Assessments of towers are being carried out across the country by engineers approved by Civil Defence to check for the panelling.
Assessments of towers are being carried out across the country by engineers approved by Civil Defence to check for the panelling.
Assessments of towers are being carried out across the country by engineers approved by Civil Defence to check for the panelling.
Assessments of towers are being carried out across the country by engineers approved by Civil Defence to check for the panelling.

Up to 70 per cent of UAE high-rises may have flammable panelling


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DUBAI // Almost three quarters of high-rise buildings have facades made of dangerous materials, an international fire-safety consultant warns.

The facades have a combustible thermo-plastic core between two sheets of aluminium, said Thomas Bell-Wright, chief technical officer for an international consultancy.

“This is on 70 per cent of high-rise buildings in the UAE,” Mr Bell-Wright said. “I wouldn’t say it’s a ticking time bomb but it needs to be addressed.”

Assessments of towers are being carried out across the country by engineers approved by Civil Defence to check for the panelling.

The inspections could lead to recommendations on which buildings need refitting or renovation to make them compliant with fire-safety regulations.

The cladding was first discovered to be flammable in the 1980s in the UK, where it is no longer used. The safer alternative uses a mineral core and is classed as having “limited combustibility”.

“What annoys me is that the companies that manufacture this cladding know that a version of it is combustible and yet they still sell it in the UAE,” said Mr Bell-Wright.

He said inspections needed to be carried out to make sure the material did not pose a risk.

“It’s not easy to set fire to these panels but once it starts it is difficult to stop,” Mr Bell-Wright said.

“We’ve done tests and it’s very difficult to start a fire from something like a barbecue.

“However, a more common way would be if someone discarded a cigarette into a rubbish dumpster that was next to this cladding.

“The cladding could catch fire in that manner and spread up the building very quickly.”

The 40-storey Al Tayer Tower in Sharjah, which was fitted with the cladding, was destroyed by fire in April, with hundreds of families left homeless.

Investigations found it was started by a discarded cigarette. Once the cladding was ignited the fire spread quickly up the building.

Mr Bell-Wright said the more combustible cladding was cheaper and could be more easily cut into different shapes and positions.

Ziad Kassis, a project manager with Arabian Industrial in Abu Dhabi, said the company used both versions of the cladding.

“We work to the specifications of the client in terms of what they want,” Mr Kassis said. “We offer both the fire-resistant and non-fire-resistant panels and although there is isn’t much difference in the price most people tend to go with the non-resistant version.”

Although guidelines regulating the use of facades have always been part of the UAE’s Fire and Life Safety Code, a recently added clause more clearly defines what is permitted.

“It will be much more transparent and clear to the market what … will be allowed and what will not be allowed,” said Barry Bell, the managing director of Wagner Fire Safety Management Consultants in Dubai.

“Everyone involved in facades will get on the same page and there will be no excuses in the future. We are getting rid of any ambiguity.”

Mr Bell said the added clause was based on international standards.

Only systems and materials approved by Civil Defence will be allowed in any new projects. A ban on importing materials is under the municipality’s jurisdiction, Mr Bell said.

Mr Kassis said an import ban would not affect his company’s business as they already fabricate and fit the safer cladding.

“I am not aware of any new rules related to this material so if they can clarify that issue it would be good,” he said.

Brig Ahmed Al Sayegh, assistant director general of Civil Defence, said action would be taken against developers and builders not following the rules.

“Buildings must be constructed to the rules that are written down in terms of safety,” Brig Al Sayegh said.

nhanif@thenational.ae

jthomas@thenational.ae

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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