Insight #5

INDUSTRY FOCUS:Education and the increasing demand for schools

/ Global economy insight/ Middle East markets update/ Commodities price analysis

Welcome

Welcome to Insight #5. In our fifth edition of Insight we once again analyse the global economy and Middle East markets. Our focus this quarter is on how the demand for schools is shaping the education sector. We also include our commodities price analysis to keep you up to date with the latest prices.

Page one / Global

Page five / United Arab Emirates

Page six / Qatar

Page six / Kingdom of Saudi Arabia

Page six / Oman

Page seven / Commodities price analysis

Page nine / Focus: Education

Page fourteen / Currie & Brown offices

Currie & Brownwww.curriebrown.comenquiries@curriebrown.com

Insight #5

Insight / Page one

Global

The freefall of oil prices has eased this quarter with a recovery in prices being realised. Time will tell whether this is a temporary price recovery or the impact of the Organisation of Petroleum Exporting Countries (OPEC) strategy playing out. In 2015 we have seen Brent oil rates rise 25% from a low of US$46.98 (13 January) to US$57.85 (11 February), amounting to a 10% recovery on the 60% fall seen over the last two quarters. Forecasts for where oil prices will settle over the next two years vary greatly, with the secretary-general of OPEC (Abdallah Salem el-Badri) suggesting US$200/barrel 'if we don’t invest in oil and gas' (26 January) and Citibank at US$20/barrel of Brent crude oil, given the vast inventories held in North America (9 February). So what does the short to medium-term position look like - will the oil price move up or down? Let’s look at the drivers for each scenario...

UP...The profitability of many marginal North American oil suppliers is being tested – and they are reacting. Reduced rig count and substantial job and capital expenditure (capex) cuts in the US oil sector are placing inflationary pressure on the market. Improved economic growth forecasts (predominantly due to lower oil prices and increased quantitive easing (QE) stimulus) for the EU and Japan have helped demand-side growth, while temporary factors have contributed to some of the oil price recovery, such as production disruption due to unrest in Libya and sandstorms in Iraq. Brazil’s drought and the USA’s exceptionally cold winter have also boosted demand.

DOWN...Prince Alwaleed bin Talal al Saud, the wealthiest person in the Gulf, believes oil prices are 'going to go down more' and that he is 'sure we're never going to see USD100/barrel any more.' (USA Today, 11 January) - suggesting that OPEC has lost its price-setting power. North America’s shale oil stockpiles, which are expected to come on the market if or when prices rise, could prevent significant upturns in price, while China, the world’s biggest oil importer, has cut GDP growth targets to an 11-year low of 7% - lowering oil demand.

'The price crash has ceased but rates are likely to stay lower for longer due to vast

inventory stock in the USA.' Goldman Sachs, January 2015

The upside potential seems greater than the downside for 2015. The market has already mostly captured and anticipated the deflationary effect of the dollar appreciating and Chinese markets slowing. With rising sentiment that cheap oil is not sustainable, many are rushing to buy up the reserves at favourable market prices, and producers are storing supply to capitalise on higher future prices - encouraging oil price appreciation. Things to look out for in the coming quarter are the narrative developing from OPEC; diplomatic developments between Iran and the USA; and the ISIS conflict and bad weather in Iraq, OPEC’s second largest supplier.

Are geopolitical disputes escalating, creating uncertainty for 2015?

Greece vs the Troika

Greece’s new anti-austerity leader, Alexis Tsipras, who pledged to have 50% of their debt written off has created uncertainty in Europe and the rest of the world.

The Troika (Eurogroup-EU-IMF), Greece’s bailout creditors, extended their debt payment deadline from 28 February by four months based on their promise to commit to reforms to reduce tax evasion, corruption, bureaucracy and foreclosures of homes. However, tensions with their

Insight

Insight / Page two

OCTNOV

DECJA

NFEB

MAR

95

90

85

80

75

70

65

60

55

50

BRENT CRUDE OIL PRICE IN LAST SIX MONTHS

FUTURE OIL SUPPLY DECLINE?

