< Previous10 AB Leaders – December 2023 SUSTAINABILIT Y Making sustainability a business opportunity – not a barrier – for the UAE In the lead up to COP28, the region has a chance to shift the conversation on sustainability from its costs to its bene ts Within the UAE and the wider region, we face acute chal- lenges around energy demand, water availability and rising temperatures, with heat waves in the Middle East now frequently passing 50 degrees Celsius. Increasingly, sustainability is becoming not just an environmental issue, but a social and commercial one. The construction sector has one of the most signi cant roles to play in ensuring the region is equipped to deal with our changing climate. As a large contributor to global emissions, it must simultaneously work to decarbonise, while building the resil- ience of our infrastructure and buildings to keep people safe and businesses operating. Achieving this will take signi cant investment but is crucial for the BY LINDSEY MALCOLM, SUSTAINABILITY LEAD, MIDDLE EAST AT TURNER & TOWNSEND SUSTAINABILIT Y Breaking barriers. Malcolm discusses the importance of focusing on the bene ts of sustainability rather than the barriers.arabianbusiness.com 11 SUSTAINABILIT Y The COP28 sustainability conference will undoubtedly put a renewed spotlight on the UAE, as well as the wider region. longevity of our communities – a balancing act that governments and business leaders are working hard to grapple with. The COP28 sustainability confer- ence in Dubai at the end of November will undoubtedly put a renewed spot- light on the UAE, as well as the wider region, and its approach to sustaina- bility. We should expect a rapid evolu- tion in regulation as a result, which could have a profound impact on construction businesses. We should view this as an oppor- tunity, not as a barrier. Pressure to prioritise sustainability offers an opportunity to strengthen the econ- omy, support local supply chains and address efficiency in buildings and infrastructure. For investors, businesses and communities to reap this value, we need to focus on working collectively as an entire sector to tackle the sustainability challenge. That means taking a more long-term approach to our decision making and asset performance. Setting up the golden thread of procurement The reality is that reaching net zero while securing our communities against climate change will be an immense undertaking and will require the whole supply chain to get behind it. From developers to design teams, contractors to consultants, everyone needs to share responsibility. Procurement is the golden thread that can tie this chain together. Feeding sustainability into tenders and contracts from the start can ensure minimum requirements are met and incentivise these to be exceeded. This will be particularly important as businesses work to get a handle on their Scope 3 emissions – those produced indirectly by partners and supply chains. Setting the right delivery targets, not just around carbon, but also around social welfare, supply chain security and material provenance is crucial. This approach will also help to push greater standardisation of carbon reporting, allowing us to isn’t simply down to higher running costs to compensate for less e cient systems or structures. A more critical factor, in fact, is the possibility of assets becoming stranded as regula- tions evolve. Assets that are already prepared for and exceed minimum requirements, without the need for retrofitting, will inherently hold greater value for investors. Commercially, it pays to be on the front foot, scanning the horizon for potential regulatory changes and antic- ipating throughout design, build and operation any risks to an asset’s value that could arise further down the line. It’s essential to assess the full life cycle of an asset, and plan for how it can ex to changing demands in the future. Dubai’s Expo City, built originally for Expo 2020, is a perfect example. The developer and design team took into consideration the life cycle of the programme from design through to operation and beyond. The transi- tional nature and changing purpose of the development were key in deci- sion making. As a result, since 2020 it has transformed into a ‘city of the future’, with commercial, leisure and residential space which is helping to attract businesses, tourism and resi- dents to the area. The economic and social benefits of this shift will continue to be felt on both a national and local level. Leading from the front The UAE was the rst country in the Middle East to sign up to the Paris Agreement, the first to formally commit to reducing emissions and the first to create a ‘Net Zero by 2050’ strategy. COP28 will ensure the Emir- ates can continue to be the agbearer in the region for sustainability and its societal and commercial bene ts. We must place a sharper focus than ever on sustainability. Working collectively to define a unified approach and incorporating a life-cy- cle perspective that informs decision making from the outset will be vital not only to securing the resilience and value of our assets but also to support- ing future prosperity. Lindsey Malcolm. Sustainability Lead, Middle East at Turner & Townsend. benchmark best practice, and from there to identify improvements and e ciencies in the short and long term. More widely, by placing sustaina- bility at the heart of procurement, clients will also encourage