IN recent years, the Middle East has emerged as a center for monumental buildings. Dubai is currently building the world's tallest - the Burj Dubai - while Saudi Arabia, Kuwait, Bahrain and Qatar consider building rival towers over the coming decade. Although attention-grabbing, these developments also cause enormous environmental impact. It is estimated that buildings worldwide use 42 percent of the world's energy and are responsible for 40 percent of greenhouse gas emissions. Green developments Many Gulf countries are introducing green building regulations and guidelines that govern the design and operation of all new buildings. Dubai World, for instance, has recently adopted the US LEED Green Building Certification scheme as a requirement for all its developments. These green initiatives have been triggered by numerous international organizations with Middle East operations bringing their environmental policies and standards into the region. Currently under construction for example, Masdar City in Abu Dhabi plans to be the world's first zero-waste and carbon-neutral city, utilizing green and alternative energy not only in buildings but in the entire city's infrastructure. Green benefits In the current economic environment, owners and developers are realizing that green buildings offer a good investment. Green buildings have higher market values because they are cheaper and more efficient to maintain. Also, by going green owners can expect an increase in occupancy. Also, work-related health and safety regulations of many Middle Eastern countries require employers to ensure a safe and risk-free working environment for employees. Many large organizations are demanding green commercial office buildings, recognizing that better indoor environmental quality increases employee productivity. Avoiding Legal Risks For all of their benefits, green buildings also pose legal challenges, including the need to obtain proper local building approvals, maintain green improvements between tenant and landlord, secure financing, negotiate with insurance and financial institutions, and resolve disputes over building projects that fail to achieve their energy conservation goals. Despite the upside potential, the real estate market's approach to green buildings has been mixed, in part due to a lack of knowledge about the importance of green buildings to the environment and energy conservation. Moreover, some argue that in the current tough economic climate, developers and occupants may not want to shoulder the added expense of going green. However, an improving economic climate will offer new opportunities to set up green technology businesses and develop green buildings in the Middle East.
