Shared Value Creation at The

Sustainable City (TSC) in Dubai

MOC Affiliate Network Conference
Microeconomics of Competitiveness Conference
Institute for Strategy and Competitiveness
Boston, 11-12 December 2018

Tim Rogmans & Brendan Galbraith

College of Business
Zayed University
Dubai & Abu Dhabi, United Arab Emirates
What is The Sustainable City ?
• Residential and mixed use development in Dubai (UAE), designed and
realized by Diamond Developers (2016)
• Inspired by University of California Davis West Village and other
sustainable communities around the world
• Contains 500 villas, 89 apartments, mixed use area (shops, F&B, offices),
school, equestrian center, health clinics
• Integrating Social, Environmental and Economic sustainability
• First Zero Net Energy community in the region
• Other environmental sustainability features include: water & waste
recycling, urban farming, car free zones, “green” products, etc.
• Winner of “Happiest Community in Dubai” two years in a row

Rogmans & Galbraith, Harvard MOC 2018 2

 Social Value

Integrating Social, Environment and Economics Sustainability in a

Business Model – The Sustainable City’s “DNA”

“Happiest community in Dubai” • Service and maintenance fees

financed by rents of mixed use area
• Energy and water savings
• Business network among residents
Minimize carbon emissions • Employment on site
“Net Zero Energy” • Free EV charging

“ Sustainability as a System” – Developing a Sustainable Competitive Advantage (vs “gimmicks”) 3

 Social & Economic Value

TSC: Meeting Social Needs & Creating Economic Value

• Minimize CO2 emissions
• Environmental “DNA”, incl.
Mobility, Products, Waste
• K12 school with sustainability at core
• Schools program
• Zero Net Energy • Sustainability training for professionals
community

• Water recycling

• Mixed use area

• Farmers market
• Support for resident SMEs
• “Sustainability cluster” • Urban food production
• Sports facilities & activities
• Clinics
• Combining sustainability and high quality living
• Sustainability at cost of conventional housing
• Second city under development in Sharjah; Rogmans & Galbraith, Harvard MOC 2018 4
lower prices
 Social & Economic Value

Shared Value Measurement:

Sustainability Ratings (e.g. LEED)
vs Dashboard with Direct Measures

5
 Economic Value

Sustainability and Shared Value Creation: Business

Benefits
Revenues Intangibles
99.5% occupancy (cf. neighboring developments) VIP visits
Market pricing Awards, incl. “Happiest Community in Dubai”
Higher Customer loyalty for outlets in mixed use area Press coverage
School enrollment Treatment by regulators and suppliers

Value Creation
Costs
Risks
Advertising / marketing / selling
Reduced turnover rate of residents
Lower Public Relations
Less exposure to fluctuating energy prices
Energy & water costs
Reduced staff turnover
AirCo capacity (CapEx)
Recruitment costs

Value Realization through sale of shares in Sustainable REIT 6

 Social & Economic Value

Sustainability as a Business Model

Privately
owned
company
• Holistic ‘systems’ approach to development of mixed-use
communities, including Social, Environmental and Economic
Sustainability
• Identifying and integrating best practices in a ‘system’
• TSC as a living lab, developing a “Sustainability cluster” in
Dubai
• Build more sustainable cities: Using intangible assets (incl.
expertise, reputation) in future projects, worldwide

PhD Scholarships and US $ 3m University research funding, integrated in operations (R&D, Marketing, HR)
Rogmans & Galbraith, Harvard MOC 2018 7
 Social & Economic Value

The Diamond Model and the Development of a

“Sustainability Cluster” in TSC

Strawberries
Solar installation

K12 School
Herbs and greens

Waste Management Holistic Health

Cleaning Products &
Some ventures are sister companies (“intrapreneurs”), others are partners or tenants Services
Recent collaboration with “Dubai SME” to support entrepreneurs in sustainability related business