UAE Construction Startup Success: An Evaluation of Key Factors

Desklib provides past papers and solved assignments for students. This report analyzes success factors for UAE construction startups.

Understanding and evaluating a success factor
involved startup trading company in construction
industries on UAE

Table of Contents
Task 01.............................................................................................................................................3
1.2 Factors that have contributed to the process of successful research question(s) selection....4
1.3 Choice of the research question(s) selected by you in context of your chosen organisation
by using the SMART model........................................................................................................6
Task 02...........................................................................................................................................10
Review of literature....................................................................................................................10
Task 03...........................................................................................................................................14
Research methodologies............................................................................................................14
4. Reference List:...........................................................................................................................16

Task 01
Research Topic
Understanding and evaluating a success factor involved startup trading company in construction industries on
UAE
1.1.3. Research Aim
This study aims to understand and evaluating the success factors involved in the establishment of startup
trading company in construction industries in UAE. This research will understand the success factor startup for
the trading company on UAE. This dissertation will evaluate the success factor of the trading company in
UAE.
1.1.4. Research Objective
To list the major success factors in a startup.
To understand the major challenges faced by the trading company in the construction industries.
To evaluate the current situation in construction industries
1.1.5. Research Questions
What is the major success factor in a startup?
What is the major challenges the trading company and construction industries?
How is the financial situation for construction industries?
1.1.1. Significance and Contextual Relevance of the study
The overall study startup for a trading company supplying building material to construction industries such as
the trading company can enter the UAE market and catch part from share market. The researcher intends to
understand what the roadmap startup trading would company in construction industries.

1.2 Factors that have contributed to the process of successful research
question(s) selection.
Clarity: In formulating the research process, the research variables will have to be easily identifiable and
eminent so that the hypothesis can accompany the research problem. The research question has been created in
such a way that is relevant to the chosen field of the study and the questions will arise in relation to the
literature or the practice involved in the study. The research question must be created in such a way that it can
have a clear purpose of the research and precise relation to the chosen field. It should be able to fill the gap of
knowledge using different academic and professional practices and can help to monitor the development of
practice, using approaches and testing theories within a specific population.
Identification of the variables: There must be a complete linkage between the research hypothesis, the
existing variables and the research problem, and the research problem has to be explored in such a way that the
sources of the research problem and its importance can be considered during formulation of the question. The
variables of the project will have to be identified properly so that the different types of variables can be
discussed and can be aligned to with the research problem using the four prominent scales of measurement so
that the creation of the research questions can be done properly and the whole project can be managed without
a problem.
Process and manageability: Research problem is the main part of a study and therefore there is a need to
understand that the resource cannot be chosen in vacuum and certain considerations will have to be done so
that all the factors can be considered during the course of the project. The sources of research problem will
focus on the four aspects, the phenomena, the problem, the program, and the people. Therefore, the questions
have to be created in such a way that it can be realistic and can cover the scope and scale of the project. It
should also help the researcher to tackle the problems properly and access different information, which can
help to answer the questions tactfully.
Determining the substantiality: The research problem will have to be created in such a way that the variable
can be understood properly and they can be used as the measurable factors that can help the researcher to
assume more than one value at the same time. It must allow the researcher to use three important variables like
the independent, the dependent and extraneous variables. Therefore, the questions have to be created in such a
way that it can focus on the requirements of the research problem and allow the scope to satisfy the learning
outcomes of the course. It can also help to implement a theoretical analysis of the study and use different
models to produce insight about the subject.

Consistent and arguable: During the creation of the research problem and the research questions the interval
scale, ordinal scale and the nominal scale will have to be taken into consideration to classify the variables and
hypothesis will be created indicating the relationship between two or more variables that awaits verification. It
is also important for the researcher to consider the audience as it can help to narrow the topic and develop the
question. The idea of the research question will have to be simple and complex and must allow the researcher
to review the literature considering the research question, which must have arguable options and potential
answers to debate the fact.

1.3 Choice of the research question(s) selected by you in context of your chosen
organisation by using the SMART model
Research
Questions
Specific Measurable Achievable Relevant Time-
oriented
What is the
major
success
factor in a
startup?
This will help to
understand the
reason for the
success of the
startups in the
construction
industries in the
United Arab
Emirates. It will
also focus on the
different factors
that are leading
Afreen Building
Materials Trading
Co LLC to such a
success, not only
in the case of
construction
industries but also
of other industries
as well. This will
help to get an
overview of the
Afreen Building
Materials Trading
Co LLC in the
UAE and the way
in which the
A team of
professionals will
be working on the
critical success
factors that can
affect the success
of the startup
businesses in the
construction
industries and
employees will be
allowed to provide
their feedback and
ideas so that it
becomes easy to
understand the
effect of the
factors. Multiple
frameworks will be
used to understand
the key elements of
the long-term goals
and the factors will
be determined
which will help in
the long-term
achievement of the
goals of the Afreen
It is
achievable
through
proper
research and
the gathering
of relevant
literature on
the topic
This will help to
understand the
certain factors
that are affecting
the success of the
organisations in
the construction
industry. This
will also help to
understand the
factors of
process, people,
customer and
finance used in
the startup and
will focus on the
framework that
can increase the
success factor of
Afreen Building
Materials
Trading Co LLC.
This will also
help to
understand the
preferences of
the people and
the key elements
4 weeks

