The Abu Dhabi National Oil Company (ADNOC) and ADQ have signed 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.
The 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 HE 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. Under the terms of the agreement, ADNOC and ADQ will jointly evaluate and invest in anchor chemicals projects.
ADNOC will hold a 60% majority equity stake in the JV with ADQ holding the remaining 40%.
ADQ’s extensive portfolio, including local and international logistics and transport, power and water, and industrial construction will complement ADNOC’s strong hydrocarbon feedstock position in Ruwais.
The JV partners will conduct a comprehensive feasability study to further develop identified projects in Ruwais and take forward those that show maximum potential for value creation.
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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.
H.E. Dr. Sultan Ahmed Al Jaber said: “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.
HE Mohamed Hassan Alsuwaidi, CEO of ADQ, said: “By partnering with ADNOC to faciliate 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.”
At the core of its current plans, ADNOC’s in-country-value (ICV) program, to date, has driven more than AED 44 billion ($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.
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.
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