The news of an ADNOC-Mubadala Partnership has been doing the rounds in business circes within the UAE. Reports state that the Abu Dhabi National Oil Company, better known as ADNOC, has signed agreements with the Mubadala Investment Company. These agreements also involve the Emirates Nuclear Energy Corporation and will help in breathing new life into the UAE’s economy, while improving its in-country value. Here’s a quick look at everything you need to know about the deal, and what it could mean to the UAE.
ADNOC-Mubadala Partnership
Both companies have committed to exploring new opportunities to collaborate and create more employment opportunities for Emiratis. These opportunities will involve several industries within the private sector and also with regards to sourcing services and goods within the Emirates. Through a statement on Sunday, the ADNOC announced its partnership with the Mubadala Group and ENEC, in a bid to expand the nation’s in-country value program. Furthermore, as a response to the global pandemic and the issues it has caused, the partners will look for ways to localize critical areas within the value chain.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
ADNOC-Mubadala Plans For The Future
The agreements signed by the ADNOC will help the said companies collaborate and drive operations that help with localization of goods. Director of the Commercial Directorate at ADNOC, Rashed Al Shamsi acknowledged that such a partnership would help significantly in moving processes to local centres, helping improve the overall efficiency of the system.
Oil companies within the region, such as Saudi Aramco have made in-country value addition and generation a vital metric. Not only will moves to improve IVC help boost growth within the private sector, but it also leads to the large-scale generation of local jobs. The Saudi Aramco made use of the In-Kingdom Total Value Addition Initiative, better known as the IKTVA to improve local production. They aim to meet the goal of 70% local procurement and spending, within Saudi by the end of 2021 at least.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
In-Country Value Addition
ADNOC began its journey of boosting ICV programs in 2018. In that year, the company spent over Dh18 billion to improve its local supply chain and boost the local economy. As per reports, such an investment within the country has helped drive over Dh44 billion into the UAE economy. As a result, the program was successful in creating over 1,500 jobs for Emiratis within the private sector. The Emirates Nuclear Energy Corporation, better known as ENEC, is also a part of these programs. The corporation has awarded contracts worth over Dh 17.5 billion, helping employ and engage over 2000 local firms and corporations. In comparison, the ADNOC works with over 4,000 suppliers across several industries. Some of those include construction, hospitality, oil and gas, and food. Hence, such an ADNOC-Mubadala partnership will help boost overall ICV tremendously.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
How the ICV programs help
According to Mubadala’s Director Haifa Al Maskari, the ICV programs help improve the UAE’s economic position. These in-country value addition programmes have contributed heavily to UAE’s economic development, while also creating innumerable jobs to Emiratis. Just last year, ADNOC collaborated with Aldar and Schlumberger to enhance its ICV partnerships and plans. The Mubadala Group has a diverse portfolio, having investments in petrochemicals, refining and other downstream activities. By collaborating with such a company, the ADNOC will be able to explore various growth opportunities for international growth. Some of their investments in this field include OMV, PARCO, Cosmo Oil, CEPSA and NOVA Chemicals. The agreements were signed by Rashed Saud Al Shamsi (ADNOC), Homaid Al Shimmari, (Mubadala) and Ali Al Zaabi(ENEC).
Furthermore, these companies have a history of building strong and successful partnerships. They have worked together in the past to maximize value from Abu Dhabi’s oil and gas resources. In February, the Department for Economic Development and the ADNOC agreed to standardize the ICV programme across Abu Dhabi. Similar agreements were also signed with Aldar and Abu Dhabi Ports in November 2019 for value addition. Such ADNOC-Mubadala partnerships will help in providing more local employment. It will also help in boosting the overall economic prosperity of the UAE.
How Can KGRN Help?
KGRN Chartered Accountants is one of UAE’s most prominent business consultancy and audit firms. Our team of experts have the required experience and expertise. They can , therefore, guide you on all matters concerning an investment in the UAE. Hence, our experts will ensure that your investment stays safe. We also ensure you make the most well-informed decisions to avoid legal hassles and maintain 100% compliance.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
