ADNOC Signs Agreements with 25 Companies for Local Manufacturing Opportunities Potentially Worth up to AED 35 Billion

Abu Dhabi, UAE –Abu Dhabi National Oil Company (ADNOC) has signed agreements with 25 companies potentially worth AED 35 billion that will stimulate investment in local manufacturing of critical products in support of the diversification of the United Arab Emirates (UAE’s) industrial and manufacturing infrastructure.

The agreements set out the suppliers’ intention to manufacture 21 products in the UAE, supporting the delivery of ADNOC’s 2030 strategy, as it cements its position as one of the world’s leading low-cost, lower-carbon intensity energy producers. Leading companies who have signed agreements with ADNOC include Siemens, Halliburton, Celeros FT, Emerson, Proton R&D and Schneider Electric.

Among the products which could be manufactured in the UAE are pressure vessels; compressors; pipeline inspections gauges; specialist valves; industrial pumps; switchgears; variable speed drives and flame and gas detectors. The agreements could also see investments made in machining, reverse engineering and nondestructive testing equipment.

The announcement was made at ADNOC’s 6th annual Business Partnership Forum, held during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), at which His Excellency Omar Ahmed Suwaina Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology said the UAE’s ‘Make It In the Emirates’ program is a key part of the country’s strategy to double the contribution of the industrial sector to the UAE’s GDP to AED 300 billion by 2031.

Al Suwaidi said: “The UAE is emerging as one of the world’s major industrial and technology hubs. It has the most competitive industrial sector in the Arab world and is ranked 31st globally in UNIDO’s Competitive Industrial Performance Index. This global reputation is underpinned by our national industrial strategy, ‘Operation 300 billion’. A cornerstone of this comprehensive strategy’s roadmap is the ‘Make it in the Emirates’ campaign, which focuses on 11 priority sectors to support the growth of national industries and attract investments. However, it is not just about joining the UAE on its industrial transformation and development. It is also about accessing and benefiting from our truly unique value proposition.

“For instance, companies setting up in the UAE have access to reliable, cost-effective and sustainable energy supplies, including clean energy alternatives such as solar and hydrogen. They can also take advantage of our strategic geographical location, world-class logistics infrastructure, access to key global markets, and foreign ownership laws. One of the key competitive advantages associated with the ‘Make if in the Emirate’s’ initiative is implementing advanced technology in the local industrial sector.”

Abdulmunim Saif Al Kindy, Executive Director of People, Technology and Corporate Services for the ADNOC Group, said: “ADNOC has an exciting vision which will enable us to thrive and grow in a lower carbon future and continue to support the prosperity of the nation in the coming years and decades. These agreements, potentially worth AED 35 billion, will see significant investment flow back into the local economy through ADNOC’s In-Country Value program.

“We are taking a transparent approach in showcasing our product outlook to stimulate local market readiness as we continue to expand our In-Country Value program to support domestic manufacturing, enhance the UAE’s industrial base and create more skilled private sector employment opportunities for UAE Nationals, in line with the wise leadership’s directives.”

At the Business Partners Forum, ADNOC encouraged the private sector to capitalize on the commercial opportunities and reinforced its commitment to working with investors and suppliers, both local and international, as it expands its operations to cater for growing global energy demand.

Dr. Saleh Al Hashimi, ADNOC Commercial & In-Country Value Director, said: “We are ready to work with investors and suppliers to enable them to set up, or expand, manufacturing in the UAE and we invite local and business partners to grasp the significant opportunities this will create. We look forward to working with our partners to further support the growth and diversification of the UAE economy.”

More than 1,000 people attended the Business Partnership Forum, where ADNOC showcased its ambitious growth plans and its continued support for developing the capacity and capability of its local supply chain. ADNOC’s hugely successful ICV program is integral to these plans and has driven AED 132.5 billion ($36.1 billion) back into the UAE’s economy, since its launch in 2018.

