Dissertations (Business & Law)

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Accelerating Human Resource Development in Saudi Arabia
(British University in Dubai, 2009-01) Abuljadayel, Sara Nizar
The Adaptability of Adjudication in the UAE from the Perspective of Islamic Shariaa and Civil law
(The British University in Dubai (BUiD), 2015-03) SALEM, HANI LOTFI
A number of jurisdictions have introduced a new mechanism to resolve construction disputes cheaply, expediently and efficiently. This new mechanism should consider the privity of construction contracts and without prejudice to the public policy. Adjudication fulfils all the criteria and was introduced because of the inefficiency of the traditional dispute resolution mechanisms and to secure cash flow in the construction industry. An adjudicator is a neutral third party who determines the dispute and has enough experience, impartiality and independence. The adjudicator is nominated by pre-agreement in the contract or by a nominating body. Considering the success of adjudication in other jurisdictions it is thus desirable to introduce adjudication in the UAE. However, how this system conflicts with the fundamental principles of Sharia and civil law has to be examined. Islamic Sharia law is considered as the main source of the law of UAE. It is important therefore to determine the potential legal obstacles that might be encountered by the introduction of adjudication in the UAE. This study also investigates the prospects of introducing a construction court in Dubai that is compatible with Sharia law and civil law. Such a court would co-operate with the Bar association, Law Society and general authority of Islamic affairs and endowment for training and registering of adjudicators. With such a court it is likely that the acceptability of adjudicator's decision may also be achieved given the status of the court as an independent judiciary.
Adopting FIDIC 2017 Red Book Extension of Time Procedure for Construction Projects in UAE
(The British University in Dubai (BUiD), 2018-07) BDAIWI, YAMAN MUSTFA
It has been concluded by several studies that EOT claims are among the most disputed issues in the construction industry due to lack, misunderstanding, or wrong application of relevant contract provisions. In the case of escalation to litigation path, the UAE CTC will be the framework upon which the ruling will be based. This will also be another potential area of further dispute as the concept and mechanism of EOT claim evaluation is not clearly identified in the CTC and thus it will be depending mainly on the expert report. This problem becomes more visible when dealing with other EOT issues such as the most suitable impact analysis method, total float ownership or concurrent delay. Therefore, construction professionals usually resort to using standard form of contracts such as FIDIC to overcome these shortcomings. Even though the EOT procedure is more elaborated in the FIDIC 1999 red book in which it provides a better EOT procedure than when relying on simply drafted bespoke contract, it was concluded in the dissertation that similar issues such as impact analysis method, total float ownership and concurrent delay are still be disputed under the this standard form of contract. The study then evaluated the same procedure under FIDIC 2017 red book to confirm whether it is a better alternative than the previous version. It was concluded that in the new FIDIC edition, issues of impact analysis method and total float ownership were dealt with more clearly than the previous version. The same was concluded for the case of concurrency expect that (1) there is an apparent conflict between Sub-Clause 8.5 and Sub-Clause 17.2, and (2) the construction professionals participated in the study survey were not in agreement with the method proposed in Sub-Clause 8.5. The participants in the survey were also in favor of the new agreement procedure prior to make any determination as proposed by FIDIC new edition. Accordingly, the study concluded that though the FIDIC 2017 red book seems to be providing a better EOT procedure, a precaution must be taken when drafting the particular conditions in regards to the concurrent delay and impact analysis method. In addition, particular conditions should not be drafted in a way that might appear to be in conflict to the UAE CTC, as in the case of adhesion clauses, given the fact that the judge has the authority of nullifying it if the dispute was not resolved amicably.
