Eindhoven University of Technology

MASTER

Urban development in Dubai

an international study to improve the Dutch urban development process

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

Award date:
2007

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ARR
2008
BWK

4045
 "We have to

make history and

approach the future

with steady steps, not

wait till the future comes to us"

His Highness Sheikh Mohammed Bin Rashid AI Maktoum,

Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Colophon

Title: Urban development in Dubai

Subtitle: An international study to improve the Dutch urban development process

Oate: April 2007

Author: Ing. Tim van Helmond

10 number: 0559470

Author: Ing. C.S. (Bas) van Montfort

10 number: 0552323

Tim&Bas

Website: http://www.TimenBasinDubai.com

Research location: United Arab Emirates, Dubai

Supervisors: 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: University of Technology Eindhoven, the Netherlands

Den Dolech 2, Eindhoven

Oepartment: Architecture, Building and Planning

Master track: 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 th is report.

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Flnal report· Urban developmenl In Dubal

Tim & Bas

Preface
The clear vision and entrepreneurial approach for the long-term of Sheikh Rashid Bin Saeed AI Maktoum,
who was ruler of Dubai from 1958 till 1990, changed everything in Dubai. His son and present ruler of
Dubai, His Highness Sheikh Mohammed Bin Rashid AI Maktoum explored the vision of his father further
on. Oil revenues we re used to invest in major heavy industries and infrastructure. The success in
diversifying sourees of income has compensated for low oil reserves. Dubai's economie development is
now supported by an infrastructure that is not directly affected by oil. The construction and real estate
market, representing each mare than 10 per cent of Dubai's GDP, are booming right now. Urban
development projects are developed right now on a large scale and there are a lot of new projects in the
pipeline representing billions of dollars.

In the Netherlands we see different issues that are causing a stagnating process in the (re)development
of industrial areas. There is a need tp improve the stagnating market, and the government in the
Netherlands is aware of that fact. Stagnation causes a disturbance of the economie growth in our country.
The time it takes in the Netherlands to develop an urban development project is eight years and by that
time the market demand can be changed already.
To learn more about the urban development approach in th is attractive market we decided to do our
graduation project in Dubai. By using Dubai as an international 'best practice' case we might be able to
deliver a contribution to accelerate the urban development process in the Netherlands and with that,
economie growth.
In our study about Dubai's approach" we are focusing on the business organisations that are managing
these urban development projects. What are the most important organisational and process
characteristics for urban development projects in Dubai? And how should we set up a business
organisation for an urban development project with this knowledge from an international study?

Research information is an underdeveloped item in Dubai. First hand information is difficult to obtain. As a
result, we have checked local resources in practice on readiness and availability. Dubai is growing so fast
that companies have to do their own research to set up their database. Statistical databases from the
municipality are available until 2005, but when it comes to data on the subject of urban development and
the organisations behind these projects, it's confidential within most companies.
Dubai is the most liberal Emirate out of seven Emirates th at farm the United Arab Emirates (UAE). This
doesn't mean that the Emirate of Dubai and its state-structure is comparable to the state-structure in the
Netherlands. Sometimes people are not allowed to share information they have, or the information is
simply not written down in a report.
This report will not give an opinion about the political, social and economical environment of Dubai.
Furthermore, it is not our aim to conipare the Netherlands with Dubai or the other way around. The
development of Dubai is unique in the world. With this background information we have written this report.

We know each other from the College of Professional Education Hogeschool Brabant Tilburg and
together we participated in the board of study association of CoUrsE! at the University of Technology
Eindhoven in the year 2004 - 2005. It was on a day in March 2006 when we decided during a coffee
break to finalise our graduation study in Dubai. That particular moment was the start of our journey to and
through Dubai. With an entrepreneurial view we always developed our international adventure, step by
step .

With regards,

Ing. Tim van Helmond & Ing. Bas van Montfort

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Final report: Urban development In Dubal

----------------------------------------------------------------------- Tjm&B~

Acknowledgments
We have written this report with the use of different sources and activities. Different expert interviews,
case studies and our symposium in January 2007 were most important for our research in Dubai.
Therefore we want to thank:

The professionals we interviewed*:

• Sanjive Khosla, Director of Strategy and Business Development of TECOM Investments;
• Mohamed EI-Hage, Director of Strategy from The Executive Office;
• Richard Wynne-Jones, Project Consultant and Client Representative from Dubai Chamber of
Commerce and Industry;
• Ray Karbor, Technical Director from Deerns Consuiting Engineers;
• Ralf Laurijsen, Development Manager of Dubai Festival City and,
• Fouad Bokhash, Director of Building Designing of the Ministry of Public Works.

* Other interviewed professionals requested us not to publish their names in our report.

The attending guests at our symposium:

• Nicholas Maclean, Managing Director of CB Richard Ellis Middle East;
• Iris Dinu, Associate Director and Head of Middle East Research
• Or. Mohammed Arif, British University in Dubai;
• Richard Wynne-Jones, Project Consultant and Client Representative from Dubai Chamber of
Commerce and Industry;
• Andy McTiernan, Editor in Chief of Property World Middle East;
• Maarten Reenalda, Arup Major Projects;
• Ray Karbor, Technical Director from Deerns Consuiting Engineers;
• Prof. dr. ir. Wim Schaefer, University of Technology Eindhoven;
• Prof. dr. Leo Verhoef, University of Technology Eindhoven and;
• Ir. Erik Blokhuis, University of Technology Eindhoven.

From Dubai Eye Radio:

• Siobhan Leyden and Andy McTiernan who invited us for an interview live in the Property Show.

From Property World Middle East magazine:

• Andy McTiernan who invited us to publish our symposium article in his magazine in March 2007.

Organisational and financial support made it possible for us to travel to Dubai in September 2006 . The
development of our graduation project was only possible with the support of:

The Netherlands:
• University of Technology Eindhoven;
• AT Osborne.

Dubai :
• British University in Dubai ;
• CB Richard Ellis Middle East and;
• Van Oord Gulf FZE.

We want to thank our supervisors from the TUle for their time and support in all stages of our research.
We appreciated your support as we set up our project, as you shared your input via instant messages
during our research, and most importantly, as you participated in our symposium in Dubai.
A special thanks goes to our colleagues from CB Richard Ellis Middle East, especially to Managing
Director Nicholas Maclean. He believed in us and invited us to develop this report at his office situated in
the Dubai International Financial Centre with the use of all needed facilities and support.

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Final report: Urban developmenl in Dubal

Tim & Bas

And last but not least, our acknowledgement goes to the company Van Oord Gulf FZE,
especially Commercial Manager Peter Meijer. Our half year stay in Dubai was only possible because of
his support in providing accommodation .

Enjoy reading our report!

Yours Sincerely,

Tim van Helmond & Bas van Montfort

Eindhoven, April 2007

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Tim& Bas

Summary
This report presents a new process model for urban development in the Netherlands. We have studied for
six months in Dubai about Dubai's urban development approach. The conclusions from Dubai as a
practise approach are translated to the urban development process in the Netherlands. This report is
especially written for professionals who have arelation with urban development projects in the
Netherlands. Furthermore, we want to contribute with our process model to the discussion about
accelerating the urban development process.

The National government in the Netherlands is aware of the fact that urban development will increase not
only employment, but also economie growth. The ministry of Economie Affairs presented a report that
displays the need of new industrial areas. The development process of new industrial areas takes on
average eight years with the risk that the market demand after project delivery already has been
changed. Different issues caused a stagnating market and the urban development process needs
improvement to achieve acceleration back again.

We will discuss the approach and the state of affairs that cause a stagnating market and the subsequent
slowing of economie growth. The urban development process in the Netherlands is very dynamic but
complex. Strategie long-term plans are being formulated by the National government and shouldn't have
a direct relation with the four-year politica I cycle which we have in the Netherlands. The government
should focus on the national strategie plan and laws and regulations on a high level base.
Because of th is the execution of the plans rests by the province, municipalities and private companies.
Through the stagnation and lack of control on province level we see that municipalities start carrying out
the urban development policy of the National government on their own. A bottom up approach is the
result, whereby municipalities skip the province level and carry out the long-term plans of the National
government. The National government is loosing con trol on her long-term urban development projects
when individual municipalities start carrying out these projects. The province needs to coordinate projects
of the National government to guarantee the quality and sustainable development.

The research question in th is report is about; the key characteristics for a business organisation to
accelerate the urban development process in the Netherlands with the input of a practice approach from
Dubai. We will design and utilise a general business organisation model with a new approach of urban
development projects in the Netherlands. The main goal of th is research is to design the model in such a
way, that a better aim for all involved participants on province level and municipality level can be
achieved.

We focused our research in Dubai on the subjects:

• State structure;
• Vision;
• Cluster developments;
• Free Zone developments and;
• Gated communities.
We organised a symposium in Dubai to obtain reliable and first hand information from professionals and
we focused ourselves on different case studies and expert interviews.

In general we see that the entrepreneurial role of the Dubai government is a key factor for the urban
development approach in Dubai. The role and attitude of Dubai government challenges semi-
governmental and private companies to move to higher levels of competitive performance.
The Dubai government developed a long-term policy with defined economie pillars of national importance.
Dubai's strategie plan is based on a long-term vision and strategy with a focus on cluster developments.
Local investors and Foreign Direct Investment (FDI) are used to finance the urban development projects.
For the implementation of an urban development project a business organisation is established in the
semi-governmental and/or private sector. Within defined boundaries and mandates the business
organisation can develop the project.

To improve the urban development approach in the Netherlands we present some important conclusions.
The whole governmental system must implement a more entrepreneurial approach to challenge the
private sector. The National government should develop a long-term strategy with a long-term policy
based on different economie pillars of national importanee. Porter's cluster strategy should be

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Final report: Urban development In Dubai

Tim & Bas

implemented in the strategic plan of the Netherlands and the urban cluster developments
can support the defined economic pillars . The province should focus on the development of laws and
regulations on a high level base to attract investors to projects of national importance. Another task is to
coordinate the implementation of the strategic plan on province level and municipality level.

Our process model presents how the government and the private business organisation are organised in
the urban development process . The process model aims for a project cluster approach for each specific
urban development project of national importance.
The co re business of the government is defining laws and regulations on a high level base and the
national strategic plan should focus on cluster developments. The government has the role of initiator and
a private business organisation is responsible for the project development.
The business organisation is mandated for the whole process development. The main objective of the
business organisation is to achieve long-term commitment between the principal, developer and investor
to gain sustainable development. The investor takes the responsibility for exploitation and services and
facilities of a development in the beginning. After a few years th is can be outsourced to a specialised
company. The quality of the project is guaranteed because the investor earns his revenues over the long-
term .
A centra I management role in the process model is there for the Project Government Cluster Authority.
This authority is taking care of laws, regulations and procedures within the public domain. Direct
communication between the business organisation and the involved public department is another role of
this authority. The authority consists of people from the concerned level of the government as weil as the
business organisation . It is important that these people are mandated for the project by their own
organisation.

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Tim & Bas

List of tables and figures

Figure 1: Connection Dubai study with TUle research (Authors Tim & Bas) ............................................... 2
Figure 2: Higher Level Services with business communities as part of a cluster (Authors Tim & Bas) ..... 25
Figure 3: Structures of DIC, DMC and DKV (source: TECOM Investments) ............................................. 25

Scheme 1: State structure of the Netherlands (Authors Tim & Bas) ............................................................ 4
Scheme 2: Simple state structure of the government in the Netherlands (Authors Tim & Bas) ................... 5
Scheme 3: UAE Federal government (Authors Tim & Bas) ....................................................................... 13
Scheme 4: Dubai government (Authors Tim & Bas) ................................................................................... 14
Scheme 5: Simple state structure of the Dubai government (Authors Tim & Bas) .................................... 14
Scheme 6: Business structure of Dubai Holding (Authors Tim & Bas) ....................................................... 24
Scheme 7: Departments which support the entities of the Free Zone (source: TECOM Investments) ..... 26
Scheme 8: From research question to lessons for the Netherlands (Authors Tim & Bas) ......................... 37

Model 1: UNESCO model for development of Dubai's economy (source: Presentation 'Dubai and its
development') ............................................................................................................................... 17
Model 2: General business organisation model (Authors Tim & Bas) ....................................................... .40
Model 3: Business organisation model 'Science Park' (Authors Tim & Bas) ............................................. 42
Model 4: New general business organisation model (Authors Tim & Bas) ................................................ 45
Model 5: New Business organisation model 'Science Park' (Authors Tim & Bas) ..................................... 46

Photo 1: Aerial view gated community the Lakes under construction (source: UAE Locator) ................... 29
Photo 2: Entrance gated communities (Authors Tim & Bas) ...................................................................... 30
Photo 3: Impression gated communities (Authors Tim & Bas) ................................................................... 30
Photo 4: Impression gated communities (Authors Tim & Bas) ................................................................... 31
Photo 5: Facilities gated communities (Authors Tim & Bas) ...................................................................... 31
Photo 6: Facilities gated communities (Authors Tim & Bas) ...................................................................... 32
Photo 7: Aerial view of Science Park development location (source: Google Earth, March 2007) ............ 41

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Short reference list

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

DCCI =Dubai Chamber of Commerce and Industry

DED =Department of Economie Development
DEWA = Dubai Electricity and Water Authority
DIC = Dubai Internet City
DIFC = Dubai International Financial Centre
DKV = Dubai Knowledge Village
DMC = Dubai Media City
DSP = Dubai Strategie Plan

FDI = Foreign Direct Investment

GCC = Gulf Cooperating Council

GDP = Gross Domestic Product

NBC =Netherlands Business Council

RTA = Road and Transport Authority

TU/e = Universityof Technology Eindhoven

UAE = United Arab Emirates

UN = United Nations
UNESCO = United Nations Educational, Scientific and Cultural Organisation

VROM = Ministry of Housing, Spatial Planning and the Environment (Volkshuisvesting,

Ruimtelijke Ordening en Milieubeheer)

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Defi nitions
Controlled democracy =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 .

His Highness =Sheikh Mohammed Bin Radshid AI Maktoum, ruler of Dubai, Vice-
President and Prime Minister of the United Arab Emirates.

Freehold =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]

Long-term Leasehold = 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]

Commonhold =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]

Dubai government =His Highness and his Executive Committee and supporting
departments.

Infrastructure =roads, bridges, sewers, etc. regarded as a country's economic

foundations (an exception are the scientific analysis models in th is
report).

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Contents
Preface .. ....... .. ........... ... ..... ... .................. ........ ... .............. ....... ... ................ ... .. ..... ....... ...... .. ...... ........ ........ .. ... iii
Acknowledgments ............. ........................... ..... ... .......... ... ..... ... ... .. ......... .. ....... ........... ...... .. ......... ....... ...... .... iv
Summary ...... ...... ... ....... .. ..... ...... .... ........ ......... ... ... .. ......... ........... ... .... ........... ......... ... .. .. .... .......... ....... ....... .....vi
List of tables and figures ............ ..... ......... ........... .. .. .. ....... ............ .......... ..... .............. ... ..... ... ............. .. .... .... viii
Short reference list ..... .... ................ ..................... ... .... ..... ... ......... ....... .. ......... .. ................ ... ...... .. ..... ............. .ix
Definitions ................ .. ........................ ...... .... ...... .......... ... ..... .... .. ........... .... .... .. ............ ....... ........................... x
Contents ... ..... ...... ..... ... .. ...... ..... .. ...... .... ... ....... ................... ... ..... ................. ..... ..... ....... ....... ...... .......... ........... xi

1. Introduction ... ... ............ ....... ....... ......... .. ................ ... .. .. .......... ....... ....... .. ............ ... .... .. .. .. ....... ........ .. ..... .... 1
1.1 For whom is this report ... ... .. ........ ............... ........ .. ...... ......... .... .. .... .................... ........ .. ..... .............. ..... 1
1.2 Structure of th is report .......... .. .... .... ............. .. ............ ............. ... ... .. ...... ........... ....... ... ...... .. ..... ... ....... ... 1
1.3 Not a comparison but a description ... ...... ......... .... ... .... .. ... .. ... .. .... .. .. .... .... ..... ...... .......... ....................... 1
1.4 Roadmap to Dubai .... .. ................... ........ ...... ............ ... ... .... .. ............... ... .. ..... ........... .. ... .... ...... .. .......... 2

ANAL YSIS PHASE .............. ... ......... .............. ..... ..... ..... ...... ......... ... ...... ..... .. ........... .. .. ... .. .. .... .. ........... ... .... ... 3

2. Problem finding urban development in the Netherlands ............ .. ...... ......... ............. ... .... ....... .............. ... .. 3
2.1 Urban development approach and state of affairs .. ... .. ..................... ...... ... ..... .. .................. .... ... ......... 3
2.2 Main issues for stagnating market .................. .......... ............... .... ............ ....... ............... ..... ..... ........... 5
2.3 Conclusions .............. ... ... ... .. .............. ......................... ... .. ..... .. ... .. .......... ...... ..... .. .. ...... .. ... .... ..... .... .. .. ... 6

