UAE government-sectoral partnership creates a green economic growth model | |
Staff Writer |
The Sustainable City in Dubai, along with similar projects in Abu Dhabi and the other emirates, highlights the push of the United Arab Emirates' (UAE's) real estate sector toward a more environmentally friendly future.
In January of 2012, more than ten years ago, His Highness As the Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, Shaikh Mohammad Bin Rashid Al Maktoum, has launched a long-term national initiative to build the nation's green economy, with the slogan, A Green Economy for Sustainable Development, powering the initiative through, the United Arab Emirates is today doing what it takes to be a world leader in this area and become a centre for the export and import of green goods and services. According to WAM, Abu Dhabi-based real estate development, management, and investment firm Aldar Properties made a significant statement last month, pledging to invest Dh25 million in energy retrofit projects across 13 of its residential communities. As the company strives to make its communities more energy efficient and ecologically friendly, this change is intended to cut utility usage for owners and tenants. Aldar's investment will reduce utility usage by Dh12 million year across the 13 villages and offset 19,000 tCO2 annually. Provis, Aldar's real estate property management company, worked with the community owners' organisations to create the concept.
Commenting on the project, Greg Fewer, Aldar’s Chief Financial and Sustainability Officer, says, “The commitment we have made to reduce the energy consumption of our residential communities reflects the pioneering role we have taken in the region’s real estate sector to reduce our carbon footprint. This project is special as its innovative structure enables significant capital investment into community assets while reducing energy consumption, carbon footprint, and community service charges at the same time. We’re proud of our team’s ability to plan and execute real win-win solutions that move our industry forward and add tangible value to owners within Aldar-managed communities.”
In January, Aldar unveiled a broader energy management programme that aims to reduce usage by 20 percent and aid the company's attempts to bring its sustainability policies in line with the UAE's long-term carbon reduction targets. There will be an annual reduction of 80,000 metric tonnes of carbon dioxide emissions, 110 GWh of electricity use, 886,000 m3 of water use, and 726,000 m3 of gas use as a result of the retrofit project. The Dubai 2040 Urban Master Plan is just one example of how the government and private sector in Dubai are working together to advance the city's green real estate agenda. Goals for the effort include increasing the percentage of green space in the Emirate by more than 100 percent, which should help the country make the most of its limited resources. Dubai, foreseeing the need for sustainable sectors growth, launched its Green Buildings Regulations and Specifications project in 2011. This was well before the beginning of the UAE Green Economy drive.
Haider Tuaima, Director & Head of Real Estate Research at the international consulting group, ValuStrat, ties in the initiative with the real estate sector’s role in supporting Dubai and the UAE’s thrust for a green economy. “The Dubai Green Building Regulations and Specifications project, introduced by Dubai Municipality in 2011 is a strategy placed towards balancing economic development and environmental protection. “Initially only mandatory for government buildings, three years later the regulation became mandatory for all new buildings in Dubai. The main goals included sustainable solutions to reduce energy and water consumption and recycle waste.”
Opting for green solutions in any development might come at a higher cost though, adds Tuaima. For example, installing solar panels and batteries to store energy bears a high initial cost. “However, that may well be considered an investment towards reduced energy consumption in the long run. The good news is that with increasing occupier demand for sustainable buildings leading to improved rents and capital values, suppliers continue to innovate and reduce costs due to increased competition, which assists in realising the overall green building movement going forward,” stated Tuaima.
In fact, sustainability has always been one of the key components of Dubai’s rise as a cosmopolitan haven, says Andrew Cummings, Partner, Head of Prime Residential at global consultants, Knight Frank Middle East. “Indeed, Dubai’s focus on non-oil revenue has been a key part of the UAE’s own sustainability efforts. With a burgeoning population that is expected to nearly double in the next 20 years, the city has of late made considerable inroads in sustainable real estate.”
In the residential space, Sustainable City was Dubai’s first zero-energy development, says Cummings, while master planned communities such as Al Barari and Tilal Al Ghaf put particular focus on sustainability in the luxury market. Developers such as the Green Group have also spearheaded green living by harnessing solar energy in their flagship Signature Living projects in JVC, He added further.