Eindhoven University of Technology

MASTER

Urban development in Dubaian international study to improve the Dutch urban development process

van Helmond, T.; van Montfort, C.S.

Award date:2007

Link to publication

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ARR 2008 BWK

4045

Colophon

Title: Subtitle:

Date:

Author: 10 number:

Author: 10 number:

Website:

Urban development in Dubai An international study to improve the Dutch urban development process

April 2007

Ing. Tim van Helmond 0559470

Ing. C.S. (Bas) van Montfort 0552323

Tim&Bas

http://www.TimenBasinDubai.com

Research location: United Arab Emirates, Dubai

Supervisors:

University:

Department:

Master track:

University of Technology Eindhoven: Prof. dr. ir. W .F. (Wim) Schaefer Prof dr. L.H.J. (Leo) Verhoef Ir. E.G.J. (Erik) Blokhuis

British University in Dubai: Dr. Mohammed Arif

CB Richard Ellis Middle East: Managing Director Nicholas Maclean RD BSc (Honds) FRICS IRRV Associate Director and Head of Middle East Research M. (Iris) Dinu BSc

University of Technology Eindhoven, the Netherlands Den Dolech 2, Eindhoven

Architecture, Building and Planning

Construction Management and Engineering

This report is developed as our graduation project at the department Construction Management and Engineering in cooperation with the University of Technology Eindhoven. The British University in Dubai, CB Richard Ellis Middle East and AT Osborne participated in the development of this report.

_________ _______________________ __ Tim& Bas

List of tables and figures

Figure 1: Organisation chart Ministry of Public Works ... .. ... ................................ ... .. ....... ..... ....................... 17 Figure 2: GDP 2000 and GDP 2004 (source: Statistical yearbook Dubai, 2004) ........ ... ...... ...................... 23 Figure 3: Pyramid structure Dubai (Authors Tim & Bas) . .. ..... ............................ ......... .... ........................... 24 Figure 4: Doelstelling nieuwe bedrijventerreinen ........ ...... .. ............. .... ....... ............... .. ...... ... ..... ......... ........ 28 Figure 5: Nationale en EZ-doelstellingen ... ..... .... ... ....... .. ... .. .. ... ....... ... ... ..... ... .. ..... .. ....... ... ... ... ... .. .. ....... .... .. 29 Figure 6: Michael Porter's value chain model. ... .... ... ......... ..... ... .... ... ... ......... ........ ............................... ..... .. 55 Figure 7: Business card Tim & Bas ................ ....... ... ... .. .. ....... .. .... ..... ... ..... ....... ... .. .. ..... '" .... ... .... .. .... .. ..... .. . 60 Figure 8: Invitation for our symposium .. .. ... ...... ... ...... .... ....... .... .... ..... ... ....... ...... .. .... .. .... ... ........ .... ... .. ..... ..... 60

Scheme 1: Business structure Dubai Holding ..... ..... ....... .... ... ......................... .... .......... ... .. .......................... 4 Scheme 2: Structures of DIC, DMC and DKV (source: TECOM Investments) ...... ....... ............................... 5 Scheme 3: Different departments which support the entities of the Free Zone .. .... ......... ............................ 5 Scheme 4: Collaboration between TECOM Investments with Dubai Properties .......... .... ... ........................ . 6 Scheme 5: Overview master plan TECOM Free Zone .. ......... ..... .. .............. ..... .. ..... ...... ......... .... ..... ...... ....... 9 Scheme 6: Higher level services as a cluster . .. ... ... ... ......... ... ...... ........... ....... .. .... ......... ..... ... .... .... .. ..... ....... 10 Scheme 7: Final scheme research approach and methodology .... ..... .......... ... .............. ..... ...................... . 64 Scheme 8: First scheme research approach and methodology ..... ...... .. .... .... .. ... ......... ........ ....... ... .. ........ .. 64 Scheme 9: Organisation chart Dubai municipailty ...... ... ... ....... ... ..... .. .. ....... ... ... ....... .... .... ...... ........ ..... ....... . 66 Scheme 10: Main questions used for our interviews .......... .... ... .................. ..... .......... .... ..... ..... .. ..... ....... .... 67

Model 1: 7S framework from McKinsey (Peters and Waterman) .............................. ....... ........... ............... 51 Model 2: Porte r's Diamond Model for the Competitive Advantage of Nations ..... ...... .... .... ........................ 52 Model 3: Roadmap for Dubai .. .. .... .. ...... ..................... .......... .. ... ..................... ...... ....... .. .. ... ... ....... ... ............ 61

Map 1: Map of the United Arab Emirates (source: CB Richard Ellis Middle East) .. .......... ... .. ......... ... .... .... 20 Map 2: Major Projects Dubai .... .. .... .... ... ...... .. ...... .... .. ... ..... ..... .... .......... .... ...... .... ........... ... ..... ........ ... ....... .. . 65 Map 3: Master plan TECOM Free Zone ............ ............ ... ........... ... ..... ... .... ... ... .... ... ........... .. ...... .... ............ 68

Table 1: PEST analysis Dubai .. ........ ...... .. ... ... ..... .. ...... .. ....... ...... ......... .......... .. ... ... ..... .. .. .. .. .. .... .............. .... 58

Photo 1: Aerial view TUle Campus ............................ .. ..... ...... ... ........................ .. ....... .... ....... .. .. ................. 69

Short reference list

BIZA BOM

DCCI DED DEWA DIC DIFC DKV DMC DSP

FDI

GCC GDP

NBC

RTA

TUle

UAE UN UNESCO

VROM

= Ministry of Interior (Binnenlandse Zaken) = Dutch development company (NV. Brabantse Ontwikkelings Maatschappij)

= Dubai Chamber of Commerce and Industry = Department of Economie Development = Dubai Electricity and Water Authority = Dubai Internet City = Dubai International Financial Centre = Dubai Knowledge Village = Dubai Media City = Dubai Strategie Plan

= Foreign Direct Investment

= Gulf Cooperating Council = Gross Domestic Product

= Netherlands Business Council

= Road and Transport Authority

= University of Technology Eindhoven

= United Arab Emirates = United Nations = United Nations Educational, Scientific and Cultural Organisation

= Ministry of Housing, Spatial Planning and the Environment (Volkshuisvesting, Ruimtelijke Ordening en Milieubeheer)

Tim & Bas

jjj

Colophon

Title: Subtitle:

Date:

Author: 10 number:

Author: 10 number:

Website:

Urban development in Dubai An international study to improve the Dutch urban development process

April 2007

I ng. Tim van Helmond 0559470

Ing. C.S. (Bas) van Montfort 0552323

Tim&Bas

http://www.TimenBasinDubai.com

Research location: United Arab Emirates, Dubai

Supervisors:

University:

Department:

Master track:

University of Technology Eindhoven: Prof. dr. ir. W.F. (Wim) Schaefer Prof dr. L.H.J. (Leo) Verhoef Ir. E.G.J. (Erik) Blokhuis

British University in Dubai: Dr. Mohammed Arif

CB Richard Ellis Middle East: Managing Director Nicholas Maclean RD BSc (Honds) FRICS IRRV Associate Director and Head of Middle East Research M. (Iris) Dinu BSc

University of Technology Eindhoven, the Netherlands Den Dolech 2, Eindhoven

Architecture, Building and Planning

Construction Management and Engineering

This report is developed as our graduation project at the department Construction Management and Engineering in cooperation with the University of Technology Eindhoven. The British University in Dubai, CB Richard Ellis Middle East and AT Os borne participated in the development of this report.

ii

Definitions

Controlled democracy

His Highness

Freehold

Long-term Leasehold

Commonhold

Dubai government

Infrastructure

Tim & Bas

= we came up with this definition for the Dubai government because the way they work over here is comparable with a dictatorship. The way they doing it is very friendly but the government always decides what you can or cannot do.

= Sheikh Mohammed Bin Rashid AI Maktoum, ruler of Dubai, Vice­President and Prime Minister of the United Arab Emirates.

= The purchase of property on freehold basis means that the property is put in the owner's name for live, and the owner has the right to sell, lease or rent his/her property at his/her own discretion. [01]

= usually ranges between 25 to 99 years. A property may be leasehold, which means that the land on which the property is built is not part of the sale. You have to make a one time payment to ground rent to the owner of the land for the whole period. The owner is called the freeholder. In addition to ground rent on a leasehold property, you may have to pay an annual service charge. This usually happens with a flat. The service charge covers such items as maintenance and repairs to the buildings, cleaning of common areas and looking after the grounds. [01]

= If the property is commonhold, it means that you can buy the freehold of a flat and own common parts of the building jointly with the owners of other flats in the building (known as commonhold association). [01]

= His Highness and his Executive Committee and supporting departments.

= roads, bridges, sewers, etc. regarded as a country's economic foundations (an exception are the scientific analysis models in this report) .

iv

Tim&8as

Contents

List of tables and figures ............. .............. .. ........ ...... ..... .. ... .......... .... ......................... .... ............ .. .......... ... .. .. .ii Short reference list ................. ..... .... ...... ... ............ ... ..... ................. ...... .. ... .. ............ .. ....... .. ......... ................. .. iii Definitions .......... .. ... ... .. ... .. ................ ..... .................. ...... .... .. ..... .. ............ ................................. .. ............... .. .. iv Interviews .................. ..... ....................... ... .... .. ...... ............ ..... ..... ........ .......... .. ....... ........... ...... .... ......... .... ...... 1

Interview with the Executive Office ......... .. ...... ................... ... .. .... ........... ... ....... ...... ........................... .. ...... 2 Interview Dubai Technology and Media Free Zone (TECOM) ... .. .. ........ .. .............. ............................. ...... 4 Interview Dubai Festival City ... .................................. ... .. ................ ...... ............................ ...................... . 12 Interview with a real estate company in Dubai. ....... .......... ... .. ........... ...... .. .... ......... ........... ... ...... ............. 14 Interview Ministry of Public Works ........... .. ............. ... .. ... .. .... .............................. ............... .... .. ............. .. 17

Articles and Summary's ...... .............. .................... ... ............... ... .. .. .. ............. .. ........... .. ...... ... ..... ........ .. .... .. . 19 History of Dubai ........ .............. .... ....... ............... .... ................ ..... ... .. ... ...... .. ..... ........................... .. ........ .... 20 Individuele stakeholder staat algemeen belang in de weg (written in Dutch) .............. .................... ....... 25 Actieplan Bedrijventerreinen 2004 - 2008 (written in Dutch) ................. .. .. .. ...................... ....... .... .. ......... 27 Value Creation Through Sharing Knowledge In Urban Development .. ...... .. ........ .. ................. .... .. .. ....... 30 Article in Property World Middle East.. .... .......... .. ....... ..... ....... ... ........ ................ ...... ...... ... ..... ..... ..... ...... .. 41 Dubai Strategic Plan 1996 ..... .. ....................... .. ................. .. ....... ...... ........... ... .. .... .. ... .. .... ........ ............. .. 43 Vision 2010 ...... .... ....... .. ................... .. .. .................. ......................... .. .. ... .. ..................... .. .. .... ................... 45 Dubai Strategic Plan 2015 ............. ....... ............ .......... ..... .. .. .. ...... .. .......... ......... .. .. ......... ... .. .. .... ........ .. .. .. 46 TECOM Free Zone .. ... .... .. .................. .......... ... .. .............. .. ... ... ... .................. ...... .. ...................... .... ..... ... . 48

Models .... .... ............ .... ....... ....... ... .......... ..... .... .... ................. ..... ....... ....... ...... .... .... ... .... .... ....... ............ .... .... 50 7-S Framework of McKinsey ...... ................. ...... .. .. ......................... .. ... ... ................... .......... ................. ... 51 Porter's Diamond model for the competitive advantage of nations .. ... .... ....... .. .... .. ...... ........ .. ... .. .... ....... 52 SWOT analysis ... .... .. .... .... .. ........... ........ ............... .. ........ ... ............. ..... ... ..... ... .... ................... ... ... .. .......... 53 Value chain for organisation Dubai ... .. ... .. .... .................. .. .... ... .. .. ................. .............. ........... .. .. ...... .. ...... 55 PEST analysis Dubai .. ...... .. ... .. ....... .. ......... .... .. .. .... ... .. ..... .. .. ... ....... ................ .. ... .... ........... .. ... .. ..... ... ..... .. 57

Schemes, Figures and Photos ....... ................... .. ... ....... ..... ...... .. ........ ................... ........ ..... ......................... 59 Business card and Invitation Symposium .. ... ... ...... ........ .. ... ............... ........ ...................... ... .. .. ......... .... ... 60 Roadmap for Dubai ...... ........... ... ..... ........ .... ............. ...... .... .................... ... .. .... ........ ..... ....... .. ...... ... ......... 61 Research approach and methodology scheme ............ ... .. .. .......... ....... ........ .. .. ... ..................... .......... .... 64 Map of Major Projects Dubai .... ............. ........ ..... .. ..................... .. ... ... .... .... ........ ............ ......... ... .. ... .. ...... . 65 Organisation chart Dubai Municipality .. ............... .... ....................... .................... .... ........... ... .. ................. 66 Analyse Case Studies .. ................ ..... ... ........... .. .... .. ... ......................... ...... .. ... ... ................. .... ................. 67 Master plan TECOM Free Zone ...... .. .... ................ .......... .. ..... ... .......... ... ... ...... ............... ......... ....... ......... 68 Science Park development .......................... ... .. ................... ..... ............ ...... .... ...... ......... .. ......... .. ... ......... 69

Conversations with supervisors and experts trom the Netherlands .. .... ............. .. ...... .... ................ ... ... .. .... 70 Minutes November 23rd 2006 ......... ........ .. ... ... .. ... ............. ............ ... ........ .............. ... .. .. ... ........ ............. .. 71 Minutes January 11th 2007 ...... ... ....... ..... .............. ..... .... .. .. ........... ............ .. ...... .... .............. .................... 73 Graduation study Tim & Bas in Dubai .. ......... ..... .. .. .... .. .......... .... ... ............ ......... .................. .. ...... ........... 75

Literature ........... ............. .. .... .. ............. ....... ..... .. .... ... ..... ... ........ ..... ...... ............... .. .. .. .................... .. .... ... .. .... 76

v

FIII. I If'pOf . A pfll'n,l"

Interviews

~ Tim& Bas

__________________________________ Tim & Bas

Interview with the Executive Office Source: Director of Strategy Mohamed EI-Hage

Keywords: • Facts about The Executive Office • Dubai Strategic Plan • Free Zones • Strategy

Summary: Before His Highness Sheikh Mohammed Bin Rashid AI Maktoum (HH) became ruler of Dubai in 2006, The Executive Office was one organisation. Now it has been split into three divisions:

1. The Executive Council: Government (board with department heads, like ministers in the state­structure in the Netherlands) . The Executive Council is there for His Highness to support his role as ruler of Dubai.

2. The Executive Office: This is the office of His Highness. The office is there to support, manage, report, and define the vision for Dubai and for the overall strategy of the Emirate Dubai.

3. Cabinet (Federal) Office: Federal Govemment. The cabinet is there for His Highness and his role as vice president of the United Arab Emirates (UAE).

Conclusion: The Executive Office is important for His Highness and his different rol es in Dubai and for the UAE.

Dubai Strategie Plan (DSP) This plan focuses on five key sectors to support the vision for Dubai. This plan describes the ideas and vision till 2015. The five aspects are:

1. Economic development; 2. Social development; 3. Infrastructure, Land and Environment; 4. Security, Justice and Safety and; 5. Government excellence.

Free Zones UAE and Dubai are different wh en we look at laws and regulations and decision-making for example. The vision of His Highness is to develop Dubai very rapidly. Other GCC countries and also the other six Emirates in the UAE are aware of the fast development in Dubai and most of them will fo 11 ow , but in a slower pace. Dubai developed "Free Zones" to attract new companies from all over the world. There are speciallaws and regulations developed for each Free Zone. So own rules, no federal rules for the whole UAE.

Strategy In Dubai there are three main players who build the city for the most important part anno 2007. Dubai Holding, Emaar and Nakheel are the most important players for large urban development projects. These companies are owned by the Dubai government or partial owned by the government. We can say that they are semi-government. This is part of the strategy of His Highness. He wants competition in Dubai th at is part of his strategy. Emaar, Nakheel and Dubai Holding should always compete with each other. The govemment is always challenging these companies to build innovative projects, for the lowest price and as fast as possible. The (semi) govemment has the leadership and responsibility in her hands. The initiative comes from the government and private developers want to participate in complex urban projects. Now the government is leading and has the responsibility and maybe in the future the private market will take the lead. Large spending by the govemment is a real boost to the economy of Dubai at th is moment. Dubai and the UAE are political neutral which have a positive influence on the investment climate. This attracts money from the surrounding countries who will invest here for the long-term.

2

FillDI repoil II.ppt IlcI"

Tim & Bas

The Dubai Strategie Plan presents the five key sectors where future investments will go to. One of the most important things in the DSP about the urban development strategy is th at they are looking for clustering. Why clustering?

1. Clustering creates economie benefits; 2. Laws and regulations are more friendly for these areas and; 3. Marketing is better to attract global companies.

His Highness will develop Dubai in such a fast way no other private company could ever do the same. At th is moment His Highness and some large families are investing in the whole development boom that takes places at th is moment. In the future there will be a time that private institutions will get more and more involved in this process.

Examples The Dubai municipality has little influence in planning. They indicate the plots where they want to have e.g. Dubai Land and th at is all they do. After this the project organisation is formed by the Dubai Land organisation. This organisation will develop the further planning and developing of the area and will also maintain communication with the municipality.

Extra corrUTlents Mohamed EI-Hage is trying to arrange an appointment with a friend of him who is an entrepreneur in Dubai. Anisa AI Sharif (associate Project Manager) can help us with contacts for the project Healthcare City.

3

Finö l rr-pOiI. Apl'Plidi ~

Tirn & Bas

Interview Dubai Technology and Media Free Zone (TECOM) Sou ree: Chief Strategy and Business Development Offieer Sanjive Khosla

Introduction Sanjive Khosla has studied economics in India and graduate for his MBA title. He had his own internet company for 1.5 years, started in 1999. At this moment he is working for six years with TECOM Investments investments. His department by TECOM Investments is focussing on strategy and business development for different departments under TECOM Investments.

Business organisation TECOM Investments is part of Dubai Holding. Can you teil us which business organisation is developing Dubai Technology and Media Free Zone?

TECOM Investments is part of and owned by Dubai Holding, the organisation structure can you see in the scheme below. TECOM Investments counts approximately 20 operational businesses and has the following mandatories for the TECOM Free Zone: • Project management, financing and tendering; • Urban planning and issue plots; • Maintenance; • Define laws and regulations; • Contract local investors; • Issue licenses for companies in the Free Zone; • Set up lease contracts for all real estate and; • Marketing and commercial activities.

Inlemational projeeis, e .g . Marocco and

Egypl

Seheme 1: Business strueture Dubai Holding

DUBAI HOLDING (Private Company.

eslablisched 2 years ego)

HOlel group. e.g. Burj AI Arab. The Emirates Towers.

Fin . Invest. 1: DUBAI

NTERNATIONA CAPITAL

Fin. Invest 2: DUBAI GROUP (before Dubai Inves!. Group)

The Dubai Technology and Media Free Zone Authority is a Government Authority established in 2000 by His Highness Sheikh Mohammed Bin Rashid AI Maktoum, the ruler of Dubai. The Government Authority is concerned about the development of TECOM Investments Free Zone. The Government Authority reports direct to the Executive Council. The Executive Council supports and provides His Highness with all the information for his different functions in Dubai. Detailed information and organisation structure of the Executive Office can be found in our interview with Mohamed EI-Hage. The Government Authority also gives laws and regulations to TECOM Investments in which areas they need to develop like; IT and education.

