By: Mahmoud Gamal

Dubai – Mubasher: Abu Dhabi’s Supreme Petroleum Council (SPC) has approved huge investments in the Abu Dhabi National Oil Company (ADNOC), which makes the petrochemical sector ready for seeing an economic boom over the coming years.

The SPC has approved ADNOC’s strategy to spend more than AED 400 billion ($108.90 billion) to boost its local and overseas investments in the field of crude refining, petrochemicals and development of unconventional resources , Crown Prince of Abu Dhabi Mohammed bin Zayed Al-Nahyan said.

This Abu Dhabi-based company has begun executing a major plan to restructure its business that aims at expanding oil trade activities and partnerships, CEO Sultan Al-Jaber noted in an interview last week.

Huge investments

The SPC’s approval on ADNOC’s strategy will globally reinforce the Emirati petrochemical sector’s position, economists told Mubasher.

Moreover, economist Mohammad Mahdi indicated that the investments approved by Abu Dhabi hover near $110 billion, which will increase ADNOC’s share in the global markets.

Most of the GCC states are ready for the post-oil era to skip crude refining and move directly to petrochemical production in an effort to benefit from different derivatives, Mahdi added.

Anticipated cooperation

The SPC’s approval on ADNOC’s strategy, in line with Saudi Aramco and SABIC’s partnership, affirms the government’s tendency to diversify income resources, Mahdi highlighted.

On Sunday, Saudi firms Aramco and SABIC signed a memorandum of understanding (MoU) to build a crude-to-chemicals facility in Saudi Arabia with investments worth SAR 30 billion ($8 billion).

ADNOC is expected to cooperate with Aramco and SABIC in the petrochemical field in light of the economic integration between the UAE and Saudi Arabia, he implied.

These new investments will raise ADNOC’s market value and global shares in the petrochemical sector, he added.

The three firms may unify their goals towards creating a new entity to promote the petrochemical industry as anticipated investments are likely to exceed $100 billion, he explained.

He further noted that the petrochemical sector is currently the rival of financial sector in the GCC region.

ADNOC’s strategy will create numerous jobs for the Emirati youth, as well as others in the GCC regions, the economist concluded.

Translated by: Mai Ezz El-Din