Abu Dhabi National Oil Company and ADQ form new joint venture to strengthen the Emirates' chemical sector
Abu Dhabi's National Oil Company (ADNOC) and ADQ have signed an agreement on Wednesday to create a new joint venture to strengthen the Emirates' chemical sector, according to state news agency WAM. The aim is to create a new investment platform to finance and oversee the development of industrial projects within the planned Ruwais Derivatives Park, a key element of ADNOC's smart growth strategy downstream by 2030 and the industrial and chemical growth strategy of this Gulf country. The agreement was signed by Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology of the Emirates and CEO of ADNOC, and Mohamed Hassan Alsuwaidi, CEO of ADQ.
Under the terms of the agreement, ADNOC and ADQ will jointly evaluate and invest in anchorage chemical projects. ADNOC will hold a majority share of 60% in the new company, and ADQ will hold 40%. ADQ's broad portfolio, which includes local and international logistics and transportation, energy and water, industrial construction and other essential infrastructure and services, will complement ADNOC's strong hydrocarbon position in Ruwais, as well as its long-standing relationships with trusted international partners and investors. These combined strengths will enhance the overall value proposition of the planned Ruwais Derivatives Park and, in turn, support the long-term growth of the wider Ruwais industrial complex and increased investment in the Emirate of Abu Dhabi.
The joint venture partners will carry out an extensive feasibility study to further develop the projects identified at Ruwais. The joint venture plans to announce the results of that study before the end of 2020, including specific details on the selected projects and the range of possible opportunities available to potential investors and partners. "The range, scale and calibre of resources that 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 industry partners," said Al Jaber in a statement released by WAM.
"By partnering with ADNOC to facilitate the development of the investment platform in the Ruwais Derivatives Park, we will play a key role, along with the public and private sectors, in providing essential services for infrastructure development," said Mohamed Hassan Alsuwaidi, ADQ's Chief Executive Officer. Both ADNOC and ADQ have been driving private sector growth in Abu Dhabi for years. At the core of its current plans, ADNOC's country value program, ICV, has so far boosted more than $12 billion in returns to the Emirate's economy and created more than 1,500 private sector jobs for Emirate nationals since its launch in 2018. ADQ brings together a range of vital local expertise in energy and logistics, industrial manufacturing and fabrication that will support the development of the planned Derivatives Park in Ruwais.
ADNOC continues to expand its processing activities as part of its strategy to diversify the economy by 2030, in which the Ruwais industrial complex will be transformed into a globally competitive chemicals cluster, taking advantage of the UAE's close geographic proximity to growing world markets, access to competitive raw materials, streamlined utility and service offerings, as well as the attractive fiscal and regulatory environment in Abu Dhabi.