The Adoption of Artificial Intelligence in UAE Education Sector
(The British University in Dubai (BUiD), 2020-06) Ahmed, Fatma
Artificial Intelligence is a very emerging trend in the field of technology and it has the potential to revolutionize and transform the way humans interact with the help of machines. The role played by Artificial Intelligence in the field of education across UAE is derived in this report through identifying the way it impacts the efficiency and effectiveness of the education sector. The research paper aims to derive the different AI based technologies that can be adopted across the education sector of UAE, retrieve the several advantages that the adoption can have and to identify the key issues observed while implementing the AI based devices across the education sector of UAE. The aim of the research is derived using literature review and surveys. With the help of reviewing highly credible sources of literature pertaining to the subject, the key domains of the AI based technologies are derived, their benefits while implementing in UAE education sector are derived and the problems or issues that are faced while implementing these devices are also retrieved. Deep learning, Learning Analytics, Computer Assisted Learning (CAL) and advanced data analytics are the key domains of AI that can be used for improving the efficiency and effectiveness of teaching and learning across the education sector of UAE. it is also derived that the use of these technologies would help in providing detailed insights to the teachers about the students and using it, the teachers can customize the method of teaching for every student. It will help in making the teaching process more effective and efficient by saving the teacher’s time in many unproductive activities. Key problem identified in the adoption of AI based technologies in the education sector of UAE is the resistance from the teachers due to the training required in it. The AI based devices and technologies need to be available and accessible easily and hence, this paves the way for the future research in this field.
Adoption of Metaverse in Aerospace Industry: Organizational Perspective
(The British University in Dubai (BUiD), 2023-06) ABOUELELLA, LEENA; Dr Maria Papadaki
This study aims to identify the factors that influence the adoption of metaverse in the Aerospace Industry. Utilizing the Technology-Organization-Environment (TOE) Framework to develop a deductive questionnaire-based approach. The framework consisted of thirteen independent variables and one dependent variable (Metaverse Use Intention). 13 hypotheses are developed to statistically test the relationships between the 14 variables of the research model. The study adopted a convenience sampling approach, the population focused on the aerospace industry worldwide and on a general organizational type. The results from the data analysis from linear regression analysis suggest that the there is no statistical significance on the adoption of metaverse. The descriptive statistics collected offer an understanding of the perceptions and attitudes towards metaverse in the Aerospace Industry. The results show that this study needs to be more focused on specific sectors of the Aerospace Industry and to evaluate the individual perception as well as the organizational perception, utilizing the TOE Framework and TAM Model. The study contributes to innovation in the Aerospace Industry and provide a steppingstone to taking next steps in adopting Metaverse.
Aligning Project Management with Business Strategy
(The British University in Dubai, 2010-06) Al Sabaa, Amena Yousef
Business strategy is becoming a subject of very high importance in business environments. Business strategy defines organization objects and goals in long term plan. In order to compete in business markets, business strategy should be executed successfully. Project management is a critical tool. It has direct effect on business strategy. If used in mature way, business strategy will be achieved with significant outcomes. But if it goes in different direction than the business strategy, lot of negative consequences will result. It is not enough to complete the project successfully; it has to achieve benefits and be part of the business strategy. Lot of methodologies and frameworks has been introduced with different elements to ensure project management alignment with business strategy such as Portfolio Management. The long term goals must be achieved by selecting the right projects and managing them consistently. This paper defines the newly emerged concept of aligning project management with business strategy. The topics presented include: business strategy effectiveness, project management practices, project managers capabilities, alignment framework. Case studies are also included. These cases are analyzed to investigate the effect of project management alignment with business strategy in the business environment. The research is also including recommendation on applying successful alignment model. Finally, conclusions are drawn based on discussed topics.