3. Central research question .... .. ......... .... .. ..... .. .. ....... ............. ................... ... ..... ................ ...... ................ ... ... 7
3.1 Research objective ... .................. ..... ... .......... ...... ... ... .. ..... ........... ...... ... .. ............. .. ....... .. ........... ....... .... 7
3.2 Central research question .... .... ..... ..... .. .. ....... .. ........ .. .... ........ ........ ... ............ ... ... .... .. .. .... .... .... .. .. ..... .... 7
3.3 Research relevanee and demarcation ..... .. ........ ... .... .... .. .. .. .. ........ .......... ...... .. .. .. .. .............. .. ..... .. ....... 7
3.4 Final result .. .. ................ ..... ..................... ....... ... .......... ...... .... ...... ... ....... ............. .. .. .... ...... .... .... .. ..... ... .. 8

4. Research approach and methodology ..... ... .... ...... ........ .. .. ................. .. .. .... .. ... ........... .. .. .. ... ... .. .. ............. .. 9
4.1 Introduction ... .. .. ........... ............. ...... .... ..... .. ........... ..... .................... .... .... ..... .. ...... ....... .. ....... ........ .. ....... 9
4.2 Research approach ................. .. ............. ... .... ...... .. .... ...... ...... .. ..... ... .................. ........ ...... .. ......... ........ . 9
4.3 Applied methodology ........... .... ... .. ..... .. ..... .. ...... ... ........ ... ........ ........ .... .................... ............ .. ............. .. 9
4.4 Symposium ...... ............. ....... ..... .............. .. ..... .. .. ............. ... .. .. .... .... ....... ...... ..... ....... ............. ...... .. ........ 9
4.5 Case studies through expert interviews .. .. ... ....... ............ ... ... .. ............ .. ..... ..... .... ........ .. ...... .. .. ........ .. 10
4.6 Roadmap in Dubai. .... ............ .. ...... '" ............... ........ ... .. ............... ........ .... ... '" .. .......... ...... ................. . 11

5. Urban development in Dubai ............ .......... .... ........ .................. ............ ...... ...... ... ..... .... .... .. ........ ..... ..... .. 13
5.1 State structure .... ...... ............................ .. .. .. .. ......... .. ......... .... ........... .... ...... .. ...... ... ... .. .. ......... ....... ...... 13
5.1.1 Federal Government... .. ....... ............ .. .. ....... ............ ..... .. ...... ................... ........ '" .. .. ............... .. .. .. 13
5.1 .2 Dubai government as entrepreneur ............. .... ....... .. ..... .. ........... ... .. ............ .......... ................... .. 13
5.1 .3 Entrepreneurial approach ....... ........ .................. ... ..... ..... ........ ..... .... ....... ... .......... ....... ..... ............ 15
5.1.4 Conclusions .... .. ......... ..... .... .... .......... ....... .. ..... .. .. ...... ..... ......... .. ... ....... ..................... ........ ........... 16
5.2 Vision for Dubai ....... ....... ................. .. ..... ................... ........ ................. ..... ...... .. ... .. ............... ....... ....... 17
5.2.1 Porte r's Diamond model for the competitive advantage of nations ..... ... .... ... ...... ... ........... ....... .. 17
5.2.2 Dubai Strategie Plan 1996 ... ...... ....... ....... ....... ... .. .................. ................. ... ...... ..................... .. .. .. 17
5.2.3 Vis ion 2010 .................... ...... ..... ............. .......... .. ... ......... .. ........ .. ................ ... .. ..... ... .... ....... .... .. ... 18
5.2.4 Dubai Strategie Plan 2015 .......... ...... ......... ... ........ ..... ..... ... ..... .. ....... .. .. .. ..... .. ...... .. ...... ..... ....... .... 18
5.2.5 Conclusions ...... .... ... .... ......... ... .... ... .. .... ............. ..... ...... .............. ........ ..... .... ........ .... ... .. ... .. .... ..... 19
5.3 Models for analysing the organisation of Dubai ........... .. ..... ................. ........... .. .. .......... ............... ..... 20
5.3.1 SWOT analysis .... .. ..... ... ......... ... .... .......... .. ..... .. ... .... ... .. ..... .. .. ... .. ... .. ... .. .......... ..... .. ...... ........... ... . 20
5.3.2 Value Chain Dubai ... ... .... .. ....... .. ......... .. .. .... ... ................. ... .... ... .... ... ..... ...... ........... ............... ... ... 20
5.3.3 Conclusions ..... .............. ... .. ... .................. ....... ...... .......... ... .. .. ... .... ................ ........ .... ............ ..... . 20
5.4 Cluster Strategy .. ...... ......... ..... ..... ..... .. ......... .... ... ......... ....... .... .... ..... ...... .... .... ..... .... .. ... ..... .... ...... .. ... .. 21
5.4.1 Introduction .. ... .... .. .. ..... ...... .. ... ........ .. .... .. .. .. .. ... ..... ..... .... ... ... ........ .... ............. .............. .... .... ........ 21
5.4.2 Cluster strategy applied in Dubai ........ ................ .. .. ..... ... .. ... ........ .. .. ........ .. .............. .. ......... ....... 21
5.4.3 Sustainability ... ... ........... .......... .. ... ............. ........ .. .. .... ... ..... ... .... .... ....... ... .. ..... ... .... ... ... ....... ........ . 22
5.4 .4 Conclusions ...... ....... ........... ... ...... .......... ....... .. ... .... .......... ... .. .. .. .. ... ... .... ....... ... ........... ............. ... . 22

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5.5 Free Zones ........................................................................................................................................ 23

5.5.1 Introduction ................................................................................................................................. 23
5.5.2 Strategy ...................................................................................................................................... 24
5.5.3 Development of urban planning ................................................................................................. 24
5.5.4 Process of decision-making ........................................................................................................ 26
5.5.5 Infrastructure and maintenance ......... .. ........ .......................................................................... ..... 27
5.5.6 Conclusions ................................................. ....... .. ....... ............... .................................. ........ ...... 27
5.6 Gated communities ............ ........ ...... .. ....... ......... ....... .. ....... ............... ................................ .. ........ ...... 28
5.6.1 Introduction ........................................ .. ....... .. ...... .. ....... .. ..... .. ....... ...... .. ...... .. ....... .. ...... .. ....... .. ..... 28
5.6.2 Gated communities in Dubai ...................... .. ...... .. ....... .. ...... .. .... .. ...... .. ...... .. ....... .. ....... .. ...... .. ..... 28
5.6.3 Our experience with gated communities ............. .. ...... .. ...... .. ............ .. ...... .. ........ .. ...... .. ...... ....... 29
5.6.4 What is useful for the Netherlands ................................. ..... .. ............. .. ..... .. ........ .. ..................... 31
5.6.5 Conclusions ................................................................................................................................ 32
5.7 Outcome symposium and case studies through expert interviews ............................... .................... 33
5.7.1 Introduction ................................................................................................................................. 33
5.7.2 Symposium ................................................................................................................................. 33
5.7.3 Case studies through expert interviews ..................................................................................... 33

6. Conclusions Symposium ........................................................................................................................ 34

7. What can the Netherlands learn from Dubai? ........................................................................................ 36

7.1 Introduction .................................................................................................................................... 36
7.2 Lessons for the Netherlands .......................................................................................................... 36

DESIGN PHASE ......................................................................................................................................... 39

8. Case study in the Netherlands ................................................................................................................ 39

8.1 Introduction .................................................................................................................................... 39
8.2 General business organisation model ........................................................................................... 39
8.3 Science Park business organisation model ................................................................................... 41
8.4 Answer central research question ................................................................................................. 42

9. Final conclusions .................................................................................................................................... 43

9.1 Experts in the Netherlands ............................................................................................................ 43
9.2 Comments by experts .................................................................................................................... 43
9.3 Feasibility of our model .................................................................................................................. 44
9.4 Personal reflection to our graduation study in Dubai .................................................................... 45

10. Literature ............................................................................................................................................... 47

10.1 Literature resources ........................................................................................................................ 47
10.2 Experts and companies ................................................................................................................... 49
10.3 Presentations, exhibitions and conferences ................................................................................... 50
10.4 Photos ............................................................................................................................................. 50

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Tiro & Bas

1. Introduction

1. 1 For whom is this report

Our report presents a propos al for a new business organisation th at can be used for a new development.
With our report we want to start the discussion of how new foreign influences can accelerate the process
for new urban developments in the Netherlands. Therefore we use new ideas we have seen in Dubai and
implement these in the Dutch urban development process. The report is especially written for all
professionals who are working in or have any relation to the urban development process in the
Netherlands. It is also interesting for anyone who wants to know more about the differences between the
urban development approach in Dubai and the Netherlands.

1.2 Structure of this report

Our research encloses two volumes; the final report and the appendixes. The structure of this research
report consists of four main parts: introduction, analysis phase, design phase and the final conclusions.

Infroducfion
The introduction is the first chapter in which we explain the possible benefits for the Netherlands to do our
research in Dubai.
Analysis phase
This part contains the chapters two till seven that give an analysis of the different topics covered by our
research. Chapter two informs us about the general problems of urban development in the Netherlands
and how it causes stagnation in economic growth. The third and fourth chapter will each give detailed
information about our goals in Dubai and about the specific focus of our research. This is where you will
find our central research question. In chapter four we describe the research methodology we set up, how
we are going to use it, which tools we are going to use and our expectations for the results.
After this there is chapter five about the whole urban development process in Dubai. In chapter five we
will teil about the symposium we held in Dubai to obtain reliable first hand information from professionals
in the Netherlands and Dubai. We summarise this information in chapter seven th at contains the most
important conclusions that can be used to improve the Netherlands' urban development process for new
developments. In this chapter you can also found a scheme which shows how the conclusions are
releated with our research.
Design phase
The design phase exists of one chapter where we develop our new process model by using a case
project at the campus of our university. The result exists of two modeis; a general process model and a
model for the Science Park on our university campus.
Final conclusions
In this final chapter, chapter nine, we describe the final conclusions of our research and give
recommendations on how to improve the urban development process in the Netherlands.

1.3 Not a comparison but a description

In this research we focus on the aspects th at cause stagnation in the process of the development of new
industrial areas. With this demarcation we can find a connection with the research of Prof. dr. ir. W.F.
Schaefer and ir. E.G.J. Blokhuis. Their research has a wider focus and looks at the redevelopment as
weil as development of industrial areas. Redevelopment is not an important aspect at this moment in
Dubai because they are just in the development phase. So we leave redevelopment out of the reach of
our research. By doing this is it possible for us to use information and conclusions th at they have included
in their own research report about this subject. Our contribution is focused on accelerating the developing
process in the Netherlands by using Dubai as a 'best practice' case.

The goal of our study is not to create a comparison between Dubai and the Netherlands. Instead, we
want to learn from certain aspects of Dubai's approach regarding to urban development. The most
important research results will be implemented into our process model for a business organisation for a
Dutch case study project. The reason you cannot compare Dubai with the Netherlands is because there
are too many major differences between the two countries, including the state-structure, investment
climate, religion and leadership.ln the figure below you see how our research makes a connection with
research from our university.
Fin a! report : Urban development In Cubal

Tim & Bas

Research Industrlal
(re)development
International study about
Urban Development in Dubai
atthe
byTim & Bas
'---- - - -_ / University of Technology Eindhoven

Figure 1: Connection Dubai study with TUle research (Authors Tim & Bas)

1.4 Roadmap to Dubai

In this first paragraph of the 'Roadmap to Dubai' we will give a short introduction about the period
between March 2006 and September 2006. During this period we did most of the preparations for our
graduation . At the beginning of March we already decided that we would do our graduation together in
Dubai. To achieve our goal it was necessary to write a ciear, achievable plan for our project. Our planning
for the pre-graduation phase contains: go / no-go moments, milestones and appointments with institutions
in the Netherlands and Dubai to participate in our research . For more information about this approach we
will refer to our research proposal. In the attachement you can also read a short introduction of the history
of Dubai.
The companies we have contacted in the Netherlands were CB Richard Ellis in Amsterdam and AT
Osborne in Utrecht. In Dubai we have contacted Arup Major Project and the British University in Dubai.
All the companies showed a lot of interest to collaborate in our research . The participation of these
institutions acted as our starting point and guarantee to start our independent research in Dubai. For a
more detailed overview see appendix 'Roadmap for Dubai'.

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F1nal report: Urban developme nt in Dubai

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Tirn & Bas

ANALYSIS PHASE
In the first chapter we will point out the actual issues about urban development in the Netherlands. In the
chapter three and four we present and explain our central research question and the research
methodology we used . Chapter five gives an elaborated description of the present urban development
approach in Dubai. Our symposium that was part of our research methodology will be discussed in
chapter six. Finally, in chapter seven we summarise the conclusions from the previous chapters, which
could be useful to implement in the Netherlands to improve the urban development process.

2. Problem finding urban development in the Netherlands

2. 1 Urban deve/opment approach and state of affairs

This paragraph will give a description about the situation of urban development in the Netherlands. We
will discuss the approach and the state of affairs that cause a stagnating market and the subsequent
slowing of economie growth . The government is aware of the fact that redevelopment of industrial areas
or construction of new industrial areas will increase not only employment, but also the economie growth of
the Netherlands.
In actual terms, th is means that the ministry of economical affairs, together with business, knowledge
centres and decentralised government must put in efforts to realise an area aimed economie policy. The
government authorities who should turn th is policy into practise are the province and municipality. [02]

The Netherlands needs industrial areas for sustainable econom ie growth. The document 'Actieplan
Bedrijventerreinen' mentions the actions required to stimulate this process for the years 2004 till 2008.
This does not mean it will be only redevelopment of industrial areas but also new development of these
areas. At th is moment there are 21.000 hectares th at need to be redeveloped, which is 20 per cent of the
available area. For these areas, the problems are so drastic th at regular maintenance is not enough
anymore. A major part of the need for new industrial areas can only be realised by building new industrial
areas.
Experience tells us that there will be a limited availability of new areas when redeveloping industrial
areas. By the end of 2020 there will be a need for 23.000 hectares of new industrial areas. The
redevelopment as weil as development of new industrial areas is an extremely complex process that can
easily run into a lot of issues in spite of all efforts from the involved parties.
The realisation of a new project takes more than eight years. It is then important to start on time when
preparing new locations. The goal is to further to reduce the turnaround time by 20 per cent for the
redevelopment and development of industrial areas by the end of 2020.
The quality of an industrial area is often custom-made. The government will not mention general
demands about quality for industrial areas. An exception is the management of industrial areas . In th is
case, the government ensures that there is a considered park management system in place.
Within the government the ministry of economical affairs is the coordinating authority for industrial areas.
This authority has to deal with the general policy for industrial areas, as weil as formulating laws and
regulations and find solutions for genera I bottlenecks. One of their main targets is to focus on the most
important areas that can contribute a maximum surplus value to the Netherlands economy. This enables
the government to appoint specific industrial projects (Topprojecten) that have an important value for the
Netherlands economy. By doing this the government is able to participate in the realisation of these
industrial projects. For these 'Topprojecten' there are 3.500 hectares available for redevelopment and
7.000 hectares for new development. The redevelopment and new development of the other industrial
areas is a task of the municipality. [03]

At this moment the urban development process of industrial areas in the Netherlands is adynamie and
complex challenge. Normally these development questions are translated into strategically and
economically important projects with a long-term commitment. In these processes we see that the
government is pulling back and giving more and more responsibility to private companies . In the future we
expect that end users will influence the decision-making process more and more, which will have an
impact on the final result. The targets for development are defined by the shared value of the
stakeholders and their realisation by the subsequent collaboration of these stakeholders.
It appears that 'the site' is no longer a leading factor in the success of an urban development project. In
its place, the stakeholders in both private and public areas are becoming more important. We have to
consider that projects with national importance are vital to the economie growth of the Netherlands.

3
Final report: Urban devolopmenl in Duba l

Tirn & Bas

Further, we see that stakeholders in the Netherlands have become more and more critica I of a success
factor in the development of urban projects. The short-term success of a project's development is also
caused by the political cycle. Projects with a maximum surplus value for the Netherlands' economy
experience a lot of opposition through different factors from different parties. To make sure that these
kinds of projects can be a success there is a need for a straighter course and long-term strategy. [04]

The government is the highest authority on a certain area. In the Netherlands we have a parliamentary
democracy. In there the parliament has the final word. Furthermore, the government exist of a Federal
government and a head of state. In the Netherlands this is a king or a queen. Also the chosen parliament
in the provinces (the provincial States) and the management of the provinces (Delegate and
Commissioner of the queen) are part of the government. Just as the parliament in the municipality and
the municipality council (City Council) are part of the government. [05]

National Govemment in the Netherlands

f
/-----------------~
r;==========;)
+----------------- "
\
I
I STAT ES GENERAL:
I Upper House 1
Upper House 2

I
Prime Minister

Minister of
Minister of Minister of
Minister of BIZA Economical Minister of VROM Other Ministers
Agricullure Finance
Affairs

I I I I I I
Ministry of Ministry of
Ministry of Ministry of BIZA Ministry of VROM O1her Minlstries
Economical Affairs Finance
Agricultune

" /

Province Noord-Brabant Other 11 Prov inces

------------ 1--------------
Other Municipalities in
Municipality Eindhoven
Noord-Brabant

Local Government in the Netherlands

Scheme 1: State structure of the Netherlands (Authors Tim & Bas)

In the Netherlands the state structure exists out of three layers. From top till bottom we see the National
government, 12 different provinces (regions) and the 443 different municipalities. The task of the 12
provinces is to implement and coordinate national governmental decisions. In the scheme below we
presented the simple state structure of the government in the Netherlands.