TECOM Investments developed till now on DIC, DMC and DKV in different phases. In scheme two and three you will see the structures of DIC, DMC and DKV and the different departments which support the entities of the Free Zone. Future developments are; Dubai Outsource Zone, Dubai Academic City, Dubai Studio City, DuBiotech, Dubai International Media and Production Zone. The last one is a Free Zone tor

4

____________________________________ Tim & Bas

renewable energy. The Renewable Energy Department as part of TECOM Investments is previously launched. The other five projects are all new Free Zones to be launched in the near future.

[(!) I - [t] .,; 7

D U Bi • DUBAI DUBA. ' " r I q,-,; (T ,\\ E IJ I A KNOWLEDGE

( I fY (" I T Y VILLAGE

DIC 2000 > DMC 2001 >

DKV 2002 > Structure as

Pro vides International

infrastructure & a commercial full range of

expertise: aperatian:

services far: Set up in

Empowered Commerial,

conjunction with to establish

edueational, leading International

free zone R&D, retail,

companies & specific corporate

residential and consultants, in

laws & regulations recreational facilities

IT / Telecom

Scheme 2: Structures of DIC, DMC and DKV (source: TECOM Investments)

[(fJ r:::III ~ ,,;

D U !lXI D U EI t. DUEIA. M (0111 " NO"" lo (". r

(. I I ~

Planning & Bus. Development

Scheme 3: Different departments which support the entities of the Free Zone

Strategy The general strategy of TECOM Investments is to focus on new economies and start new businesses in new economies. They will focus on; IT, telecom, etc. To realise these objectives they have to go through different steps.

Strategy for the develapment of a Free Zone far a new economy

Step 1:

Step 2:

Build alocal industrial hub for a new economy. To accomplish this start building real estate, design a regulatory framework for the hub.

When a loeal hub is operational start developing a similar hub in other countries and sell services to other foreign companies.

Strategy far decisian-making process far the develapment and construction of the TECOM Free Zone See model 1: Decision-making process on the last page of th is interview. Step one in the process is that TECOM Investments develops the concept strategy and benchmarking for the new Free Zone (this is ealled the conceptual phase). This concept strategy will be discussed with the overall management of TECOM Investments and this will result in an approval. During this process TECOM Investments collaborates with the private company Dubai Properties (see scheme 4).

5

Tim & Bas

TECOM Inveslmenls

Dubai Properties & Master Planning Consultancy companies

BUSINESS PLAN

Estimation of the costs

Scheme 4: Collaboration belween TECOM Investments with Dubai Properties.

After the management approval for the concept strategy the plan will move to the Zoning Authority. The Zoning Authority is part of Dubai Properties and concerned with master planning . Different consultancy companies are asked to design their plan for the Free Zone. A final master plan for the new Free Zone is the result. The final master plan wil! be approved by TECOM Investments as definitive master plan for the new Free Zone.

TECOM Investments is now concerned with infrastructural planning and estimations of the costs. Dubai Properties is again project management partner with their consultants to develop the infrastructural planning and estimation of costs. The information about infrastructural planning and costs wil! be delivered by Dubai Properties. The result is a business plan th at is developed and approved by TECOM Investments.

The business plan can be realised and therefore sales and marketing activities are developed in-house by TECOM Investments by the Sales and Marketing Department. On the other side construction activities will be outsourced to a third private party. After the project has been developed and sold the facility management department of Dubai Properties wil! take over maintenance of the Free Zone. To control this process and to keep overall view the managers between TECOM Investments and Dubai Properties will be responsible. There are relatively small teams working at the different departments at TECOM Investments. For example the Sales and Marketing Department at DIC consists of 17 people.

Project delays In general Sanjive Khosla, Chief of Strategy and Business Development informed us th at project delays on all TECOM's projects are between six months and 24 months. The main reason is the imbalance between demand and supply in the Dubai construction market. Deadlines cannot be followed because resources are not always on time available and all major companies are occupied with large orders. This is a result of the booming rea I estate market in Dubai.

Acceleration The start up phase for TECOM Investments projects is relatively short. The start up phase means that the Dubai government defines where the Free Zone can be planned. Planning of a Free Zone is part of the overall master planning for Dubai city done by the Dubai government. Rules and regulations for development of a Free Zone are given by the municipality on a high level base. On the other hand the Road and Traffic Authority (RTA) is responsible for Dubai's traffic planning. Traffic congestion in Dubai is rising and must be prevented. Therefore all different urban development projects need to regulate their traffic movements according to the rules of the RT A. TECOM Investments don't need approval from the Dubai municipality for the development of the Free Zone itself. The start up phase is very short because it is not necessary to give feedback to the municipality.

Conclusion: As a result from the DSP Dubai government takes responsibility and formulate the govemmental framework for the development of this Free Zone.

Free Zone "The National Government (department of Economie Affairs) is coordinating the development of Industrial areas in the Netherlands. The province, Municipality and local business are the parties to develop Industrial areas. Our National Government is responsible for touchable results in the end. Therefore they concentrate manpower and too/s to those industrial development projects which will contribute to our

6

Tim & Bas

economy. /n practice we still see bottlenecks on organisation, financing industria/ area projects, /aws and regu/ations and exchanging know/edge. n

Bottlenecks for TECOM Investments are that institutions like Dubai Electricity and Water Authority (DEWA) and RTA are not involved in the process from the beginning. These institutions are involved in the start up phase but there is no transparency and consultation about the exact project plans between the participants. This makes it very difficult to participate in the process and to carry out their expertise of the institutions. When we look at the laws and regulations there are different aspects to improve. There is no uniform building code or a standard for quality which should be issued by the municipality. From a process angle there is a need for up-gradated ski lis of personnel in different organisations says Sanjive Khosla.

Program realisation Which institutions have which role:

Government?

Private parties?

? •

Master Planning

Feasibility Studies

Which institutions have which ro/e:

Who gives approval tor:

Amount of buildings;

Quality level ;

Laws & regulations;

Project design .

Value-added , services

" -~-------Shareholders

'-- .. _~-------

Dubai government: Defines according to their master plan where a Free Zone can be planned.

Dubai municipality:

Private companies:

Master planning and Feasibility studies:

Who gives approva/ for:

Amount of buildings: Qualitv level:

Defines laws and regulations on a high level base for each planning and development activity Dubai Strategic Plan (DSP) .

Development of the F ree Zone and infrastructure as a result of the (DSP) and Cluster strategy.

Developed by TECOM Investments.

TECOM Investments; Defined by TECOM Investments because there is no general building code in Dubai available. To attract foreign companies it is the aim of TECOM Investments to meet on international building standards like floor space, energy, sustainability, etc.;

Law and regulations and Project design: TECOM Investments for the whole Free Zone;

Va/ue added services: TECOM Investments.

Shareho/ders: See scheme 1.

7

I hl,)1 I"p"rt . AppendlK

__________________________________ Tim & Ras

Conclusion: Plan development and plan implementation are the responsibility of the TECOM Investment business organisation.

Sustainable development by TECOM Investments The land for the Free Zone development is given by His Highness to TECOM Investments at a very low price. Till now on the business organisation was focused to maximise shareholder value for the short­term. This is automatieally influencing stakeholders' value on the long-term. The question is if this wilt result in sustainable development. This is the challenge for TECOM Investments to manage this process in the near future. TECOM Investments took the responsibility to develop a sustainable plan for their organisation. All their new projects have to be designed, constructed and operated to the US Green Building Council's 'Leadership in Energyand Environment Design' (LEED). This according to the sustainable development policy of TECOM Investments. TECOM Investments came up with this policy because the Dubai municipality can not come up with these rules on a short-term.

Organisation of the development From our perspective development in Dubai is controlled by economy and not process driven. We do see a fast process because there is a good developed process. Can you teil us something about this?

The real estate in this Free Zone is a leasehold concept. Leasehold means that the ownership belongs to TECOM Investments and for some other plots in th is Free Zone to loeal investors. The companies who established themselves in the Free Zone are leasing the property from TECOM Investments. Some plots are sold to local investors from UAE and GCC countries. Here we see an example of the inevitable influx of foreign direct investment (FDI) into the Free Zone. Local investors are developing office space and hotel facilities on their plots. The supply and demand for office space in the TECOM Free Zone is managed by TECOM Investments. Existing companies in the Free Zone who want to expand their business are able to do this. There is the possibility to sign a contract that if office space beside your office is available and you want to expend than you have the first right at leasing. The expansion possibilities are integrated in the process. In the Free Zone we can recognise different development phases the dimension of each phase is depending on the economie market situation. The sq/ft price in this Free Zone is AED 145 and AED 225 for the office towers being build by loeal investors. In comparison to other office prices we see that the TECOM Investments Free Zone has very low prices. For the Dubai International Financial Centre (DIFC) Free Zone is the sq/ft price AED 300 -400 and for the Emirates Towers AED 350. The RiverWalk project from Capital Partners (private Ameriean equity company) was announced a few years ago to be part of the TECOM Investments Free Zone. The development of this project has been delayed because the developer couldn't meet certain milestones given by TECOM Investments. At th is moment TECOM Investments is looking tor a new developer together with Capital Partners.

The organisations' strategy of DIC and DMC is to focus on enabling services and business support to the industry while non-core aspects are taken care of by investors and third parties (Khaleej Times, September 2005). Can you give us an example of this?

When we look at the plots developed by local investors, TECOM Investments is taking care of all infrastructures to the plots. The infrastructure on the plot itself must be developed by the local developer. Maintenance of the infrastructure for these plots is also the responsibility for the loeal investor. In scheme 5 you will see the plots, indicated with red ellipses where local investors are developing.

Ones investors develop new properties, the TECOM Investments Free Zone wi/l take on all the management and maintenance responsibi/ities to ensure a productive and profttabIe experience for the companies accommodated by the new infrastructure, said Dr. Amina AI Rustamani, Executive director of Media, Dubai Technology and Media Free Zone (Khaleej Times, September 2005).

Development will be done by third parties. After completion TECOM Investments takes over the responsibility for leasing and licenses of the buildings. Maintenance at the building must be done by the developer but is possibly to outsouree this to the maintenance department of TECOM Investments.

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Tim & Ras

- . -_ . . - .-.. -- - .--- ..... .. - ~ .. --~ .. . ' __ .M I -

Scheme 5: Overview master plan TECOM Free Zone

Conelusion: TECOM Investments is the long-term investor for this Free Zone. Other investments are done by local investors as weil as foreign direct investors.

Dubai Strategie Plan (DSP) The DSP 1996 was focussing on the five aspects: Tra de, Transport, Tourism, High Level Servicing and Manufacturing. The DSP is also talking about the 'Cluster strategy'.

The Free Zone developments are focussing on higher level services. The projects DIC, DMC, DKV, and Dubiotech are consequences of the cluster strategy explained in the Dubai Strategie Plan (DSP) 1996. This DSP is translated later on in the year 2000 into 'Vision 2010' and the most recent DSP 2015. 'Vision 2010' is based on higher level services as economie pillar. In the scheme below you can see a cluster of business communities developed by TECOM Investments around higher level services.

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Tirn & Bas

Scheme 6: Higher level services as a cluster.

Finance How and by who is the infrastructure financed?

All infrastructures within the Free Zone are financed by us, except in the case of smaller roads within plots which have already been sold to other local investors. When it comes to the interchanges which are coming up it depends on a case to case basis. Some of these interchanges which have been built are solely for the process of serving projects developed by TECOM, Nakheel and Emaar. Therefore the costs of these have been shared by these 3 and the RTA. This is however an exception and not a role .

How does the TECOM Investments earns back this investment?

These are recovered through the land lease / commercial office rents and other service charges levied by TECOM.

We have spoken about different institutions. Dubai government, Dubai Municipality, Government Authority (named: Dubai Technology and Media FZ Authority) and TECOM Investments. Is the Government Authority an institution close to the TECOM Free Zone or close to the Dubai government?

Both, but closer to TECOM Investments at this point. In the future as the authority matures however it is likely to grow closer to the Dubai government.

Is the Govemment Authority named "Dubai Technology and Media FZ Authority" specially concerned with the TECOM Free Zone or do we have to interpret this 'Government Authority' as an department inside the Dubai government concerning with all developed Free Zones in Dubai?

At this point it is better to view it as one which is concerned only with the TECOM free zones. There are other authorities which exist which look after the other free zones. This may however change in the future as do many things in Dubai.

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Tim & Bas

Government

Conceptual Phase Master Planning

< > Consullancy ) compam8S

Infrastr. Planning & Costs

< >

B §

B Implement l Suslness Plan

L __

Maintanance

B TECOM < > I responsible lor exploitation I a

Model 1: Decision-making process for the TECOM Free Zone. Source: Authors Tim & Bas.

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Tim & Bas

Interview Dubai Festival City Souree: Developmenl Manager Ralf Laurijsen

The project Dubai Festival City is privately financed by the AI-Futtaim Group. • How is this group organised? (organisation scheme); • Has Dubai Festival City an own business organisation and how will this fit in the overall

organisation scheme of the AI-Futtaim Group.

Introduction Ralf Laurijsen is development manager at AI-Futtaim Group for Dubai Festival City. Ralf worked in the Netherlands before at Meerstad Groningen (from 2001 till 2006) and Amstelland (now AM) . Recently he came to Dubai to work for AI-Futtaim Group. We have met Ralf at the monthly meetings trom the Netherlands Business Council in Dubai.

Some fa cts about Dubai Festival city: The project is very close connected to Dubai International Airport and that's why it's popular for business and hospitality. It's the largest private development project in Dubai; 2001 In th is year the AI-Futtaim group acquired the ground for the development; 2002 In this year was the master plan ready for the total project; 2003 In this year they start building. The development is like 'a city within a city' . There are 18.000 units planned for residential use connected to a golf course, different hotels, offices, an automotive showroom park and schools. Offices represent 300.000m2 or 3 million sq/ft.

The Dubai Festival City project is divided into different zones: Office park; Waterfront residential; Automotive park; Festival Center with 11 .000 parking places; InterContinental and Crowne Plaza Hotels; Four seasons golf club 18 holes and country club; Four seasons hotel; Hili Side Community; AI Badia Community; Creek Side Community (vis ion of a city within a city) ; Community Services (sports, leisure and schools).

The whole project is rental. So the project is a real estate investment for the AI-FuUaim Group. The AI­Futtaim Group has taken the project initiative and responsibility. Ralf explains that rent prices are good at the moment and the AI-Futtaim Group has schedules to predict what happens if they sell parts of the project after five years. In the Netherlands we see a lot of projects which are build to sell and less are build for rent.

In the Netherlands projects are developed in phases as weil as the infrastructure of a project. When the first phase is ready to sell, then the next phase will be developed. So a phase of the project is financed ahead and sold. The returns are invested in the next phase of the project and this continues till the end of the whole project. AI-Futtaim Group financed the whole project ahead. Improvements of the land and infrastructure are finished all ready. This is different comparing to the Netherlands.

Process The first phase in the development stage consists of schools, golf course, sport and shop ping facilities. The strategy behind this is to earn high rents trom the residential units because the whole intrastructure is ready and the charisma of the project is luxurious. The developments in this project are focused on revenues and not based on costs. Building schools first is good for the rental prices in the vision of the AI­Futtaim Group.

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In 2001 the plot of land was allocated for Dubai Festival City. The master plan was developed in 2002 and in 2003 the first building activities started with the automotive park. Due to short planning and designing in the start-up phase there occurred a lot of problems during the implementation, says Ralf. The process designed by AI-Futtaim Group is divided into two business units, development and maintenance. The whole Dubai Festival Project including infrastructure is developed by AI-Futtaim Group and there seems to be a good designed process resulting in a fast development process. Project development and implementation is in the hand of one single organisation . The organisation for Dubai Festival City has the mandates to sign contracts with partners for leasing.

Example: The company Ikea nonnally develops her own buildings. In this project they rent the building from AI-Futtaim Group. The same idea applies for large hotel branches. The hotels are completely built for them including furniture and every detail. The idea is that the hotel companies only have to start operating because everything is already in place. They rent the hotel from AI-Futtaim Group.

The master plan is divided into different zones. The architect is designing the master plan. The developer can get approval for the master plan; knowas the 'planning approval' . The municipality analyses the master plan on major aspects like parking facilities, number of buildings, and the height of the different buildings. After the 'planning approval' the architect is designing 'together' with the contractor. Each contractor uses his own building method and the architect can design his plan inside this method. The next phase is that the architect is designing the master plan into a preliminary design. Now they can go to the municipality for a 'building approval' and th at iterates several times for different licenses.

Maintenance This is a private developed project. AI-Futtaim Group owns the whole infrastructure of the project as weil as public gardening, sewerage and wiring. The development and maintenance is the responsibility of AI­Futtaim Group. Security is also been carried out by the developer. Dubai Festival City has its own water cooling system and the air-conditioning system is using his cooled water. House hold refuse is also a private service in this project. These are one of the technological systems integrated in this project. The whole project is pedestrian orientated.

Quality In Dubai there is no 'building decree' like in the Netherlands. Therefore a developer can choose his own building decree. AI-Futtaim Group work together with English contractors and therefore the English building decree is being used. The expertise is coming into this project with the English contractors.

State-Structure In the Netherlands we see a state-structure with three layers of governmental departments. The central government, than the province department and the third one is the municipality. In the UAE there is the federal government for all seven Emirates. Dubai has its own government and this is almost independent from the federal government. The ruler of Dubai, His Highness Mohammed Bin Rashid AI Maktoum developed his governmental departments in a way Dubai don't need the federal government for assistance. The different government departments in the Netherlands are presenting requirements to developers which are not adjusted within the different departments in our government. That makes it difficult for the developers.

Differentiation The Dubai Festival City project is mixed use for risk spreading. The automotive park is focused on financial services and high level services come from the hotels, office towers and the golf course.

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Fi l1i11 report: Appp",ji.

__________________________________ Tim & Ras

Interview with a real estate company in Dubai Sou ree: Confidential

Keywords: • History and culture of Dubai • SWOT analysis • Govemment as main player for property market • Main mechanism in Dubai for project launches • Investment climate Dubai • Establish climate in Dubai • Build to sell and build to rent • Financing property • Cityscape 2006 exhibition • Role of money

Summary: 1. Wh at are the most important institutions for a reaJ estate developer in pubJic and private sector?

Political and financial institutions are the most important institutions for a real estate developer. You must know the right politica I connections th at can represent your plans. It is also important that you know the right person by a bank to get finance for your development.

2. How is the property market organised in Dubai? • Who are the important pJayers in this market; • How do they get informed when there is a new project coming up;

The government is the main player at the property market in Dubai. Other important players in this market are Emaar and l'Jakheel. Emaar is for 33 per cent owned by the government and Nakheel for 100 per cent owned by the government. The government own also the Dubai Port Authority (DPA). Limitless is also fully owned by the government. In the private sector we see the Saudi Arabian company Tameer which is one of the biggest financial institutions. KM Properties is also 100 per cent private. Damac was one of the first private players who entered the property market but went bankrupt. Until another investor, who is 100 per cent owned by the government, gave a financial injection to the company. You can compare Dubai with an 'umbrella' where His Highness controls everything behind the scenes under this umbrella. By this kind of constructions you can see that the government is controlling the whole property market.

When a new development is ready for its project launch, first the 'Big-players' will be asked if they are interested in participating in the development. These 'Big-players' are the development companies Emaar, Nakheel, Dubai Properties and Dubai Holding, but also very rich friends or families of His Highness. After they have showed there interest and claimed some plots of the project a second round of offering beg ins. This time all the 'Main-players' are invited to show their interest in the project and claim some of the remaining plots of the project. After these two rounds finally the project launch takes place for other developers to buy the last remaining plots of the project. So there is no transparency and clarity in this way and we see preferential treatments. In the early stages of the project there aren't even master plans presented! You buy or you go ... The marketing mechanism is th at we have a 'pre-Iaunch' for the big players and when the initial project goes for sale the project is 'sold out'. The main mechanism we see in Dubai at the moment is that the project developer says the project is sold out. Main partners make their reservations for all the important plots. The demand is very high and the main partners who reserved their plots want commission if someone else wants to develop something within the total urban development project.

