Enoc signs over petrol stations in Sharjah to Adnoc Distribution


Andrew Scott
  • English
  • Arabic

When the fuel gauge points to “E”, drivers in Sharjah and the Northern Emirates can breathe a little easier today.

Emirates National Oil Company (Enoc) signed an agreement yesterday for the transfer of 25 non-operational service station facilities in Sharjah to Adnoc’s distribution network.

The agreement comes on the back of many disruptions in the fuel supply to Sharjah since 2011, resulting in an ultimatum from the emirate’s government and the closure of many Enoc stations. The 25 stations covered by yesterday’s announcement will be renovated and rebranded Adnoc before re-opening.

“Through this strategic agreement, we are transferring for free our non-operational sites in Sharjah to Adnoc Distribution,” said Saeed Khoory, the chief executive of Enoc. “The optimal use of these assets will benefit Adnoc Distribution in reducing the load of their existing network in the emirate.”

The closures had increased the pressure on the remaining petrol stations in the Northern Emirates, with long queues a day-to-day nuisance.

Adnoc has previously taken over 74 petrol stations run by the UAE fuel retailer Emarat in Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah, with 30 of the stations in Sharjah alone.

This is in addition to Adnoc taking over the Sharjah Terminal Depot of petroleum products in Port Khalid. Fuel problems in the emirate stretch back to 2011 when Dubai-based Enoc, which owns both Enoc and Eppco stations, stopped supplying petrol to the Northern Emirates.

The Sharjah government issued a 72-hour ultimatum to Enoc to resume refuelling or close down all its stations.

This ultimatum was not met and the company closed pumps and shops, and blocked car service bays at all of its stations.

Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, ordered Adnoc to take action.

The Abu Dhabi company has since increased its supply of fuel to the Northern Emirates and will build more petrol stations.

ascott@thenational.ae

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India 219, 48.4 overs
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England won by nine runs

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MATCH INFO

FA Cup final

Chelsea 1
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Married Malala

Malala Yousafzai is enjoying married life, her father said.

The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.

Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.

Australia men's Test cricket fixtures 2021/22

One-off Test v Afghanistan:
Nov 27-Dec 1: Blundstone Arena, Hobart

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Dec 16-20: 2nd Test, Adelaide Oval, Adelaide (day/night)
Dec 26-30: 3rd Test, Melbourne Cricket Ground, Melbourne
Jan 5-9, 2022: 4th Test, Sydney Cricket Ground, Sydney
Jan 14-18: 5th Test, Optus Stadium, Perth

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.”

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.

Washmen Profile

Date Started: May 2015

Founders: Rami Shaar and Jad Halaoui

Based: Dubai, UAE

Sector: Laundry

Employees: 170

Funding: about $8m

Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures

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Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

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Dubai Creek Open in numbers
  • The Dubai Creek Open is the 10th tournament on this year's Mena Tour
  • It is the first of five events before the season-concluding Mena Tour Championship
  • This week's field comprises 120 players, 21 of which are amateurs
  • 15 previous Mena Tour winners are competing at Dubai Creek Golf and Yacht Club