4
Final report: Urban developrnenl in Dubai

Tiro & Bas

Natlonal Government

I
Provinces (12)
II Ir

I
Municipalities
(443)

Scheme 2: Simp Ie state structure of the government in the Netherlands (Authors Tim & Bas)

2.2 Main issues tor stagnating market

In the next paragraph we will write about the most important issues in the available literature about the
main cause of the stagnation in economie growth in the Netherlands.

Achieving consensus in the Netherlands' planning process is still important but there are increasing
complaints th at the difficult decision-making process is more about politica I gain than urban improvement.
The negotiations do not end after legal plans are approved . Even after the legal boundaries are approved
by the central and local governments, stakeholders are very creative in their interpretation of these
boundaries. [06]

According to (BCI & BRO, 1999), there are five different kinds of stakeholders involved in each urban
development project: the municipality, government, settled companies, business associations and private
investors. [07] It is in the joint interest of the municipality, settled companies and private investors to
produce a good, functioning industrial area.

It is not possible just to build an industrial area before you have gone through an elaborate process of
preparation. All governmental authorities are involved, sometimes in a collaborative way, sometimes in an
opposite way, but often on an interactive basis with involved participants. In the development of an
industrial area, the role of the governmental and provincial authorities is generally limited to preventing
inconveniences to residential housing, nature and the environment.
By contrast, the municipality has an important involvement in the policy for industrial areas. Higher
governmental authorities represent interest groups, which can result in major delays in the development
of industrial areas. [08]

The ma in goal of the government is primarily focused on the redevelopment of industrial areas. Only
when this redevelopment is not sufficient for economie growth can a municipality begin developing new
areas. [09] After a redevelopment or new development is completed, the government has to take care of
maintenance of the developed area. This guarantees that the area is attractive to new customers. [10]

Another goal of the government is to attract private investors. At this moment it appears that the market
for industrial areas is a monopoly dominated by the government. For private investors it should not be
hard to enter th is market because there are no speciallaw and regulations.
According to (Kapteyn, 2006) there are three main reasons for the relatively small percentage of
institutional investors: [11]
1. Investors are not investing in th is market for traditional reasons;
2. There is less development for the private sector;
3. Most of the buildings are user-specific, which is not interesting for investors because it is not easy
to rent these kinds of buildings .

Complicated laws and regulations are also infecting the development process. A lot of projects get
delayed because of this, which causes uncertainty for the municipality and private investors. [03] We also
see that while there are a lot of legal instruments that can delay the development process for industrial
areas, there are few instruments that can stimulate this process. [08]

5
Flnat report : Urban developmenl in Dubal

______________________________________________________________________ Tim&B~

When we take a look on how projects are being realised we see that there is stagnation in the provincial
level. The National government develops long-term strategical plans like the 'Nota Ruimte' and 'Pieken in
de Delta'. In these long-term plans is the vis ion on urban development of the government translated to
concrete goals for what they want to achieve in a certain period of time. Most of these long-term
strategical plans are concerned with projects which are of national importance. These kinds of plans have
mostly no relation with the four year political cycle which we have in the Netherlands.

Because of the stagnation and lack of control on province level we see that municipalities start carrying
out the urban development policy of the National government on their own . A bottom up approach is the
result, whereby municipalities skip the province level and carry out the plans of the National government.
The National government is loosing control on her long-term urban development projects wh en individual
municipalities start carrying out these projects. The province needs to coordinate projects of the National
government to guarantee the quality. When a project is divided over more municipalities they also take
care of a smooth cooperation, communication and that there is the same interest between the involved
municipalities.

Arcadis and STEG Groep from the Netherlands organised on the 1Qth April 2007 the symposium 'Lelijke
dozen of prachtige werklocaties' in the Verkadefebriek in Den Bosch. Main goal of the symposium was to
have discussions between public sector and the private sector. What are the possibilities to develop
industrial areas?
Regional adjustment between governmental institutions is nessecary and a regional development
company that is responsible to keep 'plot exploitations' levelled with future demand. The question rises :
are private companies better than the public sector in achieving these goals? Long-term project
developments, maintenance and exploitation are familiar to them and government institutions are
apparently pulling back from plot exploitations. [12]
For the development of industrial areas it is important that municipalities are collaborative with private
parties in an early stage of each project. The municipality should take the responsibility to define
boundary conditions and in a second stage the municipality is formulating together with private parties the
political boundaries. [13]
During the workshop 'Management Drives & Regional Gollaboration' as part of th is symposium Peter van
Geffen from STEG Groep presented his perspective. Vision for the development of industrial areas must
be the responsibility of a higher governmentallevel, National government or province level. The second
step is to search for joint interests on province level or municipality level. And last but not least, develop
joint interests where regional collaboration is possible. [14]

2.3 Conclusions
In the continuation of our research we want to develop our new process model which will improve the
present situation. We will present a new approach how the different institutions can work and
communicated better with each other. Therefore we will use some aspects we have seen in Dubai as
imput for this new process model for the Netherlands.
For the conclusions mentioned below we think we can find interesting solutions during our research in
Dubai. We will use them to present the solutions of our case study for the new business organisation for
urban development projects .

• The government in the Netherlands should use a more entrepreneurial approach during the urban
development process;
• The government should explore and set defined boundaries in which urban development takes
place. Planning, development and implementation should be done by private companies;
• The four year politica I cycle of the government should not affect projects wich are of national
importance for the Netherlands economy. These projects need long-term strategies that are
separate from the four-year political cycle.

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Final report: Urban developmcnll n Dubal

Tjm & Bas

3. Central research question

3. 1 Research objective
With the knowledge about Dubai's development approach we are looking at the fundamental issues in the
Dutch development approach as described in chapter 2, Problem finding about urban development in the
Netherlands. In the design phase of th is report we are going to work out a case project in the Netherlands
using the main characteristics of the urban development approach in Dubai.

Our research objective is defined as:

"We are going to set up our process model for an urban development case project at the campus
of our university with the knowledge and main characteristics of the urban development approach
in Dubai".

When we are talking about processes in the context of our process model, we specify 'process' as:

"A process is a sequence of decision-making steps in time from initiative to exploitation in an

urban development project."

3.2 Central research question

"What are the key characterlstlcs for a business organisation to accelerate the urban
deve/opment process In the Netherlands wlth the Input of a practlce approach from
Dubal, and how can thls be utilised?"

Sub questions are:

• What are the most important organisational characteristics for urban development projects in
Dubai?
• What are the most important process characteristics for urban development projects in Dubai?
• How should we develop a business organisation for an urban development project in the
Netherlands, and which processes are important for that?

To answer these sub questions we are analysing different urban development projects in Dubai. The aim
of analysing these projects is to "analyse how business organisations are organised tor urban
development projects in Dubai." The main questions for analysing these projects are:

• What does the business organisation consist of?

• How is the business organisation managing the urban development project in Dubai?
• Which processes are directed by the business organisation?

3.3 Research relevance and demarcation

The relevance of this research is that the TUle is doing research on (foreign) urban development
approaches in order to improve and accelerate the urban development process in the Netherlands. Our
research 'Urban development in Dubai' is a foreign study and our conclusions are additional to the
research of TU/e.
The company 'Brabantse Ontwikkelings Maatschappij', BOM is going to publish a book in 2007 in
cooperation with the TUle. The conclusions from our research in Dubai by applying a new approach
about urban development wil! be integrated in that book to contribute to the discussion around urban
(re)development in the Netherlands.
Our research is focusing on the process behind urban development projects . We wil! explain Dubai's
urban development approach in terms of strategy, policy, decision-making and entrepreneurship in the
public sector and private sector. We wil! conclude with lessons that can be learned by the Netherlands
from Dubai.

7
Final report: Urban development in Dubai

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Tirn & Bas

3.4 Final result

We will design and utilise a genera I business organisation model with a new approach of urban
development projects in the Nehterlands. The ma in goal of this research is to design the model in such a
way, that a better aim for all involved participants on province level and municipality level can be
achieved. To give an impression of how the model could work we used it to design the business
organisation for a campus project at our University of Technology Eindhoven. The development of this
campus project can be classified as a Science Park.

8
Final report: Urban development in Dubai

_______________________________________________________________________ Tim&Bas

4. Research approach and methodology

4. 1 Infroducfion
Our study will be congruent to the research of prof. dr. ir. W.F. Schaefer and ir. E.G.J. Blokhuis at the
University of Technology Eindhoven about urban (re)development in the Netherlands. They have studied
the Expo 98 development in Lisbon as a best practice project. Our study about Dubai can be used as
another practice study and our findings can be implemented into the research at our university. In general
our research will be used for a modified approach and to answer the question "How can the Netherlands
improve their urban development market?"

4.2 Research approach

In the preface of th is report we explained that we have checked the availability of research information in
Dubai. We obtained first hand information by using the following resources:
• Interviewing experts from public and private institutions;
• Case studies in Dubai;
• Symposium organised by the writers of this report in Dubai;
• Available information from different public and private institutions in Dubai and;
• Visiting presentations, exhibitions and conferences in Dubai. [15]

With the use of the resources above we were able to gather the information we needed for th is research
by constantly putting a lot of energy into:
• The organisation around our graduation project;
• Our personal and project website http://www.TimenBasinDubai.com;
• Our student membership in the Netherlands Business Council and;
• Introducing ourselves to public and private institutions as Masters Students from the University of
Technology Eindhoven using our own business card (see figure below).

4.3 Applied mefhodology

We have thought about a plan to obtain first hand information about urban development in Dubai. Our
plan indicated different phases to design our own process model at the end of our research for a case
study project in the Netherlands. The different phases of our plan are shown in the appendix 'Research
approach and methodology scheme'. This scheme changed a little bit since the time we finished our
research proposal. The two plans are available in the same appendix. The difference between the first
scheme and reality is that the analysis phase took more time. There is one reason for this. At the time
th at we were studying aspects One to Four, we were working on 'problem finding.' All four aspects could
be a central topic for a graduation study. After our mid term presentation on December 21 in the
Netherlands we made the choice to focus our research on business organisations developing urban
development projects. Our research proposal and ideas were approved on the 21 st of December by our
professors and we discussed the working out of our graduation project, which would conclude in the end
of March 2007 with our final report.

First hand information about Dubai is not always available. People are not always in the position to
answer each question. We decided to rely on expert interviews, a symposium organised by the two of us
in Dubai and to analyse case studies in Dubai. Therefore, our research methodology consists of these
three items. In all three items professionals and academies have been asked for their points of view. The
personal argumentations and points of view are not generally applicable. They are only applicable in this
situation and with these references.

4.4 Symposium
We organised our symposium 'Value creation through sharing knowledge in urban development' because
this was the best way to obtain first hand information in just one event. In our symposium it was possible
for fifteen people from two different countries to share knowledge and discuss different approaches. Two
presentations were followed by discussion sessions, which made it possible to organise th is meeting and
learn more from both approaches. Below you can see the program of our January 30 symposium,
including the invitation we designed ourselves:

9
 Tim& Bas

Goal: Discuss the urban development market in the Netherlands and Dubai with professionals
and academics representing public and private institutions from both countries.

Take effect: Program of the morning session was:

- Presentation by prof. dr. ir. Wim Schaefer about the stagnating urban development
market in the Netherlands.
- Discussion session where we presented different questions;
(Coffee break);
- Presentation by Nicholas Maclean, managing director of CB Richard Ellis Middle East
about the urban development market in Dubai.
- Discussion session where we presented different questions;
(Lunch).

Game theory: We started the morning session by asking everybody to introduce themselves by
explaining where they were from and giving a brief description of their profession . This
introduction round contributed to the open atmosphere for the whole group. We tried to
invite everybody to share in the discussions because that would influence directly the
outcome of this symposium.

Our expectations for the symposium were:

• A better understanding about Dubai's urban development approach;
• First hand information
• Input to our research from professionals and academics

To start the discussion we asked the following questions:

What is the vision of His Highness 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.
• What is the management organisation behind these developments?

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).

How can we identify Dubai's general urban development approach when it co mes to:
• Landownership?
• Project financing?
• Program management?
• Role of public and private institutions?
• Exploitation and maintenance?

What can we learn from the Dubai approach and implement th is in the European urban
development process?
• Is it possible to start with an entrepreneurial approach (Iike the approach in Dubai) in the European
planning process?

4.5 Case studies through expert interviews

In our symposium professionals and academics discussed both general and specific issues of urban
development. It is clear that one must analyse different case studies to understand precisely how a
specific project is developed , which stakeholders were involved and what kind of business organisation
was ma naging the process . That is why we have chosen case studies in Dubai. We began byanalysing
the available literature and other information about a speeific project. Next, we planned interviews with
experts to get first hand information . However, we learned that some experts could not answer all of our

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Final report: Urban deve lopmellt In Oubal

Tim & Bas

questions because there were details they were not allowed to discuss. In that case, we note this
roadblock and include it in in our summary of the interview.
Our plan for making an analysis for the different case projects was to research similar aspects as our
professors did for the analysis of Expo 98 in Lisbon . By using this method it is easier to structure the case
projects and conclude with improvements for the Netherlands.

Goal: Understanding about Dubai's urban development approach and the process from project
initiative to project exploitation.

Take effect: Analyse different urban development projects by interviewing experts, on-site visits and
available literature.

The case study projects are:

• TECOM Free Zone;
• Dubai Festival City and ;
• Gated Communities (The Lakes and The Springs).

The questions that we asked are formulated in the appendix 'Analyse Case Studies'.

Our expectations from the case studies combined with the expert interviews are 'analysing how business
organisations are organised for urban development projects in Dubai.' Therefore we want to answer:
• What does the business organisation consist of?
• How is the business organisation managing the urban development project in Dubai and;
• Which processes are directed by the business organisation?

4.6 Roadmap in Dubai

Our road through Dubai was not possible without setting up a solid project organisation for this graduation
project. The idea to graduate in Dubai was born in March 2006 . From March till September we developed
our total project (including the finances) . For more information about our project organisation please read
chapter two of our research proposal for the companies and institutions participating in this project.
In our roadmap in Dubai we reproduce our process, which started on September 21, 2006 . For all the
different and important meetings, company visits, exhibitions, presentations and other informative visits
we refer to the appendix 'Roadmap in Dubai' . This paragraph will explain more about our discussion
sessions with our professors from the University of Technology Eindhoven by which they followed our
process. This paragraph will also point out the fundamental choices that make our report what it is .

Method of communication
After a few personal meetings in the Netherlands with our supervisors from the university we traveled to
th
Dubai on the 20 of September. The setup of our communication between Dubai and Eindhoven was to
communicate by using instant messaging and email.
We used instant messaging for instant messaging. We used instant messaging during the first two
sessions with our supervisors. Another way of communicating was by telephone with a speaker function.
We were able to listen both to the same conversation at the same time. This method was used most of
the time. The third method was using email. We have been using email during our six month stay in
Dubai to exchange our research proposal, invitations for our symposium, feedback and to hand in our
final report.

Workout of the meetings

In our first two sessions we noticed that the speed of the internet connection played an essential role in
the communication. The connection in Dubai is slower than in the Netherlands and it caused too much
delay during the conversation. Another reason was that the UAE does not always allows to use instant
messaging programs and therefore they where blocked.
Our conversations by phone were satisfying. The connection was good . One thing that we had to take
into account was the time delay. There was a time delay from one or two seconds and that made it
sometimes hard to express yourself on the phone. The result was sometimes a disorderly conversation
fr om both sides.
The program Microsoft Outlook was used for email messages. The use of email is good for exchanging
documents. If possible we avoided email messagesfordiscussionswithoursupervisors . lt.s not possible
to see each others 'emotional reaction' byemail. We used a few meetings with our supervisors to discuss

11
Fi nal report: Urban development '" Oubai

Tjm & Bas

our progression in our project. In these meetings we had to discuss important and specified subjects and
that's why we preferred conversations by telephone. Just to avoid misunderstanding between us and our
supervisors from university.

Conclusions and recommendations

There are different tools to use for a conversation between Dubai and our university in the Netherlands.
Every tooi has its own advantages and disadvantages. Our choice for each tooi depended on wh at we
had to discuss with our supervisors .

Fundamental choices in our process

In our process we have recognised different fundamental choices that made our project till what it is. The
most important for our advantage will be highlighted here.
Our first acquaintance in Dubai was with Consul General of the Kingdom of the Netherlands, Bart
th
Twaalhoven on the 24 of September. Bart Twaalhoven introduced us in Dubai with some facts and
explanation about the state structure in the UAE. After this conversation Bart Twaalfhoven invited us for
the Dutch Big 5 reception and the monthly meeting from the Netherlands Business Council (NBC) in
October. In October we became members from the Nederlandse Verenging and the board of the NBC
approved a 'student membership' for the both of us and that is exceptional. During the monthly meetings
from the NBC we were able to extend our network in Dubai. From our network in Dubai we were able to
held interviews and project visits and arrange our accommodation in Dubai. Therefore these where some
of our fundamental choices in the process.