Source: Abu Dhabi National Oil Company

ADNOC Refining Secures New International Partners Further Enabling the UAE’s Industrial Growth

Abu Dhabi, UAE –ADNOC Refining, a joint venture company between the Abu Dhabi National Oil Company (ADNOC), Eni, and OMV announced today that it has entered into a strategic agreement with ADQ, an Abu Dhabi-based investment and holding company, Veolia Middle East (Veolia), and Vision International Investment Company (Vision Invest) to acquire its waste management operations in Al Ruways Industrial City, Abu Dhabi.

Under the agreement, signed at the Abu Dhabi International Petroleum Exhibition and Conference, ADQ, Veolia, and Vision Invest consortium will own and operate two world-scale waste management plants, which sustainably treat and dispose of industrial waste generated from across ADNOC’s operations.

The agreement supports ADNOC’s role as a catalyst for the UAE’s economic growth and industrial diversification by attracting additional international investment and strategic partnerships to Al Ruways. The partnership will also enhance the competitiveness of ADNOC Refining by allowing the company to focus on its core refining operations.

Abdulla Ateya Al Messabi, CEO of ADNOC Refining, said: “We welcome the consortium as our latest strategic partners in Al Ruways. This agreement demonstrates ADNOC’s focus on forging strategic partnerships to promote capital efficiency and unlock growth opportunities in Al Ruways and Abu Dhabi as a leading destination for international investors. The partnership also supports the UAE’s industrial growth through the provision of leading world-scale waste management capabilities. Such win-win partnerships further accelerate the delivery of ADNOC’s mandate to grow the UAE’s economic base and deliver lasting value through our downstream businesses.”

Speaking jointly on behalf of the consortium, the Chief Executive Officer of Veolia, Estelle Brachlianoff, and the President & CEO of Vision Invest Mr. Omar Al-Midani said: “We are honored to partner with ADNOC Refining to operate these first-class facilities, utilizing the existing trained and expert team, supplemented by the consortium’s worldwide experience in hazardous waste management.

“Through this partnership we will ensure continuity, reliability and safety of the transferred assets to a world-leader specialized in waste treatment, with an operational philosophy centered around safety. The consortium truly believes a partnership with ADNOC will be mutually beneficial and generate significant value, supporting Abu Dhabi’s strategic vision of ensuring sustainable development while preserving the environment.”

The facilities treat industrial waste generated during ADNOC’s oil and gas extraction and refining processes and will continue to perform this role.

The team members working across both plants will join the Veolia-led operating company and benefit from the group’s know-how in industrial waste management.

The consortium’s acquisition of the waste management plants adds to several other strategic partnerships built by ADNOC with a number of local and international partners in Al Ruways. These include TA’ZIZ, which has signed agreements with a number of international partners including Reliance Industries, Fertiglobe, Mitsui and GS Energy. Al Ruways is also home to Borouge, a leading petrochemical company with ADNOC owning a majority 54% stake and Borealis holding a 36% stake, which listed 10% of its total issued share capital on the Abu Dhabi Securities Exchange (ADX), marking Abu Dhabi’s largest International Public Offering (IPO) to-date.

The transaction is subject to customary closing conditions and regulatory approvals.

Source: Abu Dhabi National Oil Company

Site Construction Underway at TA’ZIZ and Next Major Phase of Growth Launched

Abu Dhabi, UAE –Abu Dhabi National Oil Company (ADNOC) and ADQ, the majority shareholders in TA’ZIZ, launched, today, the next phase of growth at the TA’ZIZ Industrial Chemicals Zone, in Al Ruways Industrial City, which will more than double the number of chemicals produced at the industrial hub.

The centerpiece of the expansion will be a new world-scale, low-carbon footprint steam cracker to supply feedstocks for the various downstream production units, bringing multiple new product value chains to the UAE for the first time. The project is in the feasibility study phase, with the design phase set to commence in Q1 2023.