US

$/B

AR

RE

L

CAPEX OF SIX LARGE OIL PRODUCERS

NUMBER OF US OIL RIGS

NUMBER OF US OIL EMPLOYEES

2013

2013

2013

2014

2014

2014

2015

2015

2015

≈480

≈135

0≈4

130

≈540

≈160

0≈4

145

≈520

≈120

0≈4

120

$bn

$bn

$bn

creditors could be said to be driving negotiations to breaking point. Tsipras’ far-left Syriza coalition and the Troika appear in deadlock with both unwilling to make concession on their demands. Tsipras recently demanded that Germany should offer additional reparation payments for World War II. This epitomises the growing animosity between the two camps.

The bottom line is that financial markets and confidence in Europe could be critically shaken should Greece default and exit the euro, endangering global credit markets and investment. However, much of this is speculation. While Greece has a gross public debt over 170% of their GDP, it is only 0.4% of world GDP and less than 2% of EU GDP, so the anticipated international effect of the worst-case scenario may not be as bad or long lasting as many believe.

Russia vs Ukraine

While a ceasefire accord was agreed on 11 February in Minsk, there were few signs of it having any meaningful influence on the conflict. The USA and EU have threatened to introduce new sanctions on Russia. The Americans are keeping to their word with new economic sanctions targeting a Russian bank and separatist officials.

The EU-Russian sanction battle has played a major part in the sharp slowdowns in both regions in the final half of 2014 (see figures below). Many EU states like the Czech Republic and Latvia are eager to rebuild business relationships with Russia, their closest trade partner. Jose Manuel Garcia-Margallo, Spain’s foreign minister, reported that 'The EU so far lost €21

billion'. Without any clear end in sight for this conflict, the casualties are mounting up, both physically and economically. With mass capital flight in Russia, even following sharp interest rate hikes, it is no surprise that the rouble devalued 30% against the US dollar last quarter and growth forecast for 2015 slid more than 3%, indicating increased fears of a serious recession. The spill-over effects of such a slowdown could be felt particularly with important trade partners in Europe, China and the Middle East. Quantitative easing and interest rates – the most significant economic debate of our times? The European Central Bank’s (ECB) decision to expand its QE policy with a further €1.1 trillion injection into Europe’s financial system has been generally well received by the markets as investment confidence in the EU was shaken in the latter part of 2014.

There is growing optimism that the threats of low economic growth and deflation will be reduced by this move. Is this a big deal? 'The macroeconomic threat of our time' is how Larry Summers (ex-Secretary of the US Treasury) described them.

Why are the risks so great? Deflation can cause a vicious cycle of spending reduction

Insight

Insight / Page three

EU

US

A

CH

INA

JAPA

N

RU

SS

IA

% of world GDP 19 17 10 5 3.4

2014 GDP growth 0.8 2.6 7.3 -1.6 0.6

2015 GDP growth forecast* 1.1 3.1 7.1 0.8 -2.9

Inflation -0.2 0.8 0.8 2.4 15

Base interest rate 0.05 0.25 5.6 0.1 15

QE (% GDP) 10 25 N/A 36 N/A

*OECD and World Bank forecast November 2014Figures in grey represent last change as a decrease

KEY MACROECONOMIC MOVEMENTS

which exacerbates economic contractions. QE gives banks more money to lend, which is crucial in generating the wealth and liquidity needed to get households and firms spending again. Early forecasts appear positive from Bloomberg, IMF and the European Commission.

Will QE solve all of Europe’s economic problems? While it is important, it 'only makes it cheaper to invest, but people have to want to invest' said Benoît Coeuré, executive board member at the ECB. He added: 'Nothing we can do at ECB can lift growth long term in a lasting way'' Looking longer term, it is becoming apparent to many economists that 'we are entering a new era where central banks have lost their power to ease' (Ray Dalio, founder of the world’s largest hedge fund, speaking at Davos World Economic Forum, January 2015), given that QE and zero-to-negative interest rates have exhausted options for expansionary monetary policy. Nevertheless, early signs are positive: economic indicators from Germany look better. The euro is now almost at parity with the US dollar, which is at a 14-year low. This should provide important impetus for export and price growth in the EU. With Basel III and other spending and liquidity regulations coming in, policy makers will have to pay close attention to striking a balance

between encouraging lending and restricting excessive risk-taking.