3. How is the market subdivision for offices, shops, factory buiJdingslhouses in the city of Dubai?

He expects that there are too many apartments delivered to the market in the next years. In the market there is a high demand for offices, shops and factory buildings. The long-term perspective is uncertain.

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l'im & Ras

'Interviewed person' is telling us a story about the 'original man' who represents the most important element for development. In Dubai we see less than 10 per cent local inhabitants. The question rises: who is protecting Dubai city when there are problems? This can be a war or nature problems. 'Interviewed person' says there is no attention for culture and basic nature in Dubai schools.

4. Haw wauld yau describe the investment climate far property develapers in Dubai?

At this mament the investment climate in Dubai is acceptable. It was 'sexy' for years to establish, cost were low, resources (materiais) were available and plots were cheap. In Ihe last Ihree years there were some major price increases for Ihe price of land that tripled in value, labour Ihal doubled in price, malerial Ih al also doubled even lripled in price and fees and salaries (for e.g. visa) are also doubled. Before Ihis malerial was available and labour and land we re cheap.

5. Haw wauld yau describe the establishment c1imate?

The lerms and condilions 10 slart your own company in Dubai are very good. There is less rouline work. The developed infraslruclure for inveslmenls is good. The laws and regulalions are easy and you jusl have 10 visil 'one' office for all your paperwork.

6. Do you know which return on investment property develapers can realise in today's market in Dubai? • Which terms belong to the investment (break even paint);

Build 10 sell: Ihe relurn on inveslmenl you can make is al least 100 per cent. It was possible for even five years ago Ihal you could gel a relurn of 1000 per cent. li's easy 10 counl Ihe cosls when you build 10 sell: plol cosl e.g. 5 million AED, governmenlal cosis, markeling 10 sell Ihe project, producing a model, elc. Build 10 rent (invesl): relurn on inveslmenl is aboul 12 per cenl lill 15 per cenl annually. This can be increased 10 18 per cenl lill 20 per cent. You have 10 pay for some general cos Is bul al Ihe end you always have a minimum nel relurn of 10 per cent.

7. What is the strength of the baaming property market in Dubai right now? • And what abaut opportunities, threats and weaknesses?(SWOT analysis)

SIrengihs: Vision of His Highness and globalisalion. Laws and regulalions and less rouline work. Also because of Ihe smoolh way 10 slart your own company as explained in queslion 6. You always have 10 be aware of Ihe possible Ihreals and weaknesses. AI Ih is moment il is slill attraclive 10 invesl in Ihe real eslale markei of Dubai because financial companies are supporting Ihis market. Opportunilies: Creale slability for inhabilanls and Emirali. Pay more attenlion 10 culiure and hislory aspecls in educalion. Threals: Iraffic congeslion and Ihe possible danger of lerrorism. Weaknesses: no Iransparency and clarily in Dubai's syslem. Righls of inhabilanls of Dubai are nol like Weslern slandards (e.g. daling logelher wilhoul having a relalionship is nol allowed). Securily aspects are nol developed enough. The government's vision is nol clear lowards Ihe fulure. You do nol know how Ihe land will be looking over 10 or 15 years, because Ihere is no overall urban masler planning. Hereby you further have 10 be aware Ihal Ihe governmenl always have Ihe power 10 do wilh you whal Ihey want. You are always al risk Ihal one day Ihe government decide 10 appropriale your piece of land, or build a new highway near your property. So Ihe overall concern is aboul slability.

8. Can you teil us about general ways to finance property in Dubai?

Financing real eslate property in Dubai lakes place Ihrough banks or (private) partnerships. Partnerships over here exisl of a group of individuals or families who are invesling in real eslale property. AI Ihe moment Ihey are looking for opportunilies 10 develop new kind of inveslmenl inslrumenls 10 finance real eslale property.

Example: When you have a plol bul do nol have all Ihe money 10 develop and build a project on it. There are opportunilies Ihal a conlraclor wilt develop and build Ihe projecl for you (design and build coniracl). After he finished Ihe projecl he is allowed 10 gel the income for a given period of lime. When Ihis period is over Ihe projecl is handed over 10 you.

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9. Can you teil us your opinion about the sustainability of the property market in the near future?

About the sustainability in the property market 'Interviewed person' says he expects that there could be a dropping in the apartment market by the end of 2007. About the other building sectors he could not give us any information. Office, residential and industrial will maintain.

10. What do you think about all the real estate projects as presented on the Cityscape exhibition 2006, will the property market handle all these projects that are going to be built?

The presentations at Cityscape 2006 where confusing me and it seemed not organised. There should be a reference. Not the government but from the main players in the market. A lot of companies a presenting huge urban development project in the whole Middle East and that is confusing.

11. How are macro economical developments influencing the property market? • What are the most important measurements about economics that influence the

development climate (GDP, interest)?

First of all government policies can influence the property market. Secondly the increasing population in Dubai. And third, polities can influence the development climate in Dubai. And last but not least interest. Dirham is pegged to the US Dollar. So the dependence to the USA is there. Oil in the UAE is sold in US Dollars, so the banks in the USA will benefit trom th is.

12. What is the forecast ofthe property market in the future (next 5-10 years)? • What are the trendslneeds for the next years;

'Interviewed person' doesn't know how the forecast for the property market wililook for the next five till ten years and it's also depending on the SWOT analysis. Nobody knows in which way this market will develop. In his opinion Dubai needs to diversify their markets to other sectors and not only focussing on the present construction development sector and other productive fields. Recently Dubai introduced the 'Freehold construction'. With freehold it's possible for foreigners to buy property in Dubai. This is a relatively new product over here so nobody knows exactly how Dubai's economy is developing towards the future.

13. What do you think about the role of money in Dubai?

The slogan that is often heard over here is; "Cash is king". There are some indicators th at the selling of apartments is not going weil. In the past years you saw that buyers had to pay an amount in advance and for the remaining part they could get a mortgage. Today you see that it's possible to get a mortgage for the whole amount you have to pay for your apartment. The 'down payment' th at was needed is no longer necessary. The idea behind could be th at developers cannot sell the apartments fast enough. By giving 100 per cent finance they hopefully can attract more buyers for their apartments.

14. What do you think that we can learn from the development approach in Dubai?

The role the Dubai government in the whole urban development planning is very important. They finally decide what, when and where urban development takes places, no matter if you like it, you have to except it. The government control is essential.

Extra comments Don't mention the name of 'Interviewed person' in our report.

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Tim & Bas

Interview Ministry of Public Works Souree: Direclor of Building Designing Fouad Bokhash

Introduction 1) What is your function within the Ministry of Pub/ic Works?

Fouad Bokhash is director and his daily task is managing the different projects from different ministries for approval and communicate with the Ministry of Finance.

2) What are the activities of the Ministry of Pub/ic Works?

The Ministry of Public Works is working for the Federal Government of the United Arab Emirates (UAE) with a focus on the northern Emirates. When the Emirate Ras AI Khaimah for example is planning to build a new hospitalor a school then they discuss th is with the Ministry of Public Works and submit a plan for it. This Ministry discusses al the submitted plans with consultants from the Federal government. The Federal government revises all the plans and is checking if it fits in the total development of the UAE. All the approved plans are given back to the Ministry of Public Works. They discuss these plans with the Ministry of Finance. The Ministry of Finance is deciding which budget goes to which Emirate.

Business organisation 3) How does the Ministry of Pub/ic Works fits under the Dubai Municipa/ity or Government;

First we have to make a distinction between Federal and Local Government. The federal govemment is there to support all seven Emirates in the United Arab Emirates. Each Emirate can have their local government. Any ministry (e.g. Ministry of Health or Education) deals with the Ministry of Public Works. Dubai has her own municipality and department of Health. So Dubai is a different story.

4) Where does the business organisation of the Ministry of Public Works consist of?

Technica! Assistant Deputy Minister (ADM)

FinancÎa! & Admin . ADM

Planning & Research ADM

Figure 1: Organisalion chart Minislry of Public Works

5) What kind of mandatory has the Ministry in the development process; Each ministry works independently and this is similar to the private sector approach. This changed recently and new regulations are being developed. The independent status of each ministry results in:

~ acceleration in the process ~ ministry takes her own responsibility ~ clear budgets for each ministry

6) Which processes are managed and deve/oped by this Ministry. Can you give us a descnption how the process wilf look from start tiff finish when the Ministry gets invo/ved by a new project, based for the points:

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Tim & Bas

• Decisian-making steps; • Turn around time; • Stakehalders.

Planning and budgeting phase; Different project analysis's for Ministry of Health, Education, etc. The costs for each project are important.

Budget from Ministry of Finance for 2008: Total of AED 750 million annually, 80 per cent for ongoing projects and 20 per cent for new developments.

Design, Tendering, Constructing.

Previous process: When the Ministry of Public Works wants approval from the Ministry of Finance they have to present a cash flow chart for all the years each project is lasting. The budget for all the projects together for one year may not exceed the annual budget of AED 750 million.

New process: The change is that the Ministry of Public Works needs to present a development planning for the next five years. For example the years 2008 - 2013. In this list all important projects are mentioned who wants to be developed by the different Emirates. An informed committee by the Cabinet of Ministries of the Federal government analyses this list. This committee will decide which of the proposed developments may actually been developed and which have to put on hold. In the past the Ministry of Planning was the right authority to judge on these plans. Now this is the Cabinet of Ministries who has the mandatory to change the order of priority projects asked by the different ministries.

7) His Highness presented in his Dubai Strategie Plan 2015 aspects far sacial develapment, what influence has this far yaur Ministry;

No influence because there is no relation between Dubai and the Ministry of Public Works.

8) Can yau teil us samething abaut the aspects af Cluster strategy, Free zane ar Gated cammunities, which might be applied an the Hea/th Care City project;

Not more than th at the clustering of comparable businesses are easy in one zone for the visitors. Everything for healthcare in one project together.

Program organisation 9) The project start up phase is short in Dubai compared to the Netherlands, when problems occur in

the development phase, can these problems been solved and how does this affect the process; 10) Which institutions have which role in the process; 11) Who are the stakeholders; 12) What kind of master plans and feasibility studies are developed; 13) Who is giving approval for:

• Laws and regulations; • The project design; • Amount of buildings; • and Quality level.

14) How long does it take to get this approval;

15) Where during the develapment process are private parties invalved;

For the design of new projects we ask private consultants and our in-house department. Large projects are for 75 per cent designed by private consultants. There are two ways to attract consultants during the design phase, by competition or tendering. By competition they can attract different consultants who are interested to do it and you choose the best design. By tendering they select the companies who make a proposal for the development of the project. Construction work comes for 100 per cent trom private companies. There is no construction expertise in-house.

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_______________________________ Tim & Bas

Artieles and Summary's

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F jlla l rp. fHl! I : AIl!'t'fldlx

Tim & Ras

History of Dubai

Dubai, United Arab Emirates geographical The UAE (UAE) lies along 83,600 square kilometres on the Arabian Gulf, and includes over 200 islands and coral reefs. It is strategically located between the Far East and Western Europe, with around six hou r's maximum f1ying time trom each direction.

Dubai was originally a smalt fishing settlement. Traditional activities included herding sheep and goats; cultivating dates, fishing and pearling and trading. By the 1900's Dubai was reputed to have the largest souks (markets) on the Gulf coast, with 350 shops in the Deira district alone. But while trade developed, especially with India and Iran, Dubai remained politically a protectorate of Britain as part of the Trucial States extending along the northern coast of the Arabian Peninsuia. On the British withdrawal in 1971, Dubai came together with Abu Dhabi, Sha~ah, Ajman, Umm al-Qaiwain and Fujairah to create the federation of the UAE. Ra's al Khaimah joined the federation a year later.

Abu Dhabi is the largest Emirate and the capita!. The ruler of Abu Dhabi, Khalifa Bin Zayed AI Nahyan, has been president since 2004 when he succeeded Sheikh Zayed Bin Sultan AI Nahyan, who had been president since 1971 . The head of Dubai government is His Highness Sheikh Mohammed Bin Rashid AI Maktoum is Vice-President and Prime Minister of the UAE and rul er of Dubai.

The highest federal authority in the country is the Supreme Council of Rulers, made up of the hereditary rulers of the seven Emirates. Each Emirate has its own ruler and under the constitution reserves considerable powers, including control over mineral and oil rights. The Supreme Council is headed by the prime minister, with other ministerial posts drawn from the Emirates. The Federal National Council is a consultative assembly of 40 representatives appointed for two-year terms by the individual Emirates. There is no federal criminallegislation : Sharia (Islamic law) is the basic law. The UAE and five other states established the Gulf Cooperation Council (GCC) in 1982.

Modern Dubai is the product of the past 30 years of intensive development. This development has been greatly facilitated by the discovery of oil and its production form the 1960's, but Dubai's growth has always depended partlyon its inhabitants' own entrepreneurial abilities. A lot of credit for Dubai's development can be traced to the vision of the late ruler, His Highness Sheikh Rashid Bin Sa eed AI Maktoum, who ensured that Dubai's oil revenues, despite being relatively modest in comparison to other countries in the region, were utilised to maximum effect. His work has been continued by His Highness Sheikh Maktoum Bin Rashid AI Maktoum, and his brothers. The result is that Dubai is constantly building up its infrastructure of transport facilities, schools, hospitais, tourism developments and other amenities of an advanced society. Dubai was transformed into one of the most prosperous countries in the world at an alarming pace and today has a mixed economy with the most productive assets owned by the government of the individual Emirates, but considerable scope is given to private enterprise. [02]

Map 1: Map of the United Arab Emirates (souree: CB Richard EI/is Middle East)

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Historical Dubai Dubai lies on a natural creek Khor Dubai which runs in land for about ten kilometres and was the nucleus for the city to develop. The ancient Greeks used to call it the River Zara. The creek epitomises Dubai's unique beauty. People settled on both si des at Dubai and Deira. Prosperity as a port from around 1902, when Dubai became the main anchorage in the area for dhows (a traditional Arab sailing vessel) coming from neighbouring ports and as far away as India and East Africa. North winds caused silting in the centre of the creek, which made the passage of large vessels difficult. The late Sheikh Rashid Bin Saeed AI Maktoum started a dredging scheme in the 1950s to deepen the channel and reinforce the banks. This gave a much needed boost to Dubai's economie development. The two sides of the city connected by AI Maktoum Bridge built in 1962, AI Garhoud Bridge - 1976 and AI Shindagha Tunnel - 1975. Today, Dubai creek is the main artery for trade in the Emirate. On both sides of the creek, there are hundreds of dhows of different sizes, loading and unloading a variety of goods which induced Dubai Municipality to construct the new Dhow Wharfage, inaugurated in 1993. This was to cater for the ever increasing number of ships docking on the creek as weil as the recreational facilities of the Creek Park and Dubai Golf Club. [03]

1940s Development escalated in the Emirate from the beginning of the century, encouraged by the government and low taxes. Two contracts were signed with the British govemment. One to allow planes to land, the other to search for oil. The appearance of cultured pearls on the market and the Second World War had a negative effect on the economy and on food supplies. Sheikh Saeed AI Maktoum made essential food supplies available at low prices for the locals, who numbered around 20,000. The first clinic was established in 1943 and the first bank in 1946. [03]

1950s During the 1950s Dubai's prosperity increased with the growth of the gold trade. Dredging the creek was the first step in laying the foundations for a modern commercial city. The govemment departments of Dubai; the municipality, the police, the courts, electricity, water and the airport were formed in addition to the first town planning and road network project. [03]

1960s The 1960s were years of massive growth for Dubai, both politically and economically. Oil was discovered in 1966 and the city began to reap the benefits of the hard work of the previous decades. By the end of the 1960s most of the infrastructure for the modern city was in place. AI Maktoum Bridge was built to conneet Dubai and Deira. Work began on the building of Port Rashid. Plans for withdrawal of the British were in hand and in 1968 the rulers of Dubai and Abu Dhabi agreed on unity between their two Emirates. Oil export began in 1969. The population was now 59,000. [03]

1970s The UAE was formed in 1971 and Dubai became the commercial capitalof the newly established country, putting all its resources at the disposal of the Emirates. Sheikh Rashid Bin Saeed AI Maktoum took advantage of the price of oil to create the miracle of modern Dubai. The decade ended with the opening of Jebel Ali Port and the Free Zone, the Dry Doek, the World Trade Centre and the Aluminium Company in addition to completing the Shindagha Tunnel, the Garhoud Bridge and the water desalination plant. Plans for the beatification of the city were put in hand. The population ad jumped to 207,000 by 1977. [03]

1980s and 1990s During these two decades Dubai continued to grow and prosper. Service industries expanded to meet the needs of a growing population and thousands of housing projects were initiated. In 1981 the Gulf Cooperation Council (GCC) is formed with the UAE as founding member. The GCC consists out of six countries in the Middle East, Kuwait, Qatar, Saudi Arabia, Oman, Bahrain and the UAE. The airport was extended to provide a base for the newly formed Emirates Airline. Recreational and sporting facilities grew to provide the infrastructure for international tourism. Conservation projects began. Gas and oil were discovered in the desert at Margham. By the beginning of the 1990s foreign trade had reached $16 billion and the population has risen to 550,000. [03] In 1990 Sheikh Rashid Bin Saeed died and his son Sheikh Maktoum Bin Rashid AI Maktoum became ruler. He instigated his own ambitious plans to make Dubai a modern city, ready for the 21 51 century.2

21

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Dubai is also home to some 100,000 British and other western expatriates. The UAE government does not allow any form of naturalisation or permanent residence to expatriates. However, foreigners are permitted to purchase and own property without a local partner or sponsor. Nearly all of the commercial establishments are run by expatriates with a silent local partner who merely "rents" the business license for a negotiated annual fee without taking part in any capital investment. The numerous free trade zones allow for full expatriate ownership. [04]

There are an increasing number of "freehold" villas and apartments on artificial islands such as the Palm Islands and in many parts of Dubai for example The Greens, Dubai Marina, International City, etc. Ownership is either permanent or on a 99 year lease depending on which area-freehold areas were announced in the press in July 2006. Ownership or lease of a completed residence allows the owner to apply for (but not guarantee) a residency visa on a three year renewable basis. The Federal Government does not state whether foreigners mayor may not own property and has left individual Emirates to formulate their own property laws. [04]

The officiallanguage is Arabic but English, German, Hindi/Urdu, Malayalam, Tamil, Persian, and Tagalog are also widely spoken. Islam is the majority religion of the Emiratis and while a vast majority of the locals are Sunnis, there is a significant Shiite minority. There are also minority Hindus, Sikhs, and Christians. Dubai is the only Emirate that has Hindu temples and a Sikh Gurdwara. [04]

What is going on in Dubai? From the seven Emirates is Dubai the most liberal Emirate of all. This means that laws and regulations in Dubai are more adaptable than in other Emirates. In some way you can say that they adjusted the law to European standards but with respect for their own culture. This is also the danger because as a foreigner you might think th at everything is possible just as in your own country. But when you do something that is against the Islamic law or an Emirati feel annoyed by your behaviour, you can be punished so you have to be careful. [05] They made all these changes because of the present building developments and expansion drift of the Emirate. Therefore they need the expertise of west-European engineers. These people will only come if they can live a similar life they are used to in their country. That is why Dubai changed their laws and regulations and adapted them more or less to European standards.

