In a surprising turn of events, Adamjee Insurance Company Limited (AICL), one of Pakistan’s largest and most established insurance providers, has reported a significant loss of approximately 500 million rupees due to claims resulting from the catastrophic flooding in Dubai in April 2024. This revelation came during an analyst briefing held by the company to discuss its business performance and future outlook.
The floods, which wreaked havoc across the United Arab Emirates (UAE) and particularly in Dubai, have had far-reaching consequences, not only for the affected regions but also for international businesses operating in the area. Adamjee Insurance, with its substantial presence in the UAE market, found itself exposed to considerable financial risk as a result of this extreme weather event.
The April 2024 floods in Dubai were part of a larger pattern of increasingly severe weather events affecting the Arabian Gulf region. Dubai had already experienced what was then described as the heaviest rainfall in 75 years. Some areas recording more than 250mm of rain in less than 24 hours, far exceeding the country’s average annual rainfall of 140-200mm.
Climate scientists have pointed to human-induced climate change as a significant factor in the intensity of these storms. A study by the World Weather Attribution group concluded that the heat pumped into the atmosphere by human activities made the record rainfall 10-40% heavier. This finding underscores the growing risks that climate change poses to businesses and communities worldwide, particularly in regions traditionally considered arid. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