In the Netherlands we started to get in contact with CB Richard Ellis Dubai. We wrote a letter to this
company including our curriculum vitae in English but without response. When we arrived in Dubai I tried
again to arrange a meeting with managing director Nicholas Maclean to present ourselves and this time
nd
with success. On the 22 of October 2006 we had a meeting with Nicholas Maclean and he explained
that a report about urban development is interesting for his office. He offered us all the facilities to work in
the office of CB Richard Ellis, The Gate building part of Dubai International Financial Centre.

The third fundamental choice was to organise our symposium about urban development in Dubai. CB
Richard Ellis made it pos si bie to organise th is symposium where we obtained first hand information from
academics and professionals from public and private companies for our research. Without these three
fundamental steps it would have been very difficult or impossible to do our research in this way and relay
on first hand information from the Dubai market.

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5. Urban development in Dubai

5. 1 State structure

5.1.1 Federal Government

Until the early 1970s, this area was known as the Trucial States, as each emirate had a separate treaty
with Britian . In 1971, the seven Emirates came together to establish a federal state officially entitled
Dawlat allmarat al Arabiyya al Muttahida (State of the United Arab Emirates) .
In May 1996, the Federal Supreme Council approved an amendment to the provisional Constitution,
naming Abu Dhabi as the capitalof the state and declaring a revised document to be the country's
permanent Constitution.
The new federal system of the government established in 1971 included a Supreme Council, a Cabinet
(or Council) of Ministers, a parliamentary body, the Federal National Council, and an independent
judiciary, at the apex of which is the Federal Supreme Court (see scheme below for the UAE Federal
government).
In a spirit of consensus and collaboration, the rulers of the se ven Emirates agreed during the process of
federation that each would be a member of the Supreme Council, the top policy-making body in the new
state. They also agreed that they would elect a President and a Vice-President from amongst their
number, to serve a five-year term of office. [16]

President of the UAE Rulerof I1

Abu Dhabi
Sheikh Khalifa Bin Zayed
(Capital UAE)

Supreme Councll
Rulers ol all seven
Emirates

Cabinet:
All Ministers. Prime Minister
~
and Deputy Prime Minister

Ministry ol Ministryol Federal Authorily Ministry ol Other 14

Ministry ol Public
Economy & Ministry or Health Finance & ol Electrcily & Inlonnation &
Works & Housing Ministries
Planning Industry Water Culture

Scheme 3: UAE Federal govemment (Authors Tim & Bas).

The UAE has a centralised policy translated into the Federal government, which exists to support all
seven Emirates. Although all Emirates have expanded significantly as a result of the country's growth
over the last 34 years, the improvements differ in size and complexity from Emirate to Emirate depending
on a variety of factors, such as population, area, and the degree of development. Decision-making takes
place on the federallevel, with most of the expertise combined in the Federal government. In theory, the
administrative structure of the UAE is comprised of three layers: Federal government, seven Emirates
(regions) and the municipalities. In practice, we see two independent public actors: the Federal
government and the local government in each Emirate. Because Abu Dhabi and Dubai are self sufficient
(see below) , the Federal government primarily exists to support the other five Emirates. Each Emirate
may develop its own strategy and developments.

5.1.2 Dubai government as entrepreneur

Dubai has its own government which is independent from the Federal government. The ruler of Dubai,
His Highness Mohammed Bin Rashid AI Maktoum, is ma naging his governmental departments in such a
way that Dubai doesn't need the Federal government for assistance (see scheme Dubai government).
The administrative structure in Dubai is composed of local departments that are managed by the

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Tim& Bas
Executive Committee. Each department has its own organisational structure (see appendix 'Organisation
chart Dubai municipality').

Dubai Govemmenl
I
/-------- ---------------+
- - -
.------- ------- -------- --,
_._._._._. \
I I link 10 fe<Sera1
I Ru", of Dubal
G<>vemmenl: I
I Sheskh Mohammed Bin
~Vfce-Presk1eol and prirnej
I Rashid AI Makloum
I I Minister ot Ule UAE .
._ - _ . _ - - - ......I
I
I
I
I Tha Executtve Committee:
I The Execulive Counctl
I The Executive Office
Cabinel OffICe

~====~ ~====~ I
Roads &
Oubai
Transport
Munidpality
Aulhority (RTA) b====d EdOCaoonI
~======!I

Se.
anachment
for or9. chart
I
, /
I
~ -- ----- ---------- --- --------- --------- -------- ----- ----------- -------------

Scheme 4: Dubai government (Authors Tim & Bas).

When His Highness became ruler of Dubai in 2006, the Executive Office was split up into three 'offices'.
The aim of the Executive Committee is to support His Highness in his different roles as ruler of Dubai,
Vice-President and Prime Minister of the UAE. A short explanation about the three offices:
1. The Executive Council: The Executive Council supports His Highness in his role as ruler of
Dubai.
2. The Executive Office: This is the office of His Highness, which exists to support, manage, report,
and define the vision for Dubai and to manage the overall strategy of the Emirate of Dubai.
3. Cabinet (Federal) Office : The cabinet exists to support His Highness in his role as Vice-President
of the UAE.

Ruler of Dubai The Executive

Sheikh Mohammed Bin .- Committee
Rashid AI Maktoum

I
Local
Departments

Scheme 5: Simple state structure of the Dubai government (Authors Tim & Bas).

For a macro-environmental analysis of Dubai on Political (and Legal), Economical, Social and
Technological aspects (PEST), see appendix 'PEST analysis Dubai'. [17] The outcome of the PEST
analysis is that Dubai scores good on the political level and high on the economic level. Social
development takes place in the shadow of a booming construction market and is therefore a point of
attention. Technological developments are in the start up phase and there is distinct need for strong
innovation.

As a simplified organisation structure , we see Dubai's government in the scheme above. We looked at
the configurations of Mintzberg to say more about the Dubai government in terms of 'structure', 'the role
of the government' and 'key characteristics' of this public organisation. Mintzberg defined seven
organisational configurations. We will give a description of the entrepreneurial start up (also called the
simple structure) as defined by Mintzberg:

The simple structure is characterised, above all, by what is not elaborated. Typically, it has little or no
technostructure, few support staffers, a loose division of labour, minimal differentiation among its units,
and a small managerial hierarchy. Little of its behaviour is formalised, and it makes minimal use of
planning, training, and liaison devices.

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Coordination in the simple structure is effected largely by direct supervision. Specifically, power over all
important decisions tends to be centratised in the hands of the chief executive officer. Thus, the strategic
apex emerges as the key part of the structure; in deed, the structure often consists of tittle more than a
one-person strategic apex and an organic operating core.
Most organisations pass through the simple structure in their formative years. The environment of the
simple structure tends to be at one and the same time simple and dynamic. A simple environment can be
comprehended by a single individual, and so enables decision-making to be controlled by that individual.
A dynamic environment means organic structure: Because its future state cannot be predicted, the
organisation cannot effect coordination by standardisation. [18]

Dubai's strategy - to become agiobal hub for tourism, business and living - is supported byan
organisation structure th at is controlled by the ruler of Dubai. We analysed the organisation of Dubai
government using the 7-S framework of McKinsey (see appendix '7-S Framework of McKinsey'). [19] The
outcome of the 7-S analysis is as follows: the leadership comes from His Highness with the support of his
Executive Committee . Dubai's government is constantly in close contact with the most important external
institutions (semi-government and private companies) to ensure the rapid development of Dubai. The
cluster strategy (explained in chapter 5.4) as a system is integrated in the Dubai Strategic Plan 2015. The
small staff supporting His Highness completed their education and worked abroad or at some of the
bigger UAE universities. Expatriates bring with them a lot of the needed knowledge and expertise . His
Highness is personally involved with all major developments. Clear communication from top to bottom is
used in this organic organisation.
We typify Dubai government, with His Highness as ruler of Dubai , as an organisation that shows close
relations with 'the entrepreneurial start up configuration' of Mintzberg.

5.1.3 Entrepreneurial approach

From four till six December 2006 we visited the Cityscape exhibition in Dubai. Cityscape is the annual
event for international property investment and development. The construction industry presented its
project developments and visions for the coming years (see appendix 'Map of Major Projects Dubai').
This year's event was really overwhelming, with the most ambitious projects being presented . This great
abundance of new projects has led us to conclude there is simply an overload of urban development
projects. Because there is no clear, unambiguous reference in the market for all the new projects, we
have to ask: "Is there a need for al the presented projects in the Middle East?" A lot of companies
presented enormous and impressive urban development projects for the whole Middle East, which was
confusing (see appendix 'Interview with a real estate company').
This entrepreneurial approach comes from His Highness, who is in close contact with the main real estate
developers (Dubai Holding, Emaar and Nakheel). These are the companies that have built Dubai to its
current state . Supply is outpacing demand, and as a result most of the projects in the pipeline are delayed
by 6 to 24 months. This means the supply pipeline has to slow down in Dubai. There is a lack of capability
from the Dubai Electricity and Water Authority (DEWA) to connect all different urban development
projects. This gives DEWA the power to slow these developments, thus creating more of a balance
between supply and demand in the market (source: Symposium Tim & Bas).

We have heard from different sources (who requested to not be mentioned by name in this report) about
the changes in management to develop the Dubailand project initiated by the Dubai government.
Dubailand is the largest urban development project in Dubai with a main focus on tourism and living (see
appendix 'Map of Major Projects Dubai').
Dubailand is divided into large plots of land and many different project developers are working on this
huge project initiated by His Highness. From the start of this project the Dubai municipality was
responsible for the overall master planning. In a second stage His Highness was not satisfied about the
progression of the developments regarding to the master planning. Capacity problems occurred within the
Dubai municipality to manage the master planning development. His Highness was not convinced about
the feasibility to finish this project in time. At that point the responsibility changed to the Road and
Transport Authority (RTA) and the Dubailand business organisation. Master planning was now the
responsibility of the business organisation Dubailand and RT A is responsible for the approvals regarding
roads and transport and capacity issues. The crux of this example is that there was a sancti on for the
Dubai municipality because they didn't succeeded their goals for this development and therefore the
responsibility to manage the master planning changed to other players in the public and private sector.

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The theoretica I perspective from Michael Porter about the role of government is clear. According to
Porter's Diamond Model, the role of government is to act as a catalyst and challenger; it is to encourage-
or even push - companies to raise their aspirations and move to higher levels of competitive
performance. They must encourage companies to raise their performance, to stimulate early demand for
advanced products, to focus on specialised factor creation and to stimulate local rivalry by limiting
cooperation and enforcing anti-trust regulations. [20]

In Dubai we see th at the entrepreneurial approach starts with the role of its government. From there, the
entrepreneur takes the risk and the idea and he is convineed to solve any problem on his way. This is in
contrast to traditional democratie development, where many people discuss for many years and find
consensus and describe all the project risks. An entrepreneur in Dubai follows a different approach: His
Highness and his supporting Executive Committee know exactly what is going on, what the problems are
and which approach is needed for the future. The next challenge for Dubai is what kind of extra
functionality they can offer in terms of social development, infrastructure and energy so that people are
going to stay in this area (souree: Symposium Tim & Bas) .

A business organisation (semi-governmental or private companies) will take the initiative and the
responsibility for urban development or industrial development. The start up phase for a new
development project means that the Dubai municipality defines where a project development can be
planned according to Dubai's master plan. Guidelines for the development of a project are formulated by
Dubai municipality on a high level basis. Dubai municipality analyzes the master plan of a new project
development on major aspects like parking facilities, number of buildings, and the height of the different
buildings. After 'planning approval' by the municipality, the project architect can design his project to a
detailed design. The municipality will check the major aspects before the developer and contractor get
their 'building approval'. Overall the start up phase is short because it is not necessary to give feedback
on a detailed level to the municipality after laws and regulations have been approved on a high level basis
(see appendixs for interviews with Dubai Festival City and TECOM Investments).
The question is: Do we want to follow the same process as in the UAE? Then we have to create an
entrepreneurial approach within the government and semi government, and then run th at 'government
company' like a business with entrepreneurial people. This will compress the planning process to the
finest detail to be profitable in the end.

5.1.4 Conclusions
In general we see that the role of the Dubai government as an entrepreneurial start up configuration is a
key factor for the urban development approach in Dubai. The Executive Committee is the most important
establishment for His Highness and his different roles in Dubai and for the UAE. The vision and objectives
are set by His Highness. In the whole development and planning process, the Dubai government with His
Highness as ruler, finally decides what, when and where the development takes place.
The role and attitude of the Dubai government challenges semi-governmental and private companies to
move to higher levels of competitive performance . The guidelines are set by the government as initiator
on a high level basis and the private sector has the knowledge and expertise for urban and industrial
planning .

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5.2 Vision tor Dubai

The vision for Dubai was started by ruler Sheikh Rashid Bin Saeed AI Maktoum (1912 -1990) , a man
who understood the danger of relying on oil alone. His vision for Dubai was clear and flourished thanks to
long-term effort, entrepreneurialism and shrewd investment. To ensure that his legacy would last, he
convineed his sons in sharing this same vision.

5.2.1 Porter's Diamond model for the eompetitive advantage of nations

Before we talk about the vis ion for Dubai it is good to know about the competitive advantages of Duba i as
compared to other nations. The Diamond Model from Michael Porter can be used to understand the
relative position of a country in global competition. A country is analysed on four aspects to discover its
competitive advantage compared to other nations. These four aspects are: firm strategy, structure and
rivalry, demand conditions. Relating supporting industries and factor conditions are worked out below for
Dubai. The complete model can be found in appendix 'Porter's Diamond model for competitive advantage
of nations'.

5.2.2 Dubai Strategie Plan 1996

Oil was discovered in 1966 in Dubai and with the revenues of selling they started building up their
industry. In the 70's and 80's they built the aluminium smelter, dry docks, Jebel Ali Free Zone and started
Emirates Airlines. With all these developments, Dubai attracted a lot of people that needed housing,
infrastructure and leisure. Soon they realised that all these developments needed some kind of master
planning to organise. In the mid 90's the government wrote their first strategie plan for Dubai. The plan
was written in cooperation with the DED in Dubai and the United Nations (UN) ; it was also based on
Michael Porter's 'Competitive advantage of nations'. The plan presented a model with a four stage
approach about the cycle of economie progression for Dubai.

Cycle of economie
progression Stage 4 Wealth and investment

Stage 3 Innovation and invention

Stage 2 Investment and diversification

Stage 1 Factor driven economy

From diminishing to
increasing returns

Model 1: UNESCO model for development of Dubai's economy (source: Presentation 'Dubai and its development').

Stage 1: In the first stage Dubai has to build a factor-driven economy that relies on basic factors
like capital, labour and raw materiais. With th is economy they can generate revenues that can be
invested in the next stage

Stage 2: With the surplus revenues from the first stage, Dubai is able to invest in neweconomies.
This allows diversification, which means Dubai does not have to depend only on the factor driven
economy like in the first stage. Dubai can build different economies that contribute to the total economical
growth.

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Stag'e 3: With a diversified economy Dubai is ready for innovations and inventions. It is important
that you can rely on the economy that is built up in stage one and two. These support the innovations and
inventions with their revenues.

Stage 4: During the last stage of the whole economic progression Dubai could invest in wealth and
investments. This last stage develops a lot of revenues that are good for Dubai.

This Dubai Strategic Plan (DSP) 1996 formed the basis for the Dubai Vision 2010. The DSP 1996
included the first mention of a 'cluster strategy' for Dubai. This strategy is developed by Michael Porter
and means that an economy has to develop itself around certain clusters. The clusters for Dubai are:
trade, transport, tourism, higher level services and manufacturing (see 5.4 Cluster Strategy).

5.2.3 Vis ion 2010

Vis ion 2010 was formulated by His Highness and in a recent speech he highlighted the co re of Vision
2010:
1. Introduce a progressive and transparent government;
2. First-class social and economic infrastructure;
3. "We run Dubai as a company, and a very successful one". 'Dubailnc.' has produced remarkable
achievements in all major sectors of the city's economy;
4. Encourage the diversification of the economy based on talent, innovation and entrepreneurship;
5. Digital opportunity as an engine of growth. [21]

The ideas and the recommendations mentioned in the DSP 1996 were translated to operational tasks for
the future. Vision 2010 presented different objectives that Dubai wants to achieve by the end of 2010.
These objectives are classified into three categories: economic, market and social. More information
about the completion of these categories can be found in appendix 'Vis ion 2010'.

By the end of 2005 Dubai realised some of the aspects that were mentioned in the Vision 2010, including:
5t
1. Dubai is evolving into the Hong Kong and Singapore of the 21 century;
2. It has made amazing social, economic, business and technological progress;
3. The progress has been made despite regional instability and volatiIe oil and gas prices;
4. The city of Dubai hosts many nationalities and is becoming the accepted hub for regional business,
trade and finance;
5. Dubai will establish itself globally in transportation, investment, education, finance and tourism. [22]

They had the plan in 2000 to increase the GDP to $30 billion by 2010. This was already achieved in 2005
with a GDP reaching $37 billion. The plan also included an increase of GDP per capita to $23,000 by the
year 2010. In 2005 the average GDP per capita reached $31,000. So in other words, in five years they
exceeded the economic targets that were originally planned for a ten-year period. [23]

5.2.4 Dubai Strategie Plan 2015

Vision 2010 came into effect in the year 2000 and was practically finished by the end of 2005, His
Highness explained in his speech. So Dubai had to come up with another plan with their objectives for the
future. This resulted in the presentation on 3rd February of the DSP 2015. The following description is a
short summary of the DSP 2015 with the headlines wh ere Dubai wants to put particular focus until the
year 2015. The DSP 2015, despite having its own logic and specific goals, is within the national arena of
the UAE, and is aligned with the country's overall strategic plan. The plan is also free of the direct
influence of oil price fluctuations. They have succeeded in diversifying Dubai's sources of income and
reduced dependence on oil (which only contributes 3 per cent to Dubai's GDP). The plan covers five key
sectors:
1. Economic development;
2. Social development;
3. Infrastructure, land and environment;
4. Security, justice and safety;
5. Government excellence. [23]

A summary of this plan and more details about the five main key sectors they are focusing on can be
found in appendix 'Dubai Strategic Plan 2015'. The Executive Committee will monitor the progress of the
DSP 2015 program and will remove any obstacles to ensure proper implementation and rapid execution.