The first phase of TA’ZIZ growth continues to progress, with a new strategic agreement signed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) to advance the development of world-scale facilities for the production of ethylene dichloride (EDC) and chlor-alkali, polyvinyl chloride (PVC). Site preparation at TA’ZIZ is underway and final investment decisions on the first phase of projects are expected before year end.

In line with the UAE Net Zero by 2050 Strategic Initiative, TA’ZIZ will leverage low carbon electricity sources such as cogeneration from the on-site utility facility, grid power from nuclear and solar clean energy and use best available technology to drive manufacturing growth with lower carbon emissions.

Khaleefa Yousef Al Mheiri, TA’ZIZ Acting Chief Executive Officer, said: “TA’ZIZ is a critical enabler of the UAE’s industrial development and manufacturing growth ambitions. Following strong demand from partners and investors for the first phase of world-scale growth at TA’ZIZ, and capitalizing on growing global demand for chemicals, we are expediting plans for the next phase of expansion of our chemicals production.

“In line with our chemicals’ growth strategy, this major project supports our wise leadership’s vision to harness our country’s vast natural resources, while responding to the growing global demand for chemicals. By leveraging clean grid power and gas-based feedstocks, we are building new low-carbon industrial value chains that will further grow, diversify and future-proof our economy, as well as create opportunities to support the private sector.”

During ADIPEC, the TA’ZIZ EDC/PVC partners, TA’ZIZ, Reliance Industries and Shaheen signed a Joint Venture incorporation agreement for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility, with a total investment in excess of $2 billion (AED7.34 billion).

Fertiglobe, Mitsui & Co., Ltd (Mitsui) and GS Energy Corporation (GS Energy) are also partnering with TA’ZIZ to develop a world-scale low-carbon ammonia facility while TA’ZIZ and Proman are focused on progressing a methanol facility, both at the TA’ZIZ Industrial Chemicals Zone.

Separately, the Zone’s utility facilities, that will provide power, steam, cooling, demineralized and wastewater services will be jointly developed by ADNOC and TAQA. And, ADNOC L&S and AD Ports Group will develop a liquids terminal and logistics facility with an international partner, VTTI B.V., which will include construction of a new world-class port.

The Engineering, Procurement and Construction (EPC) contract for the utility facilities and the EPC contract for the logistics facilities marine works have both been tendered, with EPC awards expected shortly.

The total investment in the first phase of TA’ZIZ will be in excess of $5 billion (AED18 billion), with most of the chemicals produced in the UAE for the first time. All agreements are subject to regulatory approvals.

Launched at the end of 2020, TA’ZIZ is driving and enabling expansion of the Al Ruways Industrial City, as well as Abu Dhabi’s wider chemicals, manufacturing and industrial sectors.

Source: Abu Dhabi National Oil Company

Emirates Group marks UAE Flag Day, celebrating the symbol of the country’s unity

Dubai, UAE, Proud employees of the Emirates Group gathered today at its headquarters in a ceremonial moment to raise the UAE Flag high.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive Emirates Airline and Group, raised the UAE Flag while senior executives and employees proudly participated in the annual observance that celebrates the nation’s unity, and the vision of the UAE’s leaders to drive economic and social progress for the benefit of its citizens and residents.

Sheikh Ahmed said: “Today we celebrate the UAE’s flag and all that it symbolises – unity, courage, strength, peace, happiness and hope. It’s also an opportunity for us to acknowledge the sacrifices and achievements of our founding fathers. Like the UAE, the Emirates Group comprise of people from all over the world who work together to achieve common goals. We stand behind the vision of our leaders, and will continue to do our part to contribute to the betterment of communities and economies.”

Jumeirah International Nursery students take part in the Emirates Group’s UAE Flag Day ceremony

This year, 20 Emirati children from the Jumeirah International Nursery joined in the Emirates Group’s flag hoisting ceremony. The girls dressed in vibrant UAE flag-coloured thoubs and boys in their kandoras, adding to the national and community spirit, and representing the hopes and energy of the UAE’s future generation.