Everybody has in some way heard about Dubai and the things they are achieving . In the last ten years they build a modern city with high-rise buildings, hotels, shopping mails and the only seven star hotel in the world, the Burj al Arab. They created artificial islands like the Palm Jumeirah and the other three islands the Palm Jebel Ali, the World and the Palm Deira who are currently under construction. Also under construction is the world's largest tower the Burj Dubai with an estimated height around 750 meters but this still remains a secret until his revelation. Other major projects th at are under developing at this moment in Dubai are: Dubailand and Dubai Festival City. Dubailand will be the largest entertainment project, with theme attractions divided over six main areas. Dubai Festival City is a mixed used development with hotels, leisure, living, working and shopping facilities. And further there are some other huge projects like; Dubai Business bay and DIFC which are business developments, Dubai Waterfront and Dubai Marina which are combined developments with housing and working and finally Dubai World Central which will be the worlds largest airport and surrounded with all kind of commercial buildings

From oil driven economy to tourism driven economy At this moment Dubai is changing his economy from an oil-based economy to a tourism-based economy. They use the revenues from oil export to build an urban development consisting of hotels, apartments, working and leisure facilities. As a Gulf state, like so many other nations in the Middle East, the UAE has faced many challenges trying to maintain its impressive economic prosperity over the last few years following recent events, which dramatically impacted its geopolitical environment. Particularly the Second Gulf War has shown the tremendous impact that the spread of global media has on projecting destination image. Two Gulf Wars, September 11 and the ongoing destabilisation of the Middle East have probably not improved the Gulf region's image in the West. But Dubai and its leadership have tried to take advantage of this raised level of attention, illustrating to the world the rapid development of the Emirate, the high level of modernisation, but at the same time not shying away from its identity and heritage. In fact, Sheikh Mohammed Bin Rashid AI Maktoum, crown prince of Dubai and its most visible leader, actively promotes entrepreneurship, curtailment of bureaucracy and corruption, and globalisation, but with respect for heritage, culture and roots. [06] This is illustrated in the UAE's position during the second Gulf war.

22

Fi Iloll report Appr-Ilcll.

____________________________________ Tim & Bas

In fact, Dubai is using the focus of attention on the region, the renewed global interest in Islam and Arabic culture, and the attention that Dubai gets as a rapidly modernising global hub in the Middle East, as a means to maintain and to publicise its identity and heritage. It raises a key issue, namely how Dubai might be able to maintain its Islamic identity and heritage whilst globalising its economy at the same time? In fact, tourism development in Dubai is not a matter of tourism dollars supporting the rest of the economy at the cost of losing the identity and authenticity of place. Quite the contrary, the oil dollars and income from trade, that are reinvested in a tourism infrastructure in order to diversify the economy, has created the opportunity to preserve the loeal heritage for the sake of tourism, in a state that was rapidly globalising anyway. Dubai's rulers have known for many years that the oil sources would run out, and so embarked on ambitious projects to diversify the Emirate's economy. [07]

In the figure below you ean see the Gross Domestic Product (GDP) for the last five years the change from oil driven economy to a tourism driven economy. [08] The GDP measures the size of the economy of a land or region and define the market value of all final goods and services produced within the country in a given period of time. For oil, mining and quarrying the changes are not very big between 2000 - 2004 and differ from 10% in 2000 till 6% in 2004. Today trade, manufacturing, transport, construction, leisure and real estate are the main contributors to Dubai's strong, growing economy. The construction and real estate sectors account for al most a quarter of the total GDP.

GDP 2000

oAgricukure. Uve Stock. FIShing

o Manufacturing Industries

• Construction • Resluranls and Hotels

• Real Estate & Business Services o Financ ial Corporation Sector

GDP 2004

7% 1% 6%

4% 20%

• Mning and Quarryng

o 8ectric ity. Gas & Water

o lMlolesa~. Retai Trade. Repairng Services

o Transports. Storage. Corrrrunication

• Social & Personal Services

o Governrnenl Services Sector

Figure 2: GDP 2000 and GDP 2004 (source: Statistical yearbook Dubai, 2004).

Population

1%

Regardless of the continuous and possibly increasing geopolitical tensions in the region, Dubai is developing fast. Not only economically, but also in terms of its socio-cultural and technological environment. With prosperity and development Dubai has had to import vast numbers of foreign workers. The population of Dubai is estimated to be 1,396,000 in the third quarter of 2006. 80% of this population is comprised of expatriates with west-Europeans and Asians accounting for approximately 70% of house hol ds. Only 18% are UAE nationals and 13% other Arabs. Approximately 71 % of the population is male and 29% is female. The UAE population is expected to grow by 3.3% per annum to reach 4.15 million by 2010. Dubai is expected to have a population of 1.4 million by 2010. [09]

Together with the fact that the UAE is the world's fourth largest oil-producer, it also is the world's richest state per capita. Arabian sheikhs are good for billions and th at money has to be invested. They invested first in the petrochemical industry and manufacturing aluminium and steel. [10] Second investment takes place in transport and logistics: infrastructure. All of the Emirates are planning and building up their urban development and tourism sector. So there is a competition going on for example between Dubai and Doha, Qatar. Both countries are 'promoting' their financial centres to international investors. Dubai has its Dubai International Financial Centre (DIFC) and Qatar has its Qatar's Financial Centre (QFC) to attract new companies who can develop their economy to the future. [11]

23

Tim & Bas

The knowiedge, manpower and experience for establishing these projects come from outside the Emirates. Mostly Indians and Pakistani are doing the labour work in Dubai. One layer above the labour workers are the consultants and managers. Most of them are west-Europeans or Americans. The decision makers in the top of the pyramid are friends or family members of His Highness Sheikh Mohammed Bin Rashid AI Maktoum and are leading the country. All political and economical control stays with th is in hands of His Highness Sheikh Mohammed Bin Rashid AI Maktoum. See the scheme below for a graphical reproduction:

Oeclslon Makers

Managers and consultants

Employees and labour worllers

Figure 3: Pyramid structure Dubai (Authors Tim & Bas) .

Companies from the Netherlands are more and more involved with projects in the Middle East according to Charles Ooms, acting ambassador from Abu Dhabi. He says th at the Middle East is stabie, weil organised and the Emirates do have great facilities. One of the things you have to understand to be successful is the culture in the Emirates. Doing business is different than in the Netherlands. Getting to know your partner is very important here. Things will be easier when you're open for the Arabic culture and to deepen yourself in it. The Emirates do have a catholic church and they replaced the weekend from Thursday and Friday to Friday and Saturday to close up to the rest of the world. So the adaptation is coming from both sides. Overall, they have a liberal thought towards different thinking. [10] When it is about doing business, the Arabic decision makers consult their expats. This is positive for the possible culture barrier. The Dubai government is stimulating their inhabitants to get a good education so that they eventually can replace the expats on the long-term. The management functions can then be taken over by themselves. To accomplish this whole idea Dubai needs the knowledge to do this. At this moment their research and knowledge is underdeveloped and has to be developed. Right now they literally buy the needed knowledge from Europe and America. Besides developing hotels, apartments and shopping mails Dubai also has to invest in knowledge centres, universities and libraries etc.

Free Zones After the long established Jebel Ali Free Zone, which focuses on trade, manufacturing, assembly, and regional re-export from Jebel Ali Port, the government has created several non-industrial free zones, in recent years, such as: Dubai International Financial Centre, Dubai Media City and Dubai Internet City. Free zones create a tax-free environment where companies are allowed to operate under 100% foreign ownership. Outside of the free zones, taxation does still not apply, but at least 50% local ownership is mandatory. Such initiatives to diversify the Dubai economy are needed, as the oil resource of the Emirate are much smaller and are expected to run out much sooner than in the leading Emirate of Abu Dhabi.

24

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__________________________________ Tirn & Ras

Individuele stakeholder staat algemeen belang in de weg (written in Duteh) Souree: Blokhuis, E.G.J., 2006. Individuele stakeholder staat algemeen belang in de weg, in: Bedrijventerreinen, July.

Inleiding De (her-)ontwikkeling van complexe gebieden is een uitdaging, dat gekenmerkt wordt door een hoge graad van dynamiek en complexiteit. Het vraagstuk laat zich doorgaans vertalen in strategisch economisch belangrijke projecten, maar vereist vooral long-term commitment. In dergelijke processen nemen wij steeds meer een terugtredende overheid waar, waardoor er meer verantwoordelijkheid bij private partijen komt te liggen. Ook zien wij toekomstige gebruikers meer invloed op het beslisproces uitoefenen, waardoor het eindresultaat mede bepaalt. Er ontstaan contradicties tussen de toenemende ruimtelijke spanningen aan de ene hand en de toenemende vraag naar ruimtelijke duurzaamheid en kwaliteit aan de andere hand. De doelen van de voorgenomen ontwikkeling worden gedefinieerd door de gedeelde waarden van de stakeholder en de realisatie van deze doelen hangt af van de samenwerking tussen deze stakeholder.

De mate van projectcomplexiteit, die wordt bepaald door een groot aantal karakteristieken, is bepalend voor de voortgang en het succes dat behaald wordt. Bij een toenemende projectomvang en -complexiteit verminderen de kansen op een snelle en succesvolle afronding van het project drastisch. Het lijkt erop dat dé oorspronkelijke succesfactor van gebiedsontwikkeling (de locatie) niet meer dé succesfactor is. Stakeholders, zowel privaat als publiek, worden steeds belangrijker in het ontwikkelen van gebieden.

Toch moeten unieke kansen - projecten die worden aangeduid als zijnde van nationaal (economisch) belang - benut worden om Nederland op de economische hittekaart te houden. Problematisch is het feit dat dergelijke unieke kansen vaak zeer complexe projecten omvatten, die dus moeilijk snel en succesvol afgerond kunnen worden. Lange-termijn strategieën en lange-termijn beleidsvorming kunnen hier voor een ommekeer zorgen .

Moerdijkse Hoek Op basis van vele studies achtte het Rijk de aanleg van het 600 hectares omvattende, bovenregionale bedrijventerrein Moerdijkse Hoek van nationaal belang voor een duurzame groei van de economie. Verschillende beleidsdocumenten van de ministeries van Economische Zaken en VROM hebben dit belang onderbouwd. De omvang werd geraamd op basis van de prognoses van het CPB, zoals die in 1999 zijn uitgevoerd. Het terrein was bedoeld voor de vestiging van bedrijven uit de hogere milieucategorieën (multimodaallogistieke en zware industriële bedrijven met een gemengd karakter en weggeoriënteerde logistieke bedrijven) en een relatief grote individuele ruimtevraag.

Verschillende studies, uitgevoerd in opdracht van de provincie Noord-Brabant, wezen uit dat er grote kansen lagen voor een succesvolle bedrijfsterreinontwikkeling. Zo vergroten de aanwezigheid van twee universiteiten (Technische Universiteit Eindhoven en de Universiteit Tilburg) en zeventien hogere beroepsopleidingen de aantrekkelijkheid als vestigingsplaats, is de ligging en de aansluiting op hoofdverbindingen uitstekend en is de aanwezige industriële structuur een pluspunt. Ook zou de regio profiteren van de ontwikkeling van Moerdijkse Hoek. Versterking van de werkgelegenheid (en daarmee versterking van de sociale structuur), kansrijke situaties voor bestaande bedrijven en een algemene verhoging van de welvaart zijn daar enkele voorbeelden van.

De invloed van verschillende organen - zowel publiek als privaat - heeft de ontwikkeling van Moerdijkse Hoek in het afgelopen jaar echter zodanig gefrustreerd dat er van het oorspronkelijke plan weinig meer over is . De belangrijkste reden om het oorspronkelijke plan te wijzigen was het verschijnen van de Bedrijfslocatiemonitor (BLM) , uitgegeven door het CPB, ondanks het feit dat in deze publicatie wordt aangegeven dat de uitkomsten niet van toepassing zijn op Moerdijkse Hoek. Over 15 jaar wordt er waarschijnlijk een slap aftreksel opgeleverd , dat in een veel mindere mate de economische kansen weet te benutten.

Benchmark Niet alleen op het gebied van bedrijventerreinontwikkeling is het ontbreken van lange-termijn beleid en strategie problematisch. Onder andere het energiebeleid leidt eronder. Volgens Daggers (2006) wordt geen Nederlandse kerncentrale ontwikkeld omdat we geen garantie kunnen bieden om over de komende

25

Tim& Bas

zestig jaar volledig in te zetten op kernenergie. De voordelen zijn bekend. Denk daarbij aan de eindigheid van grondstoffen (bij huidig gebruik is er genoeg uranium voor de komende 500 jaar, bij efficiënter gebruik zou de behoefte voor de komende vijftigduizend jaar gedekt zijn), aan de efficiëntie van het gebruik (elke kilo uranium van 80 dollar levert evenveel energie op als het verbranden van 2,5 miljoen liter benzine), aan de stabiliteit van de exporteurs en aan de opslag mogelijkheden in Nederland. Echter, de benodigde politieke steun op de lange termijn blijft achterwege, en dus blijven de investeringen uit.

Nog een voorbeeld: vergelijk de ontwikkeling van Schiphol met de ontwikkeling van de luchthaven Chek Lap Kok in Hongkong. Beiden hadden in de recente geschiedenis de ambitie om de luchthaven te verplaatsen naar de zee en in beide landen werd begin jaren '70 begonnen met planvorming voor een dergelijke verplaatsing. Projectontwikkelaars in Nederland gaven aan dat de kosten van de bouw gemakkelijk kunnen worden terugverdiend met de waarde van de vrijgekomen grond en dat de know-how in Nederland aanwezig is om een platform in zee te bouwen. In Hongkong is de luchthaven al enkele jaren operationeel (op 6 juli 1998 werd de luchthaven officieel in gebruik genomen) en Nederland blijft zitten met een luchthaven middenin stedelijke gebied, en daarmee met de problematiek van geluidsoverlast en zeer beperkte uitbreidingsmogelijkheden.

Visie op gebiedsontwikkeling Technopolis heeft in 1998 en in 2005 studies verricht naar de succes- en faalfactoren van een scala aan regionale 'hot spots', gebiedsontwikkelingen die het nationale economische belang dienen. Hierin werd geconcludeerd dat, om een regio succesvol te ontwikkelen, onderstaande factoren van belang zijn: • timing is essentieel (een herhaling van wat andere regio's eerder hebben gedaan zonder een

specifieke eigen 'unique selling point' is geen goede strategie); • de aanwezigheid van enkele structurele karakteristieken in de regio bepalend is voor het succes

van de ontwikkeling; • persistentie in de strategie en beleid een vereiste is en dat resultaten, op basis van beleidsacties,

niet op korte termijn kunnen worden verwacht; • attitude, draagkracht en creativiteit van de direct betrokkenen; • het kiezen voor een vraaggerichte benadering bij het ontwikkelen en 'branden' van een hot spot?

We kunnen concluderen dat Moerdijkse Hoek hoog scoort op de meeste karakteristieken die hierboven zijn genoemd als succesfactoren voor de ontwikkeling van een hot spot. Op de karakteristiek 'persistente strategie en beleid' wordt echter onvoldoende gescoord. In 2004 werd gesteld dat nationale economische groei het benutten van regionale groei potenties vergt, en dat het benutten van regionale groei potenties op zijn beurt weer het inzetten op economische kansen vergt. Dat deze topprioriteit van de Nederlandse overheid na een jaar ter discussie worden gesteld door een CPB-studie die niet geschikt is om dit ter discussie te stellen geeft blijk van beleidvoering op zeer korte termijn.

De stakeholders lijken in Nederland tot een kritische succesfactor te verworden in de ontwikkeling van complexe gebieden. Ook de politieke cycli dragen bij aan de korte termijn waarop projecten gestuurd worden. Projecten van nationaal belang ondervinden door externe factoren erg veel hinder en tegenstand vanuit verschillende hoeken. Om succesvol te zijn hebben dergelijke projecten echter een koersvaste, lange-termijn strategie nodig.

Om aan dergelijke kansen op korte termijn een succesvolle invulling te geven, is het noodzakelijk om deze projecten 'boven' de geldende jurisdictie te ontwikkelen. Enkele succesvolle voorbeelden zijn in de wereld al te vinden. Denk aan het EXPO'98 terrein in Lissabon dat, omwille van het economische belang dat gold voor dit project, door een gebiedsontwikkelingsmaatschappij volledig buiten de publieke regelgeving om (zeer succesvol) werd ontwikkeld. Projecten in Londen, Kopenhagen, Hamburg en Sao Paulo hebben tevens een dergelijke ontwikkelstrategie gevolgd. Bewezen is dat met deze strategie de faalkosten sterk kunnen worden gereduceerd, doordat de juiste personen op de juiste plaats zonder omgevingshinder kunnen werken.

Projecten die van nationaal belang worden geacht moeten niet door individuele belangen van bijvoorbeeld politici of omwonenden kunnen worden gefrustreerd, maar moeten zo spoedig mogelijk ontwikkeld kunnen worden. Het 'geen-woorden-maar-daden-principe', zo kan het misschien het best worden getypeerd. Op deze wijze kunnen kansen, die door een goede combinatie van gebiedskenmerken ontstaan, optimaal benut worden, om zo een duurzame economische groei te bewerkstelligen.

26

Flnil l Fop' ,. /Ir I' Ih

Tim & Ras

Actieplan Bedrijventerreinen 2004 - 2008 (written in Dutch) Source: The ministry of Economical Affairs of the Dutch government, 2004. Actieplan bedrijventerreinen 2004 -2008, the Hague, 03013.

Ons land heeft bedrijventerreinen nodig voor een duurzame economische groei. In dit Actieplan Bedrijventerreinen geeft het kabinet voor de jaren 2004 tot en met 2008 aan welke acties zij neemt om dit te stimuleren. Het scheppen van ruimte om te ondernemen betreft niet alleen het herstructureren van verouderde terreinen maar ook het aanleggen van nieuwe terreinen. De nationale opgave voor herstructurering is ruim 21 .000 hectare, ruim 20% van het huidige areaal. De problematiek op deze terreinen is dusdanig dat regulier onderhoud niet meer voldoende is. Een zeer groot deel van de nationale behoefte voor nieuwe ruimte kan alleen worden ingevuld met het aanleggen van nieuwe terreinen. De ervaring leert namelijk dat herstructurering maar zeer beperkt extra terreinwinst oplevert. Tot en met het jaar 2020 is daarom nog ruim 23.000 hectare nieuwe bedrijventerreinen nodig. Het (her)ontwikkelen van bedrijventerreinen blijft een uiterst complex proces, ondanks alle inspanningen van alle partijen. Een proces waarbij men in de praktijk nog steeds tal van knelpunten tegenkomt. Hierdoor duurt het realiseren van een project vaak meer dan acht jaar. Tijdig starten met de voorbereiding van nieuwe werk locaties is daarom van groot belang. Het streven is verder de doorlooptijd van te (her)ontwikkelen bedrijventerreinen met 20% te verkorten in het jaar 2020. (EZ 2004) . De kwaliteit op een bedrijventerreinen is maatwerk. Het Rijk zal daarom geen algemene nationale eisen stellen aan de kwaliteit van bedrijventerreinen. Een uitzondering vormt het beheer van een bedrijventerrein. Om snelle veroudering te voorkomen dient bij elk nieuw en geherstructureerd bedrijventerrein parkmanagement adequaat te zijn geregeld. Het Ministerie van Economische Zaken (EZ) is voor bedrijventerreinen het coördinerende departement binnen het Rijk. De Staatssecretaris van EZ zal het generieke beleid voor bedrijventerreinen voortzetten om zo voor algemene knelpunten oplossingen te vinden. Het gaat hierbij onder andere om thema's als de Vogel- en Habitatrichtlijn parkmanagement, criminaliteit, bereikbaarheid, zonering en kennisverspreiding. Verder slaat de Staatssecretaris van EZ een nieuwe weg in, en wel die van het expliciet kiezen en het concentreren van de menskracht en middelen op die terreinen die een maximale meerwaarde hebben voor de economie. Het specifieke beleid voor de zogeheten Topprojecten houdt in dat EZ partner wil zijn bij het concreet realiseren van deze bedrijventerreinen. Het gaat dan om terreinen waarmee we belangrijke kansen kunnen verzilveren voor de economie, de Topprojecten. Met deze projecten en beschikbare middelen is naar verwachting 3.500 hectare te herstructureren en 7.000 hectare nieuw aan te leggen. Het (her)ontwikkelen van bedrijventerreinen ligt primair op het bord van de medeoverheden.

