Operational and Financial Risks from Climate Change in UAE Construction Industry

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The British University in Dubai (BUiD)
The current dissertation explores the influence of climate change on operational and financial risks in the construction sector of the United Arab Emirates. It uses the existing literature to identify the five modules of risk factors which include site operations, employees’ health, efficiency of equipment, labour productivity, and the overall financial productivity. These five modules encompass the 21 risk factors which are analyzed in the empirical part of this research. The study operates with the research methodology of realism and uses the method of online survey to collect quantitative data. The analytical methods of descriptive analysis, Cronbach’s alpha test and one-way ANOVA are employed in order to examine the data’s reliability and measure a correlation between the climate change and the significance of various risk factors inherent to the construction industry. It is found that risks in the module of overall financial productivity are the most significant, but they are not directly connected with the climate change. The effect of climate change manifests itself in making materials less efficient, increasing the chances of catching flu among employees, and generating other effects connected with cold temperatures. The study argues that the only way to mitigate the negative influence of climate change on the construction sector is to engage various stakeholders in this process. While the government should design legislative measures aimed at preventing environment’s pollution, managers must make sure that workers adhere to the existing codes and all the necessary health and safety procedures are effective. From most perspectives, the conclusions of this study harmonize with the conclusions made by other scholars in the same research field.
operational risks, financial risks, climate change, United Arab Emirates (UAE), construction industry