During a June 2020 visit to its facility in Ruwais, Sheikh Mohamed bin Zayed, praised the Abu Dhabi National Oil Company for supporting the country's economy throughout the coronavirus pandemic.
“I’m proud of the exceptional effort to ensure uninterrupted supply of oil and gas to support our national economy,” the UAE President and Ruler of Abu Dhabi, said.
“The UAE continues to develop its energy sector and advance industries to drive sustainable growth.”
When restrictions related to Covid-19 suddenly stopped economic activity in many sectors around the world, oil demand plummeted and prices crashed — with US benchmark crude prices turning negative in April 2020.
Adnoc showed an ability to manage the crisis well, as Sheikh Mohamed highlighted.
This resilience was built up over time, and particularly over the previous six years, as the state owned oil producer underwent a transformation that turned it into a far more commercially focused and efficient international company, unlocking billions of dollars of value along the way.
Ruwais was also at the heart of this vision, Adnoc developing it into a fully-fledged hub for its downstream ambitions.
The pandemic had not dimmed the plans for Ruwais or the overall trajectory for Adnoc to become one of the most efficient national oil companies in the world.
Interestingly, the spur for the company’s transformation strategy, overseen by Sheikh Mohamed, had been the earlier global oil price slump, when an excess of supply, particularly in the United States, resulted in the Brent crude benchmark dropping as to low as $27.88 a barrel in early 2016.
Dr Sultan Al Jaber, Adnoc managing director and group chief executive, told The National in 2017 that after “a comprehensive root-and-branch review of our entire business” in 2016, the aim was to make Adnoc “more efficient, performance-driven, flexible, resilient and competitive”.
The subsequent 2030 strategy and investment plan was approved by its board, which is chaired by Sheikh Mohamed.
Very swiftly, though, the impact of the start of the transformation was in evidence.
“Adnoc's initiative will expand strategic partnership opportunities, deliver strong financial returns, and support the UAE's future growth,” Sheikh Mohamed said in the summer of 2017.
Already, there had been some significant developments. In October 2016, there was the consolidation of offshore companies Adma and Zadco.
Then, in February 2017, the renewal of onshore concessions was concluded after deals with BP and China's CNPC and CEFC, bringing total awards of Dh20 billion.
These partnerships were in line with Sheikh Mohamed’s vision for global partnerships and co-operation.
And since, new discoveries have reinforced the country’s position as holder of the world's sixth-largest oil reserves and the seventh-largest gas reserves.
Adnoc is working to boost oil production capacity to 5 million barrels a day by 2030.
At the end of last year, the board approved Adnoc’s plans to spend Dh466 billion ($127bn) between 2022 and 2026, of which Dh160bn will be directed towards the local economy by the state energy producer.
The company aims to increase its national reserves of 4 billion stock-tank barrels of oil and 16 trillion standard cubic feet of natural gas.
Dr Al Jaber, who is also Minister of Industry and Advanced Technology, said last year, Sheikh Mohamed had ensured Adnoc’s success through “his directives, support, constant follow-up and care for details”.
A month after that visit to Ruwais by Sheikh Mohamed, the company formed a partnership with Abu Dhabi’s industrial holding company, ADQ, to develop a chemicals manufacturing hub at Ruwais.
There have been other innovative deals across the energy value chain.
A consortium of the world’s leading infrastructure and sovereign wealth funds signed an agreement worth $20.7bn (Dh76bn) in 2020 to invest in Abu Dhabi’s natural gas pipeline infrastructure.
The infrastructure deal, which followed a similar transaction involving Adnoc’s oil pipelines in 2019, was the largest in the energy sector that year and was negotiated successfully amid the challenges caused by the pandemic, including the limit on international travel.
This also represented how attractive the UAE is for foreign direct investment, even when FDI levels fall elsewhere in the world.
Also, subsidiaries such as Adnoc Drilling and Adnoc Distribution have been listed on local stock markets, positioning them for more growth and realising gains for the group.
Adnoc has also launched a trading arm to better commercialise its refined products, as well as a business for the trading of its oil to boost revenue.
In March last year, crude futures contracts tracking the UAE's flagship Murban grade began trading in New York.
Murban has joined the ranks of Brent and US gauge West Texas Intermediate in pricing and trading oil. This is expected to enhance the UAE’s global competitiveness.
Expanding its partnerships with strategic customers in Asia such as the world’s largest crude importer China, has helped build the resilience Sheikh Mohamed spoke of in Ruwais during the pandemic.
For example, China's President Xi Jinping visited the UAE in the summer of 2018 and met with leaders including Sheikh Mohamed, and a number of key deals were signed including for investment into petrochemicals.
In 2019, Adnoc awarded South Korea’s SK Engineering & Construction a Dh4.4bn contract to build the world's largest single-site underground crude storage facility in Fujairah. This would greatly enhance energy security and the ability to respond nimbly to customers’ needs.
“Expanding strategic partnership opportunities of our national companies enhances their competitiveness and leadership regionally and globally,” said Sheikh Mohammed in 2017.
Looking beyond 2022, Adnoc has now branched out into areas that will become more important amid the energy transition and the UAE’s net zero by 2050 strategy, including blue ammonia, hydrogen and renewable energy.
These are key areas for the future prosperity for the country.
As Sheikh Mohamed said in October 2021, “Adnoc continues to drive innovation and efficiency in the energy sector and remains a crucial pillar of our nation’s economic success”.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Huroob Ezterari
Director: Ahmed Moussa
Starring: Ahmed El Sakka, Amir Karara, Ghada Adel and Moustafa Mohammed
Three stars
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Where to buy
Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com
Qosty Byogaani
Starring: Hani Razmzi, Maya Nasir and Hassan Hosny
Four stars
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
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