startups can start
their business
Building Materials
Trading Co LLC.
The strategies of
Afreen Building
Materials Trading
Co LLC will also
be taken into
consideration and
will see whether
the communication
process is proper.
of the goals. This
will provide a
broad description
of the topic
What are the
major
challenges of
the trading
company
and
construction
industries?
This will help to
understand the
different
challenges that
are faced by the
companies in the
industry of
construction in
UAE and the
different factors
that are affecting
Afreen Building
Materials Trading
Co LLC
adversely. This
will be mainly
focused on the
trading companies
in the
construction
industry of UAE
and the way in
To understand the
challenges of the
companies, the
financial records of
the Afreen
Building Materials
Trading Co LLC
will be seen. After
the evaluation of
the financial
statements, the
customer
satisfaction of the
company will be
taken into
consideration to
understand the
challenges faced by
the customers and
will have to see
how many
customers the
It is
achievable
through
proper
research and
the gathering
of relevant
literature on
the topic
This will help to
identify the
challenges that
the companies
face in the
market of the
construction
industries in the
UAE and will
help to keep up
with the
expectations of
the study keeping
the business
owners satisfied.
It is to measure
the success by
eradication of the
challenges. It
will help to
understand the
satisfaction level
2 weeks

which this type of
challenges affect
the company as
well as it
stakeholders.
startup gets during
their operations. A
performance
review will be
conducted among
the employees and
feedback will be
gathered to
understand the
condition.
Research and
Development will
be done to
understand the
current position of
the Afreen
Building Materials
Trading Co LLC in
the market.
of the customers
and the problems
the companies
are facing in the
financial
statements and
operations.
Afreen Building
Materials
Trading Co LLC
will also able to
understand the
impact of the
challenges on the
performance of
Afreen Building
Materials
Trading Co LLC
and on the
motivation level
of the
employees.
How is the
financial
situation for
construction
industries?
This will help the
company to
understand about
the financial
situation of the
trading companies
in the
construction
industries of
UAE. The
researcher will be
The researcher will
have to take into
consideration the
liquidity of the
company, the
solvency, the debt
equity ratio, the
operating
efficiency, the
profitability, the
net margin and the
It can be
achieved by
observing
the books of
accounts of
the
companies in
the
construction
industry
It will help to
understand the
financial status
of the trading
companies in the
construction
industry of UAE
and this can be
used to
understand the
difference
3 weeks

understanding
that several
financial
statements like
the balance sheet
and profit and
loss account of
several
companies. The
current assets and
liabilities of the
companies will
also be checked
and the book
value of the assets
and liabilities will
be judged.
financial
statements of the
company. The
changes in the
financial
statements can
indicate the
financial situation
of the trading
companies in the
construction
industry.
between the
failure and
success of these
companies. This
financial
statement will be
organised to
understand the
overhead costs
for the company
and will be
accessed to
understand the
financial health
of the institute.
It will spotlight
on the amount
and volatility of
the future
earnings of the
company.

Task 02
Review of literature
1.1. Major success factors in a startup
The construction project for startups is very much complex, non-routine and is limited by budget, time
and resource. the performance specifications of the startup companies in the UAE market has been
designed in such a way that it can meet the needs of the customers and combine several events and
interactions so that they can deal with a constantly changing environment (Mehran 2016). One of the
critical success factors in the construction industry of UAE is the external environment of the companies,
which includes the different political environment, legal environment, social environment and
technological environment, which either can hamper the operations of the company or can help them to
operate in the market properly. One of the most prominent external challenges is from the economic
environment and the physical environment of the UAE and the companies will have to implement
strategies so that they can cope up with the challenges in the market and focus on the betterment (El-
Sayegh and Mansour 2015). One of the major critical success factors of the companies include the
mission of the project in which the companies have to define the goals and objectives based on the long-
term and short-term achievement of the goals.
The company will have to create a detailed project scope statement so that they can understand about
completion of the project, evidently leading the way to success (Almarri and Abu-Hijleh 2017). The
management of these types of companies is very much important and is one of the critical success factors
that have helped the companies to be successful in the market of the construction industry. The top
management of the companies plays a very important role in utilizing the natural resources for the success
of the project and they have a sense of flexibility in their operations, which has increased the quality of
the work they do, escalating victory for the company (Govindan et al. 2016). These people would have to
be utilising the organisational resources properly so that they can effectively execute project activities and
must also take into the consideration the timely reaction and support from its employees so that activities
can be completed properly enhancing the success of the company (Morad and El-Sayegh 2016). The
project management department will have to be very much competent in its activities and the person will
have to identify the factor of knowledge for the successful realisation of the project and in increasing
brand image in the market area. The project manager must possess administrative and technical skills so
that the person can choose the competence and commitment for the completing of the project life cycle
and deal with the critical problems during the course of the project (AL Mousli and El-Sayegh 2016).