Aligning Project Portfolio Management and Corporate Strategy: An Exploration
(The British University in Dubai (BUiD), 2017-01) TAHERI, FERESHTEH BAHMAN
The persistence of this dissertation is to explore the challenges encountered with alignment of project portfolio management to corporate level strategy of a private sector business in construction industry; nevertheless, this does not contradict the likelihood of generalizing the outcomes of this paper to other comparable industries. This dissertation further considers success factors influencing the management of project portfolios along with achieving higher level of corporate strategy and competitive advantage. The research findings are based on the inductive qualitative case approach with regard to management of a construction development in UAE who fails to achieve the alignment of corporate strategy with the project portfolio. These findings ascertain the effectiveness of project portfolio management and aligning it with the corporate strategy of the organization and further confirms that lack of each factor may have negative consequence on the success of the project portfolio and hence the organization development. The review of literature suggests that management of project portfolios in a private construction division seeks existence and implementation of some success factors affecting the project portfolio. These factors consist of: effective selection and prioritization of projects, balancing of priorities, resource allocation, flexibility in allocating resources to maintain the balance, termination of unnecessary offered projects and unsuitable resources, effective planning and control, handling conflicts and pressures, linking the projects with portfolio’s objectives, and alignment of the strategy with project portfolio goals. On the other hand, it also determines the success factors influencing implementation of corporate strategy that include: coordination, control, and competitive advantage through businesses, and organization. Success level of the alignment of project portfolio with corporate strategy depends on implementation of these factors and how well these factors are progressed. The study values the challenges of project portfolio management in construction development and targets the managerial positions and leading teams as well as decision makers to reconsider their actions towards better management and success of the business.
The Alignment of IT Strategic Planning with the Corporate Strategy Case Study: Dubai Customs
(The British University in Dubai (BUiD), 2011-04) Al Shehhi, Mohammed Marzooq
In this information age, no organization can thrive without harnessing the power of IT. The effective deployment of IT to achieve business goals and gain competitive advantage requires the alignment of business and IT Strategies of organizations. Using the Strategic Alignment Maturity Model, the dissertation evaluates strategic alignment maturity of Dubai Customs, a frontline public organization charged with trade facilitation in Dubai. Strategic business and IT alignment assessment is growing in importance. Different assessment methods have been used to try to pursue the complexity of this dynamic and evolutionary alignment. Despite the fact that alignment is a real problem and a challenge of utmost importance, no consensus can be found on what alignment really is, how it should be measured in organization in practice, and what measures should be taken into account. In this dissertation, three main questions were formulated; how is the IT Strategy aligned with the corporate strategy in Dubai Customs; what are the dominant areas which are used to align strategy; to find whether the alignment process is bi-directional between project management and business strategy; and lastly whether the projects are able to cope the rapidly changing business environment. As part of the research process extensive analysis of the current projects at Dubai Customs were conducted, understanding the scope of each project, their delivery timelines, conducting workshops to map the business strategy with each of the project. In addition to this interviews were conducted to perform qualitative analysis of the IT strategy alignment with the business. A quantitative analysis was also conducted to further confirm the results of the interviews with the survey questions. This research work aims to improve the decision making process at Dubai Customs for business and IT managers at different levels of the organization by means of increasing the level of understanding of the IT Projects, mapping each project to the Business Strategic Goals. So that periodically the IT Strategic Alignment with the Corporate Strategy can be measured and business decisions are taken accordingly. In addition to the above, this work will also help increase 4 the knowledge of IT Strategy Alignment, as well as enhance existing models and methods in practice at Dubai Customs, for evaluating strategic business and IT alignment. As a result of this study we applied the Luftman Strategic Alignment Maturity Model and found that strategic alignment at Dubai Customs is an established process, which is good communication between business and IT, some cost effectiveness defined, relevant processes exist in the organization and IT is seen as an asset driver. But there is still from improvement whereby communication, governance and partnership need to be improved. Once this is achieved in the future years, Dubai Customs will be able to attain, whereby bonding between business and IT is improved, dashboards are managed periodically, governance is managed across the organization and IT enables the Business Strategy smoothly. The last step is to work towards the Optimized Level, where the communication becomes informal and pervasive, value measurement is extended to partners, governance is integrated across the organization, partnership is co-adaptive between departments and architecture evolves with the partners.