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5.2.5 Conclusions
Dubai wants to become agiobal hub in tourism, business and living. To achieve this goal they formulated
the strategie plan in which the objectives are mentioned. They are focusing on different aspects that need
to be weil developed to support and have an effect on the strategy.
For the first DSP of 1996, five different clusters were formulated. In general we can see th at most of the
aspects from the clusters trade, transport, tourism and manufacturing are realised . The cluster which
focuses on higher level services is being development but still needs a lot of attention .

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5.3 Models for analysing the organisation of Dubai

5.3.1 SWOT analysis

This tooi is used to get more information about the Strength, Weakness, Opportunities and Threats
(SWOT) from the organisation of Dubai. It is split up in internal factors and external factors and is also a
random indication about the current position. [24] The SWOT analysis can be found in appendix 'SWOT
analysis' .

5.3.2 Value Chain Dubai

With Michael Porter's value chain it is possible for companies to define their co re competencies and the
activities where they can achieve a competitive advantage compared to their competitors. [25] We believe
that the model can be used to analyse the government of Dubai. The government can be seen as an
organisation that in th is case has to rule a city instead of a company. As we explained in chapter 5.1.2,
the Dubai government as an entrepreneurial start up configuration according to Mintzberg.
We used this model to determine how a city like Dubai can achieve a competitive advantage compared
over other competing cities. The model can be found in appendix 'Value chain for organisation Dubai'.
The value chain shows weak aspects and where improvements can be made. For Dubai this is useful
because the city has developed very quickly over the last fifteen years. With the value chain it's possible
to indicate future development challenges for Dubai.

5.3.3 Conclusions
With the SWOT analysis we have got more insight into the present affairs of how the government of
Dubai operates. Normally you use the results of a SWOT analysis to design a new strategy for the
organisation. In our case we are not going to develop a new strategy because it is not of interest for our
research. We only used it to get a better understanding of the things that happen in the field of urban
development in Dubai. Interesting aspects for our research are: involvement of the private sector,
attracting foreign direct investments and the development of Free Zones.

Core competences and competitive advantages according to the value chain can be achieved in different
areas. The core competence for Dubai is the very direct and straight policy which is executed by the
government. By this it is relatively easy for companies or investors to start business in Duba i.
Competitive advantages must be seen as extra aspects that other countries do not have compared to
Dubai. Dubai has a first class airline company for transportation of people and cargo, which allows Dubai
to be accessible from all over the world . The development of Free Zones gives an advantage in attracting
foreign investors and companies . Some of these advantages include no taxes and 100 per cent
ownership of your company within the Free Zone. The development of a financial centre and the most
luxurious hotels also contributes to the competitive advantage.
The general conclusion of the value chain is that Dubai is attracting foreign investments which are
invested in the economy and contribute to the realisation of the strategy to become agiobal hub for
tourism, business and living.

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5.4 Cluster Strategy

5.4.1 Introduction
The DSP 1996 presented five key sectors (Trade, Transport, Tourism, Higher Level Services and
Manufacturing). New developments were clustered around the key sectors as part of the DSP initiated by
the Dubai government. To understand what clustering is and how this is integrated in Dubai's urban
development approach we will start with the following definition:

')!\ cluster is a critical mass, in one geographical spa ce, of similar businesses, all supported by their
specialist suppliers and services that are tied to that industry" (souree: presentation Dubai Chamber of
Commerce and Industry, Richard Wynne-Jones, project consultant and client representative).

We interviewed Chief of Strategy Mohamed EI-Ha ge from The Executive Office, who explained why
clustering is important (see appendix 'Interview with The Executive Office'):
1. Clustering creates economic benefits;
2. Laws and regulations are more friendly for these areas and;
3. Clustered areas are attracting global companies.

From a theoretical perspective, Michael Porter says: "Clusters are geographic concentrations of
interconnected companies, specialised suppliers, service providers, and associated institutions in a
particular field. They grow on locations where enough resources and competences amass and reach a
critica I threshold, giving it a key position in a given economic branch of activity, with a decisive
sustainable competitive advantage over others places, or even a world supremacy in that field". Porter
says clusters can influence competition in three ways:
1. They can increase the productivity of the companies in the cluster;
2. They can drive innovation in the field;
3. They can stimulate new businesses in the field. [20]

Richard Wynne-Jones from DCCI was talking at our symposium about the presence of Michael Porter in
Dubai:
"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-rise developments.
"/t'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 earfy
days Sheikh Rashid built the Ports, Jebel Ali Port, Dubai International Airport and started the Emirates
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 built a place where there are now jobs and
there is now value being created for very good economieal, 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 that 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 that is
a high risk policy" (souree: Symposium Tim & Bas).

In 2001 Porter gave a presentation the 'Ridderzaal' in The Hague, the Netherlands. Porter was speaking
at the 'Innovation Lecture' annually organised by the Ministry of Economical Affairs. His message was
that innovation can be accomplished through effective collaboration between consumers, manufacturers,
suppliers, research institutions and government. This form of collaboration, so called 'clusters', is asking
for out of the box thinking over the borders of industry branches. [26]

5.4.2 Cluster strategy applied in Dubai

This is exactly what we see in Dubai. Dubai is supported with astrong and focused leadership over three
generations. Continuity and clarity in vis ion are translated in the DSP and the cluster theory is part of the
DSP. That's why the cluster strategy is working so weil.
The five key sectors from the DSP 1996 are each developed into different projects (see appendix 'Dubai
Strategic Plan 1996'). The strength of the clustering is th at there is arelation between different

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developments in different clusters. By doing this, different project developments are beneficial to more
than one key sector of the DSP. This will stimulate Dubai's economic growth .
We have studied the TECOM Free Zone and combined this with a project visit and an expert interview
with Sanjive Khosla, Director of Strategy and Business Development of TECOM Investments. Each Free
Zone (urban or industrial development projects with specified rules and regulations separate from the
Federal government, see chapter 5.5 Free Zones) is an example of a business concept. In practice each
business concept is translated to business communities. An example of a business concept is the
TECOM Free Zone. TECOM Investments developed the Free Zones DIC, DMC and DKV. These three
entities are developed as communities within the TECOM Free Zone (see chapter 5.5.3).
In practice we see th at the result of these 'cluster developments' is that it's attracting global companies
with similar businesses in each cluster. The TECOM Free Zone development is focusing on higher level
services. The projects DIC, DMC and DKV are consequences of the cluster strategy explained in the DSP
1996.

5.4.3 Sustainability
In the last quarter of 2006, Dubai International Financial Centre (DIFC) released a document and it
explains that half of the Middle East investors' majority is investing now in the GCC. That is a shift from
1h
the year 2000 where the Middle East majority invested their money in Europe. September 11 2001 is
seen as a turning point for investments. It's important is that there comes a balance in the investment flow
in GCC and non-GCC countries. We see now that the international financial institutions are coming in to
Dubai. That is a step in the right direction (source: Symposium Tim & Bas).

Dubai's Strategic Plan is based on the philosophy of Michael Porter. Fluctuations in oil prices and tourism
will affect Dubai's economy. Dubai has an economy based on trading and in the future they need to go to
higher level services. This will add value to the process. This is the big challenge for Dubai.
Every economy needs manufacturing because you will need a balance from low to high income in every
economy. Dubai's economy is now based on the construction market - 11 per cent - and real estate - 10
per cent - (see appendix 'Dubai, United Arab Emirates geographical', figure 1). This needs to be replaced
in the near future if Dubai is to reach a sustainable and balanced economy. Dubai's economy needs a
process where people are adding value, and that will stimulate its economy (source: Symposium Tim &
Bas).

TECOM Investments took the responsibility to develop a sustainable plan for their business 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) . TECOM Investments came up with th is policy
because the Dubai municipality was not capable of com ing up with these developments on a short-term
(see appendix 'Interview Dubai Technology and Media Free Zone').

We think this is not the right market approach. Dubai's government should develop laws and regulations
and policies. There is a need for new laws and regulations and policies on international standards on
subjects as energy, safety, quality of building (e.g. there is no standard building code), waste
management, environmental issues (carbon dioxide expulsion), etc. When every private company is
developing its own standard for quality, environmental issues, safety and energy, this will influence the
sustainability of urban planning in Dubai in a negative way.
Every project as part of the clustering will set its own standard on the aspects mentioned above. Most of
the inhabitants in Dubai are foreigners and they are used to international standards. In the end when the
construction boom is over, and supply and demand is more balanced, there will be choice enough for
investors to rent or buy office space. Only the urban development projects developed on international
standards will make it in the end. Therefore the government of Dubai should take the initiative and
responsibility to develop a new approach, based on international standards for energy, safety, quality of
building, and environmental issues. They are not thinking about this next step to make Dubai's economic
fundamentals strong . This is important for future developments because investors witt look at the
fundamentals of th is economy before they will invest in this area .

5.4.4 Conclusions
The government of Dubai takes the responsibility for new urban developments and presents its vision and
objectives for urban and industrial developments. Therefore the Dubai government developed the DSP
and implemented the cluster strategy explained by Michael Porter.

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5.5 Free Zones

5.5.1 Introduction
According to the World Federation of Free Zones (FEMOZA), a free zone is a portion of clearly defined
and isolated land or setting, with a special tax, customs and imports regime, usually involving a status of
extra-territoriality.

Everything in a Free Zone is oriented towards allowing each of its client companies to conduct its
business without any hindrance. In order to facilitate this easily, the Free Zones are regulated by the
established laws from the government of each country, and in many locations by separate entity - or a
Free Zone Authority. The activities permitled in the Zone are:
• Regulated by a Free Zone law;
• Controlled by the operator, who can be public, private or mixed;
• Used by user companies previously authorised, who have decided to develop their economic
activities partially in a Free Zone. [27]

Next paragraphs are specified on TECOM Free Zone (see appendix 'TECOM Free ZoneJ.

The Dubai Technology and Media Free Zone (TECOM Free Zone) is a visionary project encompassing
free zones dedicated to innovation in information, communication, media and knowledge industries. A
vibrant community designed for entrepreneurs, TECOM offers a range of business opportunities for local,
regional and international companies. TECOM is the new hub of innovative business leaders of the
region, promoting a fast-paced corporate lifestyle.
TECOM consists of Dubai Internet City (DIC), Dubai Media City (DMC) and Knowledge Village (DKV).
The Free Zone is a home to hundreds of global companies that serve technology, media and knowledge
industry. The stress-free administrative services and 100 per cent ownership of companies are two of the
key benefits of th is free zone. Add a convenient location in the hub of Dubai's new innovative
developments and economic growth factor, and you have yourself a winning proposition (source: TECOM
Investments).

The Dubai Technology and Media Free Zone was initially established in 2000 to support and develop
three separate clusters, one for the ICT sector, one for the media sector and a third for companies that
create and disseminate knowledge including training institutions. The first brand at the Free Zone was
launched in October 2000 as DIC. DMC was officially launched in January 2001 followed by DKV in
October 2003.
TECOM Investments, the project developer of TECOM Free Zone, is part of and owned by Dubai
Holding, the organisation structure can you see in the scheme below.

DUBAI HOLDING Shareholder

(Private Company. i--- His Highness
establisched 2 years ago) Ruler Dubai

Fin. Invest. 1: Fin. Invest. 2:

DUBAI DUBAI GROUP
NTERNATlONA (before Dubai
CAPITAL Invest. Group)

International
projects, e.g.
Marocco and
Egypt

Scheme 6: Business structure of Dubai Holding (Authors Tim & Bas).

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______________________________________________________________________ Tjm&Bas

5.5.2 Strategy
The Free Zone developments are focusing on higher level services. The projects DIC, DMC, DKV, and
Dubiotech (a new project from TECOM Investments) are consequences of the cluster strategy explained
in the DSP 1996. In the figure below you can see a cluster of business communities developed by
TECOM Investments around higher level services.

Figure 2: Higher Level Services with business communities as part of a cluster (Authors Tim & Bas).

The general strategy of TECOM Investments is to focus on new economies and start new businesses in
new economies. TECOM Investments is focusing on ; IT, telecom, etc. The strategy for the development
of a new Free Zone for a new economy is divided in two steps:

Step 1: Build alocal industrial hub for a new economy. To accomplish this start building real
estate, design a regulatory framework for the hub.
Step 2: When alocal hub is operational start developing a similar hub in other countries and selt
services to other foreign companies.

5.5.3 Development of urban planning

TECOM Investments developed til! now on DIC, DMC and DKV in different phases (see appendix 'Master
plan TECOM Free Zone'). The development of each phase and the dimension of each business
community are depending on the economic market situation. In the figure and scheme below you wilt see
the structures of DIC, DMC and DKV and the different departments which support the entities of the Free
Zone.

[(IJ
..;
DUBAI
fT M E I I i\
DUB
KNOWLEOGE
X.
I T '" VIllAGE

DMC 2001 >

DIC 2000 > DKV 2002 >
Provides
Structure as International
infrastructure &
a commercial expertise:
full range of
operation: Setupin
services for:
Empowered conjunction with
Commerial,
to establish leading International ,
educational,
free zone companies &
R&D, retail ,
specific corporate consultants, in
residential and
laws & regulations IT I Telecom
recreational facilities

Figure 3: Structures of DIC, DMC and DKV (source: TECOM Investments).

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_______________________________________________________________________ Tim&Bas

ltl
'"
DUB X,
." UtHt
t-l1l
f '4 t H I
( I f .,.
DUB X,
INOWlfOC[
\lH 1 AoCE

Planning & Bus. Development

Scheme 7: Departments which support the entities of the Free Zone (source: TECOM Investments).

The business organisation TECOM Investments was established as a private company with one
shareholder, His Highness. The Dubai Technology and Media Free Zone Authority is a Government
Authority established in 2000 by His Highness. The Government Authority as a public organisation is
close to TECOM Investments. The Government Authority is concerned about the development of TECOM
Free Zone . There are other Government Authorities which look after the other Free Zones. The
Government Authority reports directly to the Executive Council. The Government Authority also gives
laws and regulations to TECOM Investments about the areas they need to develop, such as IT and
education. As a conclusion we can say that TECOM Investments is a private company owned by the
government of Dubai. As aresuit from the DSP, the government takes responsibility and formulates the
governmental framework for the development of this Free Zone .

To establish the Dubai Technology and Media Free Zone, TECOM Investments has been mandated to
carry out the following:
• 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 .

TECOM Investments as a private company is financed by the Dubai government. TECOM Investments
bought the total plot of land from His Highness at a very low price. The ownership of the total plot of land
can be seen as start up capital for the development of DMC , DIC and DKV. Other financing of the
TECOM Free Zone development came from local investors. 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.

The real estate in this Free Zone is a 'Ieasehold concept'. Leasehold means that the ownership belongs
to TECOM Investments and for some other plots in this Free Zone to local investors. The companies who
established their business in the Free Zone are leasing the property from TECOM Investments.

Private equity firm Capital Partners from the United States signed an agreement with Dubai Technology
and Media Free Zone for the investment of $197 million to develop the 'RiverWalk' project in the TECOM
Free Zone. The RiverWalk project is valued at $1 billion when completed . RiverWalk is going to be a
Venetian-style development with a car-free environment covering more than 1.6 million square feet of
land and will include more than 5 million square feet of residential apartments, offices, boutique shops,
galleries, cafes and an international hotel. The development of this project has been delayed because the
developer couldn't meet certain milestones given by TECOM Investments. At this moment TECOM
Investments is looking for a new developer together with Capital Partners. [28]

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Tiro & Bas

5.5.4 Process of decision-making

Step one in the process of decision-making is that TECOM Investments develops the concept strategy
and benchmarking for this new Free Zone (this is ca lied the conceptual phase). This concept strategy will
be discussed with the overall management of TECOM Investments and wil! result in an approval. During
this process, TECOM Investments collaborates with the private company Dubai Properties. In the
appendix 'Interview Dubai Technology and Media Free Zone' we explain the process of decision-making
for the development of the TECOM Free Zone.

After the management approval of the concept strategy, the plan will move to the Zoning Authority. The
Zoning Authority is part of Dubai Properties and is concerned with master planning. Different consultancy
companies are asked to design their plan for the Free Zone, which results in a final master plan for the
new Free Zone. The final master plan must then be approved by TECOM Investments as final master
plan for the new Free Zone .

In the second step TECOM Investments is concerned with infrastructural planning and cost estimates
(a lso known as a feasibility study). Acting once again as the project management partner, Dubai
Properties works with their consultants to develop the infrastructural planning and to conduct a feasibility
study. Dubai Properties will then deliver the results to TECOM Investments for final approval.

