Second most important factor while sizing of the cable conductor is the Voltage

Drop. The cable conductor can be considered as impedance and hence some of the
voltage would be used in it when current passes through it. If the device is not
supplied voltage within a certain limit they might not work appropriately or even
can get damaged. Voltage drop limit is specified by the local regulation, in range of
5-10% normally. In Abu Dhabi the voltage drop limit is 6% max at any point in the
installation. Devices are normally rated to work at voltage 10-20% lower than the
rated voltage.
We use 5-6% voltage limit because its a rule of thumb that 2% of voltage is lost at
circuit interconnections and terminations. Also the resistance of the cables changes
with age which is not kept in consideration while designing the system.