Abu Dhabi attracts Dh77 billion foreign investments in energy
abu dhabi — Abu Dhabi has received more than $21 billion (Dh77 billion) in offshore and onshore concessions and through investments across the extended hydrocarbon value chain, said a senior official.
“Investments by Abu Dhabi National Oil Company (Adnoc) and partners is corner stone for $45 billion strategy to expand its downstream business across petrochemical, derivatives and creating a foundation for manufacturing ecosystem that will deliver lasting value for the UAE and its partners,” said Ahmed Ali Al Sayegh, UAE Minister of State and Chairman of Abu Dhabi Global Market.
While speaking at the Bloomberg Invest conference in Abu Dhabi on Wednesday, he said Adnoc has attracted key investors such OMV and Eni to significantly expand its refining capacity and footprint.
An agreement signed in January saw ENI and OMV acquiring 20 per cent and 15 per shares in Adnoc Refining, respectively, while Abu Dhabi firm will own the remaining 65 per cent.
“This new entity will also create a new trading function and once the deal is closed, it will be domiciled here at Abu Dhabi Global Markets to benefit from its friendly trading legislations,” Al Sayegh said while giving the opening address at the forum.
The UAE attracted $15 billion foreign direct investment in 2018 and accounted for more than 22 per cent of total flow to Mena region.
“The UAE emerged as a magnet for FDI for both upstream and downstream oil and gas industry. Over last 2 years, the sector has attracted over $2 billion offshore and onshore concessions and through investments across the extended hydrocarbon value chain,” he added.
Al Sayegh noted that Abu Dhabi oil giant’s assets were created debt free in the past and now is being used to bring in value for country and more expertise. “Private equity firms actually understand the opportunities offered by our market.”
“We have weathered the global turbulence. The UAE is an oasis of ideas and possibilities that is bringing big change with an enormous investment and growth potential,” he concluded. Waleed Al Mokarrab Al Muhairi, deputy group CEO of Mubadala and CEO of Alternative Investments and Infrastructure, during an interview with Bloomberg that the company will continue to invest in the gas sector.
“We made big investments in natural gas. Most of our latest upstream opportunities or projects were in natural gas in Egypt, Malaysia and Thailand. Going forward, our institutional view is that natural gas is enjoying healthy growth,” he said on the sidelines of Bloomberg Invest summit.
Earlier, Suhail Al Mazrouei, UAE’s Minister of Energy, also addressed the summit and shed light on oil market supply and the role of Russia in balancing the market.
$15b
FDI attracted by the UAE in 2018