investment in the specialist skills we will need for decarbonisation, boosting local labour markets and economic resilience across the UAE. Future-proo ng assets We know there is appetite for sustain- able practices from the sector. Turner & Townsend’s Building a sustainable future in the Middle East found that the majority of developers, investors, consultancies and government bodies are now discussing sustaina- bility requirements at the project brie ng stage. The challenge is that fewer than half are carrying these considerations through to design. The tendency in our region for build-to-lease assets can dissuade investors from spending more on sustainable materials or practices unless they can demonstrate how this improves nancial returns. However, the mismatch between design and operation to lower prices creates real risk in the long term. This 12AB Leaders – December 2023 COMMENT TOM WOOLF, FOUNDER AND CEO OF EDAID Has AI in the workplace been judged guilty of a pre-crime? Has all the doom saying and talk of us all quitting our jobs, and becoming slaves to the machine, driven us to see only the potential downsides of AI? Liability? Some argue that AI's rapid integration has raised concerns about its potential negative impact. enhancing the workplace? Has all the doom saying and talk of us all quitting our jobs, and becoming slaves to the machine, driven us to see only the potential downsides of AI and not the Moore’s law paced, positive impact on the workplace? AI as an Asset Proponents of AI in the workplace argue that its integration has been over- whelmingly positive. The ability of AI to process vast amounts of data quickly and efficiently has led to increased productivity, more informed deci- sion-making and cost reduction. The automation of repetitive tasks can free up employees to focus on more creative and strategic aspects of their roles, thus increasing job satisfaction. Enhanced Productivity: AI tools have the potential to signi cantly boost productivity in the workplace. They can handle routine tasks, data analysis and administrative work, allowing human employees to focus more on high- er-value, creative tasks. As a result, work processes become more stream- lined and businesses can accomplish more in less time. Informed Decision-Making: AI systems can analyse data at a scale that humans cannot match. This leads to better decision-making based on accu- rate and real-time insights. Businesses can gain a competitive edge by leverag- ing AI to forecast trends and anticipate market changes. Cost Reduction: AI can substantially reduce operational costs by automating labour-intensive tasks. Companies can decrease their reliance on human resources for routine, mundane work, resulting in signi cant cost savings. AI as a Liability However, some critics argue that AI's rapid integration into the workplace has raised concerns about its potential negative impact. These concerns range from job displacement to privacy issues and potential ethical dilemmas, such as plagiarism, racial bias and unchecked misinformation. Many argue that AI's implementation could be a pre-crime, In the ever-evolving landscape of technology, the role of Artificial Intelligence (AI) in the workplace is a topic of significant debate and discussion. As AI systems continue to advance and become more integrated into various sectors, the question arises: Has AI in the workplace been judged guilty of a pre-crime? Have we succumbed to mass media hysteria, whilst failing to recognise the existing role AI is already playing in COMMENT arabianbusiness.com 13 The Future. AI is expected to become a seamless part of the workforce. Customisation and Personalisa- tion: AI will enable highly personalised experiences for employees and customers. Learning algorithms will adapt training and development programmes to individual needs and AI-driven recommendations will provide tailored solutions. Conclusion The role of AI in the workplace is a topic that generates heated debates and discussions. While some view AI as a powerful asset that enhances productivity, decision-making and cost reduction, others are concerned about the potential negative conse- quences, such as job displacement, privacy issues, and algorithmic bias. The question of whether AI has been judged guilty of a pre-crime was recently raised by the former All-In Podcast by the former advisor to Elon Musk and venture capitalist, David Sacks. He outlined the complexity and multifaceted nature of the technology and how we all will need to adapt to survive and thrive. The present role of AI in the workplace is marked by its integra- tion into various industries and the significant benefits it brings. However, its future role promises even more profound changes, includ- ing enhanced collaboration, skill development and the need for robust ethical and regulatory frameworks. Ultimately, the impact of AI in the workplace will depend on how organi- sations and society as a whole navigate these challenges and opportunities. It is essential to strike a balance between harnessing the power of AI for progress and ensuring that its integration is ethi- cal, equitable and sustainable. The future of AI in the workplace is yet to be fully realised and, as we move forward, it will be crucial to remain vigilant, adaptable and committed to addressing the concerns that surround it. It is my opinion, however, that it will be overwhelmingly positive unlocking trillions