An important development to keep an eye on in 2015 is whether the US Federal Reserve will raise their rate of interest. With key leading macro indicators continuing to look optimistic (eg almost 300,000 jobs added in January), this may well happen. However, doing so may dampen GDP growth figures and rate of inflation (already below its 2% target) in the USA. Given that many see the USA as the current 'engine' (Christine Lagarde, managing director of the IMF) of global economic growth, the impact of a US slowdown could pull the whole world down with it.

That said, not doing so may adversely affect investors’ willingness to spend and lend in the long run as low interest rates have caused return-on-investment yields on bonds and equities to slide.

A rate hike would cause the dollar to appreciate further and prices for most construction-related commodities (eg steel, copper and oil) to diminish. This could give an important export and business boost to those abroad, especially for public and private sector property developers and manufacturers. However, one has to ask the question – how sustainable is this currency position for US exporters?

Insight

Insight / Page four

1.0 0.02.0

EU

UK

EUROZONE

SPAIN

ITALY

FRANCE

GERMANY

EUROPEAN COMMISSION

2015 GROWTH FORECAST CHANGES

AN

NU

AL

% C

HA

NG

E I

N R

EA

L G

DP

W

INT

ER

201

5

AU

TU

MN

201

4

With currencies in the GCC region pegged to an appreciating dollar, the last two quarters have seen them strengthening against the euro, yen, rouble and yuan, boosting their international purchasing power which can greatly support their economic diversification efforts. This, combined with lower oil prices, could give a hefty cost-saving stimulus to the construction industry, given the large share of material, labour and plant that are imported.

However, these currency shifts are deterring important Russian and Chinese customers, posing an imminent threat to states reliant on retail, tourism and leisure like the UAE and Bahrain.

With substantial shrinkages in government revenue, predominantly due to the slide in oil prices, expenditure plans remain largely unperturbed as cuts in utility subsidies seem to be the first port of call to meet the GCC’s widening fiscal gap.

'Public spending on infrastructure and private sector credit expansion will keep most of the GCC economies on steady growth in 2015' says Dr. Sfakianakis (group general manager and chief economist of Banque Saudi Fransi and Credit Agricole CIB).

Approximately US$2.87 trillion worth of projects are estimated at

the design, tender or construction stages in the GCC up to 2025 (Zawya Projects). Recent research by Standard Chartered Bank found that cash reserves held by UAE, Saudi Arabia, Qatar and Kuwait 'can cover multiple years’ worth of government expenditures'. However, Bahrain and Oman 'do not provide that level of cover'.

Islamic finance is looking to continue its double digit rate of growth with sukuk issuances expected to reach US$145 billion in 2015 (Reuters, 11 February). GCC economies are expected to grow at 3.6%, with non-oil growth at 5.5%, which is 'faster than most of the Western world in 2015' (Construction Week, January). US$118 billion is suspected to be in the private sector construction pipeline for the hotel and leisure sector up to 2018.

There are signs that the region is looking to expand its government revenue pool away from hydrocarbons. For example, the GCC members are expected to meet in February to consider the introduction of a VAT between 3% and 5%. While such talks have been considered since 2007, there is now more pressure for this to be implemented with budget deficits on the rise.

Stock markets have seen some extreme volatility, predominantly due to oil price and emerging

market exchange rate fluctuations. This may deter important foreign private sector investment. Several international public offerings (IPOs) have been delayed due to these stormy conditions.

UAE

Abu Dhabi hiked the tax on water by more than 100% for expatriates while locals are being charged for the first time from 1 January 2015. Electricity tariffs were also raised.

