. Plans for half a dozen tall buildings in the Middle East, including Nakheel's 1.4km skyscraper and the 600m Meraas Tower, have been put on the back burner. In the years ahead, architects and planners will move away from the idea of a city as "an enormous megastructure place that overwhelms its citizens", says George Katodrytis, an architect and professor at the American University of Sharjah, referring to futuristic films such as Metropolis and Blade Runner that evoke dystopian, machine-like worlds. "The whole notion of architectural fantasy and the city of the future is now being reconsidered," he says. "There will be more looking inward to the spaces around buildings and the street participation. The bigness is going to give way to closeness and density and some kind of social cohesion. The task now is to fill the gaps that the first wave of development has left behind." Massive infrastructure projects such as the Dubai Metro will emerge into the spotlight as the most meaningful initiatives - the Metro because it connects the city neighbourhoods and adds another dimension to daily life, he says. There will be more focus on parks and "greening" empty areas, as well as affordable housing, which will allow more low and middle-income people to make their homes in Dubai. "It's going to be a new kind of urbanism here," Mr Katodrytis says. "Dubai has to become a normal city in a way. The new projects will be of a smaller scale and with much more careful planning. We'll see them not popping out of the desert to create another skyline or oasis. It's more about intensifying what is already there, adding more activities and spaces other than shopping malls." Architects have begun shifting their focus towards public buildings such as schools, train stations and hospitals. In down times, governments tend to increase their spending to bolster the economy. Dubai and Abu Dhabi have committed to spend tens, if not hundreds, of billions of dirhams over the next decades to develop the UAE into a world-class place to live, do business and visit. "We are focusing on social architecture," says David Ross, the design director at Keppie Design in Scotland. "If you look back through history at times of recession, any investment is in the realm of infrastructure." Keppie is among a small group of architecture companies bidding for a contract to design schools for the Abu Dhabi Education Council. In Libya, the company is designing eight university campuses as "part of a long-term programme of regeneration" in that country. The commercially driven projects are likely to suffer more from the effects of the downturn than any other type of property development, he says. "With a hospital or a school, costs don't matter as much because there is a perceived standard that needs to be reached." Architecture firms, like construction contractors and other companies that rely on developers for business, are also spreading out in the region to guarantee a more steady stream of income. FXFowle, a firm based in New York, recently secured some large contracts to build middle-income housing in Riyadh, says Steven Miller, the managing director of the Dubai office. "Now that property values are getting to where they should be, middle-income housing is a great business model," he says, adding that many of his old clients have "gone to sleep". "We've spent most of our time looking for fresh market places," Mr Miller says. But the most important thing, Mr Fort-Brescia says, is to get rid of the "ego aspect of architecture" in proposals. "There were really illogical things being proposed out there, with a lot of ego and intent to impress," he says. "But when you look at the landscape of the region today, those are the ones that haven't been built. It's the simpler, cleaner, logical buildings that are actually going to make it." bhope@thenational.ae

Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Nayanthara: Beyond The Fairy Tale

Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni

Director: Amith Krishnan

Rating: 3.5/5

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

The biog

Full name: Aisha Abdulqader Saeed

Age: 34

Emirate: Dubai

Favourite quote: "No one has ever become poor by giving"

Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

The specs: 2018 Nissan Patrol Nismo

Price: base / as tested: Dh382,000

Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

Power: 428hp @ 5,800rpm

Torque: 560Nm @ 3,600rpm

Fuel economy, combined: 12.7L / 100km

SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20M3%2C%208-core%20CPU%2C%20up%20to%2010-core%20CPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2013.6-inch%20Liquid%20Retina%2C%202560%20x%201664%2C%20224ppi%2C%20500%20nits%2C%20True%20Tone%2C%20wide%20colour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F16%2F24GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201%2F2TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Thunderbolt%203%2FUSB-4%20(2)%2C%203.5mm%20audio%2C%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%206E%2C%20Bluetooth%205.3%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%2052.6Wh%20lithium-polymer%2C%20up%20to%2018%20hours%2C%20MagSafe%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%201080p%20FaceTime%20HD%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%20Support%20for%20Apple%20ProRes%2C%20HDR%20with%20Dolby%20Vision%2C%20HDR10%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%204-speaker%20system%2C%20wide%20stereo%2C%20support%20for%20Dolby%20Atmos%2C%20Spatial%20Audio%20and%20dynamic%20head%20tracking%20(with%20AirPods)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Midnight%2C%20silver%2C%20space%20grey%2C%20starlight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20MacBook%20Air%2C%2030W%2F35W%20dual-port%2F70w%20power%20adapter%2C%20USB-C-to-MagSafe%20cable%2C%202%20Apple%20stickers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh4%2C599%3C%2Fp%3E%0A
Indoor Cricket World Cup Dubai 2017

Venue Insportz, Dubai; Admission Free

Fixtures - Open Men 2pm: India v New Zealand, Malaysia v UAE, Singapore v South Africa, Sri Lanka v England; 8pm: Australia v Singapore, India v Sri Lanka, England v Malaysia, New Zealand v South Africa

Fixtures - Open Women Noon: New Zealand v England, UAE v Australia; 6pm: England v South Africa, New Zealand v Australia

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

 

 

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