of dollars in economic growth across the globe to those willing to embrace and leverage it for good. Proponents of AI in the workplace argue that its integration has been overwhelmingly positive. The ability of AI to process vast amounts of data quickly and e ciently has led to increased productivity accusing it of causing harm before any damage is done. To this end, President Biden has recently taken the step announcing that the US Department of Commerce, through the National Institute of Stan- dards and Technology (NIST), will estab- lish the US Arti cial Intelligence Safety Institute (USAISI) to lead the US govern- ment’s efforts on AI safety and trust, particularly for evaluating the most advanced AI models. Job Displacement: The most prom- inent concern surrounding AI is the potential loss of jobs. As AI automates tasks, it raises fears of workers being displaced or having to adapt to new roles that may not even currently exist. In some cases, the transition to AI-pow- ered processes might lead to layoffs, which can have significant societal implications. Privacy and Ethical Concerns: AI systems often rely on vast amounts of data, raising ethical questions about data privacy and security. The use of AI for surveillance, pro ling or data-driven decision-making can lead to unintended consequences and privacy breaches. Algorithmic Bias: AI systems can perpetuate or even exacerbate existing biases in society. Algorithms may be trained on biassed data, leading to unfair decisions in areas like hiring, lending or criminal justice. This raises questions about fairness and justice in AI-driven workplaces. The Present Role of AI in the Workplace AI's current and future role in the work- place is undeniable. It is utilised across various industries, including healthcare, nance, manufacturing, and customer service. Many organisations have imple- mented AI-powered tools to streamline operations, improve customer experi- ences and gain a greater competitive edge. AI-driven chatbots can handle customer inquiries, machine learning models predict equipment failures in manufacturing and data analytics tools assist in decision-making processes. The present role of AI in the workplace is focused on e ciency, accuracy and data-driven decision-making. The Future Role of AI in the Workplace The future of AI in the workplace holds even greater potential. AI technology continues to advance and its integration into various sectors is expected to deepen. Here are some aspects of AI's future role in the workplace: Enhanced Collaboration: AI is expected to become a seamless part of the workforce, collaborating with human employees. Chatbots, virtual assistants and AI-driven analytics tools will work alongside humans to augment their capabilities and support decision-making. Skill Enhancement: As routine tasks become automated, employees will need to develop skills that complement AI technology. This will likely involve increased emphasis on problem-solving, creativity and emotional intelligence, which are uniquely human attributes. Ethical and Regulatory Frameworks: The future of AI in the workplace will necessitate robust ethical and regula- tory frameworks to ensure that AI is used responsibly and fairly. Govern- ments and organisations will need to address issues related to bias, data privacy and security. AI in the workplace is a topic of signi cant debate and discussion.14 SUSTAINABILIT Y Embracing the crypto evolution: Institutional adaptation and the future of tokenized assets The path to embracing the crypto evolution lies in a fundamental transformation of the ecosystem to meet institutional needs In the cryptocurrency and block- chain landscape, one term that has gained increased prominence is "institutional." The transition from retail to institutional adoption began to take shape around 2017, notably at the Consensus conference in New York. Visionaries like Abby Johnson of Fidelity and David Rutter of R3 took centre stage, signalling a shift in the industry's focus towards institutional involve- ment. However, it's important to recog- nise that meeting institutional needs requires a comprehensive overhaul, spanning product development, tech- nology, governance, risk management, and compliance. Crucially, institutions entrust their reputation to the crypto ecosystem, underscoring the need for responsible and robust infrastructure. If we examine the cryptocurrency market cap, it appears to be minor when compared to traditional institu- tional markets. The overall crypto market capitalisation is currently BY DOMINIC LONGMAN, REGIONAL HEAD OF MENA, BINANCE TECHNOLO GY The way forward. Longman discuuses the fundamental transformation needed to embrace crypto evolution. AB Leaders – December 2023arabianbusiness.com 15 TECHNOLO GY Blockchain technology itself hold immense promise for traditional nancial institutions. around $1.06 trillion. Of the top ve tokens, Bitcoin (BTC) and Ethereum (ETH), account for 80 percent of this value. In contrast, the global foreign exchange (FX) market is valued at $753 billion, the equities market at $108.6 trillion, bonds at $133 trillion, and derivatives at an estimated $1 quadril- lion. At rst glance, it seems that insti- tutions have not fully embraced cryp- tocurrencies, but a closer inspection shows a more nuanced perspective. Usage patterns and allocation of assets play a pivotal role in institutional engagement with the crypto market. Names like