Alzarooni, Khalid2014-09-182014-09-182014-05120084http://bspace.buid.ac.ae/handle/1234/658The building and construction industry has been evolving for decades. Researchers claim that corporate governance plays a significant role in balancing the social and economic goals of the organization. United Arabs Emirates has been in the forefront in investing in the construction industry. However, despite the growth in the area, the industry continues to face different challenges. Researchers have associated the challenges with poor corporate governance. Although the industry has contributed immensely in the growth of UAE, various challenges have hampered its growth and development. Therefore, the study identified and proposed the solution to the challenges facing the construction industry. This is after using both the primary and secondary data in order to get make an in-depth conclusion. Both quantitative and qualitative methods of collecting date were used. Data analysis was done using inspection analysis. The study noted that different aspects must be taken into consideration when dealing with this sector. Effective project management is significant in ensuring that there is uninterrupted flow of functions during construction project. With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information, and integration of economies, the industry is turning its attention to the global market. However, project failures have been tarnishing the reputation of the sector. Poor corporate governance strategies in the risk management and project management are associated with the failure. Ina addition, poor evaluation and finance management has also played a significant role in project failure. Lack of inclusiveness in decision making has been taking a toll on the sector. The top management has not been involving other subordinates, an aspect that has been affecting their performance. On the other hand, poor communication and ethics have been affecting the success of the projects. This is due to lack of support by the community and other crucial stakeholders. Nature of the work has also been a great challenge. The industry is more seasonal. This makes it hard to manage and operate different activities that require continuity. Safety concerns have also been hampering the growth and development of the sector. Furthermore, strict legal and environmental issues are forcing the sector to implement strict measures which consume time and resources. The increasing regulation of the sector and high political pressures from individuals with special interests has made it hard for the sector to develop. Lastly, poor leadership and language barrier is also an important factor that has been affecting the success of the sector. Therefore, it concluded that the sector must involve all stakeholders in order to avoid internal factors that affect the sector. In addition, the industry should draft new regulations and seek an audience with government and other regulators in order to discuss the way forward.encorporate governance systemsproject managementconstruction industryUnited Arabs Emirates (UAEDissertation