Source: Emirates Airline

Ministry Of Human Resources And Emiratisation Signs Agreement With Insurance Companies To Provide Unemployment Insurance Services Starting January 1st 2023 With No Cost On Employers

The Ministry of Human Resources and Emiratisation (MoHRE) has signed on Wednseday an agreement with a group of nine local insurance companies, to launch the framework of the new Unemployment Insurance Scheme, in line with the Federal Decree Law No. 13 of 2022 and the relevant Cabinet Resolutions.

The new insurance scheme aims to provide protection for employees in the privet sector and UAE’s federal government by providing them with a cash compensation for a limited period not exceeding three months for each claim in the event of job termination for reasons beyond their control.

It also creates a safety net that supports employees in their career path and ensures their livelihood by relying on mechanisms that do not incur additional costs for employers and is paid by the employee himself and provide a balance in the job market that allows achieving the UAE’s strategic goals and supporting the continuity and growth of economic activities.

Protection and Empowerment

The agreement was signed in the presence of His Excellency Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, and Butti Obaid Al Mulla, Chairman of Dubai Insurance Company. The agreement was signed by His Excellency Khalil Al Khoori, Undersecretary for Human Resources Affairs at MoHRE, and Abdul Latif Abu Qura, CEO of Dubai Insurance Company.

His Excellency Dr Abdulrahman Al Awar said: “The new unemployment insurance law is an essential part of the legislative and legal structure that the government is keen to develop to meet the requirements of the national economy. This supports the UAE’s endeavours to be the next capital of the future, and a global incubator for talent and companies and investments, which can be achieved through economic and social development and the empowerment of human capital.”

“We are keen to accelerate the implementation of the unemployment insurance law, through this agreement, which outlines the practical details of implementing its provisions on the ground, including employees in the federal government and private sectors, leading to a highly competitive and attractive labour market, while enhancing the stability of the workforce to be able to contribute to building the best and most active economy in the world.”

Implementations and Exceptions

Under the new insurance scheme, federal government and private sector employees must subscribe to the scheme from January 1st , 2023. Those excluded from the insurance scheme include investors – owners of establishments in which he or she works, domestic helpers, employees with a temporary employment contract, juveniles under 18 years of age, and retirees who receive a retirement pension and have joined a new job.

The insurance scheme is divided into two categories – the first covering those with a basic salary of AED16,000 and less. The insurance cost for the insured employee in this category is set at AED5 per month (or AED60 annually). The second category includes those with a basic salary exceeding AED16,000, and the insurance cost is AED10 per month (or AED120 annually). The payment can be made by the employee monthly, quarterly, half yearly, or on an annual basis. The value of the insurance policy is subject to value-added tax (VAT).

The employee who works on a commission basis may also subscribe to the scheme.

Monthly Compensation

The value of the monthly compensation will not exceed AED10,000 for the first category, and AED20,000 for the second category, where the insurance coverage compensation is calculated on a monthly basis at the rate of 60% of the basic salary and for a maximum of three months for each claim from the date of unemployment.

The insured (the employee) must submit the claim through the three approved claim channels – the insurance pool’s e-portal, the insurance pool’s smart application, and the insurance pool’s call centre, provided this is done within 30 days from the date of unemployement .

Compensation will be paid within two weeks from the date of the claim and capped at a maximum of three months per claim. Compensation for an employee is eligible if they have worked and subscribed for at least 12 months to the insurance scheme as long as they have not been dismissed for a discplinary reason or because of resignation.

The insured (employee) is not eligible for a compensation if they have left the country or joined a new job.

Various Channels for Subscribing

Employees may subscribe to the insurance scheme via the Insurance Pool’s website, smart application, bank ATMs, kiosk machines, business service centres, money exchange companies, du and Etisalat, SMS, or any other channel, which MoHRE decides later with the insurance companies.

Source: Ministry of Human Resources & Emiratisation