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A Pilot Enquiry Project to Evaluate Strategic Planning in Managing Crises within the Abu Dhabi Construction Sector
Introduction
The construction sector in the United Arabs Emirates is one of the Gulf construction booming business sectors. Gorgenlander (2011) demonstrated that out of one hundred and twenty-five thousand construction sites in the world, more than thirty thousand (which is over 24%) were located in the region. The United Arabs Emirates’ construction industry has a high positioning with regards to technology and innovation, coming eighth on the planet. Construction workers are usually attracted by the extensive construction efforts by the people of UAE. According to Al Khoori (2012) construction backs 14 percent of the Gross Domestic Product, yet about half of the activities are deferred, for different reasons. The United Arabs Emirates’ populace construction from 1995 to 2005 kept running at 74.8 percent. This trend was the most astounding on the planet. The construction division in 2007 alone developed by 25.6% over the previous year.
Research Questions
While conducting this investigative study, the investigator will be guided by the following research questions?
What factors have contributed positively to the increased growth in the construction sector in the United Arabs Emirates?
Is there a relationship between risk management and the growth in the construction sector in the UAE?
How has growth in the construction sector impacted on the country’s Gross Domestic Product, GDP?
Hypotheses
The research will be based on the following assumptions:
The rapid growth in the UAE’s GDP has a positive impact on the construction sector.
There is a positive correlation between risk management strategies and the growth in the UAE’s construction sector.
Population growth and improvement of per capita income have a positive impact on the growth of the construction sector in the UAE.
Methodology
This pilot study will adopt a mixed method approach. Therefore, both the primary and secondary data was collected to derive knowledge about the subject matter. The pilot study helps in refining the research instruments such as questionnaires which enhances their legibility as well as help in the reduction of misinterpretation chances. The research instruments were piloted in 10 different construction companies in Abu Dhabi. Therefore, these companies will not be part of the main study to enable the investigator to cross-check the appropriateness of these questionnaires when it comes to obtaining the required information pertinent to this study. Qualitative data will be collected through interviews which were undertaken among various managers from the construction companies selected in this pilot study. The researcher will rely on a set of questions in the questionnaire as a guideline when conducting the interviews.
Expected Results
The respondents identified other factors which are causing crises in Abu Dhabi construction sector. Financial crises (20%), large-scale projects failures (10%), natural calamities (10%), poor communications in the project (20%), reluctant workers (20%) and unknowledgeable workers (20%). Moreover, effective strategic planning (40%), proper management (30%), tough construction procedures (10%) and tough regulations implemented by the government and local governing bodies accounted for 20% were also noted as contributing factors in the success of UAE’s construction sector.
Conclusion
Despite the booming construction industry, the sector has been hit with different crises over the past decade hence the need to adopt strategic planning when it comes to crises management. However, the government has taken bold steps with a bid to boost strategic planning in the construction industry as a whole. This has enabled the city of Abu Dhabi to depend on this sector which is second after oil and gas.
References
Gorgenländer, V. (2010). A strategic analysis of the construction industry in the United Arab Emirates: Opportunities and threats in the construction business. diplom.
Al Khoori, T. (2012). A study of factors causing cancellation or postponement of construction projects in the UAE (Doctoral dissertation, The British University in Dubai (BUiD).