Economists: ADNOC’s trends are a paradigm shift in the development of new business modelsTruth Consultancy
They stressed that it deepens the local capital markets and increases their attractiveness
Date of publication: Tuesday 11 July 2017
Bassam Abdel Samie, Youssef Bastanji
The Abu Dhabi National Oil Company (ADNOC) announced today that it has decided to consider the listing of minority shares for some of its service companies. The company plans to consolidate some of the infrastructure assets within specialized companies, The development of gas fields and the expansion of petrochemical production is a qualitative leap in the development of new, effective and practical business models that meet the requirements of future economic growth and development and place the national economy and capital markets on the list of developed and advanced economies in the financial and business world. .
“The new directions of ADNOC are creating a new future for the oil sector, providing significant investment opportunities and encouraging international companies to quickly enter new and promising partnerships in the sector in Abu Dhabi.” ADNOC has opened innovative windows to strengthen its operations with partners in the sector, oil and gas”.
“The model announced by ADNOC is a more flexible approach to any economic conditions, so that the business model is able to absorb fluctuations in oil prices, as well as moving to levels,” said Wadah al-Taha, a member of the advisory board of the UK Securities & Investment Institute. Higher, within new business models that are flexible and capable of accommodating international variables.
The availability of a flexible model for development and to meet the challenges posed by the market and dealing with the variables is of great importance because flexibility allows for the possibility of institutional development within existing companies as well as the development of business, whether horizontal or vertical expansions, which means expansion within the same hydrocarbon sector or expansion Within other sectors linked or related to the hydrocarbon sector, or the development of other industries close to the oil and gas sector.
“About ADNOC’s approach to the partial listing of some of its service companies, there are more than 20 ADNOC subsidiaries operating in multiple business sectors, some of which operate in the fertilizer, port, infrastructure and other sectors, Adding that the listing will be related to companies whose work is not directly related to extraction, exploration or production (upstream activities), where these companies will be excluded at this stage.
The new approach and the model will further expand the attractiveness of new investors and partnerships. The listing process will make these companies more transparent through disclosure, transparency and corporate governance systems, which are conditions for increasing the attractiveness of companies and the national economy in general to foreign capital and long-term investors. Local market.
“This trend reinforces the investment environment in the Abu Dhabi Securities Market and creates an important nucleus for the energy sector in the region,” he said. “ADNOC’s approach will enhance public confidence in the UAE’s national economy and increase its investment attractiveness.
“The current phase requires a review of the nature of ADNOC’s subsidiaries, especially the restructuring of companies to enter new partners and new technology, open up new markets, diversify partners and diversify sources of income And open up new markets ».
He added: “The move to launch a part of ADNOC’s subsidiaries opens important opportunities for investors, contributes to capitalization and attracting foreign direct capital. This will deepen the capital market and move the market to a qualitative leap in terms of enhancing confidence and size. Foreign capital, capital and strategic investor, non-hot, long-term funds.
He pointed out that this approach will play the role of capital markets as an important tool in supporting all business sectors in the UAE, enhancing the position of capital markets in emerging markets, allowing them to be promoted to advanced markets and placing the country in the ranks of the world’s top financial centers that can, Market, pricing and offering financial products at the regional and global levels.
“These measures will lead to the creation of new job opportunities that are characterized by knowledge and professionalism and are in line with the state’s approach to building a capital-intensive knowledge and production economy, that is, new employment and jobs in the future will be qualitative and contribute strongly to economic growth, Sustainable and enhanced confidence in the overall national economy. “The actions and initiatives that ADNOC intends to launch form the basis for a new future for the oil and gas sector in Abu Dhabi,” said Hatem Nusseibeh, President of Total Emirates. “The UAE’s importance to Total and the strong partnership with Abu Dhabi in the oil and gas sector, Said that the company held its first board meeting outside France in Abu Dhabi and visited the Bouhata field in 2015. Total is the only international oil company operating with most of Abu Dhabi’s oil and gas companies and other energy companies. Its activities have developed in the UAE through Past years to Ml of surface facilities for the production of oil and liquefied natural gas and co-generation, solar energy, fertilizer and lubricants.
“Since its presence in the region in 1939, the company has been using the latest technologies and innovations to enhance production while preserving the environment,” said Nusseibeh. “Total operations and activities have been undertaken to develop local human capital, preserve and protect the environment and contribute to sustainable development in the UAE.”
The new directions were announced by HE Dr. Sultan Ahmed Al Jaber, Minister of State and Chief Executive Officer