Analysing Bollinger Bands in Relation to Energy Spreads
(The British University in Dubai (BUiD), 2010-05) Breebaart, Jasper
This thesis examines the signalling ability of Bollinger Bands when analysed with energy spreads. The study evaluates the profitability of preliminary trading systems over different spread constructions to identify the Bollinger Band signalling efficiency. The test is thus an analysis of the weak form Efficient Market Hypothesis as proposed by Fama (1970). Earlier research has illustrated varied conclusions. The research into Bollinger Bands has illustrated that Bollinger Bands trading systems are unable to yield economic profits and perform worse than other Technical Analysis methods. The spread research, on the other hand, clearly identifies that there are inefficiencies and large potential for automated trading systems, also with Bollinger Bands or comparable methods. This study has found that Bollinger Bands generate inefficient signals, are not a good predictor of spread movements. On average the performance between 1995 and 2009 has generated a loss. On this basis a “contra mean reversing” (trending) approach of the highest loss giving settings has been deeper analysed to find considerable signalling efficiency, thus potential trading profits. The evaluation incorporates conventional energy spreads like the Crack and Frac spreads and created additional spreads. A created spread of the end products of the crack spread, heating oil and unleaded gasoline, generated the best results indicating the need for further research into this spread. The profitability of the contra Bollinger Band system indicates that the Efficient Market Hypothesis should be rejected in the weak form.
An analysis of important market risk that international bank face
(The British University in Dubai (BUiD), 2017-02) Shaara, Mohamed Ahmed Abou
International banking can be beneficial, especially about developing a stable financial system. However, the international banking system also faces major problems. This paper attempts to identify market risks that exist in international banking and discuss on the risk management. It also discusses the importance of international banks managing these risks. The study used questionnaires as the methodology for collecting data. The questionnaires were distributed to 30 senior managers/officers in various international banks around the world. The questionnaire had three sections, with the first part requesting demographical information such as gender, age, education level, race and respondents’ judgments regarding the goals and importance of risk management practices as well as the where these market risks arise. The second part focused on obtaining insight about some of the market risks international banks face and how they are managed. The five-point Likert scale was used to rate individual factors. The third part of the questionnaire contained open-ended questions that sought to obtain more qualitative information from the bank officials regarding risk management techniques and their specific understanding and attitudes regarding the major market risks and practices used to manage them. From the data analysis, the study found that international banks face a narrow range of market risks mainly resulting from liquidity, interest rate and foreign exchange rate. The banks are not employing diverse risk management techniques and only focus on blunt tools for mitigating and eliminating market risks instead of employing advanced strategic techniques such as hedging, diversification and analysis of value at risk to manage market risks. The study provides recommendations that can address the issue, including improving counterparty credit assessment and transparency, improving counterparty risk management, reporting and estimation, improving market conventions and practices and regulatory reporting.
An Analysis of Islamic Finance Framework, Authority in Islam and a Need for Paradigm Shift in Islamic Finance
(The British University in Dubai (BUiD), 2014-03) Khorasi, Aasif
Islamic Finance has always been condemned by some of the influential advocates of interest based economies as a backward looking, less considerate and Shariah driven financial system still characterizing the principles laid in 6th century by the divine revelation of Allah (s.wt) and traditions of holy Prophet (s.a.s). Most of the scholastic and Industry efforts are aimed at providing solutions to financial issues faced by modern Islamic society with easy references to conventional banking system. They try to highlight issues with Shariah laws that underpin the fundamentals of Islamic Finance Industry and attempt to project a sense of urgency to adopt forbidden conventional forms of financial transactions like derivatives, leasing, etc in order to bring Maslaha for the society. However very few speak in length about the advantages of running a Shariah based ethical banking framework and the depths of foresightedness available in revealed sources on running a socio-ethical economic system. The aim of the study is to highlight several such issues faced by Islamic Finance industry, the distinct authority and legislative structure in Islam and a dire need to effect a paradigm shift in constructing future dialogue on Islamic Finance. While aiming at these objectives, the study also attempts to focus on addressing some of the key areas of concern ailing the present global economic system and makes a proposition towards creating a thought process that can safeguard interest of depositors, investing community and society, at large, without compromising on economic growth.
