Beyond extreme heat and drought, the Middle East and North Africa (MENA) region hasn’t historically experienced regular, extreme weather. However, a series of significant events over the past decade is starting to change what people – and businesses – think they know about weather in the region.
Cyclones are increasing in frequency in regions historically prone to such storms including the Middle East, with notable events in 2007 and 2024, resulting in loss of life and extensive damage, while hail storms have also begun making an unwelcome appearance. What has really caught most people by surprise though, is the increasing regularity of flooding which has focused minds on better management of weather risks.
While extreme weather events in the MENA region are not as severe or regular as those in the US and Europe, a study by Khalifa University and the National Centre of Meteorology found that heavy rainfall, leading to flash flooding, has become more prominent over the past 20 years. In April 2024, some parts of Dubai received more than a year and a half’s worth of rainfall in just 24 hours, an unprecedented event that impacted hundreds of businesses, as well as homeowners.
While the MENA region may be unfamiliar with this kind of weather, the rest of the world is well equipped to handle it. There is help available from insurers that have built up many decades of weather data and risk insight responding to these events elsewhere, as well as extensive experience in making businesses more resilient.
The key to securing that resilience is preparation - both physical and financial. The authorities in the UAE have already responded robustly to last April’s floods, investing in improved drainage systems, flood prevention and early warning systems to limit the damage caused by future events.
But these measures are only as strong as the communities they protect and businesses have to assume their share of the protection burden. All businesses in the UAE today should have a Flood Emergency Response Plan (FERP), detailing what steps need to be taken (and by whom) to limit the damage - such as shutting down and isolating equipment, raising or relocating key equipment and materials and securing access to discharge pumps to remove the water once the storm has passed.
Taking longer term, preventative measures is also advisable. Carrying out a flood assessment of the site, installing flood walls or barriers and ensuring drainage systems are fully functional, will all significantly limit the damage caused, should another flash flood strike.
But prevention alone won’t protect businesses from extreme weather, which is why insurance has such an important role to play in any business resilience plan. Of course there is cover for physical damage to property, but many policies offer deeper levels of protection, such as business interruption cover which compensates for lost profits while a business is unable trade.
Insurance can also provide financial compensation for supply chain disruptions, employee displacement or reputational damage and cover for specific events, such as windstorms, flooding and earthquakes can be bought.
Every insurance policy is different so businesses should always look to engage a professional adviser to help them source the right insurer, and the right cover, for their specific business needs. And should the worst happen again, the difference between those businesses that engaged in risk prevention and those that didn’t, will – unfortunately - be clear to see.