Knelpunten huidige beleid (Hoofdstuk 2.1) De praktijk ervaart nog steeds knelpunten bij organisatie, financiering, wet- en regelgeving en kennis. De lange doorlooptijd van meer dan acht jaar voor het (her)ontwikkelen van een bedrijventerrein is niet alleen te wijten aan deze knelpunten. Doorslaggevend zijn vaak de belangentegenstellingen die met de realisering van bedrijventerreinen zijn gemoeid. In de Nederlandse cultuur van het bereiken van consensus tussen partijen vergt het overbruggen van die tegenstellingen veel tijd en energie.

Organisatie Een knelpunt is een gebrekkige organisatie en procesmatige aanpak. Dit uit zich doorgaans in: • de afwezigheid van een gebiedsgerichte (strategische) visie; • een onvoldoende regionale afstemming en samenwerking; • de lage organisatiegraad onder bedrijven; • het probleem van de free-riders bij parkmanagement; • een gebrekkig overleg tussen gemeente en bedrijfsleven; • een sterk versnipperd beheer.

Financiering Met name de financiering van herstructurering is een groot probleem. Knelpunten daarbij zijn onder andere: • dat de uitgifte nieuwe terreinen veelal een hogere prioriteit bij gemeentebestuurders heeft dan het structureel onderhoud en beheren van bestaande terreinen; • de medefinanciering door private partijen; • de structurele financiering van parkmanagement.

27

Tim & Bas

Wet- en regelgeving Veel projecten ondervinden vertraging door de stapeling van, soms strijdige, regels en (kwaliteits)eisen met als gevolg lange procedures, oplopende kosten en onzekerheid voor gemeenten en private investeerders. Een integrale afweging en goede coördinatie ontbreken. Daarnaast gaat het ook om de praktische toepassing van wet- en regelgeving. Vaak biedt een wet best de nodige flexibiliteit om maatwerk te kunnen leveren, maar benutten gemeenten die ruimte onvoldoende.

Kennis Het is niet altijd het gebrek aan kennis, maar vooral de slechte ontsluiting van kennis die menig project fnuikt. Vele malen wordt het wiel opnieuw uitgevonden. Een goed vehikel om de nieuw opgedane ervaringen onder een breed publiek uit te dragen bestaat nog onvoldoende.

Nationale doelstellingen

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Figure 4: Doelstelling nieuwe bedrijventerreinen

De nationale en provinciale doelstelling voor nieuwe terreinen voor de periode tussen de jaren 1998 tot en met 2020 zijn in figuur 3.2 weergegeven . Ondertussen is een gedeelte van deze ruimtebehoefte gerealiseerd. In de jaren 1998 tot en met 2003 is bijna 9.000 bruto hectare aan nieuwe terreinen uitgegeven10. Dit betekent dat vanaf 2004 nog ruim 23.000 hectare bruto nieuwe bedrijventerreinen nodig is. Een zeer groot deel van de nationale behoefte voor nieuwe ruimte kan alleen worden ingevuld met het aanleggen van nieuwe terreinen. De gemiddelde doorlooptijd van plan tot en met een uit te geven nieuw terrein is 8 jaar. Het streven is dit uiterlijk in het jaar 2020 met 20% te verkorten.

Nationale doelstelling nieuwe bedrijventerreinen: • gemiddelde doorlooptijd van 8 jaar met 20% te verkorten.

Kwaliteit is maatwerk

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Tim & Bas

Het Rijk zal daarom geen algemene nationale eisen stellen aan de kwaliteit van bedrijventerreinen. Het kabinet geeft hiermee bovendien invulling aan het streven om met minder regels te komen. Een uitzondering hierop vormt het beheer van een bedrijventerrein. Om snelle veroudering te voorkomen dient bij elk nieuw en geherstructureerd bedrijventerrein parkmanagement adequaat te zijn geregeld.

EZ doelstellingen

Figuur 3.3 Nation.l, en EZ-doelsttllingen

D bot ....... ~,,',; ... lij tM"tNelu,,,,IH)~lijrtWl»INin9n

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• ni~" ti .)nlWiulen bidrijwrtv,~nin

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Figure 5: Nationale en EZ-doelstellingen

EZ zal zich als partner bij Topprojecten sterk maken voor het realiseren van 7.000 hectare nieuwe bedrijventerreinen voor de periode tussen de jaren 2004 en 2012.

EZ-doelstelling Topprojecten nieuw: • 90% heeft een plan van aanpak in het jaar 2006; ·7.000 hectare in het jaar 2012; • een gemiddelde doorlooptijd van 7 jaar.

Kwaliteit Topprojecten is maatwerk De Staatssecretaris van EZ maakt zich sterk voor de juiste kwaliteit van een individueel Topproject. Ook hier is dit maatwerk, per project zullen de thema's immers verschillen. Het kan hierbij onder andere gaan om: voorkomen criminaliteit, park management. exteme veiligheid, bereikbaarheid, zorgvuldig ruimtegebruik. architectuur en landschappelijke inpassing. Per Topproject zullen afspraken over de kwaliteit worden gemaakt.

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__________________________________ 'rim & Bas

Value Creation Through Sharing Knowledge In Urban Development Sou ree: Aulhors Tim & Bas

Organisation by Tim van Helmond and Bas van Montfort in cooperation with CB Richard Ellis Dubai. Date and location: 30lh of January 2007, The Emirates Towers in Dubai.

Souree: Attending to the symposium:

Company Name Country CB Richard Ellis Dubai Nicholas Maclean UAE CB Richard Ellis Dubai Iris Dinu UAE University of Technology Eindhoven Tim van Helmond The Netherlands University of Technology Eindhoven Bas van Montfort The Netherlands University of TechnoloÇJY Eindhoven Wim Schaefer The Netherlands University of Technology Eindhoven Erik Blokhuis The Netherlands University of Technology Eindhoven Leo Verhoef The Netherlands Brabantse Ontwikkelings Maatschappij (BOM) Rob Gordon The Netherlands The British University in Dubai (BUiD) Mohammed Arif UAE Dubai Chamber of Commerce and Industry (DCCI) Richard Wynne-Jones UAE Property World Uournalist) Andy McTiernan UAE Arup Major Projects Maarten Reenalda UAE Deerns ConsultinÇJ EnÇJineers Ray Karbor UAE

Keywords: • Symposium about urban development in Dubai • Entrepreneurial approach • Economic cycle • Demand and supply • Laws and regulations • Transparency • Landownership • Infrastructure • Social development • Cluster strategy • Dubai Strategic Plan • Free Zones • Western standards • Leadership and initiative • Learning curve • International investors

Summary: Presentation by Wim Schaefer about the urban deveJopment market in the Netherlands Local government in the Netherlands steps back and private companies have the opportunity to come with initiatives to develop urban projects. In the Netherlands 70% of ground positions is owned by users and 30% is owned by investors. Researchers at the University of Technology Eindhoven are studying best practices from foreign countries to improve the urban development approach in the Netherlands. Can we achieve sustainable urban development with a business development approach (entrepreneurial approach trom Dubai)?

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Fitte I r (I)"rl AIlIWfldi~

__________________________________ Tim & Bits

1ST DISCUSSION SESSION

What is the vision of Sheikh Mohammed behind Dubai's (sustainable) urban planning? What kind of supervision or overall management is there to be recognised in the planning process?

We see developments of different urban projects with different functions like Healthcare City, Dubai Marina, Business Bay, etc. Wh at is the management organisation behind these developments?

Verhoef: In the Netherlands we see polities translated into to ways. The first is the Dutch council of ministers. Their role is to make rules. Secondly, we have officials. Their task is enforcing protection policies made by the council ministers. I think officials are not doing their task. They are of old age not only physically but also mentally. The development of Almere city in the Netherlands was developed by private companies invited by a small governmental organisation specially formed for this urban development project. This project was a success.

Wvnne-Jones: Informs us about the planning of the 2nd Chamber of Commerce building in Deira city centre (Dubai) with some facts: The plot of land was given to the Chamber of Commerce with certain restrictions. The project must be developed where it was intended for. Otherwise the plot of land can be taken away from the Chamber of Commerce. There were 146 stakeholders questioned for a feasibility study which concluded that there would be traffic problems around this project. Further more there would be access problems and th is has to due with car parking facilities. His Highness and Dubai Municipality have a clear vision but are always evolving to satisfy everybody in the end (reactive actions instead of active).

Karbor: Energy (heating and cooling) is becoming a key issue. Architects are designing futuristic designs with hugs glass facades.

Wynne-Jones: In Dubai there are no or less regulations to do something against discharge of carbon dioxide and durable building.

Maclean: Slowing down supply pipeline because DEWA connections are in some cases problematic.

Revenue collection by the govemment is very low because of absence of investors and landownership. Original vis ion was to attract people and tourists and th at has to turn into attracting business to Dubai. Free Zones started five years ago and this development is very successful. One of the aspects is that you have 100% ownership. Labour is recruited in South America because labours from India are not coming back to Dubai any more. They can eam the same salary in India because of al the project developments over there. Phoenix Arizona is a bench mark tor Dubai.

Conclusions: Dubai is getting ready for more overall planning in urban development projects. After the entrepreneurial approach which we saw during the start-up phase, it is ready to implement specified laws and regulations and risk management to accompany the future developing process. Currently as problems occur, they must be solved on the spot, this causing delay. When planning is done proactively in advance th en most problems can be prevented. In Dubai we see a select group of people holding most ot the ground positions. This is easy when developing a project because there are only a tew stakeholders. Comparison in the Netherlands ground positions are widely spread between investors (30%) and private users (70%). To obtain the required ground you have to go through compulsorily procedures, which take a lot of time. The implementations ot these aspects will show that projects can be finished on time and have the unique identification for good planning of urban development projects.

Other headlines: • The functionality on govemmental level between ministers and officials in the Netherlands could

be improved when it comes to turn around time for laws and regulations tor complex urban development projects.

• Govemment in Dubai points out strategy and mission and takes responsibility for the project.

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• Business organisation is setup for a project with certain mandatories and defined boundary conditions and principles to develop the project.

• Plan development and plan implementation are in one hand. • The vis ion for Dubai city by His Highness means a further diversification in their economy and

becomes clearer step by step translated into Strategic Plans. • The management style from governmental level in Dubai (in the example of the development of

the 2nd Chamber of Commerce Building) is more reactive than proactive. • Dubai needs a further developed policy and laws and regulations for unique identification for a

good planning of urban development projects.

Is it possible for European business organisations to comply with the Dubai urban development approach? The Netherlands: long-term planning in start up phase (achieve consensus with all participants) to achieve sustainable urban development in the end. Dubai: no or ad hoc (master) planning in start up phase. Sustainable use of urban planning is to be questioned (e.g. recent traffic and residential area issues).

Example: intersection number 5 on Sheikh Zayed Road has to be developed by Emaar besides the initial Dubai Marina project. In the Netherlands the government is taking care of infrastructure and traffic solutions.

Dinu: Besides the example of intersection 5 we have The Gardens community and the planning of a new highway trough this project. We can read in the newspapers today th at the Road and Transport Authority (RTA) are planning a highway in th is area. The house blocks in The Gardens are less than 5 years old! RT A presents th at at least five house blocks have to make way for this road because it's important for the infrastructure of Dubai. People who live there are not shore if they get their invested money back or at least a new place to live in Dubai.

Verhoef: Start up Dubai> entrepreneurship for His Highness or initiator Start up in the Netherlands > money is an issue in the Netherlands and investors look at the process not the product! One investor in the Netherlands is the Bank and they utilise certain rules before the investment will start.

Arif: The department of Project Management at the British University in Dubai (BUiD) made an analysis about Dubai and the conclusions are: Issues in Dubai> nature of people is reactive rather than proactive (1) Issues in Dubai> supply and demand problem at this moment (2). Demand is higher than the supply. So you can develop anything you like (office, leisure, apartments, etc) and it will be sold. Quality is not a big issue right now. There a more buyers than sellers. There is no motivation with the involved public and private participants to balance the demand and supply. Issues in Dubai> balance <> imbalance (3). When you try to balance your supply and demand people want to be sufficient and want to deliver the best quality. At the moment we haven't reached this point. The need for planning at th is moment is less now.

Example: When you will ask a builder to build a three lane highway instead of a two lane highway than he will ask, why? I sold my entire apartment before the plan was completed so they don't want that kind of planning. Why should I spend two million AED more? The other thing is the reactive nature of the people here in Dubai. This is resulting in adopting (to use) rather than adapting (to confirm).

Example: In Sharjah there are no ministeriallaws that require any builder to build parking places. This was a few years ago. So they never bothered about building parking places. When parking became a problem they had to find out what the municipality wants for minimum dimensions of parking places. As a result you now see parking places with minimum capacity and they are not developed for the size of cars which we see now on the st reet. And builders get away with this. Now people are realising that they have to think about these factors to attract people and finding a balance between de mand and supply is necessary. They can attract more cu stomers to a building with better parking facilities then their neighbours.

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All economies have to go trough the cycle of supply and demand, balance and imbalance. This economy in Dubai has not completed this cycle yet. Always demand has outpaced supply.

Example: After World War 2 in America they started building a massive highway system. At that moment there was a need for employment in the USA and that's why this initiative was taken by the government. They were interested in the idea behind it for future development and expanding their economy. It drove their economy and made it more mobile. In th is perspective we can see that Dubai is putting a lot of energy and initiative into different markets like, real estate, infrastructure and traffic, entertainment, etc. Right now the idea behind al these initiatives are not hundred percent clear and where the economy of Dubai will go to.

Wvnne-Jones: There is lot of money in the GCC countries to invest in Dubai.

Conclusion: Development companies in Dubai take the responsibility and the leadership to develop urban development projects. The developer has to develop and take care of the complete infrastructure. Private companies in the Netherlands develop the initial project, while the government operates as long-term investor and is responsible for infrastructure, traffic and maintenance of the building environment. We see Dubai has to deal with traffic congestion and th at there are capacity problems on Dubai's main road system. Demand is outpacing supply right now. More research and knowledge is needed to translate feasibility studies, where future growth and capacity analysis gets implemented into urban plans. In the end this will add value to the whole urban development process. The challenge is to find a balance between demand and supply as Dubai is going through the economical cycle which Europe has gone through al ready.

Other headlines: • First attention from (governmental) development companies is going to the initial project and not

to the infrastructure around these large and complex projects (example is intersection 5 on Sheikh Zayed Road combined with the development of Dubai Marina).

• Main issues in Dubai at the moment are: nature of people is more reactive rather than proactive resulting in adopting rather then adapting demand is outpacing the supply in commercial, residential and leisure balance and imbalance between demand and supply economical cycle for demand and supply, balance and imbalance has not been completed in Dubai

• Dubai is developing different market sectors (construction and real estate, infrastructure and traffic, entertainment, etc.) to diversify their economy but the idea behind it is not hundred per cent clear.

Presentation by Nicholas Maclean CB Richard Ellis about the urban development market in Dubai Vision of His Highness:

A. Growing number of inhabitants in Dubai B. Growing number of people th at spend money into the economy of Dubai

Important are business and leisure to achieve this vision.

Competition: Abu Dhabi is an important competitor on the long-term. Qatar and Bahrain on short time, not on long-term because they have different target markets than Dubai.

Dubai has the market advantage right now, but th is is going to change after 18 to 20 months because: A. Available parking places are a problem in Dubai B. Floor space, constructions and height has to improve towards European standards C. Square feet prices are in different projects to high

Business Bay: th is project is mixed use. Nobody knows from each other what they are going to build. There is now regulation to get inside in the needs.

Cityscape 2006: Supply pipeline has to slow down. There is a lack of capability to connect electrical power to different urban development projects (Cityscape 2006). DEWA can slow thing down to control the market.

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Tim& Ras

The core master planners in the last five years in Dubai where Emaar, Nakheel and Dubai Holding.

The core business on the level of real estate is getting grip on what will be developed in the near future.

There wil! be now crash here because of the projects in the pipe line.

Dubai's economy needs a low income group and a high income group to balance their market and a sustainable market. Right now there are projects being build and in the pipeline for the high income group. There are a few projects for the middle income group. The question for the long run is, who is thinking about this balance?

DEWA can slow down the developments to control the market. DEWA is there in the development process to connect all projects with electricity and water.

DIFC released in the last quarter 2006 a document and it explains that half of the Middle East investors' majority is investing now in the GCC. That is a shift from the year 2000 where the Middle East majority invested their money in Europe. September 11 1h is seen as a turning point for investments. It's important that there comes a balance in the investment flow in GCC and non-GCC countries

Because of these large investments in the GCC and specifically in Dubai, the whole transition gets its own dynamic. People from Europe and America are only coming to the UAE to wor!< here wh en there is a balance in social aspects related to the country were they came from. For example: Sheikh Mohammed has changed the law in th is respect th at it is possible now for foreigners to buy a piece of land in specified zones in Dubai. So the social aspect in the UAE is the main issue and not the property development.

Wynne-Jones: Dubai wants to become the Hong Kong and Singapore of the 21 51 century. The urban infrastructure is one area th at is the most challenging . Dubai setup its own Emirates airline and has to compete with Singapore airlines. Singapore is a development th at is closely followed by Dubai.

Leadership in Dubai by local people is important towards the future. They represent less than ten percent of the population. What is going to happen wh en inhabitants from Dubai are going to pay taxes and are allowed to bring out their vote? Social development is going on in Dubai. The slogan "what is good for Dubai is good for you· , is completely true. Dubai is learning on a practical day basis and they are learning from their mistakes. That learning aspect is a positive thing from the leadership by HH from Dubai. In a democracy there is less chance to learn from your mistakes. People want to become inhabitants of Dubai and as aresuit there are 180 different nationalities living together in Dubai. The market here is dynamic and energetic. What happens here is unique in many ways to the rest of the world.

Maclean: The key factor of this presentation and the bit that is missing is "what's the demand that's going forward"? The answer is we don't know. After several meetings with different bank institutions in Dubai it's still difficult to say. The question is if there is a correlation between population growth and GDP growth and demand for real estate? We are wor!<ing at the moment with Credit Suisse to produce a model to answer this question. Prediction of future de mand is at the moment still quite difficult to say something about.

Verhoef: Is supply and demand also a little bit disturbed by the money which is coming into the UAE which is not only used for a balance in supply and demand but with the purpose just to invest the money?

Nicholas Maclean has left the symposium for another meeting.

Conclusions: • The supply pipe line needs innovative systems in construction and real estate developments for

sustainable buildings because international institutions wil! ask for Western standards. • Dubai has the market advantage right now but this will change because:

available parking places in Dubai are an issue floor space, floor systems and floor heights has to improve towards European standards square feet prices are to high in different projects

• Supply pipe line has to slow down because there is a lack of capacity to connect power to different projects

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• Core master planners in the last five years where Emaar, Nakheel and Dubai Holding and these are partial or fully owned by the government but operating as private companies.

• The law for landownership in Dubai has changed and now it is legal for non-GCC members to own freehold projects. Social aspect is the main issue in the UAE and not the property market.

• Half of the Middle East investors is investing in the GCC countries and that is a change to from the year 2000 when they where investing in Europe. A balance in investment flow between GCC and non-GCC is needed for economic stability.

• Leadership by local people in Dubai is important towards the future because social development in Dubai is going on.

• At the moment it's still difficult to predict where future demand is going to.

2ND DISCUSSION SESSION

How can we identify Dubai's general urban development approach wh en it comes to: landownership? Project financing? Program management? Role of public and private institutions? Exploitation and maintenance?

McTieman: We need to differentiate between foreign investors and local ownership. There are certain areas known as the 'yellow zones' where foreign investors and institutions can invest in land. It may only take place in those zones. It depends on if it's 'freehold' or 'Ieasehold'.

Wynne-Jones: What is the transparent process like for landownership and rights of the government and the landowner? The Dubai government must develop an efficient and regulated framework as guideline for investors as they apply in Europe and America. This is the biggest challenge for Dubai towards to future for sustainable development. You don't want to attract investors but wh at I believed is called 'intelligent money' . Intelligent money brings with it an infrastructure of experience of ability which adds beyond the Dollar a significant part into the economical framework. To a larger extend Dubai has still to make this transition. From all the companies I have visited them as wh at is 'freehold'? It's for 99 years. They don't understand wh at kind of freehold that is. The problem with the West, the attitude towards the environment is that they have lost their entrepreneurial descried. Dubai is not the problem in a large extend but the inward looking and mentality of boardrooms of the West and the ability not to move out the combat zone. People who are coming here are making a wise decision in my opinion.

