Reuters prepared a report on ADNOC's success in attracting $ 19 billion in foreign capital over the past three years.
The report pointed out that the process of development and modernization witnessed by ADNOC comes under the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and focuses him on establishing a culture of merit at work and that there is no automatic entitlement to job benefits, but scientific and academic qualifications, actual work and proof Merit is the only qualification to be taken into consideration.
The report talks about examples of ADNOC initiatives after His Excellency Dr. Sultan Ahmed Al-Jaber, Minister of State, to oversee the development and modernization efforts as the company's CEO. The report shows that attracting this volume of capital reflects the confidence of the international investment community in the stable system provided by the UAE, and the confidence of investors and major international companies in it.
The following is a summary of the report:.
ADNOC has managed to raise more than $ 19 billion over the past three years from foreign investors, according to Reuters calculations based on official announcements, franchising fees and the sale of shares.
ADNOC, which provides nearly 3% of global oil demand, entered into an agreement with Black Rock, the world's largest fund manager, and with the US investment firm KKR, in a move considered rare for both to invest in oil companies. Patriotism in the Middle East. ADNOC also sold stakes in part of the oil pipeline infrastructure and refining facilities.
"While national oil companies are seeking to apply the business model of major global oil companies by expanding downstream operations (refining and petrochemicals) and trade, the financing strategies differ," says Dmitry Marianschenko, analyst at Fitch Ratings. “ADNOC is adopting advanced financing mechanisms to finance its projects, including the sale of minority stakes in some of the group’s companies,” adds Marinchenko. “ADNOC adopts an open approach to cooperation with international partners, through establishing strategic partnerships.”
The days will prove which method is the most effective in attracting investments, but the most important factor at this stage is the ability to achieve economic diversification, and most importantly, the extent of growth and development of local economies and their ability to reduce the impact of fluctuations in oil prices.
"The big challenge is the uncertainty about the prospects for the future of oil, and the closer look at the energy companies' business around the world due to climate change," says Halima Croft, head of commodities strategy at RBC Capital Markets. The main driver behind the reforms in the oil and gas sector in Abu Dhabi was His Highness Sheikh Mohammed bin Zayed Al Nahyan .. This dates back to 2016 when oil prices fell to $ 30 a barrel, as these fluctuations demonstrated the need for oil-dependent countries to adopt an economic diversification approach.
His Highness appointed Dr. Sultan Ahmed Al-Jaber as CEO of ADNOC and its group of companies to restructure the company and enhance its efficiency and effectiveness to emulate large energy companies, rather than remain a typical government company.
Dr. Sultan Ahmed Al-Jaber proceeded to develop and implement a strategic plan, and the management team in ADNOC was restructured, and the number of employees was reduced through laying off a number of foreign employees.
It was not easy to change the course of one of the most conservative institutions in the region.
ADNOC's production included long-term franchise agreements with major Western oil companies, some of which have been operating in the UAE since the 1930s, and no one expected new agreements or foreign investment.
In April 2016, two months after ADNOC CEO took office, His Highness Sheikh Mohammed bin Zayed Al Nahyan made a surprise visit to ADNOC headquarters to deliver an important message to the cadres working to make a fundamental change.
His Highness’s message was the necessity of making a fundamental change in the culture of work in circumstances where it was believed that obtaining government jobs was guaranteed and considered a natural benefit.
Haif Zamzam, Vice President of Qualitative Transition and Business Support in ADNOC's Marketing, Logistics and Trading Department, which was among a group of employees met by His Highness Sheikh Mohammed bin Zayed Al Nahyan ... during one of his visits to ADNOC: "His Highness stressed that ... The economy in the UAE cannot be completely subject to fluctuations in oil prices, whether the price of a barrel is 30 or 100 dollars. "
ADNOC attracts 19 billion dollars in 3 years
Reuters prepared a report on ADNOC's success in attracting foreign capital worth $ 19 billion during the past three years. The report indicated that the development and modernization process witnessed by ADNOC comes under the guidance of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander