Adnoc Drilling has signed a five-year preliminary agreement with Abu Dhabi’s clean energy company Masdar to explore partnerships and investments in geothermal energy.
The companies will assess potential co-operation in areas such as development, investment, operations and projects to promote the energy transition in the UAE and other markets, Adnoc Drilling said on Tuesday.
Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, will engage as a technical expert and adviser to support Masdar’s geothermal energy projects around the world.
The companies will “jointly evaluate” the potential for Adnoc Drilling to provide geothermal drilling services.
“Geothermal energy has enormous global potential and energy developers are challenged to ensure smart and innovative ways to deliver cost-effective wells,” said Abdulrahman Al Seiari, chief executive of Adnoc Drilling.
“Our leading integrated drilling services offering can bring advanced, efficient start-to-finish drilling and completion technologies to [give] Masdar the potential to generate clean geothermal energy to cool thousands of homes and office buildings.”
Geothermal energy harnesses the heat generated within the Earth’s core to provide a constant energy source, unlike solar or wind, which are intermittent in nature.
Geothermal energy plants also have high-capacity factors, meaning they can run at maximum power for longer periods.
Last month, Masdar invested in Pertamina Geothermal Energy (PGE), a unit of Indonesia's state utility Pertamina.
The investment marked Masdar’s entry into the South-East Asian country’s geothermal energy sector, the second largest after the US.
Masdar's chief executive Mohamed Al Ramahi said the agreement with Adnoc Drilling reinforced his company's commitment to unlocking clean energy opportunities across a wide technology range.
“With Masdar recently adding geothermal energy to our growing clean energy portfolio, we are excited about the important role that geothermal can play in helping to drive forward the global energy transition,” he said.
The generation of electricity using geothermal energy has increased gradually by about 3.5 per cent every year, resulting in a total installed capacity of about 15.96 gigawatts in 2021, according to the Abu Dhabi-based International Renewable Energy Agency.
However, geothermal energy still only makes up 0.5 per cent of the total installed capacity for renewable energy sources used in generating electricity, heating and cooling globally, the agency said in a report last month.
Masdar is currently active in more than 40 countries and has invested or committed to invest in projects worth more than $30 billion.
The company, which continues to boost its clean energy portfolio, has an ambitious target to grow its capacity to at least 100 gigawatts of renewable energy capacity globally by 2030.
The largest share of this capacity will come from wind and solar technology.
Beyond the initial goals, Masdar also seeks to develop more than 200 gigawatts of renewable energy.
Adnoc Drilling has provided integrated drilling services to sister companies Adnoc Onshore and Adnoc Offshore since 2019.
Last year, the company said it was considering expanding within the GCC as drilling activity increased after a surge in crude oil prices.
Rig activity in the GCC is a “huge” area in which Adnoc Drilling can “easily perform”, Mr Al Seiari told The National in November.
Zayed Sustainability Prize
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
Company%20Profile
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MO
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Company%20profile
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