CBRE’s latest market reports for Dubai stated that 'business and consumer confidence indexes remain in positive territory, a healthy indicator of the overall state of the economy' and 'Dubai remains the principal regional draw as an established retail tourism market’ (CBRE 2014 Annual Market Update).

Dubai’s municipality is forecast to raise its spending by 9% in 2015. This is expected to be the first deficit-free budget for the emirate since the 2009 financial crisis. With only 4% of revenue coming from hydrocarbons and an 11% increase in revenue expected from government services, the sustainability of the UAE’s most populated emirate is looking very sound in the lead up to Expo 2020.

Insight

Insight / Page five

>>

Insight

Insight / Page six

Kingdom of Saudi Arabia

The Kingdom’s new ruler, King Salman al Saud, is the only substantial political change in the region.

The consensus seems to be that he will continue pushing forward the same modest reforms pursued by his predecessor. Large infrastructure projects in rail, education and industrial space are likely to be delayed by the change in power. He has gained the respect of many as a sound decision-maker given his 50-year tenure as governor of Riyadh.

A major cabinet and judiciary reshuffle, as well as the issuance of cash bonuses to all state employees, pensioners, students and military personnel, suggests that the new king has a shrewd political mind seeking to consolidate power.

Qatar

Qatar is expected to remain the fastest growing GCC state, accelerating from 5.9% to 6.7% for 2015 according to the credit insurance company Coface Group, representing close to Indo-Chinese levels of growth. Mitsubishi Heavy Industries has struck a US$3.36 billion deal to build Qatar’s first subway system, Doha Metro. It is scheduled to be completed by 2019.

Cuts to energy subsidies have resulted in a 50% hike in diesel prices in 2014.

FIFA is one step closer to approving a Winter 2022 World Cup following a special FIFA taskforce recommending it be staged in November and December.

Oman

Gas prices were doubled for industries in January due to cuts in energy subsidies.

The 2015 budget includes no spending cuts or additions.Oman has the highest unemployment rate in the GCC with 8.1% for the last quarter.

Kuwait

The Ministry of Social Affairs is considering increasing the cost of work visas for expats and registration fees for companies.

There are few signs of any deceleration in construction sector here. The value of awarded contracts increased by 270% to US$25.5 billion in 2014. The Kuwaiti parliament recently stated that they envisage US$116 billion to be spent on public-backed construction projects over the next five years.

Kuwait’s fiscal budget surplus has shrunk 26% since June 2014,

while government spending rose 10% and public capital spending rose 31%. According to the latest IMF forecasts, Kuwait will be the only Gulf country in fiscal surplus this year.

Kuwaiti authorities are considering the introduction of a new corporation tax. While this will help to diversify their tax pool, it could harm Kuwait's competitiveness in attracting foreign direct investment and private sector activity.

Bahrain

The World Bank reported that Bahrain was “the most severely affected” by plunging oil prices”. Bahrain’s sovereign debt rating was lowered by the S&P agency, given that 87% of government revenue is reliant on petroleum output.

The Global Heritage Foundation recently reported that Bahrain remains the highest-ranking GCC state in terms of economic freedom, which is an indicator of higher 'per capita income levels' in the long-run.

Commodities price analysis

■ Non-ferrous metal prices derived from London Metal Exhange, whereas steel prices derived from Middle East steel price indications; all based on average prices for the month.

■ The price of rubber derived from International Rubber Board, based on average prices for the month.■ All prices for commodities are based on bulk quantities, cash trade and US dollar. An average price has been assumed.■ The rate for beams - channels has been derived from Far East/Europe/India market.■ Cement prices derived from UAE local supplier.■ Crude oil derived from light crude Brent, US market.■ Diesel rates are from EPPCO.■ Concrete rates AED/m3 based on the average price of concrete 45/27 from four UAE suppliers.■ Reinforcement bars are taken from four UAE suppliers.