Analysis of Moving Average Convergence Divergence (MACD) in different economies
(The British University in Dubai (BUiD), 2013-04) Pandit, Zayd
The current dissertation is undertaken to analyze technical analysis, its indicators and their profitability and feasibility. This dissertation gives the basics idea of technical analysis and how it works and helps the investors in generating profits. It also shows how to use charts for technical analysis. In the analysis part it focuses on one of the most popular indicator called Moving Average Convergence Divergence (MACD) and applies it in different stock exchanges to examine whether it works in all or not. The objective of this dissertation is to provide investors with a clearer view of where to use Moving Average Convergence Divergence (MACD). This dissertation analyses performance of Moving Average Convergence Divergence in five different stock markets. These stock markets include Bombay Stock Exchange, Athens Stock Exchange, New York Stock Exchange, Dubai Financial Market, Abu Dhabi Stock Exchange and Australian Stock Exchange. The conclusion of this dissertation was that Moving Average Convergence Divergence was able to work at its best where the economy was not going through any kind of crisis. In other words efficient markets where as it was not able to generate much profit in economy like Greece which is suffering from European Debt Crisis. In Middle Eastern markets it was not able to perform well at all. At the end of this paper investors can easily make out where they can use MACD and where they need to use fundamental analysis or other technical indicators.
Analysis of Project Costs for Green Buildings in the UAE – A Case Study
(The British University in Dubai (BUiD), 2014-09) Al-Ali, Sultan Zaal .S
Green buildings, or as they are sometimes called, ‘Sustainable Buildings,’ or ‘High Performing Buildings,’ are buildings which aim to fulfill occupant or user’ needs and still be efficient in using power, water and other resources. They also help to protect the well being and health of occupants and users, while reducing the waste, pollution, and environmental impact. Governments are being challenged to reduce their carbon footprint in a stepped approach by a specified timeline. Information on global energy provided in a commissioned report by the International Energy Agency (IEA), revealed that existing buildings of all types, consume above 40% of all power consumption, globally, and at the same time, create more than a quarter of the total carbon emissions throughout the world (Howe 2010). The seriousness of these findings and others, have led some governments to take strong measures to reduce the energy and natural resource consumption of buildings, along with their environmental impacts. One of the ways they have attempted to do this has been by using more rigorous approaches in the development and adoption of ‘green building’ standards for their building projects. However, one of the barriers hindering other governments adopting sustainable building codes and practices is the issue of ‘cost.’ The general perception of green buildings is that they cost considerably more to design and construct than conventional buildings (buildings that have not incorporated sustainable features throughout their design and construction). The important question, therefore, is, ‘are these claims that green buildings cost more and require more initial investment, actually true?’ And if so, by how much? From the literature review, there was a general agreement that green buildings are more environmental friendly than the conventional ones. Green buildings also outperform conventional buildings on many aspects such as operational cost saving, indoor air quality, lower energy and water consumption and better productivity. However, there have been many studies into the concept of cost premium of green buildings. Some of these studies have supported the ‘higher cost premium’ viewpoint, while others have refuted it. This has lead to a great deal of confusion among developers, government bodies and other relevant parties investigating or involved in the implementation of green initiatives. In order to support or reject any of these studies, there is a very real need to conduct a proper, controlled study approach to determine the true additional cost green buildings will incur over and above conventional ones, if any. For this study the cost premium of green buildings in the UAE will be examined and analyzed in comparison to conventional ones. Therefore two methods have been used: Method 1: Cost Comparative Approach Two recent green buildings will be compared with two similar conventional buildings in terms of construction cost per square meter at a shell and core level. The comparison will include: HVAC (but will exclude air conditioning as the green buildings are connected to a centralized district cooling plant), completion of associated public spaces, and above or underground parking spaces. This comparative study will exclude the design fee, land price and finishing items. Method 2: Interviewing all key stakeholders of the Masdar Headquarters Building project as a case study to understand the different cost elements of green buildings and to identify the practices that have been adopted to ensure the cost effectiveness of green buildings. The outcome of the first method, it was evident that green buildings were not necessarily more expensive than conventional ones at the core and shell level. Any cost premium therefore could be attributed to other factors such as the meeting of client requirements on the finishing level, or the technology, which was installed and used, regardless of whether the building was green or conventional. From the analysis of the feedback from interviewee, it was clear that sustainable buildings don’t necessarily require any additional investment compared to conventional ones If they done properly, as the cost driver is related primarily to the client’s specifications and the subsequent design, rather than sustainable elements. What was evident that a green building project team needs to work in an integrated way, particularly during the design stage, to control the overall project cost.