Verhoef: How long is the planning horizon of the ones who invested here? When an investor does want this money back? I think it's very short. They don't invest for thirty years but for six or seven years and then you don't have the intelligence.

Arif: If intelligent money comes fast it will leave fast. If there is something wrong in the fundamentals of economy that is not going to sustain this same intelligent money is going to leave fast.

Verhoef: Are they (government) transferring from physical money into intelligent money?

Wynne-Jones: Seven years ago Michael Porter gave a speech to a large audience including His Highness. Porter was impressed by all the building activities in Dubai. This is amazing with all these high ri se developments. It's not what I expected. He asked the next question to the audience. If I may ask, where is the value been added? This impressed the audience and changed the strategy in the top of Dubai. In the early days Sheikh Rashid build the Ports, Jebel Ali Port, the airport and started the airline. There was a feeling that you created value first and the urban infrastructure followed. To a large extend this is the Western model. Because you're not going to build a place where there are now jobs and there is now value being created for very good economical, social and political reasons. What you have today is Dubai is on a transition point. Dubai is developing the urban infrastructure and manages that the money and the jobs will come here. That's a big change th at is occurring in my opinion . See change in strategy that has occurred. Now they are building apartments and villa's so that people can come and live here. The next step is to shape employment. The people will bring work and money with them and th at is a high risk policy.

Verhoef: I want to see the value chain of Dubai. Where is the focus on and wh ere do they create money and what is the value chain? How can the value chain be changed in the future?

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Tim & Bas

Wynne-Jones: 1996 Strategic report with economical plan for Dubai (ask by the Dubai Economical Department for this report, or Iris Dinu from CBRE). This report is developed by UNESCO but they used Porters Model. They added the value chain and the 'cluster theory' as weil. This is the official version.

Schaefer: I am in contact with pension funds in the Netherlands and they have a lot of money invested in real estate. What is the major discussion about real estate in the Netherlands al is known for the prices of mortar and bricks for example. But what is really determining the price is wh at kind of functionality is created upon? As you (Wynne-Jones) mentioned this area is developed in terms of a new entrepreneurial approach. The idea is the entrepreneur is taking the risks, is starting his idea, and his belief is on the aspect that as soon as there will be a problem I convinced about my own strengths that I will solve the next problem. There is the traditional democratic development and lots of people discuss for lots of years and find consensus and describe all the project risks. An entrepreneur is following a different approach. His Highness takes the risks and the idea and he is convinced to solve any problem on his way. In Dubai His Highness and his supporting intelligent group of people they know exactly what is going on and what the problems are and which approach is needed for the next years. The next challenge for this whole area is what kind of extra functionality I can offer in terms of infrastructure, in terms of energy so that people are going to stay in this area.

If you make a comparison for a company start up. What is the value for a starting company? Only the material things you have. When we look at a maturated company then you talk about goodwill. What did I create and this is intelligent money. This is the change you have to make. How are you making it 'intelligent money'? Then you have to do planning. Otherwise you cannot get goodwill. The question here is when is planning coming in the process in Dubai? You cannot do it on a product level. This is what Dubai is doing at the moment. You have a problem, you solve it yourself. How are you making it into intelligent money?

Arif: Read the last UN development report, which is online available. UAE in general has been creating not enough knowledge that might eventually conflate into intelligent money. It's about getting the best amount of money into the country. As a system, it is not a cohesive system. That is the biggest downpour at the moment. The lack of cohesion is you have these isolated towers. What we have ignored is the cultural aspect.

Wynne-Jones: What kind of model do we need for developing Dubai as urban infrastructure? Do they move towards the Richard central planning (existing out of standard patterns) that failed in the communist countries and in fact also the capitalist ones. But on the other hand you have total anarchy. You issue licences to people to do everything they want. At this moment they are searching in this town what model will suit the best. They are oscillating between controlling and allowing freedom. Issuing lots of licenses in free zones and licences to create buildings. It gets out of control and we need to go towards planning.

Arif: I am missing a character for the city of Dubai. There must come some sort of centralisation to develop a character of th is city and probably insure a cohesive group/growth.

Schaefer: lagree with Mohammed Arif. During the 19th century I see that a lot of city developments that follow the same approach as here. It's driven by investment. The first step of making a city is providing the hardware. The next step for sake of investment is how are we sure that we don't lose a lot of money. Because of functionality, how do we make a city out of it? How do I organise my business? What you have to do first as a private organisation is set up you make your statement, make your hardware and you start your city.

McTieman: Second half 2007 and early 2008 is all residential that is being handed over to the market. But commercial tor instance will follow soon after and that would be the policy. Attract people from the industry and explain where it's all about. They used to create an environment for their life and have a second home. Then people will attract more business.

• Attract people (residential) • Convince them to invest money in Dubai's economy • Attract business

The financial centre was not in Dubai but in Bahrain. Now the next step is that you need the intelligent workforce. The next phase is attracting business. But residential was at the back of tourism that's how the money came in. That was the plan.

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Verhoef: Then you get a metropolitan climate which also has its own dynamic. I don't think they won 't agree with that. That means that you also have liquor is free and casinos wil! appear. They will change the culture of our whole area.

Wynne-Jones: In earlier days for instanee farmer inhabitants could come to the sheikh out of the mountains and complain about a certain situation. In many cases the sheikh found solutions and this is a form democracy in the UAE. That system has changed a lot nowadays but it is still possible to discuss with the government.

McTiernan: Religion is important in the development of Dubai. There are certain social values which are paralysed. Local people want good facilities for education. The second is healthcare and the third is family life.

Wynne-Jones: Issues of democracy aside. Something now about urban planning. No matter what system in place you have what happens to get a good urban plan. You have to rely whether you are an absolute ruler or the most democratie system in the world. On a card ray of urban planning experts you translate a brief given by sovereign authority. They take a brief from whoever is in there. And they translate it into practical underground plans for a good urban solution. I think one of the issues here is that the planning card ray isn't quite good developed.

Verhoef: That means also what do you get at the end? You get at the end the same system as we have all over the world . So you get in a direction you cannot change. It has its own dynamic. It leads to the faith . You cannot keep it like it is now.

Wynne-Jones: One good advantage here which democracies don't have is that they are willing to make mistakes. Big mistakes. In democracy you have su eh accountability. Here they are willing to make mistakes. Let us learn from it and move on . In democracy the minister gets fired and the under secretary gets voted out of office. And the planner will get fired. They learn quickly and that's the learning circle of them. We don't learn that fast in democracy.

Reenalda: What you say right now is exactly the problem we are getting the right money here. Count ability. Because the big investors are being held countable for there shareholders. They cannot just invest in a region like this. Because the risks are increasing.

Verhoef: At the time you will get money from pension funds or big investors than you are on the right track. Than you will get really money. Because those investors look at the reg ion and the picture becomes bigger.

Arif: Investors look at the fundamentals . The fundamental of economy has to be strong otherwise you won't get the intelligent money in this economy.

Example: Dubai tried to develop a project like Silicon Valley, USA but it didn't succeed. The top hundred listed companies of the semi conductor industry and manufactures where not convineed to establish in Dubai. In Dubai at the Chamber of Commerce there is not a database available which has figures of the last twenty years and shows the figures of a fundamental economy here. They are not thinking on the next step of decision-making of cohesive methods, getting the fundamentals strong. As it will work like a sustainable system. They are not thinking that yet. And that is the point for people who analyse the economy. They don't find Dubai a good investment for long-term sustainability.

McTiernan: We see now th at the international financial institutions are coming in to Dubai. That is a step in the right direction.

Arif: The intense was to create knowledge in Dubai Internet City with the best players in the world. The buildings are just sales offices over there now. There is no knowledge creation. They are just bringing their products from the West over here. Microsoft needs to start creating new product here to contribute significantly to the economy.

Wynne-Jones: The five main aspect of the Dubai Strategie Plan 1996 where trade and transport, tourism, high level services and manufacturing. Trade, transport and tourism are doing very weil.

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Tirn & Ras

Verhoef: I am interested in research. Why are you doing manufacturing over here? Assembling perhaps but not production. Production we lost it, the Chinese can do it cheaper.

Wynne-Jones: Let's look at companies like Bang & Olufsen and Hitachi they are in niche markets for manufacturing .

Verhoef: It's integrating research .

Arif: lagree with that. And that's what's missing in this economy also written in the UN development report. There is no research been done it's just sales offices. They are adopting without adapting.

Wynne-Jones: I have read that UN development report and what suits me was th at the UAE has not moved up that much.

Arif: Orlando, USA based on tourism sector. To trust the economy of a city on the tourism sector is dangerous. When economy takes a hit then tourist people will stop taking vacations. So tourism is a very dangerous thing to base your economy on. Especially when there are several tourist hubs in the neighbourhood. Every economy will take that hit. They catch a cold and you start freezing.

Wynne-Jones: Dubai's Strategic Plan is based on the philosophy which Michael porter points out and UNESCO t~ . Fluctuations in oil prices and tourism will affect your economy. Dubai has an economy based on trading (factor driven approach) and in the future they need to go to high level services (intelligent manufacturing). This will add value to the process. This is the big challenge.

Reenalda: Every economy needs manufacturing. Because you will need a balance trom low to high income in every economy. Economy is now based on the construction market. This needs to be replaced in the near future because you try to find a balanced economy. Dubai's economy needs a process where people adding value and that will stimulate its economy.

Arif: Example: China is by far the cheapest country to assembly products. Don't go into competition with them, because Dubai cannot beat them in price. Dubai has to focus on the development of a product and know how and intelligence (e.g. computer chips) and the manufacturing will be outsourced to China.

Verhoef: Ireland is always focused and invested on education. Result: booming Ireland economy and people are coming back to Ireland. Dubai must invest in education to strengthen its economy. This counts tor local Emirati people as weil as people who move to Dubai.

Conclusions: The urban development approach in Dubai has changed since the early years. In earlier years the value ot its economy was first created by creating employment and the urban intrastructure tollowed . Today we see Dubai's development is driven by investment. Dubai is searching tor the right model to use for future urban development. Religion is an important aspect in the development ot Dubai. Dubai wants good tacilities tor education, healthcare and tamily lite. In comparison to the Netherlands Dubai's understanding ot their approach, they are willing to make mistakes, learn trom it, and move on very tast. For a sta bie future development Dubai is attracting international investors tor long-term investments . Dubai's economy is based on the construction market and trading since the early days. The construction market needs to be replaced in the future into high level services and intelligence. By this Dubai can develop a sustainable urban development that is ready tor the tuture.

Other headlines: • The rights ot inhabitants and transparency in policy are not always clear. E.g. what's

landownership worth in the case where the government wants to develop in your backyard? • The government must develop a tramework tor international investors as they apply in Western

countries tor future sustainable developments. • 'Intelligent money' can add a significant part to the economical tramework. • European countries have lost their entrepreneurial descried and this is the point where Dubai is

very strong.

38

__________________________________ Tim & Bas

• In Dubai the added value can be found in the fact that they are shaping a good economical, social and political environment.

• The challenge for Dubai is creating extra functionality in terms of infrastructure and energy so that people will stay in th is area.

• Planning is needed in Dubai to achieve this extra functionality and to create and attract intelligent money.

• Creating knowledge can be a contribution to create intelligent money and the UAE is not doing that right now.

• One of the issues in Dubai is th at the planning card ray is not developed enough to develop good urban plans.

• The leaming cycle in a total democracy is going much slower than the 'controlled democracy' in Dubai.

• International financial institutions are coming to Dubai and that is very good for this economy. • Dubai need to diversify to high level services because this will add value to the process. • Dubai has to invest into knowledge and education to add value to the process and get

sustainable development in the future. • Urban development in Dubai is based on different direction finders.

Are we asking ourselves the right central research question with: "What are the key characteristics for a business organisation to acce/erate the urban deve/opment process in the Netherlands with the input of a best practice approach from Dubai, and how can this be utilised?"

Comments and suggestion trom our guests: Reenalda: biggest difference between the United Kingdom, the Netherlands and the UAE is in Europe developers are planning for many years and waiting for appropriate permissions for urban development project.

McTiernan: To start a new project in Dubai you will get fifteen minutes to present you plan to His Highness and than he will teil you if you can start or not. The question is if we want to follow the same process as in the UAE. If we want th at we will have to streamline our planning process to the finest in the Netherlands. Create a business approach within the government (semi government). Run that 'government company' like a business with entrepreneurial people and compress the planning process to the finest detail to be profitable in the end.

Verhoef: We see a stagnating market in 'De Randstad' and in Noord-Brabant. We can do one step back and try to bring the growth into this stagnating market again (acceleration) . What can we learn from an emerging growth pole like Dubai so that our stagnating growth pole can get a new boost?

Reenalda: In the Netherlands they are trying to find faster ways to develop those complex urban development projects (e.g. HSL-lijn, Betuwe-route, and Channel Tunnel) . Maybe the research of Tim & Bas can add value to these project organizations.

Arif: I have the experience to operate in those projects and the principle idea is that those complex project organisations walk through the same fundamentallaws and processes for approval but they don't have to queue for the different permissions. This saves a lot of time. Detailed level of planning is important. Successful companies like Disney follow these detailed planning processes to succeed. Dubai at the moment is more reactive than active. Short planning phase and starting as soon as possible and find solutions for issues during the development processes rather than a detailed level of planning in a proactive way.

Wynne-Jones: Careful with comparing things which does not have much in common between Dubai and the Netherlands. In Dubai it's about developing an urban planning system and policies. Both developing on the same time is creating a system overload in his opinion . "The game is getting ahead of your ability to learn from it." So much lessons and information being created in this town that the planning and decision-making framework cannot keep up with it. It becomes dysfunctional.

39

Fm .. I ,., ~r l Api j' 11\"

Tim&Bas

Extra comments Note: The summary and conclusions of th is symposium are based on the discussions we had with all attending professionals at the symposium. The conclusions are based on everything what has been discussed in our symposium. The conclusions are formulated by the authors of th is summary, Tim van Helmond and Bas van Montfort.

All our guests where very positive about our initiative to organise this symposium with professionals and academies attending from both countries. They where positive about the two presentations and the two discussions sessions in between. The discussions were open and everybody was willing to inform the other participants about their experiences.

40

Fllt .. 1 repor1 APPi' lldtx

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____________________________________ Tim & Bas

Dubai Strategie Plan 1996 Souree: Richard Wynne-Jones. Dubai Chamber of Commerce and Industry

Achievements: • Transport • Ports • Free Zones • Warehousing

Challenges: • Trade finance • Organised markets • Communications • Applied technology

Ach ievements: • Emirates Airlines • Emirates Cargo • Ports

Challenges • Public transport • Roads and highways • Sea transport

Ach ievements: • Emirates Airlines • Exhibitions and events • Quality accommodation

Challenges • Dubailand • Preserving legacy • Customer loyalty

43

____________________________________ Tim & Ras

Achievements: • Dubai Financial Market • Internet and Media City • Academie City • DIFC

Challenges • Investment Park • Market image and career

opportun ities • Labour market practices

Achievements: • Economies of scale achieved by

DUBAL and AI Khaleej Sugar • Quality achieved by DUCAB

Challenges • Low sector growth • Skilled labour issues • Political risk

44

__________________________________ Tim & Ras

Vision 2010 Source: His Highness Sheikh Mohammed Bin Rashid AI Maktoum, 2007. ·Speech", Dubai Strategie Plan 2015, 3rd

February.

Economie objectives • Achieve a Gross Domestic Product (GDP) of US$ 30bn; • Achieve a per capita GDP of US$ 25.000; • Attract a level of Foreign Direct Investment (FDI) of 4 per cent of GDP; • 25 per cent of GDP will be created by the knowledge economy sector, while the overall service

sector will represent 70 per cent of GDP; • Establish a free and open market economy regulated to ensure healthy competition; • Transform at least 15 Dubai based businesses into market shaping regionall global corporations.1

Market objectives • A crucial node in global networks ensuring that is fully benefits from flows of Intellectual Property

(lP), Capital, Information, Trade and People; • A "hub of hubs· at the centre of a network between Dubai, Dublin, Quebec, Hong Kong and

Singapore; • Establish a hub and gateway for the Middle East, North Africa, Commonwealth of Independent

States (CIS) and the Indian Sub-continent; • The "Image Leader" for the region; • The necessary bridge between Europe and Asia.1

Social objectives • Able to nurture a new class of young, dynamic entrepreneurs and business leaders; • Able to be seen as a "city of choice" for the best and brightest knowledge workers; • Fully capitalise on the diversity of its human resources; • Achieve the highest standards in terms of values, behaviour standards and transparency; • Fully integrate into the global community without loosing its own identity.1

45

Fln!ll (f pO,1 III'IJI Ihli

____________________________________ Tim & Bas

Dubai Strategie Plan 2015 Source: His Highness Sheikh Mohammed Bin Rashid AI Maktoum, 2007. ·Speech", Dubai Strategie Plan 2015, 3rd

February.

Economie development They focus on economie sectors that have strong competitive advantage in and that are expected to experience future growth globally. These sectors of strength are: tourism, transport, trade, construction and financial services. Further they realise th at strategie success requires social development to complement and parallel economie development. Indeed experience confirms that having an effective social infrastructure is the key to reaching higher levels of sustained economie growth.

Social development T 0 lay foundations necessary for social development, the plan places a set of programs to achieve strategie objectives in seven key areas; • Preserve National identity; • Increase Nationals' participation in the workforce and society; • Improve education, especially public schools, and ensure that all Nationals have access to quality

education opportunities; • Elevate the quality of healthcare services and the wellbeing of the population; • Ensure that high quality social services are provided to meet the needs of Nationals; • Provide equality and acceptable working conditions for Dubai's workforce in order to attract and

retain the required expertise; • Promote cultural life in Dubai by upgrading the regulatory framework of the cultural sector.

Infrastructure, land and environment To ensure sustainable development of the Infrastructure, land en environment sector, the plan sets four specific objectives within four strategie areas: • Improve urban planning to optimize land use in order to meet the needs of sustainable

development while preserving natural resources; • Meet and secure energy, electricity and water needs; • Provide an integrated road and transportation system to facilitate people and goods move ment

while improving safety levels for all system users; • Sustain Dubai's environment, ensuring th at it is safe and clean.

Security, justice and safety The strategie plan is designed to ensure that the security, justice and safety sector is able to keep up with the economie and social growth such that it can always continue to ensure justice and safety for individuals and the community as a whoie. This will achieved as follows: • Preserve security, order and peace by improving the efficiency and capability of criminal

investigations; • Preserve rights and freedoms by enhancing transparency in the security sector; • Alert crisis management by effective planning and programs; • Ease litigation by lifting barriers that hinder access to litigation or resource to the judicial system

and facilitating resolution of labour disputes; • Ensure equality, impartiality, accuracy and clarity of investigations and judgments by activating the

role of judicial inspection; • Expedite the process of case disposal by activating commercial arbitration; • Ensure the safety of all Dubai's residents, workers and visitors; • Proteet public health and improve quality of life by updating legislation and specifications.

46

Tim&Bas

Govemment excellence In order to achieve the desired performance the government plan focuses on five long-term strategie principles: • Strengthen strategie and forward looking focus through an effective government administration that

is notabie for taking initiative and tor making objective assessments; • Activate streamlined and accountable organisations by ensuring accountability and transparency in

all government practices; • Increase efficiency and tinancial management by applying performance base budgeting and

resource allocation; • Enhance responsiveness and customer service by continuing the implementation ot the Dubai

Government Excellence Program; • Empower and motivate public sector employees by reviewing and updating current civil service law

and practices.