Insight

Insight / Page seven

2014 2015Commodities Unit Q2 Q3 Q4 Q1Non-ferrous metals Aluminium alloy US$/tonne 1,936.73 2,051.67 2,036.67 1,876.67 Aluminium US$/tonne 1,810.67 1,967.33 2,043.67 1,890.08 Copper US$/tonne 6,929.33 6,854.17 6,662.33 6,006.17 Lead US$/tonne 2,103.83 2,103.00 2,021.33 1,869.17 Nickel US$/tonne 18,863.33 17,375.00 16,095.00 15,088.33 Tin US$/tonne 23,035.00 20,986.67 20,193.33 19,017.50 Zinc US$/tonne 2,110.83 2,281.17 2,278.17 2,125.00 Steel Reinforcing bars US$/tonne 578.33 578.33 578.75 511.17 Steel beams - channel US$/tonne 633.33 678.33 654.23 633.38 Hot rolled plates US$/tonne 575.00 561.67 522.50 478.50 Cold rolled coils US$/tonne 650.00 650.00 611.00 572.33 Prepainted galvanised steel, 0.35 US$/tonne 880.00 825.00 800.00 773.33 Stainless steel HR coils 304 base US$/tonne 2,825.00 2,775.00 2,791.18 2,612.55 Energy Crude oil US$/barrel 105.52 97.45 74.17 58.01 Diesel (Dubai only) AED/gallon 14.01 14.01 13.25 11.99 Cement Cement US$/bag 3.44 3.50 3.59 3.41 Concrete (Dubai suppliers) AED/bag 254.67 258.00 257.67 255.33Rubber Rubber US$/100kg 251.19 220.50 196.45 203.37AggregateAggregate (Dubai suppliers) AED/tonne - - - 35.00Gabro aggregate (Dubai suppliers) AED/tonne - - - 275.00Bitumen 60/70Bitumen US$/tonne - - - 531.69

Commodities price analysis

Insight

Insight / Page eight

-

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

45,000.00

50,000.00

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Copper

Nickel

Tin

Non-ferrous metals(2006 - 2015)

US

$/to

nne

-

15.00

30.00

45.00

60.00

75.00

90.00

105.00

120.00

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Crude oil (2006 - 2015)

US

$/ba

rrel

-

5.00

10.00

15.00

20.00

25.00

30.00

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Cement (2006 - 2015)

AE

D/b

ag

-

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Steel beams - channel

Hot Rolled Plates

Cold Rolled Coils

Reinforcing bars

Prepainted Galvanised Steel, 0.35

Stainless Steel HR Coils 304 Base

Steel (2006 - 2015)

US

$/to

nne

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

4,500.00

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Lead

Aluminium Alloy

Aluminium

Zinc

Low non-ferrous metals(2006 - 2015)

US

$/to

nne

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2009 2010 2011 2012 2013 2014 2015

AE

D/g

allo

n

Diesel (Dubai only)(2009 - 2015)

FOCUS: Education

Introduction

With demand for primary and secondary school education continuing to outpace supply, pressure is being felt across the Middle East region to make appropriate provisions in line with population growth. Capital funding for schools presents its own challenges and opportunities with a number of 'branded' education establishments seeking to access the market and supplement their own domestic income streams.

So, with population growth demanding increased school place provision and robust income flows that provide for strong investment opportunities, what are the fundamentals for school design, construction and management? For local and expatriate families who are funding the education of their children, are the expectations of a multi-cultural population being met through both the teaching curriculum and the built environment?

Standards

The Abu Dhabi Education Council’s (ADEC) Design Guide for Private Schools sets out five general requirements for design:

■ Educationally suitable: provide multiple teaching and learning environments that respond to current and future needs.

■ Stimulating and vibrant: create spaces that stimulate creativity and provide eagerness for learning and discovery.

■ Healthy and productive: enable students and teachers to achieve their maximum potential through the provision of healthy, safe and comfortable environments.

■ Cost effective: design facilities that are easy to build, maintain and operate.

■ Sustainable: minimise negative environmental impacts and maximise the use of non-polluting renewable resources.