An analysis of the Practice and Standard of Corporate Governance in the UAE Banking Industry
(The British University in Dubai (BUiD), 2012) Al Moosawi, Hassan
The global economic crisis of 2008, partly triggered by the lack of stringent management oversight of large financial institutions has raised regulatory alarms around the world. To address the challenges arising out of this global crisis a number of proposals to improve bank corporate governance have been put forward by international organizations. Against this backdrop this study is set, to critically study and evaluate corporate governance in a UAE bank. As part of the study thorough literature review will be conducted to study the Corporate Governance policies and practices adopted by banks in general and furthermore best practices in Corporate Governance in the banking industry will be reviewed. The data for this study is collected from both primary and secondary sources. Primary data will be collected through a questionnaire survey. The questions included in the survey were designed based on the BASEL Corporate Governance Guidelines as well as the surveys conducted by OECD MENA. Secondary data is collected from various finance journals, online library resources, the internet, books and the internal documents of the bank. The findings of the survey will be tabulated and analysed. A detailed discussion will be presented along with a set of recommendations that if applied will further improve corporate governance in the UAE banking industry.
Analyzing project management practices to improve the performance of construction project at DSSCB, Abu Dhabi
(The British University in Dubai (BUiD), 2007-06) Al Sharyani, Yousif
Analyzing the Importance of Cost Overrun Planning and Control for Construction Projects Success in the UAE Region
(The British University in Dubai (BUiD), 2023-07) EL KHATIB, AHMAD; Professor Khalid Al-Marri
Cost overruns are considered a major hindrance to project completion as they lead to a decline in the contractor's income, resulting in significant financial setbacks and endangering the entire project. The cost of construction stands as a critical element in determining the project's overall success. Throughout the entire lifespan of the construction industry, a prominent concern arises, namely, the pervasive impact of uncertainty and deadlines on all projects, regardless of their size or complexity. These elements continuously pose challenges and demand careful attention from stakeholders involved in construction endeavors. Cost overruns are a prevailing issue in construction projects within developing countries. Such overruns manifest across various construction undertakings, exhibiting different degrees of severity. Hence, it is imperative to recognize and address the critical concern of construction cost overruns. Several factors contribute to the occurrence of cost overruns in construction projects, with the most prominent ones being design and contract-related aspects, estimation uncertainties, planning and scheduling challenges, project management complexities, labor constraints, financial factors, material and machinery considerations, construction phase issues, communication hurdles, and external influences. The current study holds significant value as it consolidates the most frequent causes of construction cost overruns, enabling project participants to identify, tackle, and mitigate the adverse effects of these factors.
