The livelihood vulnerability index (LVI) and the Intergovernmental Panel on Climate Change (IPCC) vulnerability index (IPCC-VI) approaches were used to assess the vulnerability of rural and urban regions of Sudr, Sinai, Egypt to climate change. Sudr is highly vulnerable to flashfloods and drought, that many attribute to climate changes. Equal numbers of rural and urban Bedouin, amounting to about 75–90 of each, were interviewed to collect information on human and natural capital, besides social, financial, and physical attributes. The study showed that drought is the most significant manifestation of climate change, especially in rural areas. The study also showed that rural Sudr community is significantly more vulnerable to climate change than the urban community. Their isolation, illiteracy, lack of awareness, and fragile ecosystem are causes of vulnerability. The two regions showed high capabilities to overcome exposure threats to climate change. Adequate adaptive capacity of Bedouin is the main cause for their ability to overcome climate change impacts. These results might be explained in view of Bedouin local knowledge that helps them survive even through the hardest of times. The aim of the present work is to explore the socioeconomic drivers of climate change and their impacts on a Bedouin community. It also gives an insight into possible mechanisms of future adaptation strategies.