Models

Significant investment has been seen in the last eight to ten years in social infrastructure in both developed and emerging economies. Education is at the core of any country’s strategic objective of enhancing opportunities to service its domestic labour market, while supporting the growth of enterprise, GDP and employment. The initial stages of this programme involve the provision of primary and secondary schools.

With such significant investment, education authorities have sought to provide guidance and implement minimum standards to inform the development of these assets.

The climate of the Middle East presents both opportunity and challenge in school design, construction and operation. However, common themes prevail throughout. These include:

■ Environmental control■ Acoustics■ Flexibility of space(s)■ Integrating and embedding

technology■ Extra-curricular activity/usage■ Specific curriculum/teaching

model demands■ Identity/branding■ External spaces/sports and

recreational facilities

Insight

Insight / Page nine

Insight

Insight / Page ten

Within the jurisdiction of any licensing department, authority, emirate or state, specific requirements will need to be met at both the outline feasibility and concept stage, in addition to the final design, construction and operational stages. ADEC provides the following flowchart to summarise the stages:

The basic parameters for a private school can be summarised as:

Grades 1 to 12 kindergarten (gross site area)

Functional spaces

School Capacity500+100 1000+200 1500+250 2000+300 3000+450

One level

9,600m2

Two levels

13,200m2 17,500m2 21,700m2 31,600m2

Min

siz

e (m

2 )

Min

m2 pe

r stu

dent

NotesBuildingKindergarten classroom(25 students)

54 2.16

Year 1-12classroom(30 students)

50 1.67

Science 69 2.30Storage room 20 One for every two science roomsMusic/art 69 2.30ICT 69 2.30Special Ed 40 At least one per schoolLibrary 30 0.20Administration 0.20Medical Per Health DepartmentPrayer room 30 Two required in mixed gender schoolsMultipurpose 180Gymnasium 726 Additional space for showers, etcSitePlay areas 0.50 50% shadedParking Per Department of TransportPick-up/drop-off 500 Within school limits

Playing fields According to programme and avail-ablility of other spaces

1. DEFINITION+ Types and size of spaces

required+ Minimum and maximum

number of students+ Create business plan

2. APPROVAL OF PROGRAMME+ Procure site+ Appropriate provision for

building(s), parking, sports and recreational facilities

3. CONCEPT DESIGN APPROVAL+ Compliance with design guide+ Site plan (1:500)+ General arrangements (1:250)+ Concept narrative/specification

structure, MEP, envelope and building code (H&S) analysis

4. FINAL DESIGN APPROVAL+ Compliance with design guide+ Site plan (1:250)+ General arrangements (1:100)+ Construction details+ Schedule of finishes, doors,

windows and specialist areas+ ICT, MEP, structure, H&S

syestem design, specifications and calculations, TIA, etc

Insight

Insight / Page eleven

Opportunities

Both the government and private sector have established design models which provide appropriate levels of quality, provision and future flexibility. However, educational models change, and the ability for built assets to adapt and change in line with this progression and dynamic environment needs to be considered when developing school building design and operational models. Factors that should be considered include:

Configuration

Balancing funding, cashflow and demand while delivering capacity to coincide with the academic year presents a formidable challenge. This usually results in new educational facilities being developed on a phased basis from Grades 1-7 (Kindergarten/Junior) followed by Grades 8-10 (Senior)/Grades 11-12 (Sixth Form). Consequently, the development of an overall masterplan from the outset, taking into consideration location, demographic, ethnicity, curriculum etc. should be a clear focus, with any ambition for continued development and flexibility built in to the masterplan. Introducing elements of flexibility into classroom design could, for example, facilitate reconfiguration of space or combine two adjacent spaces. Appropriate generosity of space

allocation and allowing for multi-functional use or configuration will provide an element of affordable future-proofing of the asset while creating a more conducive learning and collaborative environment.

Environment

We all learn in different ways and at a different pace. Whether you are a visual, aural, emotional or kinaesthetic learner, the environment and sensory perception will either assist or detract from your learning experience. For both teachers and students, the design of the teaching environment – whether internal or external – can play a significant subliminal part in the learning experience and outcome.