Annulment of Arbitral Awards under the Federal UAE Arbitration Law
(The British University in Dubai (BUiD), 2019-01) AL ANI, ABDULLAH RIYADH RABEE
Federal Law number 6 of 2018 is the New UAE Arbitration law – it is composed of 61 articles that control the practice of arbitration in the UAE. The UAE Federal Arbitration Law sets out the grounds for annulment of arbitral awards under article 53 thereof. The grounds set out under article 53 – as well as other articles related to annulment – is analyzed to understand how the UAE courts might determine a challenge for the annulment of an arbitral award. This analysis is supplemented national and international court judgements dealing with arbitrations and arbitral awards. The grounds for annulment of an arbitral award are broken down in this paper into the following categories: invalidity in the arbitration agreement, constitution of the arbitral tribunal, conduct of the arbitral process, the form and content of an arbitral award, and for matters of arbitrability and public policy.
The Application of Alternative Dispute Resolutions in the United Arab Emirates Government Construction Contracts in Light of the Current Applicable Law
(The British University in Dubai (BUiD), 2016-11) AL NIMR, HAMID ABDELLATIF AMIN
The Dissertation aims to investigate the current structure of government construction contracts in the UAE, specifically relevant to alternative dispute resolution mechanisms adopted within these contracts. Also to investigate the current applicable laws and the restrictions imposed by those laws on government contracts, along with possible required modifications to those laws in order to allow for internationally recognized Alternative Dispute Resolutions to be adopted and function within the UAE legal Framework.
Application of Artificial Intelligence and Machine Learning in the Automation of Supply Chain
(The British University in Dubai (BUiD), 2021-12) ALTAHER, MAITHA
The current study was conducted by means of a quantitative research design with the focus being that of the application of artificial intelligence and machine learning in terms of supply chain automation. Herein, the author focused on investigating supply chain-based automation trends, evaluating the type of supply chain outcomes that technologies such as machine learning and artificial intelligence lead to, and the type of technologies that lead to improvements in the supply chain. For this purpose, the author had made use of a suitably large sample size of one hundred and eighty-five participants. These participants were sent an online survey questionnaire comprised of five demographic questions and fourteen survey question items. This allowed the author to find that machine learning is highly prevalent in the UAE’s supply chains with artificial intelligence being specifically lacking. Through the findings, it was concluded that this may be due to the fact that artificial intelligence currently remains as a developing technology that needs to be furthered greatly in order to be relevant in the current supply chain environment. Lastly, the author was able to recommend that supply chains should integrate technologies that combine with the human effort rather than focus on replacing them. Keywords: Automation, Supply Chain, Machine Learning, Artificial Intelligence, UAE, and Value Creation
An application of Data Envelopment Analysis to study the Technical Efficiency of UAE banks in the pre and post crisis period
(The British University in Dubai (BUiD), 2012-04) Siddiqui, Huma Anjum
The rapid growth and development of the UAE banking sector over the past decade has seen increased competitiveness, technological advancements, booming economic conditions as well as a global financial meltdown resulting in tighter regulatory norms and increased emphasis on operational efficiency. To this end, the present paper carries out a two stage analysis on 11 local commercial UAE banks, over the period of ‘2003-‘2010. In the first stage, the technical efficiency scores of the sample banks are computed with the help of the output oriented, variable returns to scale, Data Envelopment Analysis technique. The scores so arrived at in the first stage, were used in the second stage of the analysis, where the Tobit censored regression test was used to regress the dependent variables (the efficiency scores) against 4 selected variables, so as to understand whether these variables influence efficiency scores and if so, to what extent. The findings indicated that the UAE banking sector was affected by the financial crisis based on the pre crisis (i.e. ‘2003-‘2008) technical efficiency scores which reflected an ascending trend. Thereafter, a decline of 33.33% in the number of technically efficient banks was observed and it was inferred that DEA as a technique was able to reflect this trend. The results of the second stage analysis showed that the size of a bank, the profitability (in terms of net income) and the market share of each bank positively influenced the technical efficiency scores, where an increase in these independent variables led to improved efficiency scores. On the other hand, total equity (the proxy for bank capitalization) was found to be negatively related to efficiency scores, which meant banks with lower capitalization ratios had better efficiency levels and vice versa.

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