ADNOC’s new trading unit to play ‘critical role’ in expansion plans

ADNOC logos on display at GASTECH, in Chiba, Japan. ADNOC has set up a new unit for trading crude oil and refined products as part of its strategy to maximize returns on every barrel of oil produced and drive revenue from new business streams. (Reuters)
Updated 23 April 2018
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ADNOC’s new trading unit to play ‘critical role’ in expansion plans

  • ADNOC CEO Sultan Ahmed Al Jaber: “As ADNOC grows and expands its upstream and downstream businesses, we will produce more products, and in turn, our marketing, sales and trading function will play an even more critical role.”
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“Engaging in non-speculative trading will allow us to maximize value from our domestic and, over time, international downstream operations.”

LONDON: Abu Dhabi National Oil Company (ADNOC) has set up a new unit for trading crude oil and refined products as part of its strategy to maximize returns on every barrel of oil produced and drive revenue from new business streams.

“As ADNOC grows and expands its upstream and downstream businesses, we will produce more products, and in turn, our marketing, sales and trading function will play an even more critical role,” said Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO.



“Engaging in non-speculative trading will allow us to maximize value from our domestic and, over time, international downstream operations,” added Al Jaber.

The news comes as ADNOC is pushing forward with its plans to expand its downstream business in anticipation of the growth in the global petrochemicals sector.

“Looking out over the next two decades, we anticipate the sharpest growth within the energy sector will be petrochemicals, with demand forecast to climb 150 percent by 2040,” Al Jaber said.

“To capitalize on this opportunity and make ADNOC more resilient against possible price volatility, our goal is to become a major global downstream player, creating a strong pull for our products, combined with the flexibility to respond quickly to shifting market needs,” he said in an official statement.

ADNOC announced last November it was planning to invest more than 400 billion dirhams ($109 billion) over the next five years to increase its domestic refining, gas and petrochemicals businesses as well as expand its international downstream operations.

The firm is expected to set out its plans for downstream growth at an investment forum being held in Abu Dhabi in May.

ADNOC’s 2030 strategy — approved in 2016 — aims to increase petrochemical production from 4.5 million tons per year in 2016 to 11.4 mtpa by 2025.


UAE to loosen visa rules for investors and innovators

Updated 21 May 2018
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UAE to loosen visa rules for investors and innovators

  • UAE cabinet announces the launch of an integrated visa system to attract talent and talent in all vital sectors of the national economy
  • The Council also announced changes in the system of foreign ownership of companies in the country, which allows the acquisition of 100% of the global investors by the end of the year

DUBAI: The United Arab Emirates, home to financial hubs Abu Dhabi and Dubai, is loosening its residency laws and will grant long-term visas for up to 10 years to investors and highly-skilled professionals.
The 10-year residency visas will be granted to specialists in science, medicine and research, and to “exceptional students.” The state-run WAM news agency says the plan aims to attract global investment and innovators.
The UAE Cabinet approved the new rules on Sunday, saying plans are also on track to allow foreign investors 100 percent ownership of their UAE-based companies this year.
His Highness Sheikh Mohammed bin Rashid Al Maktoum affirmed that the UAE will remain a global incubator for exceptional talents and a permanent destination for international investors. “The UAE has been open, governed by tolerance and contributed to by all who live on its land.
“Our open environment, tolerant values, infrastructure and flexible legislation offer the best opportunities to attract international investment and exceptional talent in the UAE,” he said. “Our country is the land of opportunity, the best environment for realizing human dreams and unleashing their extraordinary potentials.”
The new regulations include raising the percentage of global investors’ ownership in companies to 100% by the end of the current year. He directed the Ministry of Economy in coordination with the concerned parties to implement the decision and follow up on its developments and submit a detailed study in the third quarter of this year.
The new regulations approved by the Council of Ministers and the authorities concerned have also set the procedures for implementing them to grant investors residence visas of up to ten years for them and all members of their families, as well as granting residency visas of up to ten years for specialized competencies in the medical, scientific, research and technical fields.
The new regulations also include visas for students studying in the country for five years and a 10-year residency for exceptional students.
Under current laws, foreign companies must have an Emirati owning 51 percent of the shares, unless the company operates in a free zone. Major brands Apple and Tesla are believed to be exceptions to the rule.