In addition to the configuration of individual spaces, the temperature, ventilation and acoustic properties of a space play a significant part in determining comfort, alertness and ability to interact, listen and talk. Due consideration and planning around colours, textures, environmental control, lighting and acoustics should be embedded within the outline business case and concept design stages.

There has been significant research undertaken that explores field-based analysis and assessment of personalised learning including factors such

as technology integration, school organisation, space configuration and design and pedagogy. This is freely available and should be accessed and referenced when developing the outline business case and concept designs for a school project. Parental concern over the quality and effectiveness of their child’s education here in the Middle East should be eased, and confidence assured, when the school environment is clearly evidenced to be a leading example while also providing the quality of teaching resource that would be the envy of any educational establishment in a mature economy.

Sustainability

Living, working and learning anywhere in the Middle East exposes all to the harsh reality of a dry, high-temperature desert climate. With demand for cooling a pre-requisite and fresh water supply at a premium, ensuring sustainable design, operation and maintenance of a school is both a financial and social imperative.

Taking note of the areas highlighted above, there are a number of passive and active measures that can be introduced into the design, configuration, specification and construction of school buildings and facilities.

Passive measures include the proportion of solid to glass

Insight

Insight / Page twelve

elements in the elevation, combined with the orientation of the buildings themselves. Building envelopes can be passively shaded by other structures (built or organic), thus reducing the radiant and ambient heat gain experienced. Material specification and construction methodologies can enhance the thermal performance of the internal spaces while massing and proportion can assist with natural ventilation and fresh air circulation.

More active measures can include the introduction of solar thermal panels for hot water, and heat pumps in lieu of power-consuming hot water points. Photovoltaic panels contribute to the ability to generate power while vertical planting on façades provide both shading, an organic aesthetic, acoustic benefits and the potential for water filtration. Grey water recycling systems will assist in both WC flushing and irrigation.

Building information modelling

If a school board, authority, parent/teacher board or funding agency were provided with an approach to save time and money, improve quality and operational effectiveness while also delivering the capability to ensure efficient operation and maintenance of their school built assets, then it would win the vote every time.

building information modelling (BIM) provides such an approach - but what are the requirements within an educational environment?

BIM is an evolutionary approach to the whole-life design, construct and operational stages of a built asset, using digital technology tools within a collaborative working environment, where the culture and processes are at one and focused entirely on the outcomes required from the project brief. Enabling and requiring this approach from the outset will deliver:

■ Appropriate staged translation of client brief into design, construction and operation of the school building and facilities

■ Acceleration of a fully co-ordinated design

■ Efficient and effective procurement

■ Programme delivery confidence■ Standardised approach to

design in collaboration with the constructor and supply chain

■ End-user visualisation and familiarisation

■ Space usage/configuration awareness

■ Integrated asset management/facility management

Insight

Insight / Page thirteen

Costs

Below is a cost model for a typical 'community school campus', from pre-school kindergarten, through to sixth form school, for a student population of approximately 2,000.

Notes:■ Typical classrooms for technology, art, language, IT, etc.■ Cafeteria including a 'finishing' kitchen only.■ General exclusions: loose furniture, OS&E, educational content or

consumables, ICT equipment, professional fees, local authority fees, permits, etc.

Building element Cost (AED) AED/m2 %

Auditorium 4,800,000 5,650 4.1

Classrooms/laboratories 26,900,000 4,410 23.0

Indoor sports facilities 15,230,000 5,230 13.0

Administration buildings 4,810,000 4,600 4.1

Kindergarten 5,930,000 4,470 5.1

Primary school block 18,600,000 4,440 15.9

Sixth form block 9,770,000 4,460 8.4

Cafeteria 4,930,000 6,170 4.2

External works

Hard/soft landscaping 5,250,000 270 4.5

Outdoor swimming pool 2,500,000 129 2.1

Sports pitches 4,000,000 206 3.4

Multi-use games area 150,000 8 0.1

Services and utilities 1,500,000 77 1.3

Preliminaries 12,524,400 645 10.7

Total 116,894,400 6,017 100.0%

www.curriebrown.com | Page fourteen

AMERICAS

Arizona 60 E. Rio Salado ParkwaySuite 900TempeAZ 85281Tel: +1 602 748 1470

California16A Funston Avenue The Presidio of San Francisco San FranciscoCA 94129Tel: +1 415 518 7511

MexicoAristoteles 776th floorMexico City 11560MexicoTel: +52 55 52 81 11 74

New Jersey821 Alexander RoadSuite 206 Princeton NJ 08540 Tel: +1 609 759 7000

New Mexico4801 Lang Avenue, NESuite 110AlbuquerqueNM 87109Tel: +1 505 798 7161

Oregon 1500 NW Bethany BlvdSuite 200BeavertonOR 97006Tel: +1 503 547 0316

CHANNEL ISLANDS

Jersey12 Dumaresq StreetSt HelierJerseyJE2 3RLTel: +44 (0)1534 720 326

EUROPE

France13 rue Paul Valéry75116 ParisTel: +33 (1)55 04 74 10

FAR EAST

Japan7F TM Hiroo Bldg 1-9-20 Hiroo Shibuya-kuTokyo Tel: +81 3 3442 6642

Taiwan7F 290Min Sheng West RoadTaipei10345Tel: +886 (0)2 2555 5886

INDIA

Bangalore#73, SREE Complex Unit No. 215, 2nd FloorSt John's Road Bangalore 560 042Tel: +91 80 4116 2435

ChennaiNo 11, First FloorNo 153/11 Lotus Colony N Block 2nd MainAnna Nagar EastChennai 600 102India Tel: +91 44 4353 1614

MumbaiUnit No. 6416th Floor 'Laxmi Plaza'Laxmi Industrial EstateOff New Link RoadAndheri (West)Mumbai 400 053Tel: +91 22 6574 9550

New DelhiC-31A/1, Kh.no. 394/341/82, Ch Nathu Singh MktMasoodpurVasant KunjNew Delhi 110 070Tel +91 11 26124372

MIDDLE EAST

Abu Dhabi, UAEOffice 031, Alia TowerKhalifa StreetPO Box 46418Abu DhabiTel: +971 2 671 6265

Dubai, UAESuite 902, NGI HousePO Box 183782DeiraDubaiTel: +971 4 295 5198

QatarBuilding 346, Office 3, C-ring RoadPO Box 47626DohaTel: +974 4434 0048

Sultanate of OmanPO Box 3267Ruwi 112Suite 23/24, 2nd FloorBldg # 3321, Al KhuwairMuscatTel: +968 244 83417

UNITED KINGDOM

AberdeenBishops Court29 Albyn PlaceAberdeen, AB10 1YLTel: +44 (0)845 287 8500

CumbriaTG13, Gosforth SuiteInnovation CentreWestlakes Science and Technology ParkMoor RowCumbria, CA24 3TPTel: +44 (0)845 287 8620

Haywards HeathOakfield House35 Perrymount RoadHaywards HeathWest Sussex, RH16 3BWTel: +44 (0)845 287 8764

LondonDashwood House69 Old Broad StreetLondon, EC2M 1QSTel: +44 (0)845 287 8800

ManchesterCharter HouseWoodlands RoadAltrincham, WA14 1HFTel: +44 (0)845 287 8626

Milton KeynesFortuna HouseSouth Fifth StreetCentral Milton KeynesBucks, MK9 2PQTel: +44 (0)845 287 8700

PlymouthPoseidon HouseNeptune ParkMaxwell RoadPlymouthDevon, PL4 0SNTel: +44 (0)845 287 8475

PortsmouthFirst Floor, Link House44a High StreetFarehamHampshire, PO16 7BNTel: +44 (0)845 287 8400

Scotland HubBuilding 3, 2 Parklands AvenueMaxim Office ParkLanarkshire, ML1 4WQ Tel: +44 (0)845 287 8500

www.curriebrown.comenquiries@curriebrown.com

Currie & Brown offices