Brevan Howard, Jump Capi- tal, and DRW Cumberland from the traditional nancial sector have been actively involved in crypto trading for years. The extent of their participation hinges on various factors, including market size, the nature of tokens, and risk and governance considerations. Challenges such as trading on unregu- lated platforms, lack of regulated custody services, and technical capabilities of trading venues need to be addressed to attract more institutional investors. Blockchain technology itself holds immense promise for traditional financial institutions. It has the potential to streamline processes, reduce inefficiencies, eliminate duplication, and expedite settle- ments. Major players like JPMorgan, Bank of America Merrill Lynch, Fnal- ity, the Bank for International Settle- ments (BIS), SIX Group, and Swift have recognised the benefits of blockchain and have actively pursued its integration into their operations. Tokens have also emerged as a viable fundraising medium, allowing startups to access global capital quickly and e ciently. Despite early issues with initial coin offerings (ICOs) and initial exchange o erings (IEOs), these fundraising methods demonstrated the potential of block- chain to facilitate global nancing. Financial institutions have viewed this as an experiment that can deliver significant efficiencies and cost savings, as exempli ed by Citibank’s recent blockchain-powered platform announcement and the work that When these assets are ready for public trading, several key factors come into play: Regulated Infrastructure: A decentral- ised perspective on regulation, encom- passing custodians, trading venues, brokers, clearing agents, and settle- ment agents, is essential to ensure a secure and compliant environment. Evolution of Business Models: Institutions must transition from moving assets to exchanges for trad- ing. Segregating roles can enhance governance and participation while reducing systemic risk. Collaborative E orts: Like SWIFT in the 1980s, Binance, with its substan- tial market presence, is uniquely posi- tioned to drive standards in connec- tivity, interoperability, and regulation, fostering growth and cooperation across the crypto industry. Blockchain's Impact on Market Efficiency: Empower custodians and other market participants to securely hold assets by leveraging the transparency of blockchain. This facilitates trading on the exchange, allowing the exchange to concen- trate on its core strengths – trading and earning revenue from trad- ing-related fees. Custodians and other entities can respond to requests for quotes, offering third- party validation that both buyers and sellers possess the necessary assets or funds and are conducting trans- actions correctly. This separation of roles ensures compliance with exist- ing governance standards for funds, family offices, and banks, ultimately encouraging broader participation in the market. The path to embracing the crypto evolution lies in a fundamental trans- formation of the ecosystem to meet institutional needs. As we move forward, responsible development, robust infrastructure, and collabora- tive e orts will be key in ushering in a future where tokenized assets and blockchain technology play a central role in global finance. The crypto evolution is underway, and institu- tions are poised to play a signi cant part in shaping its future. Dominic Longman. Regional Head of MENA, Binance. enterprise blockchain pioneers such as Kaleido are currently undertaking. To propel the industry forward, several key steps are essential: Asset Tokenization: Transforming ownership structures into smart contracts can make ownership more transparent and cost-effective, potentially reducing the need for central securities depositories (CSDs). Startups should consider this path alongside traditional venture capital and private equity routes. Infrastructure Needs: To facilitate broader adoption, the crypto space requires robust custodians, legal frameworks, regulations, and educa- tional e orts. Ensuring the privacy of ownership is also paramount. Benefits f o r All: B l ock - chain-driven tokenization can o er global reach, cheaper fundraising, and enhanced resiliency. This groundwork will naturally give rise to products that appeal to a broader audience, compared to the early days of ICOs where projects rushed to go public on exchanges.COVER STORY | 16 AB Leaders – December 2023 COVER STORY THE PIONEER Through calculated risk-taking and modular construction pioneer Shaji Ul Mulk transforms building design globally with Mulk International’s factor-based Qube system, revolutionising skyline production processes industry-wide “We are already working with major UAE developers on mega projects,” he says. “With Qube, we are 30 percent cheaper in material cost and 50 percent faster in time,” explains Ul Mulk, whose quiet engineering revolution aims to signi cantly slash construction time- lines while improving quality. A pioneer built on proven innovation For Ul Mulk, the Qube is just one piece in a much larger mission – revolution- ise construction industry standards through technological advances. In 1999, he stunned competitors by constructing Dubai’s rst panelised villa community, a project still stand- ing awlessly two decades later with zero maintenance – validation that factory-built housing worked where others saw only scepticism. As skyscrapers continue push- ing taller and taller