Balancing Economic Growth and Environmental Conservation: An Overview of Sustainability Practices in UAE Oil and Gas Sector

This study investigates the relative advantage factors influencing sustainability adoption among oil and gas service providers in the United Arab Emirates (UAE). It focuses on the relative advantage dimension to analyze six key factors: Financial Incentives, Market Share, Market Uncertainty, Return on Investment (ROI), Client Perception, and Market Competition. Additionally, the research assesses how the company type impacts its adoption of sustainability. The study utilizes a quantitative empirical approach to evaluate how relative advantage factors encourage sustainability practices among oil and gas service providers in the UAE. An online survey featuring a 7-point Likert scale questionnaire was distributed to various oil and gas companies in the country. Regression analysis was conducted to examine the influence of six relative advantage factors with respect to sustainability adoption, while the impact of company type was assessed using independent samples t-test analysis. Results indicated that approximately 60 percent of respondents believe that the proposed factors related to relative advantages, such as Financial Incentive (RAD1), Market Share (RAD2), Market Uncertainty (RAD3), ROI (RAD4), Client Perception (RAD5), and Market Competition (RAD6), contribute to the company's adoption of sustainability. Market Uncertainty and Market Competition emerged as the most significant drivers, with influence percentages between 47.5% and 48.2%. In contrast, ROI and Client Perception were found to be the least influential, with percentages ranging from 44.6% to 46.2%. Additionally, an independent sample t-test was conducted to determine if there was a significant difference between local (M=5.07, SD=0.699) and international service providers (M=5.26, SD=0.612). The t-test results ([t (284.472) = -2.856, p = 0.005], 95% C.I. = [-0.312, -0.057]) indicated a significant difference between the two groups, assuming unequal variances. Specifically, the mean score for international service providers was higher than that of local providers, with a significant mean difference (M difference = -0.185, 95% C.I: [-0.312 to -0.057]), suggesting that international companies are perceived as more substantial than local ones. The findings of this study offer valuable insights into the competitive advantages that authorities, particularly within the oil and gas sector, can leverage to encourage service providers to embrace sustainable practices. The results have the potential to initiate a transformative shift in the UAE's energy sector. This approach benefits the environment and enables a broader range of private companies and subcontractors to share the responsibility for sustainability, moving beyond the organizations that are currently involved.