The Abu Dhabi National Oil Company (ADNOC) and ADQ a state-owned holding company have entered a Joint Venture (JV) agreement to create a new investment platform to fund and oversee the development of industrial projects within the planned Ruwais Derivatives Park.
Ruwais Derivatives Park is a key enabler of ADNOC Downstream’s 2030 smart growth strategy and the UAE’s chemicals and industrial growth strategy.
The agreement was signed by H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and H.E. Mohamed Hassan Alsuwaidi, CEO of ADQ.
ADNOC and ADQ will jointly evaluate and invest in anchor chemical projects.
ADNOC will hold a 60% majority equity stake in the JV with ADQ holding the remaining 40%.
The combined strengths of ADQ’s extensive portfolio and ADNOC’s strong hydrocarbon feedstock position in Ruwais will enhance the overall value proposition of the planned Ruwais Derivatives Park and, in turn, support the long-term growth of the broader Ruwais industrial complex and increased investment in the Emirate of Abu Dhabi.
The new partners will conduct a thorough feasibility study to further improve identified projects in Ruwais and take forward those that show maximum potential for value creation. The JV plans to announce the results of this study before the end of 2020, including specific details on its selected target projects and the range of potential opportunities available for prospective investors and partners.
Dr. Sultan Ahmed Al Jaber CEO and Director General ADNOC Group
“The range, scale and caliber of resources ADNOC and ADQ each bring to this new chemicals investment platform underscore Abu Dhabi’s position as a leading global destination for international investors and industrial partners. In line with ADNOC’s commitment to smart, responsible investment in the current market environment, as well as our unwavering focus on stretching the margin of every barrel of oil produced, our partnership with ADQ will expand on existing efforts to maximize the value of our assets in Ruwais, to kickstart the development of the UAE’s downstream deriviatives sector, support the transformation of Ruwais into a global hub for industry and attract additional foreign direct investment.”
ADNOC and ADQ both have strong track records of driving private sector growth in Abu Dhabi. At the core of its current plans, ADNOC’s in-country-value (ICV) program, to date, has driven more than $12 billion back into the UAE economy and created over 1,500 private-sector jobs for UAE nationals since it was launched in 2018.
ADQ brings together a range of vital local expertise across power and logistics, industrial fabrication and manufacturing which will support the development of the planned Derivatives Park in Ruwais.
Mohamed Hassan Al Suwaidi CEO – ADQ
“By partnering with ADNOC to facilitate the development of the investment platform in Ruwais Derivatives Park, we will play a key role, together with the public and private sectors, in providing essential infrastructure development services. At ADQ, we are driving value creation and helping to build a prosperous economy for the benefit of Abu Dhabi through our diverse portfolio of the emirate’s leading entities such as Abu Dhabi Ports, Abu Dhabi National Energy Company (TAQA), Etihad Rail, Emirates Steel, DUCAB and Arkan.”
With the required approvals, the JV will be incorporated in Abu Dhabi Global Markets with both companies jointly determining the JV’s management team and board, in line with global corporate governance best practice.
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