47

Tim& Bas

TECOM Free Zone Source: Cross Border Legal Publishing FZLLC, 2005. UAE Free Zone investment guide, edition 1, Dubai.

General The major advantages to setting up in one of the UAE Free Zones are that you are entitled to:

• 100 per cent foreign ownership of the business; • 100 per cent exemption from all commercial levies; • 100 per cent repatriation of capita I and profits allowed; • 100 per cent import and export tax exemption; • No corporate taxes for 15 years, renewable for an additional 15 years; • No personal income tax; • Fast and simple procedures for clearance of licensing, immigration, etc.

Dubai Media City Launched in January 2001, Oubai Media City (OMC) is a community for the media industry. OMC is a global launch pad for media business, creative talent and international corporations. Comparatively lower operating costs prevalent in the reg ion contribute to a significant competitive advantage. Today, with over 850 companies and 5000 knowledge workers, Oubai Media City's ever increasing number of companies reads like a 'Who's Who' of the media business community. Leading global players such as Associated Press, Bertelsmann, CNN, CNBC, International Advertising Association (IAA), McGraw-Hili Platts, Sony and Reuters rub shoulders with regionally reputed companies like Middle East Broadcasting Corporation (MBC), Saudi Research and Publishing (SRPC) and Taj TV.

Incentives DMC Free Zone value propositions include:

• A comprehensive framework of media laws and regulations; • Freedom of expression for media companies; • Business-enabling real estate infrastructure; • High performing and adaptable technology infrastructure; • A community of like-minded individuals and companies; • An environment rich with networking opportunities; • Obtaining government services and/or permits.

Dubai Internet City The mission of Dubai Internet City (DIC) is to create an infrastructure, environment and attitude that will enable Information, Communication and Technology (ICT) enterprises to operate locally, regionally and globally, from Dubai, with significant competitive advantages.

DIC provides a Knowledge Economy Ecosystem that is designed to support the business development of ICT companies.

Launched in 2000, and totalling a development area of 2.25 million sq/ft, DIC is a strategic networking base with over 650 licensed companies located in the City. Within a short span of time, a dynamic international community of ICT companies has established itself in Dubai Internet City. The globallCT giants are all here: Microsoft, Oracle, HP, IBM, Compaq, Dell, Siemens, Canon, Logica, Sony Ericsson and Cisco, to name just a few. These companies represent a formidable community of over 12,000 knowledge workers.

The cluster of ICT companies in Dubai Internet City comprise of Software Development, Business Services, Web Based & e-Commerce, Consultancy, Education and Training, Sales and Marketing and Back Office Operations. DIC provides a scalabie state-of-the-art technology platform which allows companies looking to provide cost effective business process outsourcing (BPO) services such as call centre operations.

48

__________________________________ Tim & Bas

Incentives DIC provides an environment th at attracts each and every element of the value chain for an ICT business into the community. It has developed programs that can be leveraged by the ICT community to explore and expand their business development opportunities. The burgeoning ICT cluster at DIC also offers a high quality of business interaction and networking opportunities that can be utilised for enhanced problem solving and knowledge sharing by the community. DIC is fully supported by the government of Dubai, and has established free zone-specific corporate laws that empower the companies in the community and help them grow.

Dubai Knowledge Village Dubai Knowledge Village is a vibrant, connected learning community that will develop the region's talent pool and accelerate its move to the knowledge economy.

Dubai Knowledge Village provides the infrastructure to develop, share and apply knowiedge. In addition, DKV facilitates, promotes, and introduces e-Learning in education and training throughout the Middle East. In summary, the Knowledge Village community is striving to create a culture and an access to lifelong learning.

DKV currently houses 200 institutions, and 15 of them are prominent international universities with 6,000 students presently enrolled.

Incentives • Business and education enabling physical infrastructure; • Shared facilities; • Conference halls and meeting rooms; • Auditorium; • Sports facilities; • A food court and commercial facilities .

49

F1I1'" ,aport A . npcnd,'

Tim & Ras

Models

50

____________________________________ Tim & Bas

7-5 Framework of McKinsey Sou ree: Authors Tim & Bas

Strategy: Become agiobal hub for tourism, business and living.

Structure: Internal: Position of the structure is translated by the Executive Committee and local departments. The Executive Committee is split up in three offices with supporting staff to support the different roles of His Highness. Centralised power in this 'controlled democracy' is in the hands of His Highness.

External: The core of external institutions who help developing the mission are Dubai Executive Committee, Dubai Holding, Emaar, Nakheel, Dubai Economie Department, Dubai Municipality, and Dubai Chamber of Commerce.

Systems: The Cluster Strategy is the system which is utilised for Dubai's strategy. A fundamental policy for procedures and information systems is not in place.

SkilIs: The financial input behind all the developments together with the extremely strong marketing of Dubai around the globe are essential core competences. Expatriates bring with them a lot of the needed knowledge and expertise.

Staff: UAE nationals hold key business positions. Most completed their education and worked abroad or at some of the bigger UAE universities. Locals are commissioned to the most important positions.

Style: The cultural style utilised by His Highness is characterised by personal involvement focussed on achieving economical growth. Clear communication from top to bottom is used in this organic organisation. Managerial behaviour in this organisation is to generally refer to the vision and support of His Highness. Managers are proud to fulfil their profession in this organisation.

Shared Values: "What is good for business is good for Dubai". This organisation stands for a diversified, progressive, and supportive environment. This organisation put faith in astrong and focussed leadership with a clear vision. They are looking for new developments in different sectors and apply policies and laws and regulations to continue growth.

Model 1: 7S tramework trom MeKinsey (Peters and Waterman)

51

Tim& Bas

Porter's Diamond model tor the competitive advantage ot nations Souree: Authors Tim & Bas

Government Firm Strate •• -------------. gy. "':" -" Structureand

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/ Model 2: Porter's ~iamond Model for the Competitive Advantage of Nations

Firm strategy, structure and rivalry Dubai wants to be the first, the best and the biggest in tourism, business and living in the United Arab Emirates. Therefore major semi government and private companies are established. Other gulf countries are following Dubai in a slower pace and they can be competitive in the near future . Free Zones are developed beside the UAE federal governmental framework. Laws and regulations within the Free Zone make it attractive to foreign investors with 100 per cent ownership of your property to develop in Dubai. This gives Dubai a competitive advantage.

Demand conditions Dubai's tourism and real estate economy is under development. Therefore the demand conditions for expatriates and labour workers are huge. Customer's needs and wants are based on levels of services. In the near future when the tourism and real estate economy is more developed and balanced these customer needs will only increase_ The main mechanism is the demand for available oil reserves in Dubai. While Dubai's economy diversified and depends on oil for only 3 per cent, the revenues trom oil are used for financing Dubai's new economies.

Relating supporting industries Dubai developed Free Zones and attracts globalleading companies in a particular economy to establish themselves here. The idea behind this approach is to attract the important supplying industries and supporting industries. Examples of these developments are; Industrial Free Zone, Media and ICT Free Zone and Financial Free Zone.

Factor conditions These conditions can be subdivided into five categories; human resources, material resources, knowledge resources, capital resources and infrastructure. For Dubai we see that the His Highness has a strong and clear vision . This is translated into the state structure of Dubai with His Highness and his small group of supporting staff members of the Executive Committee. The Cluster strategy is the system which is utilised for Dubai's strategy. A fundamental policy for procedures and information systems is not in place yet. The cultural style utilised by His Highness is characterised by personal involvement focussed on achieving economical growth. Clear communication from top to bottom is used in this organic organisation . Managerial behaviour in this organisation is to generally refer to the vision and support of His Highness. Managers are proud to fulfil their profession in this organisation. Finally the national stock market of Dubai, located in the DIFC, is operational since last year but still under development.

Influence of the government. The government can have her influence on all of the four aspects as you can see in the figure. She must have a foresight on the future and steer her policy in that direction. Companies must be stimulated or forced to participate in this policy. Only by doing this a country can achieve a competitive advantage compared to other nations.

52

f:i llill report Appl!lInj~

__________________________________ Tirn & Bas

SWOT analysis Sou ree: Authors Tim & Bas

Internal factors:

St th reng l 5

Laws and regulations Dubai govemment prescribes laws and regulations on a high level base for developments by the private sector.

Vision and leadership for Dubai The vision of His Highness Sheikh Mohammed Bin Rashid AI Maktoum is very clear and translated in Dubai Strategie Plan 2015 to attract tourism and business.

Marketing for Dubai Clear brand image and name. Get the best of the best of different events in Dubai. Business sjlonsoring, conferences and exhibitions.

Free Zone development Strong progress in economy, business and technology.

Weaknesses Transparency in policy The policy of the government for the future is not fully clear as an

aspect of real estate investments. The laws and regulations about the rights of inhabitants in Dubai are very dubious. As a visitor one may face grey areas in certain situations or conditions. The government needs to secure these aspects and create more clarity.

Social development Social development is in the shadow of the booming construction market.

Skilis of personal From a process angle there is a need for up gradated skills of personnel in different organisations.

Working and living conditions Conditions are underdeveloped for labourer in general. labourer Regulatory framework The Dubai government should develop an efficient regulatory

framework, as guideline for investors, to meet international standards. Less routine work Dubai needs a further developed policy, laws and regulations for

unique identification for good planning of urban development projects (buildinÇ! code,iluality, energy, sustainability).

Research and Development Research and development is an underdeveloped aspect in Dubai. Public transport Public transport is not in place and not part of the culture of UAE

nationals. Infrastructure Dubai Electricity and Water Authority is delayed with power

connections to urban development projects. Different sites on the World Wide Web are blocked and telecommunication is not working weil.

Creating stability Creating stability to strengthen the position of inhabitants and locals in Dubai.

Urban planning There are not enough parking places developed in Dubai.

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__________________________________ Tim & Bas

Extemal factors:

o Ipportunities Continue policy Improve developments in the future and economy is quite stabie so

perhaps continue to stabilise. Foreign direct investment Financial institutions are investing in Dubai's economy. Involve private sector Advanced knowledge and expertise is within the private sector. Attract foreigners Laws conceming landownership by non-GCC members and

foreigners have been changed. It is possible for them to own property within certain areas.

Intemational building standards Intemational facility standards are requested in the market.

Threats Traffic safety and congestion Uttle historical overall coordination by Dubai govemment and Road

and Transport Authority (RT A) leads to many deadly traffic accidents and traffic congestion.

Regional instability In spite of the excellent security matters, Dubai constantly has to be aware of regional instability.

High inflation High inflation is the single biggest risk to UAE economy. Inflation continues to edge up according to official IMF regional economie outlook on October 2006.

Less coordination Imbalance between demand and supply as a result of less coordination.

Imbalance between supply and Because of imbalance between demand and supply there are long demand project delays on The Palm Jumeirah, The World and Dubailand

because of large construction capability of recourses causing strain on project delay.

Decline in labour work The trend of a gradual decline in the labour workforce has recently been notieed.

54

Tim & Bas

Value chain for organisation Dubai Sou ree: Aulhors Tim & Bas

Inbound Logistics >

Firm Infrastroet.ur.e

Technology Dev elepment procurelTJent

Figure 6: Miehael Porter's value ehain model

Primary process

Sales

M A

> Service > ~

N

The primary activities are directly involved for the creation of the end product. The end product for Dubai is becoming agiobal hub for tourism, business and living.

Inbound logistics Revenues from:

• Oil; • Trade; • Construction; • Attracted Foreign Direct Investments (FDI).

Operations Set up: • Financial centre; • Entire housing areas and working environments; • Leisure activities.

Outbound logistics • The artificial palm islands; • Free zones; • Representing buildings (Burj AI Arab, Burj Dubai).

Marketing and sales • The marketing of Dubai talks to everyone's imagination because of all the amazing developments

which are realised here.

Service • The service in Dubai is been taken care of by a high percentage of low ski lied staft.

55

____________________________________ l'jm & Bas

Secondarily processes These processes are supporting the activities in the primary process. The activities in the secondarily process are to improve the efficiency and optimising of the activities in the primary process. There are four activities and these are; procurement, technology development, Human Resource Management and infrastructure.

Procurement To attract business and visitors, Dubai introduced some striking ideas. Different commercial areas, the so called Free Zones, are developed for areasonabie price because the price there has to be paid for the plot of land is very low. In the interview with the Executive Office we heard that part of the strategy of His Highness is that he wants competition in Dubai. Emaar, Nakheel and Dubai Holding should always compete with each other. The government is always challenging these companies to build innovative projects, for the lowest price and as fast as possible. Most of the events which take place in Dubai can be visited for a very reasonable price compared to similar events in other countries. By doing this and with the service they offer Dubai attract a lot of people who are willing to spend their money in Dubai.

Techno/agv deve/opment At this moment is the technology development in Dubai low. They have not gone through the whole economie cycle and are still in the development phase of a diverse economy. Dubai consciousness realise th at it is important to invest in innovations and inventions. There are already started a few projects like Dubai Internet City to attract worldwide companies which are focussing on technological innovations and inventions. These companies will be located in specific business clusters in Free Zones.

Human Resource Management The policy about Human Resource (HR) shows a difference between the high income (expats) and low income (labour workers). The main policy about HR in Dubai is that everyone is welcome as long as you have a job and contribute to the economy. In practise you see and experience that there is a big difference between these two income groups. People with a high income can afford to live in special gated communities with all kind of facilities to live a nice life. People with a low income, which are most of the labour workers, live in special labour cam ps with bad facilities. Because of this you get differences and tensions between these two groups.

Firm infrastructure: In the early years there was no planning for nothing. When you had money and the connections you could built what en where you want. Soon the Dubai government realised that this policy would not be accepted by or correspond to the rest of the world. Therefore they developed first the DSP 1996, then Vis ion 2010 and last February DSP 2015. With these plans the government give more transparency and clarity in their policy and laws and regulations. This process must certainly be improved and upgraded before they can meet the European standards. At this moment you see that the policy with less regulation, influence of the government and participation of interest groups causes this fast developing.

56

Tim & Bas

PEST analysis Dubai Source: Authors Tim & Bas

Political (incl. Legal) Economical Social Technological Environmental Economic growth: Gross Income distribution: Government research regulations and Domestic Product (US$ 27 Annual income level is spending: Increasing. protection: Under billion) of Dubai exits for 5% belween €13.000 and Research is development and part of on crude oil, 16% on €40.000 for 56,8% of underdeveloped and DSP 2015. Cultural manufacturing, 12% of households. No system mostiy explored in heritage is under construction, 22% on trading, in place to balance each company. attention in Dubai. and 11 % of real estate. payments for social

Growth of 16% in 2004. facilities belween low and high income group.

Tax policies: No tax in Interest rates and monetary Demographics: Industry focus on general. Import duties policies: UAE currency is Population is 1.321.000 technological effort: from a Free Zone in pegged to the US dollar. (males 74,9% and female Under development in Dubai are 5 per cent. There are plans for one 25,1 %) projection is that different Free Zones.

currency in GCC countries. population will rise to 3.4 million in 2020. Annual population growth 7,32%.

International trade Government spending: UAE Lifestyle changes: New inventions and regulations and government spending for Globalisation has development: Low, restrictions: Imports into 2007 US$ 7.7 billion. Focus is changed since last Iwo innovation is a main Dubai can only be on education (25%), security decades from nomad's topic to focus on for undertaken by those and justice (12%), and health, lifestyle to modern urban Dubai government. importers who have the social affairs, infrastructure city lifestyle. appropriate trade licence. (5%).

Contract enforcement law Unemployment policy: There Work I career and leisure Rate of technology consumer protection: is no policy, unemployed as attitudes, entrepreneurial transfer: The transfer Dubai government is foreigner means you have to spirit: Whal's good for of technology inside protecting customers for leave Dubai. business is good for international price increases. Dubai. Government is institutions to their

applying an businesses in Dubai entrepreneurial is low. approach.

Employment laws: Labour Taxation: There is no Education: There is a low Life cycie and speed Law in the UAE is loosely corporate tax in Dubai. The level education platform of technological based on the only exceptions to this are oil and locals study in obsolescence: ? International Labour producing companies and America or Europe. Organisation's model. branches of foreign banks. The Labour Law is Likewise, there are no protective of employees personal taxes. Direct taxation in general. is against the traditions of the

UAE and it is highly unlikely that it will be introduced in the near future. A VAT system is going to be introduces in the near future.

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Tim& Bas

Political (incl. Legal) Economical Social Technological Government Exchange rates: There are no Fashion, hypes: In Energy use and organisation/attitude: see exchange controls in the UAE everything Dubai want to costs: Use of energy chapter 5.1 of our report. and its currency, the UAE be (and have) the best is very high and

dirham, is freely convertible. (e.g. Dubailand)! energy saving The dirham is linked to the US aspects are just on dollar, the currency in which oil the agenda. revenues are paid. The current exchange rate is Dh 3.675 = US$ 1 and no revaluation has occurred since 1977.

Competition regulation: Inflation rates: High inflation of Health consciousness (Changes in) Dubai government 8,7% in 2007 and therefore the and welfare, feelings on Information applies an single biggest risk to Dubai's safety: There is a large Technology I Internet entrepreneurial approach economy. difference between low Mobile I Technology: towards semi- and high income group in New developments government and private what is affordable. for the government sector. and private sector

come from Dubai Internet City. Dubai Silicon Oasis is a hub for IT manufacturing in the near future.

Political stability: Sta bie Stage of the business cycle: Living conditions: There political situation with Economie cycle isn't is a large difference robust Gross Domestic completed in Dubai like in between low and high Product growth and a most Western countries. income group. From ruling family that has Labour camp to Gated domestic support. Community.

Safety regulations: Consumer confidence: Is very Under development and high. A survey has released part of the DSP 2015. that consumers haven't saved

money as much as they wanted.

Privatisation: Competition: Cluster strategy Privatisation is in the as part of DSP focuses on start up phase with Economie development, Social support of the development, Infraslructure, government. Land and Environment,

Security, Justice and Safety and Government excellence.

Deregulation: There is a Authorisation of credit: There need to improve and is no insight information develop a regulatory available about government framework in Dubai (e.g. credibility. law about foreign landownership f Subsidies: Dubai government can decide which plot can be soled for a low price.

Table 1: PEST analysis Dubai

58

____________________________ Tim& Bas

Schemes, Figures and Photos

59

Fin.1 r . p rt: Appo n(li .

Tim & Bas

Business card and Invifafion Symposium Souree: Authors Tim & Bas

Tim&Bas

University of Technology Eindhoven The Netherlands

Construction Management and Engineering Masters Studenls

Tlm van Helmond & Bas van Montfort Dubai International Financial Centre PO. Box 500529 Dubai, Un~ed Arsb Emirates M +971 (0) 50 49 59 602 E t.v.helmond@student .tue.nl/c.s.v.montfort@student.lue.nl

WWW.TimenBasinDubai.oom

Figure 7: Business card Tim & Bas

INVITATION SYMPOSIUM

Value Creation Through Sharing Knowledge In Urban Development

GOAL To discuss a comparison of Urban Development in Dubai and the Netherlands. Academics and professionals from public and private institutions, from both countries will be attending.

We hope you can join us.

Tim & Bas

<lJ " 30th January 2007

~ ..." Congress room 2nd floor Emlrates Towers Dubal CBR E o 1".1' 08 00 . 08 45 Breakfast CB RICrlARD ELLIS

0845 -13 00 Symposium (Iurch Included)

Figure 8: Invitation tor our symposium

60

FiJl .. 1 report : Appendix

Tim& Bas

Roadmap for Dubai Sou ree: Authors Tim & Bas

rPre graduation phase L in Ihe Nethenands

Project Plan

Model 3: Roadmap for Dubai

Introduction to Dubai;

Networldng;

Business Organisalion

Model lor Case Project

Flnat Research Proposat

Expert panel dlscusalon sesslons

"­., 'L In Ihe Netherlands

Symposium, case studies,

expert interviews.

Finel Report

In the next paragraph our tasks from March 2006 till April 2007 are specified and explained in brief. The different tasks (interviews, symposium, company visits, brainstorm sessions, conferences with our supervisors, etc.) are linked with the model above.