The project manager and the company will have to create a perfectly plan the project schedule so that the
activities during the course of the project can be easily jotted down on the plan and individual action steps
can be taken for successful project implementation. This will also help to increase the success factor and
when the company will have to communicate with the clients, it is very important to have active listening
skills so that they can understand the problems of the clients (Mishmish and El-Sayegh 2018). The
company and the project manager must also process good consultation and communication skills, which
can help to deal with the problems of all impacted parties. The companies maintain a good quality of
suppliers and subcontractors so that they can deal with the problems easily and have an experienced level
of capability and competencies that can help finish the work properly, which is again vital for the
completion of the project and the success factor (El-Sayegh et al. 2018). Not only the communication
process is important but also the competency of gathering feedback and monitoring the needs of the
customers is vital and can help the company to improve the control information on every stage of the
implementation process.
1.2. Major challenges faced by the trading company in the construction industries
The trading companies of the construction industry in the United Arab Emirates are very much steady and
it contributes to more than 18% of the GDP to the country (Omar 2015). This country has a fine
construction industry, but most of the companies, especially the startups have many challenges, which
hampers their operations in the market of the United Arab Emirates. One of the major challenges is that
the companies do not have a good labour force and most of the startups lack skilled labour, which is very
much essential for operations of the construction industry (Asif 2016). The construction industry has been
dependent on manual labour and the uptake of construction technology; however, due to the lack of
skilled labour, it is hard for the companies to satisfy the rising demand. The companies also lack training
and development programs, which can help to increase the skill among the workers and increase
construction apprenticeship opportunities, increasing the flow of good and skilled labour at all time
(Faried et al. 2017). There is a steady growth in the cost of the raw materials, which is increasing the cost
of the project, the contractors for the company will have to bear the risk of cost changes, and this is
because there are speculative construction and fixed-price contracts.
Startup companies of the UAE market do not have enough advantages and therefore they are very much
affected by the cost variations in the industry. There is also a problem of slow invoicing and payments in
the market of UAE and this kind of problem increases the challenges of cash flow in the company (Ather
et al. 2016). For this reason, the companies have to determine the phrases of the project through a
progress payment schedule and if this is not done, the company will not be able to continue its operations
properly and will lead to insolvency. There have always been problems with undercapitalization and it
was never easy to understand the capital required for the project as the prices of the raw materials used to

change (Balasubramanian and Sundarakani 2019). The proper usage of working capital is very much
needed for the success of the construction project and the companies will have to see that they do not
make the bad decisions introducing less cash flow in the project.
The startup companies have a problem of inadequate planning and in the market of UAE, it is very much
needed for the startup companies to create a comprehensive business plan so that they can compete with
other big companies in the market and cover the operations, finances and the marketing of the
construction business along with the process (Eid Mohamed et al. 2017). The companies must have a
good amount of manpower and cash which can help to increase the capability and map out the details of
the project so that they can stay on track and can make the project successful (Gunduz and Yahya 2018).
The companies also have a lack of safety training so that they can maximize profitability in which they
incur a risk on the workers by decreasing insurances and litigation cost. Adoption of technology is very
useful in the construction project, however, cost of technology is quite high in the UAE market and
therefore, it is hard for the startup companies to use a different type of technologies in the day-to-day
operations and in completing the project, which decreases the competitive advantage and delays the
project (Sajwani and Nielsen 2017).
1.3. Current situation in construction industries
The construction and the trading market of the United Arab Emirates have seen spectacular growth of
12% in the last five years and have contributed largely to the GDP of the country. The construction
sector of the United Arab Emirates has been facing some challenges, has suddenly lost a lot of money,
and has resulted in a lot of unemployment due to the global financial turmoil a few years back
(Balasubramanian and Shukla 2017). Not only there was the financial loss of the companies in the market
but the result of the turmoil previously has created an increasing amount of multiplier impact over the
sector, including the industries that are associated with petroleum, power, cement, steel, aluminum,
information technology. This has been hampering the operations of the companies in the UAE market
(Muhammad 2015). Some of the sectors related to the construction industry in the UAE like the urban
infrastructure, telecom, oil and gas, and railways have been affected by the changes in the market and
have been able to generate a large share of construction activities that have been well off and were not
affected badly (Baker 2018). There was a steady growth in several sectors, it was easy for the companies
to carry on with the project orders from the local farms, states and the centre, and this kind of orders has
been helping the companies to increase their revenue over time. However, there has been a lack of
overseas orders, which have decreased the flow of international currency in the country. Currently, the
situation of the construction industry in the UAE has been experiencing severe slowdown and this has
been upsetting developmental target of economies across the country and is deepening credit crunches to
an extensive level (Kashwani and Nielsen 2017). Infrastructure companies are still one of the main