Majid Al Futtaim enters energy management

Dubai-based Majid Al Futtaim Group (MAF) and Dalkia International have set up a joint venture energy and facilities management company, MAF Dalkia Middle East, to service the region.

The new company is UAE-registered and became operational on November 1, said Peter Walichnowski, chairman of MAF Dalkia and CEO of Majid Al Futtaim's property group.

He declined to reveal the capital of the joint venture firm on grounds that it is a private company. Initially, MAF Dalkia Middle East will provide energy management services to Majid Al Futtaim's City Centres in Deira, Sharjah and Ajman as well as to the upcoming Souk Al Nakheel on Sheikh Zayed Road.

The aim, later, is to expand the business across the Middle East and to add facilities management services to owners of major real estate assets.

"We will also take over energy and facilities management of other MAF City Centres coming up in the Middle East as well as do third party services," Walichnowski said.

He pointed out that power is the largest single operating cost at Deira City Centre.

"The main initiative will be the Souk Al Nakheel which is scheduled to open in the second half of 2005. We are exploring options and trying to introduce tri-generation, subject, of course to Dewa approvals," Walichnowski said.

He explained that tri-generation method uses on-site gas or diesel generators to produce electricity, cooling and heating. It can result in savings of about 20 per cent and is a proactive approach towards conserving resources and protecting the environment.

Commenting on the joint venture partner, Walichnowski said Dalkia International is a leading integrated energy and facilities management company with over 65,000 contracts in 29 countries. The CEO of MAF Dalkia Middle East will be Hayan Sayed, a senior executive from Dalkia, and will be based in Dubai.

"Energy management will become a critical issue in the Middle East as the cost and environmental impact of fuelling significant economic growth increases over the coming years and through this joint venture we can help owners of real estate implement international best practice in the design and conservation of energy," Walichnowski said.