2006 March - September (Project plan) First ideas explored for our graduation in a foreign country;

We held a brainstorm session to find out al opportunities about our graduation . The result of this session was that we decided to put our effort in exploring our research in Dubai;

Appointment with CB Richard Ellis Amsterdam and AT Osborne in Utrecht about participating in our research;

The British University in Dubai and Arup Major Projects are participating in our research;

Contacted the Royal Netherlands Embassy in Abu Dhabi and the Netherlands for exchanging information;

Booked our flight to Dubai combined with a 100 per cent 'Go' for our graduation project in Dubai. Accommodation is arranged as weil as the participation and support of four institutions to our project;

Continuing our pre-graduation and a few meetings for our graduation study in Dubai;

Departure to Dubai on the 20th of September.

Acquaintance in Dubai with the Consul General Bart Twaalfhoven of the Kingdom of the Netherlands.

October (Introduction and networking) Appointment with Maarten Reenalda from Arup Major Projects in Dubai.

Appointment with Prof. Shobhit from the S.P. Jain Centre of Management.

Appointment with Dr. Mohammed Arif from the British University in Dubai;

Monthly meeting with the Netherlands Business Council;

Company visit Van Oord at Jebel Ali Free Zone;

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Tim & Bas

Appointment with Managing Director Nicholas Maclean trom CB Richard Ellis in Dubai;

Dutch Big 5 exhibition;

General meeting with the Netherlands Association in Dubai;

November Written articles in the magazines 'Cursor', 'Matrix' and '!ntervisiE' (magazine from study association of CoUrsE!) ;

Reception by the Consul General of the Netherlands;

Monthly meeting with the Netherlands Business Council;

Invitation to the opening of 'Downtown .Iebel Ali project' initiated by real estate developer Limitless;

• Appointment with prof. dr. ir. W.F. Schaefer and prof. dr. L.H.J . Verhoef, video conference and phone call conversation (see appendix: Minutes November 23rd 2006)

• Presentation by Tim & Bas about our graduation project for the company CB Richard Ellis Dubai.

• Appointment with Nicholas Maclean managing director of CB Richard Ellis. We presented him our plans for a symposium in Dubai.

Appointment at the Dubai Municipality;

December Cityscape 2006, exhibition for three days;

End of Year 'Borrel', Netherlands Business Council;

Interview a real estate company (interviewee requested to not mention his company name in our report);

• Meeting with prof. dr. ir. W.F. Schaefer and ir. E.G.J . Blokhuis at the TUle;

Mid term presentation of our progress at the University of Technology Eindhoven;

2007 January (Symposium, case studies and expert interviews) • Appointment with prof. dr. ir. W.F. SChaefer, phone call conversation (see appendix: see appendix Minutes January 11 th 2007).

Project visit Palm Jumeirah by dredge company Van Oord and Nakheel Sales Centre;

Annual General Assembly, Netherlands Business Council;

Visit from our Dutch professors and PhD Student from the TUle;

Company visits to Arup Major Projects, Deerns Middle East, DFSA and Parsons;

Symposium Tim & Bas in The Emirates Towers, Dubai.

February (Finalising Dubai analysis) Interview with the Director of Strategy from The Executive Office in The Emirates Towers.

Tim & Bas LIVE on Dubai Eye Radio about the conclusions of our symposium;

62

F!I111 rcpl"' · JlfJ I h.

Tirn & Ras

Monthly meeting with the Netherlands Business Council: Lecture on business customs and traditions in Middle East and information about recent changes in law;

Project visit Dubai Festival City (case study) and interview with Ralf Laurijsen, development manager;

March (Business organisation model) Interview with the Director of Building Design Fouad Bokhash trom the Ministry of Public Works;

Interview with Chief Strategy and Business development from TECOM Investments part of Dubai Holding;

Follow up to discuss our Symposium conclusions with Project Consultant & Client Representative Richard Wynne-Jones trom DCCI;

* Conference by telephone with our supervisors from the TUle to discuss our graduation project;

Arranged company visits with AT Osborne, BOM, TUle Innovation Lab and Eindhoven Municipality in the first week trom April in the Netherlands to present our process model;

Flight back to the Netherlands after a six month stay in Dubai for our graduation project:

63

Fl nill IPPUrt App"' rtdiX

Tim & Bas

Research approach and methodology scheme Source: Authors Tim & Bas

Ahrt;h 2008: PRE-GRADUATION PHASE Wrldng AcUon Pl3fI for Oubai and dotwtlr:g subfed.

RESEARCH PAOPOSAl s.pte",~r _ Oet;:ember lOOS

ANAl YStS PHASE NovemlMr 200e - Febru.ary 2007 :

R.lJUrch approach and apply ' .. un;h rTMIU'lodology

DESIGN PHASE Febuary - Mareh 2007 :

O •• IS" proC*M modtt4 lor .. cas. proJ.ct In the Nethettanda ualng Ihe Dub.-. OIpproach.

Scheme 7: Final scheme research approach and methodology

Wan;h 2006: PRE-GRADUATlON PHA3E AtTango gradualion protoo In UAE. oor~ &ubjecl

RESEARCH PAQPOSAL Sef*mber -~, 2006

~ •.. ~ "

ti. ' r~ 1"1 1' .11

- .,.~ ~., "'"

lITERATURE STUDY PHASE November 2006 - January 2007

Iml'iMewing e?;p8rts, 1W8'Ntb6e IfII0000000bon Irom pubfl(; and p,iv-.. tc ine(ilulioll ,s. Ofgarllsrll9 a , ympoglUrn.1t1d ",i:sm,-y

prtlliOfll.1 11011S f:I)ltttbll.on..~and OOflforel'l((,l" .

hbuary - Mareh 2007 : RESEARCH SllJDY De-s lgn our h,nov.atlve proc. .. s model fO(.In urlH.n

devalopment project In Uw Natheri.nch wtth Input of lhe 'Oub.' uperi.ne.',

Apr112007. Fln,;) l TI 'Oj ,1O Urb.ln Oe .... clopm ~n l

a nd Econ of'uh:,

Scheme 8: First scheme research approach and methodology

64

____________________________ Tim&Bas

Map of Major Projects Dubai Source: Dubai GIS 2005 .

• l('

Ij

Map 2: Major projects Dubai

65

Fllt;>1 r, porl Appel! 'Ii~

Tim & Bas

Organisation chart Dubai Municipality Source: Dubai Municipality, www.dubai.ae

ChIIlrman

Scheme 9: Organisation char! Dubai municipailty

66

Analyse Case Studies Sou ree: Authors Tim & Bas

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Seheme 10: Main questions used for our interviews.

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Tim&Bas

f I : . f ."'

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67

Fillil l report . AflPl"u(ilx

Tim & Ras

Master plan TECOM Free Zone Souree: TECOM Investments

. --_ . . - .-.. - . ............. • • • --_. ....- _ . "-> _ ...... - -

.. __ ... - .. I ._ .... ~~ _ _____ ~_ = ... , ..

Map 3: Master plan TECOM Free Zone

6B

Science Park development Sou ree: Google Earth, Mareh 2007

Photo 1: Aerial view TUle Campus.

Tim & Bas

69

FIII ,,1 r r·pol I AI.! ·I 11 h·

________________________ Tim & Bas

Conversations with supervisors and experts from the Netherlands

70

Fllh.! r,·pnr' : Appell lil(

____________________________________ 1ïm & Bas

Minutes November 23rd 2006 Rood = aandachtspunten volgend uit gesprek Gro»n = vervolg actie van Tim & Bas

Punten op de agenda: • Voortgang afstuderen:

Resultaat van overleg tussen Wim en Leo ter harte genomen en verwerkt; Zie PowerPoint presentatie die wij bij CB Richard Ellis Dubai hebben gehouden met actuele probleemstelling en onderzoeksvragen; Tim & Bas lid van Netherlands Business Council en Nederlandse vereniging als onderdeel van netwerken in Dubai en kennis delen; Gisteren gesprekken gevoerd bij Dubai government, Dubai Economical Department and Chamber of Commerce.

-" Begeleiders tevreden over onze voortgang en het 'netwerk' dat wij tot nu toe hebben opgezet om informatie te verkrijgen.

• Update Symposium op 30 januari: Professionele aanpak met waarschijnlijk aanwezigheid van een journalist voor publicatie; Organisatie door Tim & Bas en CB Richard Ellis Dubai; professionals uit Nederland vanuit TU, AT Osborne, BOM en ... ?

, Begeleiders plaatsen de opmerking om het symposium niet te groot te laten worden. Symposium moet in teken staan van ons afstuderen met specifiek het bespreken en discussiëren van ons afstudeerwerk tot dan toe en onze onderzoeksvragen.

, Wij hebben deze opmerk ing samen doorgenom en en uilgewer l. Vervolgens hebben wij onze opzet gepresenteerd an Nicholas Macleé'l n ( manél~ jllg r!irector CBRE Dubc i) en Il ls in\! (associale rJ irec!ur an<.J Ht;éK! of research CBRE Dl lh;:lI) () Iil Lr)l een goedkt;uril1~ val l de symposium och tend te komen. CB RE ubai spon sol"\ Ilot 'ympOSlunl in Th Emirrites Towers dus ook aan hun goedkeunn hechten wij veel w8orde .

• Tweede versie Research Proposal 15 december online

• Tussencolloquium op vrijdag 22 december aan de TUle ;... Het tussencolloquium is verplaatst naar 21 december. , Planning en invulling voor 21 december is als volgt 10:00u -1 1 :45u Tim & Bas aanwezig op TU voor testen in filmzaal en koffi e/thee bestellen. 12:00u - 13:30u Informeel over! 9 met lunch (aanweziQon Wim, Enk, TIIll en Bas); 14:00u -15 :00u Tussor lcolloqulum in Zwarte Doos, hll1lzé'la l \aanwezi en genodigden/sludil'lgenolen, Wim. Erik , Rob Gordon. Tim en Bas). 15:00u - 16:00u Keuzp. en informatie I.b.v. te onlwikkelerl hedfiJvenlermin (él<'lllw(,!2Igen: Wim , Eri k. I~oh _Jordon, Ti rn en Bas)

• Gesprek met de BOM op 21 december voor keuze gebiedsontwikkeling Noord-Brabant , Wim nodigt Rob Gordon als hoofd bedrijventerreinen van de Brabantse Ontwikkelings

Maatschappij (BOM) uit voor zijn aanwezigheid op 21 decernber. Wij vragen Rob Gordon om namens de BOM een keuze maken voor een nog te ontwikkelen bedrijventerrein in de provincie Noord-Brabant. Omdat wij slechts COfl Visueel contaclrnorn ent Illet Rob Gorrlon hebben op 21 december zou li nt erg p(ell i~ ZIJ fl vour je vomlgang om dan ook de informatie die bekend is vamll t de BOM over hel [e ontwi"kelel l /led I il venlorreln 3;111 0 115 t kl lil 11 all lW ~ rhan,j lfJe n 1-1(~Lllefs dÎlJltaal Des lc n1lr1dcr infol mrtti.·) wi j Dil! v n g81 1 hoe Ijl ljef wrJ kunnen ZIJIl Wil l~l; 1I ~lluEmli ll n lq procesmûdel op te ~telll:! n .

Overige • Hotel boeken: Ramee Hotel Apartments, AI Rolla Street (Bur Dubai)

,. Hotel is geboekt door Wim, Leo en Erik (zit in Ascat hotel twee straten verderop)

• Globaal programma voor 27 januari tlm 31 januari komen wij later op terug met een invulling.

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__________________________________ l'im & Bas

Actiepunten • Globaal programma opstellen voor 27 Um 31 januari (Tim & Bas) • Organisatie van symposium voortzetten (Tim & Bas) • Directeur BOM uitnodigen voor overleg op 21 december aan de TUle waarin gebiedsontwikkeling in

Noord-Brabant wordt toegelicht en besproken (Wim and Leo)

Geplande acties • Begeleiding op 21 december, 12:00u aan de TUle met Wim en Erik. • Tussencolloquium op 21 december aan de TUle aanvang 14:00u Um 15:00u; • Bezoek aan Tim & Bas in Dubai van Wim and Margot, Leo and Ria en Erik van 27 Um 31 januari

2007.

Met vriendelijke groet,

Tim van Helmond and Bas van Montfort

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Tim & Bas

Minutes January 11th 2007 Rood = aandachtspunten volgend uit gesprek broel l = vervolgactie van Tim & Bas

Punten op de agenda: • Voortgang afstuderen:

Resultaat van overleg tussen Wim, Erik en Tim & Bas is een aanvulling op het RP van 18 december 2006 (zie bijlage); "Business organisation" als omschreven in onze hoofdvraag, gekoppeld met de analyse van het Expo '98 terrein in Lissabon van Wim Schaefer en Erik Blokhuis. De inhoud proberen wij hetzelfde te houden voor het analyseren van de case projecten in Dubai. Methodology voor ons afstudeerproject: wij stellen een plan op voor de beschrijving van de case studies in Dubai met de opzet van Lissabon die daarbij gebruikt wordt. Vervolgens worden de analyse van de case studies uitgevoerd. Na afloop beschrijven we of er dingen anders zijn gelopen of uitgekomen dan vooraf verwacht. Wij gaan ons vanaf nu bezig houden met de analyse van de case projecten in Dubai. te weten Dubai Marina, Dlibai International Financial Centre (DIFC) en Palm Jlimeirah (deze gebiedsontwikkelingsprojecten hebben Dubai op de kaart gezel).

• Update Symposium van 30 januari 2007: Professionals die vanuit Nederland aanwezig zullen zijn: Wim Schaefer, Leo Verhoef, Erik Blokhuis én Rob Gordon; Professionele aanpak met aanwezigheid van een journalist (publicatie in maart editie van Property World); Professionele aanpak met aanwezigheid van een medewerkster van Dubai Eye Radio (op 4 februari zijn Tim & Bas uitgenodigd in de studio verslag te doen van de conclusies van het symposium); Experts zullen aanwezig zijn vanuit Dubai: Managing director Nicholas Maclean en head of research Iris Dinu beide van CB Richard Ellis Dubai http://www.cbre.com Maarten Reenalda vanuit Arup Major Projects http://www.arup.com/majorprojecls Richard Wynne-Jones van de Chamber of Commerce and Industry http://www.dccLae, Dr. Mohammed Arif en Dr. Mohammed Dulaimi beide van The British University in Dubai http://www.buid.ac.ae Dr. Martin Berlin van Tatweer, Dubai Holding is nog niet bevestigd http://www.tatweedubai.com Laatste handelingen voor symposium zijn in volle gang met een opzet voor het programma in combinatie met de meest elementaire vragen (hierover volgt later meer informatie richting jullie) .

• Research Proposal: Na suggesties en opmerkingen vanuit ons tussencolloquium en begeleiding met Wim en Erik hebben wij enkele aanvullingen gedaan op het RP van 18 december 2006 (zie bijlage); Nadat we eerst onze onderzoeksresultaten wilde toepassen voor een nieuw te ontwikkelen bedrijventerrein in Nederland zijn we tot een wijziging over gegaan. Zie bijlage voor ons nieuwe case project in Nederland; De keuze voor het case project in Nederland hoeft nu nog niet bepaald te worden. Wel willen wij dit graag bespreken met Leo. Erik en Rob. Jullie hebben vast ideeën over nog te ontwikkelen gebieden dus deel die gedachte voor zo'n project met ons tijdens jullie aanwezigheid in Dubai.

Overige • Programma voor verblijf in Dubai:

We zijn verheugd met het feit dat wij jullie een leuk en afwisselend programma mogen aanbieden in Dubai. Jullie hebben allemaal aangegeven graag de Burj AI Arab te willen bezoeken. Wij zullen hiervoor een reservering proberen te maken. Op korte termijn laten wij jullie weten of dit gelukt is!

• Tips voor verblijf in Dubai: Een paar dagen voordat jullie naar Dubai vertrekken sturen wij jullie een email met een aantal tips voor wat betreft kleding, taxi op vliegveld, weersvooruitzichten, valuta, etc.

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Fil1 Cl I report : ÄJlp ... n 11<

Tim & Bas

Actiepunten vorige agenda • Globaal programma opstellen voor 27 Um 31 januari (Tim & Bas) AFGEROND • Organisatie van symposium voortzetten (Tim & Bas) NOG STEEDS ACTUEEL • Directeur BOM uitnodigen voor overleg op 21 december aan de TUle waarin gebiedsontwikkeling in

Noord-Brabant wordt toegelicht en besproken HEEFT NIET PLAATSGEVONDEN • Hotel reserveren in Dubai AFGEROND

Nieuwe actiepunten: • Voorbereidingen treffen voor komst begeleiders en echtgenoten naar Dubai (Tim & Bas) • Analyse maken van verschillende gebiedsontwikkelingsprojecten in Dubai (Tim & Bas) • Interviews plannen met experts van betreffende projecten (Tim & Bas)

Geplande acties • Bezoek aan Tim & Bas in Dubai van Wim and Margot, Leo and Ria en Erik van 27 Um 31 januari 2007 • Bezoek aan Tim & Bas in Dubai van Rob Gordon van 27 februari Um 1 februari 2007 • Symposium "Value Creation Trough Sharing Knowledge In Urban Development" op 30 januari a .s.

Met vriendelijke groet,

Tim van Helmond and Bas van Montfort

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Final report . Appendix

________________________________ Tim & Ras

Graduation study Tim & Bas in Dubai Souree: Authors Tim & Bas

Bedrijfsorganisatie voor case studie op TUle campus

Conclusies uit Dubai analyse leveren een nieuw perspectief op voor gebiedsontwikkeling in Nederland

Met Dubai conclusies ontwerpen wij een bedrijfsorganisatiemodel die tot doel heeft:

"Een braakliggend gebied op de TUle Campus te ontwikkelen, als case studie"

Expert panel Wij presenteren ons ontwerp voor deze bedrijfsorganisatie aan een expert panel

Expert panel geeft aanbevelingen en feedback op ons gepresenteerde ontwerp

Tot slot verwerken wij de aanbevelingen in ons afstudeerrapport.

Afspraak Mogen wij ons plan aan u presenteren en u uitnodigen om met ons over het ontwerp te discussiëren?

Wij zouden graag op korte termijn een afspraak inplannen voor 2,3 of 4 april 2007. Wij stellen voor om naar uw bedrijfslocatie toe te komen en ons plan te presenteren.

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_________________________________ Tim & Bas

Literature

[01] Cross Border Legal Publishing FZLLC, 2006. Property Investment Guide, edition 1, Dubai.

[02] Asteco, 2005. UAE & Dubai overview, Dubai.

[03] Dubai Museum, 2006. Exhibition about the history of Dubai, September.

[04] Wikipedia, 2006. Dubai [online], look up: http://en.wikipedia.org/wiki/Dubai.

[05] Twaalfhoven, B. van, 2006. "Interview", Interview with the Consul General of the Netherlands Consulate, Dubai, October.

[06] UAE Interact Dubai, 2006. lIet accomplishments speak for themselves: Sheikh Mohammed Bin Rashid [online], Dubai, look up www.uaeinteract.com/news.

[07] Govers, R., 2005. Virtual tourism destination image [online], Erasmus University Rotterdam, look up: http://hdl.handle.net/17651/1

[08] Dubai Municipality, Statistical centre, 2004. Statistical yearbook - Emirate of Dubai 2004, [online], Dubai, look-up: www.statisticsdubai.ae.

[09] Statistics Center of Dubai, 2006. Dubai in figures 2006, Dubai, look-up: http://vgn.dm.gov.aeIDMEGOV/OSI/webreports/Fig4.pdf.

[10] Kerkhof, J., 2006. "FEM Business" Hole in one in de Golf, page 20, August.

[11] Jones, R., 2006. "Tussle for the top between Gulf centres", Gulf News, [online], look-up: http://archive.gulfnews.com/artides/06/10/14/10074539.html[ consult 14th October 2006].

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