The third step is a business plan developed and approved by TECOM Investments. Once the business
plan can be implemented (step 4), sales and marketing activities are deve/oped in-house by TECOM
Investments' 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
will take over maintenance of the Free Zone (step 5). To control this process and to keep an overall view,
the managers of both TECOM Investments and Dubai Properties will be responsible . (Note: There are
relatively small teams working at the different departments at TECOM Investments: For examp/e, the
Sales and Marketing Department at DIC consists of 17 people.)

Project delays on all TECOM's projects are between six months and 24 months, mostly because there is
a dramatic imbalance between demand and supply in the Dubai construct ion market. The booming real
estate market in Dubai means that resources are not always readily available and all major companies
are occupied with large orders.

The start up phase (when the Dubai government defines where the Free Zone can be p/anned) for
TECOM Investments projects is re/atively short. Because planning a Free Zone is part of the overall
master planning for the city of Dubai, developing its ru/es and regulations is given a lot of high-level
attention. TECOM Investments doesn't need approval from the Duba i municipality for the development of
the Free Zone itself, meaning that the start up phase is very short because it is not necessary to give
feedback to the municipality.

In practice there are organisational bottlenecks. One major bottleneck for TECOM Investments is the fact
that institutions like DEWA and RTA are not involved in each step of the process . These institutions are
involved in the start up phase but there is no transparency or 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 that need improvement. There is no
uniform building code or a standard for quality; these should be issued by the municipality. From a
process angle there is a need for upgradated skilIs of personnel in different organisations.

Conclusion out of the TECOM process scheme:

The principle idea is that this project organisation walks through the same fundamentallaws and
processes for approval by the Dubai government but they don't have to queue for the different
permissions . This saves a lot of time. Furthermore, plan development and plan implementation are the
responsibility of the TECOM Investment business organisation. When it comes to planning we see that
this business organisation is more reactive than pro-active. The process requires a more detailed level of
planning to tackle issues during the development in a pro-active way.

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5.5.5 Infrastructure and maintenance

All infrastructure within the Free Zone is financed by TECOM Investments, except in the cases of smaller
roads within plots that have already been sold to local investors. This varies on a case-by-case basis
when it comes to the interchanges and bridges connected to the Free Zones, as some have been built
solely to serve projects developed by TECOM Investments, Nakheel and Emaar. This means the costs of
these interchanges and bridges have been shared by these companies and the RT A. TECOM
Investments earns back th is investment through the land lease and commercial office rents and by
levying other service charges.

One of the financial constructions applied to finance infrastructure in Dubai is the participation of banks or
funds. As an example we have our case study project Dubai Festival City, which is under development by
the private sector (see our interview with a development manager at Dubai Festival City for more
information about this project). Funds like ADCB Macquarle and ZonesCorp are infrastructure funds. The
costs for developing the total infrastructure are worth $1 million for the total project. From the total price of
each plot of land that is sold, ten per cent is used to pay back infrastructure and the other 90 per cent is
for the rest of the project. The investments can be calculated on ten to 12 years and the average profit for
the fund is ten to 12 per cent. The fund is payed annually. [29]

The organisational strategy of DIC and DMC is to focus on enabling services and business support to the
industry while non-core aspects (Iike infrastructure) are taken care of by investors and third parties.
Private investors are investing in the Free Zone's infrastructure development of DMC and DIC . In the
appendix 'Map of Major Projects Dubai,' you wil! see the plots, indicated with red ellipses, where local
investors are developing. Property Management Leasing Agreements (PMLA's) are used for private
investors. This is an investment model that allows private investors to develop buildings on Free Zone
land while the Free Zone runs and manages the property. After completion of a new property by local
investors, TECOM Investments takes over the responsibility for leasing and licensing the buildings .
Maintenance of the building must be done by the developer but it is possible to outsource this to the
maintenance department of TECOM Investments.

5.5.6 Conclusions
As aresuit, the DSP Dubai government has taken the responsibility to formulate the governmental
framework for the development of this Free Zone.
The private business organisation TECOM Investments, as part of Dubai Holding, is established within
defined boundaries to develop the business communities DMC, DIC and DKV with a clear vision and
strategy. Plan development and plan implementation are in one hand with TECOM Investments as the
responsible business organisation. TECOM Investments is mandated for different aspects to develop the
TECOM Free Zone. The mandates for decision-making during the development process guarantee a fast
process development. In practice we do see a lot of issues because different stakeholders are not
participating from the start of the project. The Government Authority is involved in the development
process as supervisor and will report directly to The Executive Committee.
TECOM Investments is the long-term investor for th is Free Zone and takes responsibility for leasing of the
property and its exploitation. Other investments are done by local investors as weil as foreign direct
investors.

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5.6 Gated communities

5.6.1 Introduction
Gated communities refer to a physical area that is fenced or walled off from its surroundings. Entrance
into these areas is controlled by gates or booms. It includes residential areas with restricted access, as
weil as controlled access villages for work, recreational, and/or commercial purposes. Gated communities
can include both enclosed neighbourhoods and security villages.

Enclosed neighbourhoods refer to existing neighbourhoods that have controlled access through gates or
booms across existing roads. Many of these neighbourhoods are fenced or walled-off, with a limited
number of controlled entrances/exits. Security villages refer to private developments where the entire
area is developed bya (private) developer. These areas (for example, secured golf estates, townhouse
complexes, office parks, etc.) are physically walled-in or fenced off and usually have a security gate or
controlled access point. [30]

5.6.2 Gated communities in Dubai

When we take a closer look at Dubai we see that, except for the city centre, Dubai is divided into different
areas for living, working and leisure. The gated communities we lived in were built by Emaar. Emaar is
one of the biggest developers in Dubai; they built all the residential gated communities on the main land.
Nakheel is another developer who built residential gated communities on the artificial islands for the
coast, like the Palm Jumeirah, Palm Jebel Ali, Palm Deira and the World. Dubai Holding builds leisure
and business developments which can in some way called communities. In Dubai we can distinguish two
kinds of communities; the gated communities and norm al communities. A gated community is physically
fenced and guarded from the environment and people who do not live there. While a community can
sometimes be fenced but is open for public and only the buildings itself were closed for public. In
appendix 'Map of Major Projects Dubai' you can see the different communities and where they are
located in Dubai.

Photo 1: Aerial view gated community the Lakes under construction (souree: UAE Locator)

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5.6.3 Our experience with gated communities

During our six month stay in Dubai we have had the experience to live in different gated communities.
Below we give a short description about our experience in the gated communities 'The Springs' and 'The
Lakes' . Buildings in these gated communities are on freehold and/or leasehold ownership basis. Freehold
ownership is the most exclusive right of holding land and building forever. There are no restrictions on the
duration of ownership, which is even transferable to your relatives. Leasehold ownership is exactly the
same as freehold ownership except for the duration, which is currently limited to 30 or 40 years. In both
cases there is always the risk that your plot of ground can be reclaimed by the government and you will
have to look for another building . There is also a third type of ownership called commonhold, which
means that you pay an amount for the management and maintenance of the common areas and are
always vested in the respective of the owner. The maintenance of your own bUilding is for your own
responsibility.

When entering a gated community you

have to pass the security guard, who asks
for some general details. In our
community they wrote down our car
number plate and asked us about the area
and villa where we lived. The security is
not tight in the way you have to show
identification cards. When you have
entered the gated community you
experience a totally different feeling than
in the city. It is very quiet and nice
environment compared to hectic pace of
the city and the roads.

Photo 2: Entrance gated communities (Authors

Tim & Bas).

A disadvantage of these
communities is the lack of contact
you have with other residents. Most
of the residents live their own life
and in some way it is a kind of ghost
city. In the morning everyone leaves
for work and returns late in the
evening. During the day the
community is very quiet and you
only see the maids and gardeners.

Photo 3: Impression gated communities (Authors Tim & Bas).

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Tim& Bas

Because they are built so quickly, the

quality of the villas is often very poor.
For example, it is common for
foundations to be bad and for cracks to
appear on most walls. Also the
finishing and materials used for those
houses are not comparable to
international standards. When it is
raining the water enters the villa
through the windows because they are
not fixed in properly. Maintenance of all
villas , public facilities and the whole
area is for the responsibility of the
developer Emaar. 80 when there is
sQmething broken you can give them a
call and they will take care of it, with or
without costs.
Photo 4: Impression gated communities
(Authors Tim & Bas).

The facilities in these communities

are mostly very good as you can
see in the pictures. There is always
a small shopping centre where you
can buy the much needed things.
Other facilities which are available
are a swimming pool, BBQ places
and sport facilities.

Photo 5: Facilities gated communities (Authors Tim & Bas).

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______________________________________________________________________ Tim&B~

In this picture you see the swimming

facilities we had in The Springs . These
were located in the centre with all the
villas around it for easy access.

Photo 6: Facilities gated communities (Authors Tim & Bas).

5.6.4 What is usetul tor the Netherlands

What we have seen and experienced in Dubai is that in some way the community approach could work
as a new urban development approach in the Netherlands. Our personal experience was Iimited to
residential gated communities by ourselves but we read about the other types of communities. If we look
to our case project for the realisation of a science park at our university campus we could use the
following method: The project area should be defined and a private investor takes care of the
development, construction, general facilities and maintenance of the whole area. The government should
only give general input on the regulatory framework regarding where the development can take place and
leave the exact completion to the private investor. By doing this the investor can develop an economical,
sustainable and attractive project th at can satisfy the demands from the market.
An important aspect here is trust. In Dubai we have seen that private companies can achieve an equal
quality level that meets the demands of the municipality. We see here that it is not always necessary for
the municipality to enforce regulations when the development takes place by a private company. A private
company also knows th at when they are known for offering low quality, customers stay away and there
are no revenues.
The whole development should focus on one specific business segment only. Then you can attract all
kind of companies that are related to that particular business segment. It is also possible that an investor
offers the established companies a list of services which are provided in the area and where they can
make use of these services.

Two important conclusions from the article of Landman [30] are:

• There are several critical concerns and indications that gated communities have the potential to
negatively impact the goal of urban sustainability.
• Recognising that urban sustainability is one of the goals for urban planning and management, all
urban development must be considered in relation to the dimensions of urban sustainability. Within
this framework, the appropriateness of gated communities as a type of development for the urban
future needs to be carefully considered.

We can reflect these conclusions on the gated communities in Dubai to see what kind of impact gated
communities have here on the urban development.
• It accentuates the difference between the high income and low income group;
• It closes down a large area of the urban infrastructure of the town. This has an impact for the
mobility of people who do not live here and emergency services who have to drive around these
areas because they cannot pass through;

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5.6.5 Conclusions
The use of gated communities and communities developed by private companies are observed in the
urban development of Dubai. Private companies are also responsible for the maintenance, services and
facilities available to the tenants in the community. Revenues for the private companies who developed
these communities are earned over a long period of time. Therefore it is necessary that they focus on a
high level of quality and long-term sustainability of the community. The decision to build these residential
communities is taken by the government. After decision-making, the government sets up a regulatory
framework for these developments. After this, private companies are responsible for the development and
implementation of the project.

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5.7 Outcome symposium and case studies through expert interviews

5.7.1 Introduction
In chapter 4 we introduced our research methodology. We focused ourselves on the organisation of a
symposium and different case studies through expert interviews and on-site visits. In chapter 4 we
explained how we organised these methods and our expectations beforehand. In th is chapter we will
explain the outcome of our research methodology and if our expectations became reality.

5.7.2 Symposium
By starting the morning session with a short 'game theory' we achieved an open atmosphere between us
and between our guests. This resulted in good discussion sessions with recent examples from the
professionals and academies from Dubai and the Netherlands. This is what we expected in the end.
After the symposium we summarised the conclusions for each discussion session. The summary of the
presentations and the discussion sessions can be found in appendix 'Value Creation Through Sharing
Knowledge In Urban Development'. Because of this symposium we got a beUer understanding about
Dubai's urban development approach.
After the symposium we talked about our conclusions on the Dubai Eye Radio show, presented by
Siobhan Leyden and broadcast bYt Arabian Radio Network in Dubai. We were live on the show with
Siobhan Leyden on Sunday the 4 h of February from 12.10pm till 12.45pm. The Editor-in-Chief of Property
World magazine, Andy McTiernan, also joined us on the radio show. Mr. McTiernan also aUended on our
symposium.

We translated our conclusions into an article (see appendix 'Drawing on Dubai') and the article was
published in the March edition of Property Worfd Middle East magazine. Writing this article was only
possible by obtaining first hand information. As a conclusion we can say that all our expectations for this
symposium were feasible and achieved and gave us more input for this report.

5.7.3 Case studies through expert interviews

To understand more about Dubai's urban development approach and the process from project initiative to
project exploitation we reviewed different case studies. The project studies were TECOM Free Zone,
Dubai Festival City and gated communities The Lakes and The Springs.
With all of the projects it was possible to have an on-site visit. We visited TECOM Free Zone by
ourselves, Dubai Festival City with a development manager and we lived in two gated communities during
our stay in Dubai. About these on-site visits we can say that the information was beneficial to our Dubai
analysis. From our own experience in the gated communities we can say how the project developer is
taking care of central facilities and maintenance of the project.
We also conducted interviews for the TECOM Free Zone project and for Dubai Festival City. These
interviews have allowed us to describe the urban development process in terms of decision-making in
different phases. This was the insight information we needed and where we focused our questions (see
appendix 'Analyse Case Studies'). Our aim was to study about more projects in depth but that eventually
proved impossible. The transcription of the interviews, together with the available literature in the office of
CB Richard Ellis took more time than we expected. The time and effort to arrange an interview was also
an important factor.
In general we can conclude that we have met our expectations about the case study projects together
with the expert interviews, but our aim was to review more case studies. The result of an analysis about
more case studies would have given us a more balanced analysis about decision-making processes in
different projects. Still, we are satisfied with the number of case studies and the information that came out
of it to apply in this report.

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6. Conclusions Symposium
As Masters 5tudents of Construction Management and Engineering we organised the symposium:
"Value Creation Through Sharing Knowledge In Urban Deve/opment". For our graduation project
we were in Dubai to do research about urban development. In the Netherlands we have a
stagnating urban development market. How can the Netherlands improve? Dubai's
entrepreneurial approach is used as a best practice. At our symposium we discussed the urban
development approaches in Dubai and the Netherlands. Below we will describe our conclusions
(see also our published article 'Drawing on Dubai' in the March edition of the Property World
Middle East magazine as appendix).

Dubai is getting ready for more overall planning in urban development projects. After the entrepreneurial
approach we saw in the start-up phase, it is ready to implement specified laws and regulations and risk
management to accompany the future developing process. As it stands today, when problems occur, they
must be solved on the spot , which causes delays. Proactive planning done in advance can prevent most
problems.
In Dubai we see a select group of people holding most of the ground positions. This is easy when
developing a project because there are only a few stakeholders. This contrasts with the Netherlands,
where ground positions are widely spread between investors (30 per cent) and private users (70 per
cent). To obtain the required ground you have to go through compulsorily procedures, which take a lot of
time. The implementations of these aspects wilt show that projects can be finished on time and have the
unique identification for good planning of urban development projects.

Development companies in Dubai take the responsibility and the leadership to nurture urban development
projects. The developer has to develop and take care of the complete infrastructure. In the Netherlands,
private companies develop the initial project, while the government operates as the long-term investor
and is responsible for infrastructure, traffic and maintenance of the building environment .
We see Dubai has to deal with traffic congestion, as weil as capacity problems on Dubai's main road
system. Demand is currently outpacing supply. 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 currently going through the economic cycle which Europe has
alreadyexperienced.

The urban development approach in Dubai has changed since the early years when the value of its
economy was first initiated by creating employment, then by establishing the urban infrastructure. Today
we see Dubai's development is driven by investment.
Dubai is searching for the right model to use for future urban development. Religion is an important
aspect in the development of Dubai, as are the demands for good education, healthcare and family life.
In comparison to the Netherlands, Dubai's developers are willing to make mistakes, learn from them, and
move on very fast.
To ensure stability for future development, Dubai is attracting international investors for long-term
investments. Dubai's economy has been based on the construction market and trading since the early
days. In the future, however, the construction market needs to be replaced by high level services and
intelligence. This wilt allow Dubai to develop a sustainable urban development plan that is ready for the
future .

As part of our research methodology we are studying the outcome of different expert interviews , case
studies and scientific papers. We can already give some conclusions. We had an interview with a
prominent member of The Executive Office that helped us understand the Dubai Strategic Plan (DSP)
rd
2015. Two days later on the 3 of February His Highness Sheikh Mohammed Bin Rashid AI Maktoum
unveiled his plans in a presentation to the public. This strategic plan sets out the strategic approach which
focuses, among other things, on Dubai's urban development sector. The objectives in the previous plan
for the years 2000 till 2010 were already completed by the end of 2005. This is dramatically different than
in the Netherlands, where achieving consensus with all involved participants is our starting point, which

34
Final report " Urban clevelopment in Dubai

_________________________________________________________________________ Tim&B~

takes a lot of valuable time. On average the planning process for an urban development project takes
about eight years in the Netherlands - in Dubai it takes only five years to complete an entire plan! The
Netherlands now wants to reduce the time for the planning process by 20 per cent by the end of the year
2020.

