Risk Assessment of International Joint Ventures Construction Projects in UAE
The British University in Dubai (BUiD)
International Joint Ventures become the popular form of collaboration between contractors to overcome projects complexity in United Arab Emirates. However, contractors have to manage and control IJVs efficiently to achieve their goals and objectives. For this reason, in this research the risk management techniques were utilized to identify and to assess the risks associated with IJVs in UAE. Moreover, a broad scope of understanding the relationships between risks’ factors and their impact on IJVs’ performance. Through an in-depth study of previous literatures, many factors were found to impact IJVs performance. For the purpose of this study, Partner and Host country related-factor were assessed in the context with IJVs in UAE. The conceptual framework was designed to rank the risks based on level of importance. In addition, the conceptual framework was proposed to test the relationships between the risks indicators and impacts on IJVs performance. Based on the proposed conceptual framework, a survey, and semi-structured interviews were designed and conducted for primary data collection. Based on previous literatures, a total number of 42 questions were designed to identify the risk of IJV, assess their impact, and test the relationships proposed in the conceptual framework. The sample of participants for the survey was selected randomly by visiting contractors working on IJV projects in UAE. A total of 200 emails were sent through a web-based questionnaire, out of this number only 56 respondents completed the survey. On the other hand, a pre-prepared set of questions was designed for exploratory reasons and to fill the gap of the survey. The main findings of both the survey and the interview revealed that in UAE, Inter-partner conflict is ranked the highest among partner related risks. On the contrary, culture difference was ranked the lowest in the same group. On the other hand, in UAE, contractors perceived the construction risks to be the highest risk in host country related-factors. In addition, some of the proposed relationships in the conceptual framework proved reliability while others were rejected such as ownership. Based on the findings, recommendations to the contractors were recorded to spot the light on the critical risks associated with IJVs in UAE construction industry.
risk assessment, construction projects, United Arab Emirates (UAE), international joint ventures, construction risks, risk management