Tamweel Tower's cladding burned downwards in the early hours of Sunday morning, making hundreds of residents homeless.
Tamweel Tower's cladding burned downwards in the early hours of Sunday morning, making hundreds of residents homeless.
Tamweel Tower's cladding burned downwards in the early hours of Sunday morning, making hundreds of residents homeless.
Tamweel Tower's cladding burned downwards in the early hours of Sunday morning, making hundreds of residents homeless.

Cladding core holds the key to Dubai tower inferno


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DUBAI// Changes to building regulations over the years have led to potentially flammable aluminium panels being used in the UAE, although these are always subject to rigorous checks, experts say.

"The extent of a fire nowadays might be less because the rules are much more stringent than before. It does not prevent the fire from spreading out from the facade," said Barry Bell, the managing director of Wagner Fire Safety Management Consultants.

Tamweel Tower's cladding burned downwards in the early hours of Sunday morning, making hundreds of residents homeless.

Rules have been tightened and safety certifications are required for all materials, including aluminium cladding, before they can be used on any building, irrespective of it being located in a free zone.

This year, Dubai Civil Defence introduced the Fire and Life Safety code, which was rolled out nationwide in the summer.

Civil Defence officials in each emirate now carry out checks on residential buildings for fire hazards such as inadequate alarms systems or potentially flammable construction material that does not meet strict standards.

"It's not to say we are perfect. There are recent changes in codes and standards. There is an immediate response to every event that happens with immediate improvement," Mr Bell said.

It is believed 70 per cent of the buildings in the UAE have some form of facade cladding that has a combustible thermo-plastic core between two sheets of aluminium.

"If a fire spreads into the cavity of a facade, there's potential for materials, for moisture or thermal insulation [to catch fire], it does have a tendency to become molten and drops downwards. If it starts at the top it's very easy to spread down the cavity," Mr Bell said.

"In the past there was a lack of knowledge in the market that the product could burn like this. It burns extremely aggressively. The market didn't realise it was an issue," said Thomas Bell-Wright, chief technical officer for Thomas Bell-Wright international consultants.

All building materials in and outside of free zones in Dubai must be approved by the municipality.

S Prakash, procurement manager at Sunrays Metal Fabrication Company in Abu Dhabi, said there was a long list of approvals to go through before the company installs any cladding on buildings.

The material has to be pre-approved by the municipality, then the paperwork goes to the main contractor who hands it to the consultant. All papers approved by subcontractors are then resubmitted to the municipality on behalf of the consultant to get the all-clear to start building.

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.”

COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)

Date started: August 2021

Founder: Nour Sabri

Based: Dubai, UAE

Sector: E-commerce / Marketplace

Size: Two employees

Funding stage: Seed investment

Initial investment: $200,000

Investors: Amr Manaa (director, PwC Middle East)