Abu Dhabi National Oil Company (ADNOC) and ADQ Holding signed a joint venture agreement to create a new investment platform for developing, financing and supervising the establishment of industrial projects within the “Ruwais Petrochemical Derivatives Complex”, which is one of the main capabilities of ADNOC 2030’s strategy for smart growth. In the field of refining and petrochemicals, this step also supports the UAE's growth strategy in the industrial and chemical sector.
The tasks of the two companies
A statement issued yesterday stated that ADNOC holds a majority stake in the joint venture by 60%, while ADQ Holding holds a 40% stake.
According to the agreement, "ADNOC" and "ADQ Holding" will evaluate and implement joint investments in a group of projects in the field of chemicals. The two companies are also conducting a comprehensive feasibility study to develop specific projects in Al-Ruwais, and to cooperate in implementing projects that have great potential for establishing and enhancing value. It is planned to announce the results of this study before the end of 2020, including details of the targeted projects and opportunities for investors and new partners.
The Minister of Industry and Advanced Technology, CEO of ADNOC and its group of companies, Dr. Sultan Ahmed Al-Jaber, said that, “In line with the leadership’s directions to build smart partnerships that achieve the maximum possible value from ADNOC’s assets in various fields of its business, this joint project comes to confirm the company's commitment to investment Smart and responsible, and to reflect our steadfast focus on enhancing the value of every barrel of oil we produce and establish Abu Dhabi, a global destination for international investors and industry and technology partners. ”
He added, “We are pleased to sign this agreement with ADQ Holding to benefit from the fields of coordination and integration, uniting efforts, competitive advantages, great resources and varied experiences provided by each of the two companies, to build a new investment platform for petrochemicals that will enhance the value of our assets in Ruwais, and develop a sector Manufacture of petroleum and chemical derivatives in the country, transforming Ruwais into an international industrial center, and providing more new business opportunities. ”
For his part, CEO of ADQ Holding, Mohammed Hassan Al-Suwaidi, said that the partnership with ADNOC in the project to develop “Al-Ruwais Petrochemical Complex” provides an opportunity to contribute effectively in cooperation with the government and private sectors, to provide the basic infrastructure for this project.
He stressed that this partnership clearly embodies the support model that ADQ Holding can provide to drive efforts to establish value and build a prosperous economy in the Emirate of Abu Dhabi.
Redirecting 44 billion dirhams
Both ADNOC and ADQ Holding have a proven track record of boosting private sector growth in Abu Dhabi. The ADNOC Program to Enhance Local Added Value has redirected more than 44 billion dirhams ($ 12 billion) to the local economy, providing More than 1500 jobs for UAE nationals in the private sector since its launch in 2018 until now.
ADQ Holding brings together vital local experiences in various sectors, such as energy, logistics and manufacturing, that will support the development of the “Ruwais Petrochemical Complex”.
ADQ Holding owns a diversified portfolio of companies and projects that cover a number of key sectors, including logistics services, local and international transport, energy, water and manufacturing, and other basic and enabling infrastructure services, which contributes to enhancing ADNOC's position in the field of manufacturing Providing basic raw materials of hydrocarbon fuels in the “Ruwais Complex” and strengthening their relations with international partners and investors.
The common strengths will also contribute to enhancing and increasing the total value of the petrochemical derivatives complex that ADNOC is working to establish in the Ruwais complex.