To accelerate the urban planning process we can see that the project initiatives, responsibilities and
leadership come from the Dubai government; the private sector is also becoming a more active and
involved partner. The role of the Dubai government is what we call an 'entrepreneurial approach', in that it
is accessible to foreign investors, consultancy companies and other institutions because of laws and
regulations that are changing to more international standards.
In the Netherlands we see a drawback from the government, because the initiatives and leadership are
expected to come from private companies. To accelerate the process for complex urban and industrial
development projects we could manage this governmental system in a more proactive way. It could be
run more as a business with entrepreneurial approaches to accelerate and contribute to the development
of those complex projects.

For the complete summary of the symposium, see appendix 'Value Creation Through Sharing Knowledge
In Urban Development') .

Note: The conclusions of this symposium are based on the discussions we had with all attending professionals at the
lh
symposium on the 30 of January 2007 in The Emirates Towers, Dubai. The conclusions are based on what has
been discussed in our symposium. The conclusions are formulated by the authors of this summary, Tim van Helmond
and Bas van Montfort.

35
f inal repo rt: Urban developmenl in Dubai

______________________________________________________________________ Tjm&B~

7. What can the Netherlands learn from Dubai?

7.1 Introduction
In this chapter our conclusions from previous chapters will be translated to lessons for the Netherlands.
These lessons are the input for our business organisation model presented in chapter 8.

Vision tor Dubai

~
<0
~
Cluster Strategy
LO
Research Questio~
.... Free Zones
$
a. Lessons //
co
..c:
() Gated Communities

Symposium

Scheme 8: From research question to lessons for the Netherlands (Authors Tim & Bas).

With our model we present a new urban development approach for the Netherlands that will help
accelerate the process. Our model is examined by different expert institutions from the Netherlands and
the result of th at is written in chapter 9.

7.2 Lessons for the Netherlands

From chapter 5.1 with the use of expert interviews, literature and our symposium we can say that:
In general we see th at the role of the Dubai government as an entrepreneurial start up configuration is a
key factor for the urban development approach in Dubai. The Executive Committee is the most important
establishment for His Highness and his different roles in Dubai and for the UAE. In addition to determining
Dubai's vision and objectives, His Highness works with Dubai government to decide what, when and
where future development wil! take place.
The role and attitude of Dubai government challenges semi-governmental and private companies to move
to higher levels of competitive performance. The laws and regulations are set by the government as
initiator on a high level basis and the private sector has the knowledge and expertise for urban and
industrial planning.

General lesson 1:
The whole governmental system must implement a more entrepreneurial approach to eh allen ge the
private sector.

Translation to the situation in the Netherlands:

With an entrepreneurial approach the government is challenging the semi-government and/or private
sector for urban development projects. Especially when urban development projects are of national
economie importanee, the government and private business organisations should take an entrepreneurial
approach to nurture these projects together. Developing these projects in a short period of time and in
such a way that they parallel market demand and the National government's future strategie plan requires
long-term strategy and long-term policy. The government should set up laws and regulations on a high
level base (a regulatory framework) and rely on knowledge and expertise of the private developers.

36
Final report · Urban dcvelopment in Dubal

Tirn & Bas

From chapter 5.2 with the use of expert interviews, literature and our symposium we can say that:
Dubai wants to become agiobal hub in tourism, business and living. To achieve th is goal they formulated
the strategie plan containing these objectives. They are focusing on different aspects that need to be weil
developed to support and have an effect on the strategy.
The first DSP of 1996 included five different clusters . Of these, the goals for trade, transport, tourism and
manufacturing have generally been realised . The last cluster, higher level services, is under development
and still needs a lot of attention.

General lesson 2:
The National government should develop a long-term strategy with a long-term policy based on different
economie pillars of nat ion al importanee.

Translation to the situation in the Netherlands:

The National government should present the strategie plan for the next ten to 20 years and define the
economie pillars for urban development in the Netherlands. These projects of national importanee should
not be influenced by the four-year political cycle and changes in budgets and policies. Instead, they
should be separate entities that are not tied to any one political party.

From chapter 5.4 with the use of expert interviews, literature and our symposium we can say that:
Porter's cluster strategy is implemented in the Dubai Strategie Plan. The cluster strategy is based on a
long-term vision and strategy with a focus on urban development. All the initiated urban development
projects are connected to one or more clusters. As aresuit each project will ad value to Dubai's economy.

Generallesson 3:
Porter's cluster strategy should be implemented in the strategie plan of the Netherlands and the urban
cluster developments can support the defined economie pillars.

Translation to the situation in the Netherlands:

Porter's theory about clustering should be implemented in the Netherlands. In the past we have seen the
the implementation of 'T-Zones' in the Netherlands. Those T-Zones where developed from a poverty
perspective at that time. The idea behind the cluster developments in Dubai is a government focusing on
economie growth. That is a different perspective. A marginal note we have to make is that the laws and
regulations applied to cluster development projects in Dubai could be in conflict with our European
instructions defined in Brussels. A follow-up study could give more insight in the opportunities of cluster
developments within Europe. The cluster project focus should have an international dimension for a
follow-up study to financial markets and transparency.

We see a stagnating market in 'De Randstad' and in 'Noord-Brabant'. The semi-governmental

organisation BOM says there are opportunities for clustering in the province Noord-Brabant. The BOM is
focusing on healthcare development as a cluster development. Large companies like Philips and Akzo
Nobel are based in this province. By taking one step backwards , we can bring acceleration and growth to
th is stagnating market. However, it will require the National government to collaborate with the private
sector to create a long-term strategy.

From chapter 5.5 with the use of expert interviews, case studies and our symposium we can say that:
The private business organisation TECOM Investments, as part of Dubai Holding, is established within
defined boundaries to develop the business communities DMC, DIC and DKV with a clear vision and
strategy. Plan development and plan implementation are in one hand with TECOM Investments as the
responsible business organisation . TECOM Investments is mandated for different aspects to develOP the
TECOM Free Zone, which guarantees a fast process development. In practice we see a lot of issues
because different stakeholders are not participating in the process from the start of the project. The
Government Authority is involved in the development process as supervisor and will report directly to The
Executive Committee.
TECOM Investments is the long-term investor for th is Free Zone and takes responsibility for leasing and
exploiting the property. Other investments are done by local investors as weil as foreign direct investors.

37
Final report. Urban developmenlln Dubal

_ _ _ _ _ _ __ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Tirn & Bas

General lesson 4:
A business organisation is established within defined boundaries in the semi-governmental and/or private
sector with the needed mandates for the development of a specific urban development project. Project
development and project implementation are in one hand .

Translation to the situation in the Netherlands:

The BOM could have a role in establishing a business organisation with a" needed mandates for the
development of an urban development project of national importance in the Netherlands. To guard the
progression and define laws and regulations, a Government Authority must be established for each
project. This Government Authority should report directly to the responsible department within the
National government.

From chapter 5.6 with the use of case studies, literature and our own experience we can say that:
The use of gated communities and communities developed by private companies are observed in the
urban development of Dubai. Private companies are also responsible for providing exploitation,
maintenance and services and facilities to the tenants in a community. Revenues for these private
companies are earned over a long period of time. Therefore it is necessary that they focus on a high level
of quality and long-term sustainability of the community. The decision to build these residential
communities is taken by the government, who then establishes a regulatory framework for these
developments. It is then the responsibility of the private companies to develop and implement the project.

General lesson 5:
The developer takes the responsibility for exploitation and services and facilities in a community. The
quality of the project is guaranteed because the developer earns his revenues over the long-term.
Therefore the developer can be a long-term investor.

Translation to the situation in the Netherlands:

Exploitation and services and facilities should be the carried out by one organisation that is responsible
for balancing supply and demand for different facilities . The facilities have to possess the needed quality
level, which wi" positively affect the liveability and sustainability of the project. As a result, these urban
development projects wi" need less redevelopment over time.

38
Final report: Urban developmenl in Duba.

Tim & Bas

DESIGN PHASE

8. Case study in the Netherlands

8.1 Introduction
Our process model below will focus on private institutions and the (decentralised) government in the
Netherlands. We present a 'general business organisation model' for urban development projects of
national importance in the Netherlands. The second business organisation model is specified on the
'Science Park' case project. With our general model we want to deliver results for acceleration in the
development process in the Netherlands.

8.2 General business organisation model

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Cor. business: Business organIsaIIon:

Deyelop nabonal strategie plan 19 maridaled lor !he aevelopmenl proeess (sel plots ol land 10
Def/ne economie pilars 0",esIOf5);
Focus on CIu$Ier aevetopmenls Has plan d9\/elopment arul plan mplemenl" Iion lil one hand :
[)enne Iaws and reg ulalions on hig level base Achl8ves as m n o bJeclive kJng-term comrnfttment for suslain.u bJe
developm nl.
Apply an errtrepfe<leurial approach in !he whole go, emmenlal syslem
Governm.nl Authorlty:
ROIoI 85 supenrisor Irom !he pullIie slda 10 s~ mu Ie lhe bu$1neS3
orgsni lion 10 lake cate ol public Iaws. regullltion, nd prO<:óldure
ll1al are needed lor every devetopmenl in \he Ne\he~an ds

ConlmunlCator between bUSln6$S org3nisaUon and respon Sibia pubi.:

, lil\lle

Model 2: General business organisation model (Authors Tim & Bas).

The governmental system in the Netherlands consists of three entities with their own specific tasks ;
National government, province and municipality (see model above). Derived from our Dubai analysis we
defined the role of the different entities in our governmental system.

We look at the development of the Science Park in a general way. We assume that the plot of land is in
governmental ownership. The government and private parties took the decision to develop the Science
Park as knowledge based project of national importance.
The Government Authority defines laws and regulations for this specific project. A private development
company can operate and develop this project. This private development company is established with the
imput of the BOM (operating on province level) and is mandated to develop certain aspects, such as :
• Project management;
• Financing;
• Tendering;
• Urban planning and selling plots of land ;
• Exploitation.

39
Flnal report Urban development In Dubal

Tim & Bas

Because this private development company is operating without interference by the government, the
project can be developed in a short period of time and respond to the economie demands of the market.

In general some points of attention for the different governmentallevels:

National government: The National government should focus on a national strategie plan that focuses
on urban development and industrial area development on the long-term . This plan shouldn't have a
direct relation with the four-year political cycle in the Netherlands. One of these pillars can be the
development of a knowledge based economy. Our science park case project as an example could be a
project of national importanee.
Furthermore, the National government should take the initiative to implement Porter's cluster strategy; as
clusters can influence competition in three ways (see chapter Cluster Strategy). In the case of Dubai, we
have seen that cluster developments attracts more international business which is benefitial to their
economy.

Province "Noord-Brabant": The province should focus on the development of laws and regulations on a
high level base to attract investors to main projects that are defined by the National government. Another
task is to coordinate the implementation of the strategie plan on province level and municipality level.

Municipality Eindhoven: For the whole governmental system, including the three different layers, there
must be a more entrepreneurial approach to challenge the private sector. In terms of the proposed
science park, the municipality Eindhoven can implement her entrepreneurial role by challenging the TUle
to develop this project in the area of knowledge and innovation . This is justified because the outcome of
this new urban development project can be of national importanee. The TUle organisation owns the plot
of land and can develop the 10 hectares within the boundaries of the zoning plan developed by the
municipality Eindhoven . The zoning plan allows the development of education and research related real
estate. The overall objective of municipality Eindhoven is to succeed in developing enough projects th at
are beneficial to the strategie plan of the National government. This means the government also has a
role in these developments.

In general our advice for the governmental system is to run it in a more entrepreneurial way. To be
effective and have the same approach as in the private sector, an entrepreneurial method should be
implemented in the whole system and not only within municipality Eindhoven .

Photo 7: Aerial view of Science Park development Iocation (souree: Google Earth, March 2007)

40
Flnal report · Urball developlTlent In Dubal

Tirn & Bas

8.3 Science Park business organisation model

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Shareh~ders are TUle , ir.ves.tor and 'he deveioper;
Core bualnotsa:
Develop rra tlon 31strategie plan Business organlsabon is mandated fOf lhe whole development
De-fi n8 6éOnomtC P"áf6
process;
Plan de",olopment and ptan Împlem&ntatlon are lhe responsîoility of tha
Focus 00 eIu. let' developments
D"fi~ Jaws and reguJaliof\S on high level ba.a
business organisation"
Long-term committment and a sL::stair:able devefopment are main
Appty an enlreprenewial approach in the w~e governme.ntal sy!:item objactives.

Model 3: Business organisation model 'Science Park' (Authors Tim & Bas).

TUle holding structure: The TUle is a public institute. Within the holding structure of the TUle it is
possible to develop a new business organisation called "Business organisation Science Park" as a private
holding company. This will require the TUle to not sell the plot of land. As the principal, the TUle will have
the authority to develop this science park. In this role, one of its aims will be to attract high tech start up
companies to the science park. Other developments could include test facilities (laboratory etc.), research
and technology institutions, public private collaborations and business unit's facilities for small companies.
This is in synergy with all other activities that are deployed at Ihe TUle. Primary attention inside the TUle
developments are related to research, development and innovation.

The business organisation Science Park is established by the TUle, investor and developer. These three
shareholders guarantee a long-term commitment and sustainable project development. In other words,
the business organisation Science Park is a private company owned by th ree shareholders.
Each of the th ree shareholders has their own tasks and responsibilities (see business organisation model
2). The task of the TUle is to develop the specifications for the building program, including which facilities
are to be developed on the plot of land. Their second task is to contract the high tech start up companies.
When we look at the decision-making process during the development of the Science Park, the TUle has
an important role. While the final decisions made during each step are the responsibility of the TUle, each
dicision must be clarified with a contract between the principal, investor and developer. The responsibility
of the investor is to set the financial boundaries. For financing this Science Park there are more
possibilities. We assume that public subsidies for the development of the Science Park will be part of the
financial feasibility. Other investments must be obtained from the private sector. A second option is that a
bank or institutional investor finances the real estate.
Meanwhile, the developer has the responsibility for planning and development, tendering and contracting
and maintenance. Tendering and contracting is a main task of the developer because he has the
knowledge and experience. Infrastructure and real estate within the Science Park will be maintained by
the developer as weil.
Important facilities within the Science Park are a presentation room, copy shop, secretarial and cleaning
services, cafeteria, small supermarket and a sm all fitness facility. All these facilities exist to support the
high tech start up companies. The exploitation of these facilities will be the responsibility of a Service and
Facility company, the operator. Just before the project is completed and the high tech start up companies
arrive, the operator will be recruited.

41
Final report: Urban developmenl in D\lbai

Tim & Bas

In general: The development of this Science Park is a unique project of national importance. The local
government and private business organisation Science Park should develop an entrepreneurial approach
to develop this project in a short period of time. It should match with the economic demand from the
market and the future strategic plan of the National government, particularly in terms of long-term strategy
and long-term policy. In the case of the Science Park, the principal (TUle) has full ownership over the plot
of land and is therefore a critica I stakeholder in the process. To encourage urban development projects
like this we pro pose that the targets for the province Noord-Brabant and the municipalities are developed
bya long-term vision and strategy instead of the four year political cycle that we see right now in the
Netherlands. For a successful development in a short period of time it is necessary that this project will
not be delayed by governmental laws, regulations and procedures.

8.4 Answer central research question

Sub questions:
• What are the most important organisational characteristics for urban development projects in
Dubai?

The whole governmental system in Dubai implemented an entrepreneurial approach to challenge the
private sector.

Business organisations are established within defined boundaries in the semi-governmental and/or
private sector with the needed mandates for the development of a specific urban development project.
Project development and project implementation are in one hand.

The developer takes the responsibility for exploitation and services and facilities in a community. The
quality of the project is guaranteed because the developer earns his revenues over the long-term .
Therefore the developer can be a long-term investor.

• What are the most important process characteristics for urban development projects in Dubai?

The National government developed a long-term strategy and a long-term policy based on different
economic pillars of national importance.

Porter's cluster strategy is implemented in Dubai's strategic plan and urban and industrial cluster
developments are supportive to defined economic pillars.

Central research question:

''What are the key characteristics for a business organisation to accelerate the urban development
process in the Netherlands with the input of a practice approach from Dubai, and how can th is be
utilised?"

We refer to chapter 9 for the answer to our central research question .

Discussion :
Dubai's urban development approach is not 'the perfect model' for the urban development process in the
Netherlands. We can say that Dubai's urban development approach is a useful model to redesign the
governmental approach and with that the urban development process in the Netherlands"
We have to take into account that the economie, politieal and the governmental system are different in the
Netherlands.

42
Flnal report: Urban development in Dubai

______________________________________________________________________ Tim&Bas

9. Final conclusions
9.1 Experts in the Netherlands
Our model is examined by different expert institutions from the Netherlands in this chapter.
nd
TUle Innovation Lab; Director Wim Bens (April 2 );
rd
AT Osborne; Senior Manager Marcel van Rosmalen (April 3 );
BOM; Head industrial areas Rob Gordon and Process Manager industrial areas Jeroen
rd
Krijgsman (April 3 );
Municipality Eindhoven; Head Economical Affairs Albert Kivits, Account Manager international
promotion & acquisition Dré Boidin and Account Manager business relations Peter Vloet
th
(April 4 ).