into Dubai’s rich blue sky, a revolution is quietly unfolding in the construction industry that could dramatically reshape how the world builds. Inside a cavernous factory tucked away in Dubai’s Jebel Ali Free Zone are rows of massive machines that precisely cut and form cement-com- posite panels, encapsulating entire floors that will soon serve as fully out tted building modules. Windows, wiring, plumbing – every element is integrated in a controlled environ- ment before being trucked to devel- opment sites around the world. This is the vision of Mulk Inter- national founder and Chairman Shaji Ul Mulk coming to life through a revolutionary building system called the Qube.arabianbusiness.com 17 | SH AJI UL MULK arabianbusiness.com 17 | SH AJI UL MULKCOVER STORY | 18 AB Leaders – December 2023 Yet scaling modular construction required immense investment. Undaunted, Ul Mulk doubled down on research, conducting “years of tests, refining designs and materials” to perfect the Qube. The pandemic proved an unexpected catalyst, skyrocketing demand as traditional supplies faltered. Major US developers signed multi-year Qube contracts, drawn by its lower costs, faster completion time and consistent quality control delivered straight from the factory oor. Undaunted, Ul Mulk doubled down on research and development. Two decades of refining the Qube culminated in commercial success in America during Covid-19, when traditional building materials skyrocketed in cost and availability. Major developers signed multi-pro- ject contracts, validating Ul Mulk›s vision on a massive scale. Today the factory runs at full tilt, delivering entire structures on the ambitious timeline of just two homes per day. A powerhouse with global reach Today the Mulk International factory runs at full capacity, churning out entire homes on an ambitious schedule of two per day. It’s a feat emblematic of the group’s rise into a multi-billion dollar construction force employing over 7,000 worldwide. Beyond building facades and aluminium composites, Ul Mulk’s portfolio spans manufacturing, contracting, healthcare and more. We focus on being innovative and sustainable at the same time because in any enterprise, the ideas could be many but if they are not commercial or sustainable then they won’t work. We’ve worked on these principles through everything we’ve done, guiding us to where we are today arabianbusiness.com 19 | SH AJI UL MULK “We focus on being innovative and sustainable at the same time because in any enterprise, the ideas could be many but if they are not commercial or sustainable then they won’t work. We’ve worked on these principles through everything we’ve done, guid- ing us to where we are today.” An innovator in both business and sport, he consolidated cricket matches into pulse-pounding 0-minute broadcasts through the massively successful T 0 League, growing the sport’s global fanbase. One of the core parts of his lead- ership philosophy is risk taking. “If you do not take risks, then you’ll probably never get started. There’s a certain amount of calculated risk but risk taking is extremely impor- tant in business.” To him, T 0 was the “biggest risk” of his career – one that paid o . With enough research and investment, he turned it into a huge success. The key to this is that “every idea needs to make commercial sense. When you’re taking a risk, try to nd out why the world or the market should accept your idea.” Such calculated risk-taking epit- omises Ul Mulk’s entrepreneurial spirit and hands-on leadership approach – whether launching disruptive new products or navigating crises like a 20 5 Dubai hotel re. “Every obstacle is an opportunity and every di cult situation is the start of a new solution,” he says. The re at the Address Downtown on the eve if December 3 , 20 5 was a big blow to Alubond, a company under the group – previously known as Mulk Holdings. The fire was deemed to have been caused by an electrical short circuit on a spotlight, but also due to the fact that non- re rated materials were used in the building’s construction. “When the re happened on New Year’s Eve, the whole world was watch- ing. Dealing with it was a multi-phase approach,” he says, adding that they held seminars for Civil defence author- ities from each of the emirates to write the new building code – what is now “Delivering on your promise is the biggest key in everything you do. When you deliver on time, it gives your business credibility.” On the precipice of disruption Now with the Qube on the cusp of mainstream adoption, Ul Mulk is set to profoundly influence skylines globally as housing demands inten- sify. Where competitors settled for tradition, his factory-focused vision foresaw precision and sustainability as construction’s future. Two decades after his first modular marvel, Shaji Ul Mulk continues proving that bold ideas supported by proven innovation can revolutionise entire industries. Delivering on your promise is the biggest key in everything you do. When you deliver on time, it gives your business credibility known as the Fire Code. This was a huge win for the company, especially since it already had re-rated panels to sell. “The biggest success came from this. We are proud to say that we are the ones who have helped create the Fire Code for construction in the UAE.” Aside from risk-taking and turn- ing obstacles into opportunities, he believes that delivering on time holds a lot of merit.Next >