From its use in building luxury mountain hotels to developing huge new cities in remote deserts, modular construction could offer a sustainable solution to reduce waiting times for housing as the world's population grows.
Modular construction works by stacking up separate premade sections, called modules, to form a complete building.
Only connecting bolts for the buildings should be required on site.
By minimising the use of concrete, using steel, timber and organic waste materials compressed to form durable slabs, the emerging industry is having a moment as the construction world shifts towards a more sustainable future.
The introduction of this paradigm will translate to the more rapid and controlled production of high-quality buildings
Ahmed Al Salami,
Dubai Municipality
Housing is a pressing international concern, with the global population expected to reach almost 10 billion by 2050. The possibility of decreased waiting times for housing is another reason why modular construction is no longer slipping under the radar.
Dubai-based LINQ Modular has won the first regional licence to use the modular design to erect buildings up to six storeys high.
Dubai Municipality awarded the Alec-owned company a first G-6 modal licence this week. While a Burj Khalifa-sized building made from Lego-type modular bricks is some way off, innovation is accelerating at pace to provide a more sustainable alternative to modern buildings.
“Modular construction is moving the industry more towards an industrial scale of building homes and offices,” said Bashar Kayali, general manager at LINQ Modular.
“The production takes place within a controlled environment with less waste than traditional methods, and better quality.
“It is lean, efficient and the future of construction.
“We have an eye on sustainability in line with government ambitions, this is the only kind of facility here that acts from design, assembly, delivery and erection – all done in a modular way.
“The location of projects can make traditional construction a challenge, with logistical issues preventing a construction project moving quickly.”
Module blocks are factory built
The modules are produced in a giant factory at Dubai Industrial Park, with a controlled environment allowing for greater efficiency and better working conditions for builders.
The finished blocks are then taken directly to a building site where they are bolted together to create a modular home, hotel or office space.
LINQ has already completed modular components for a new luxury hotel on the peak of Jebel Jais, and is due to begin work on the huge 26,500-square-kilometre Neom smart city project in Tabuk province, north-west Saudi Arabia.
It has also built and packed several modular homes ready to be shipped to Cardiff in Wales.
Building in the factory can begin while the site is being prepared. It accelerates a project and allows for more efficiency.
“We do not use concrete, which is a big plus point, and use sustainable material in the production process, with 90 per cent less waste,” said Mr Kayali.
“In a similar process to vehicle manufacturing, components arrive pre-made and fit into a pre-designed template, so builders know items will fit together seamlessly.
“If you are on an island, up a mountain or in the middle of a crowded city like London, logistics can be difficult.
“This is where modular can offer a solution.
“It reduces the transport of loose materials to the site by 90 per cent – in one trip you can bring the unit, complete with walls and windows.”
Offering a global solution?
The industry could provide an affordable solution to rampant population growth, homelessness and emergency accommodation after a natural disaster, as seen in February following the devastating earthquakes in Turkey.
In Slovenia, the mode of build has been used to create 650 social apartments in the aptly named Tetris Apartments, while in Japan, the style has long been used to build homes efficiently in areas of limited space.
The most famous is the Nakagin Capsule Tower that resembles a series of stacked washing machines, while an extension of Charles de Gaulle International Airport in Paris also used a modular design with a combination of curved structures.
A more striking example is the Alibaba Offices in Shanghai, designed by British architects Foster+Partners, while it has also been used to temporarily house farmers in Delhi forced out of their homes by council eviction notices.
A McKinsey & Co report found modular production can speed up the construction process by as much as 50 per cent, while reducing costs by 20 per cent.
“The pace and scale of developments in Dubai is truly impressive and in line with the Dubai 2040 Urban Master Plan, we are keen to ensure this momentum is maintained in the most sustainable manner possible,” said Ahmed Al Salami, principal of research and building studies at Dubai Municipality.
“We are proud to support innovative organisations such as LINQ, that are pioneering advanced construction techniques such as modular construction.
“The introduction of this paradigm will translate to the more rapid and controlled production of high-quality buildings that can meet the needs of a wide range of stakeholders, from the hospitality sector to residential developments and even commercial developments like malls and offices.”
Who are the Soroptimists?
The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.
The organisation said its name is best interpreted as ‘the best for women’.
Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.
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BULKWHIZ PROFILE
Date started: February 2017
Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)
Based: Dubai, UAE
Sector: E-commerce
Size: 50 employees
Funding: approximately $6m
Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait
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Queens of the Stone Age
Matador
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
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