9.2 Comments byexperts

Arup Major prolects, Dubai
On Thursday 29 h of March we have had our expert presentation in Dubai with Maarten Reenalda from
Arup Major Projects. His main conclusions about our new process model are:
The model presents a new entrepreneurial approach for the governmental system in the Netherlands.
The ideas from Tim and Bas about the National government that should develop a strategic plan based
on different economic pillars for the Netherlands in combination with cluster developments are really a
newapproach .
A business organisation as presented in the model of Tim and Bas which is mandated for a fast
development is positive to connect to actual economic demand for urban development projects in the
market. lts clear that the role of a Government Authority is to be supervisor from the public side an
stimulate the business organisation to take care of public laws, regulations and procedures that are
needed for every development in the Netherlands.
In today's situation the National government in the Netherlands is taking care of infrastructural
developments. It is a new positive perspective by Tim and Bas that the government in the Netherlands
should focus on their core business, defining laws and regulations on a high level basis to stimulate urban
development initiatives from the private market which are focused on economic pillars and as a result of
national economic importance. The private sector has the knowledge and experience for the development
of new projects and they can develop the infrastructure as weil.

Expert institutions, the Netherlands

In this paragraph we present the suggestions and recommendations given by the experts we have visited
00 th
between the 2 till 4 April in the Netherlands. We didn't split up the suggestions and recommendations
byeach institution because we heard sometimes the same questions by the different experts. Below the
enumeration of suggestions and recommendations:
• Put the Government Authority in the business organisation. By doing this you make the
Government Authority together with the other participants in the business organisation responsible
for the success of the project;
• The Government Authority should consist of people from the government which have the mandates
to make important decisions for a fast continuation of the project;
• Establish a Government Authority on a project base tor each individual cluster and create for every
project another "Project Government Cluster Authority";
• For the Government Authority it is important that there is clear what the joint interests are, who is
mandated for what and which persons take place in this authority;
• The innovative aspect of the Government Authority in our business model is that we can achieve a
fast and direct way of communication between the business organisation and the involved authority
within the government;
• The role of involved stakeholders will change during the progress of the project. All stakeholders
will be involved in the process till the end of the project and there is no possibility to step out of the
project earl ier;
• It is important that all the assigned mandates for the involved persons in the Government Authority
covers the same period of time;

43
Flnal report: Urban development In Dubai

Tim & Bas

• Sometimes it is beUer not to integrate the Government Authority into the business organisation.
There is a change th at through contradictorily interest the representing person from the
government undermine there own laws and regulations;
• During the whole process the Government Authority shifts from a pro-active role in the beginning to
a coordinating role later in the process.

9.3 Feasibility of our model

With the suggestions and recommendations from the experts we adjusted our process model towards a
more reliable and workable model. Below you can see the adjusted modeis. Most important change in
both models is the establishment of an independent Project Government Cluster Authority between the
business organisation and the government. This authority takes care of direct communication between
the business organisation and the involved authority within the government. The Project Government
Cluster Authority consists of people from the concerned level of the government and business
organisation. It is important that these people are mandated for the project by their own organisation . This
authority further takes care of the communication between the National government, the province and
municipality. It is important that the Project Government Cluster Authority poses some resources to active
stimulated developments. You can think of money, clustering etc. Further research after the
implementation and use of these resources can be done in a follow-up research.
Govcmmcntal syslcm in (hO Nelhortands
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Develop national strategie plan Is mandated for the whole development process (sell plots of land to
Define economie pillars învestors):
Focus on duster developments Plan developmenl aod plan impJementation in one hand;
Define laws and (egulations on high level base Main objective is realising long-term comrnittment tor sustainable
developmenl
Apply an entrep",neurial approach in the whole govemmental system BOM can help to establish a business organisatien.

Project Govemment Cluster Authority:

Rale as supervisor from the public side lo stimulale the business
oryanisation to take care of public laws. regulations and procedures
Ihat are needed for every development in the Nelhe~ands ;
Role changes Jrom pro-active to a coordinating role .

Communicator between business organisation and responsible public

department.

Model 4: New general business organisation model (Authors Tim & Bas).

Changes compared to our first model

• Project Government Cluster Authority operates as an independent organisation between the
government and business organisation. This authority takes care of a direct communication
between the two organisations;
• Professionals in the Project Government Cluster Authority come from the government as weil as
the business organisation and are mandated by their organisation;
• The maintenance part which was first located by the developer is shifted to the investor. This
because an investor attach importance to a good maintenance of his property. After a few years
the investor can decide to contract out the maintenance to a service and facility operator.

44
Fil1al report Urban developmel1t in Dubal

Tiro & Bas

G<r.iornl1'l&l1tal systcm In the Netherlands

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Care business: Shareholders are TUle, investor and Ihe developer;
Develop na(ional strategie plan
Define economie pillars The role of Ihe differenl sharehoIders is changing during
Focus on cluster developments \he developmenl process .
Define laws and regulations on high level base
Business oryanisation is mandaled for \he whole
Apply an entrepreneurial approach in \he whole govemmental system developmenl process;

Plan developmenl and plan implementalion are Ihe

responsibilily ot Ihe business organisation:

Long-tenn commilment rOf suslainable development is lhe

maln objective.

Model 5: New Business organisation model 'Science Park' (Authors Tim & Bas).

This process model operates almost the same as the general process model and is worked out for the set
up of the business organisation for the Science Park on the TUle-campus. Because we are focusing on
the strategie set up of a business organisation we didn't work out in detail the exact completion of the
different involved organisations. This can be done in a follow-up research.

The general conclusion after our visits by the experts is that our model can deliver a contribution to a new
approach of urban development projects in the Netherlands, Furthermore, it can be used to start a
discussion about the improvement of the whole urban development based on influences we have seen in
Dubai.

9.4 Personal reflection to our graduation study in Dubai

Personal reflection of Tim van Helmond
First of all this foreign adventure for me was the most spontaneous and impressive one in my life. The
dicission in the start up phase to develop our graduation study by the two of us was the best choice we
have made. The participation from four different companies in our research gave me strength and trust to
continue, step by step. The experience to develop this research with a self organised symposium,
different case study projects, our network in Dubai, a published article and presenting the conclusions of
our symposium on the Dubai radio was impressive.

Traveling in the UAE and Oman gave me an introduction to different cultures in this part of the world. The
landscape is changing constantly even in the middle of the dessert with the changing colors of the sand
hills. Different tours through Deira and Bur Dubai along the creek gave me a clear view about trading and
the importanee of trading for Dubai. The story of Dubai explained in the Dubai Museum is impressive form
the time before oil was discovered and the rapid development of Dubai as agiobal hub nowadays.

"In the last year I experienced th at most important things in life are a warm family, friends, integrity,
beauty and love, and the road towards my goals was of more significa nee than reaching them".

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Flnal report · Urban development In Dubal

Tim& Bas
Personal reflection of Bas van Montfort
For me this foreign graduation adventure was a great end of mine construction education at the University
of Technology Eindhoven. It was a unique experience to see, feel and study in the biggest construction
city called Dubai. I have seen and learned how project management and process management is done in
th is country. I have also seen the big difference there are in all kind of ways between Dubai and the
Netherlands.

The way to collect data for our research was different compared to the Netherlands. We are used to
collect this from libraries, internet or databases. In Dubai this was not possible because there are very
less libraries and databases available. That is why we had to be creative to get the required data for our
research. So th is foreign adventure taught me a lot more than when I had done my graduation in the
Netherlands.

I can say that these six months has widened my knowledge on all different aspects, like cultural, social
and education. I am convinced that th is will be very helpful in mine future years as construction engineer.

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Fmal report : Urban developmenl In Dubal

Tim & Bas

10. Literature
10. 1 Literature resources
[0'1] Cross Border Legal Publishing FZLLC, 2006. Property Investment Guide, edition 1, Dubai.

[02] The ministry of Economical Affairs of the Dutch government, 2006. Newsletter Pieken in de delta
[online], 1, the Hague, look up: http://www.ez.nl/content.jsp?objectid=143801&rid=140519
[consult 16th November 2006].

[03] The ministry of Economical Affairs of the Dutch government, 2004. Actieplan bedrijventerreinen
2004 -2008, the Hague, 03013.

[04] Blokhuis, E.G.J., 2006. Individuele stakeholder staat algemeen belang in de weg, in:
Bedrijventerreinen, July.

[05] The ministry of Interior and Kingdom Relations, 2007. Zo werkt de overheid [online], the Hague,
look up: http://www.overheid.nl/home/zowerktdeoverheid/wievormendeoverheid/.

[06] Valk, A. van der, 2002. "The Dutch planning experience", Elsevier Science_Landscape and
Urban Planning, 58, 201-210, London.

[07] BC I & BRO, 1999. Meer private betrokkenheid als kans bij de herstructurering van
bedrijventerreinen, study by order of the ministry of Economical Affairs of the Dutch government,
the Hague.

[08] Louw, E. & Needham, B. & Olden, H. & Pen, C.J., 2004. Planning van bedrijventerreinen, series
planning, Sdu publisher Ltd., the Hague.

[09] Sociaal Economische Raad, 1999. Commentaar op de Nota Ruimtelijk Economisch beleid, the
Hague.

[10] VROM-raad, 2006. Werklandschappen, een regionale strategie voor bedrijventerreinen, advice
053, the Hague.

[11] Kapteyn, G.J., 2006. Visie en belevingswereld van een institutionele belegger, Presentation
during the National Conference Industrial areas, Amsterdam, February 2006.

[12] Modder, J., 2007. "Presentation", Regionale samenwerking en bedrijventerreinen, visie en

praktijk, Den Bosch, April.

[13] Wortmann, C., 2007. "Presentation", Bedrijventerreinen vanuit investeringsoptiek, wie pakt de bal
het eerst op, Den Bosch, April.

[14] Geffen, P. van, 2007. "Presentation", Management Drives & Regionale Samenwerking, Den
Bosch, April.

[15] Helmond, T. van, & Montfort, C.S. van, 2006. Planning [online], Eindhoven, look up:
http://www.timenbasindubai.com/index. php?option=com _ content&task=view&id= 13& Item id= 13.

[16] Dubai government, 2006. UAE Yearbook 2006 [online], Dubai, look up:
http://www.uaeinteract.org/uaeint_misc/pdC2006/English_2006/eyb5.pdf

[17] 12Manage, 2007. PEST Analysis [online], Bilthoven, look up:

http://www.12manage.com/methods_PEST_analysis.html.

[18] 12Manage, 2007. Organisational configurations (Mintzberg) [online], Bilthoven, look up:
http://www.12manage.com/methods_mintzberg_configurations.html.

47
Flnal rep ort: Urban development In Dubal

____________________________________________________________________ Tim&Bas

[19] 12Manage, 2007. 7-S Framework (McKinsey) [online], Bilthoven, look up:
http://www.12manage.com/methods_7S.html.

[20] 12Manage, 2007. Diamond Model and Clusters (Micha el Polter) [online], Bilthoven, look up:
http://www.12manage.com/methodsJ)orter_diamond_model.html.

[21] Omar Bin Sulaiman, 2002. "Presentation", Knowledge for Development Marseilles, Dubai.
st
[22] Wynne-Jones, R. , 2006 . "Presentation", Dubai and its development, 21 November.

[23] His Highness Sheikh Mohammed Bin Rashid AI Maktoum, 2007. "Speech", Dubai Strategie Plan
rd
2015, 3 February.

[24] 12Manage, 2007. SWOT Analysis [online], Bilthoven, look up:

http://www.12manage.com/methods_swot_analysis.html.

[25] 12Manage, 2007. Value Chain Framework (Micha el Polter) [online], Bilthoven, look up:
http://www.12manage.com/methods_porter_value_chain.html

[26] Maas, G. & Eekelen, B. van, 2003. Reisgids naar de 'FutureSite': Inleiding in de Bouwprocesleer,
edition 1, 142-143, Eindhoven .

[27] Cross Border Legal Publishing FZLLC, 2005. UAE Free Zone investment guide, edition 1, Dubai.
th
[28] Rahman, S., 2005. "Dubai begins to lure American funds for major projects", Gulf News, 19 July.
nd
[29] Townsend, S. , 2007. "Interview", Dubai, 22 March .

[30] Landman, K ., 2000. "Gated communities and urban sustainability: Taking a closer look at the
future", CSIR Building and Construction Technology, 23-25.

48
Final report: Urban developmenlln Dubal

_______________________________________________________________________ Tim&Bas

10.2 Experts and companies

• Arup Gulf Ltd, UAE, Maarten Reenalda MSc, operations manager;
• AT Osborne, the Netherlands, Marcel van Rosmalen, senior manager.

• BOM, Rob Gordon, he ad industrial areas;

• BOM, Jeroen Krijgsman, process manager industrial areas;
• British University in Dubai, UAE, Or. Mohammed Arif, lecturer - project management, visiting
lecturer - University of Manchester, U.K.

• CB Richard Ellis Dubai, Middle East, Nicholas Maclean, managing director;

• CB Richard Ellis Dubai, Middle East, Simon Townsend, director;
• CB Richard Ellis Dubai, Middle East, Iris Dinu , research director;
• CB Richard Ellis Dubai, Middle East, Sophie Llewellyn, associate director;
• Chamber of Commerce and Industry Dubai, Richard Wynne-Jones, Project Consultant and Client
Representative;
• Chamber of Commerce and Industry Dubai, Dalal Zaal Khalifa AI Marri, coordinator information
services.

• Deerns Consuiting Engineers, Middle East, Eng. Huub C.J. van Rooij, MSc;
• Deerns Consuiting Engineers, Middle East, Eng. Ray Karbor, MSc;
• Dubai Municipality and Statistica I Department, Juma Abdulla Alhosani, Head of Trade and
Production Statistics, Economic and Finance Statistics Section;
• Development Board, UAE, Esra Alsamarr'i, administrative assistance - properties dept. director.

• Government of Dubai, Department of Economic Development, Dr. Abdullah Mohammed AI

Hassan, economic affairs division;

• Municipality Eindhoven, Albert Kivits, he ad economical affairs;

• Municipality Eindhoven, Dré Boidin, Account Manager international promotion & acquisition;
• Municipality Eindhoven, Peter Vloet, account manager business relations.

• The Executive Office Dubai, UAE, Mohamad EI-Hage, Director of Strategy;

• The Executive Office Dubai, UAE, Anisa AI Sharif, associate project manager, policy and strategy
department;
• The Netherlands Business Council, UAE, Titus D.F. van der Werf, chairman 2005-2006;
• The Netherlands Consulate General Dubai, UAE, Mr. Bart Twaalfhoven, consul general;
• TUle Innovation Lab, Director Wim Bens.

• University of Technology Eindhoven, the Netherlands, Prof. dr. ir. Wim F. Schaefer;
• University of Technology Eindhoven, the Netherlands, Prof. dr. Leo H.J. Verhoef;
• University of Technology Eindhoven, the Netherlands, ir. Erik G.J . Blokhuis.

• Van Oord Gulf FZE, UAE, Pieter van Oord, director;

• Van Oord Gulf FZE, UAE, Peter Meijer, commercial manager;
• Van Oord Gulf FZE, UAE, Maurice de Kok, operations manager.

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Final report . Urban developrnent In Dubal

_______________________________________________________________________ Tim&Bas

10.3 Presentations, exhibitions and conferences

1h 1h
• Cityscape Exhibition 2006, http://www.cityscape-online.com. 4 December to 6 December, Dubai
International Exhibition Centre . This is the international property and investment exhibition.

• Presentation and launch of Downtown Jebel Ali Project, real estate developer Limitless,
1h
http://www.limitless.ae/contenUdefault.aspx. 15 November 2006, Madinat Dubai.

1h
• INDEX Exhibition 2006, http://www.index.ae. Slh November to 11 November, Dubai International
Exhibition Centre. This Exhibition is for international corporations, industries, and investments from
various markets.

lh s1
• The Big 5 Exhibition 2006, http://www.thebig5exhibition.com. 2S October to 1 November, Dubai
International Exhibition Centre. This exhibition is the largest meeting in the Middle East for
constructing and contracting.

1h
• The Netherlands Business Council meeting, 15 October 2006, Emirates Towers Dubai.
Presentation about "The current security environment of the Gulf region" by dr. Christian Koch from
The Gulf Research Centre.

• The Netherlands Business Council meeting, 12'h November 2006, Emirates Towers Dubai.
Presentation about "Corpora te Participation" by Mrs. Habiba AI Marashi chairman of the Emirates
Environmental Group.

lh
• The Netherlands Business Council meeting, 1S February 2007, Emirates Towers Dubai.
Presentation about "Recent changes in UAE laws" by Mrs. Hélène Mathieu, barrister & solicitor.

10.4 Photos
• Photo on the cover is taken from Dubai Marina, La Riviera Towerwith an overview of Sheikh Zayed
Road .

Our most up to date supporting information is available on our project website til! July 2007:

www.TimenBasinDubai.com

50
 University of Technology Eindhoven
The Netherlands
Construction Management and Engineering
Masters Students
Tim& Bas
Tim van Helmond & Bas van Montfort
Dubai International Financial Centre
P.O. Box 500529
Dubai, United Arab Emirates
M +971 (0) 50 49 59 602
E [email protected]/ [email protected]

www.TimenBasinDubai.com