VALUE MAXIMIZATION
ADNOC's Downstream Strategy represents one of the most important milestones for Abu Dhabi to continue to play a crucial role in the global energy market.
The unveiling of ADNOC's Downstream Strategy is not just another company announcement; it is a milestone for the whole UAE. It sets a clear path to cut through an uncertain future marked by an increasingly diversified energy mix.
ADNOC and Abu Dhabi are not afraid of change; if anything, they embrace it, seizing the opportunity to preserve their heavyweight role in the global energy market. With North American shale oil revolutionizing the hydrocarbon world and coal-to-chemicals technology making China a tough competitor in the Asian market, which will account for more than half of the world's GDP growth from 2017 to 2027, the GCC's oil-exporting countries are forced to take crucial decisions. In May 2018, at the ADNOC Downstream Investment Forum, Abu Dhabi showed the world its decision was made.
At the center of its new downstream strategy, ADNOC seeks to create, in Ruwais, UAE, the world's largest integrated refining and chemical site in the world under a USD45-billion investment. The plans include doubling crude oil refining capacity and tripling petrochemicals production, up to 14.4 million tons per year, by 2025.
Through strategic partnerships and investments, the strategy will build on the existing strengths and competitive advantages of the Ruwais Industrial Complex, which is already the fourth-largest refining complex in the world with a capacity of 922,000 barrels of crude and condensate per day. Surely, stretching the value of every barrel it produces will benefit
ADNOC, its partners, and the UAE, as the strategy seeks to create more than 15,000 highly skilled, specialized jobs by 2025 and contribute an additional 1% to GDP per year.
More specifically, ADNOC's Downstream Strategy includes a greenfield project to build a 600,000bpd crude refinery; a USD3.1-billion crude flexibility project; refinery modifications to process cheaper Upper Zakum oil and utilize the more expensive Murban crude for export sales; a gasoline aromatics project to upgrade the company's light and heavy naphtha streams; a new linear alkyl benzene project to produce common raw materials; and the mixed feed cracker, known as the Borouge 4 complex, which is already in the FEED phase.
One of the key sub-pillars of the strategy consists of the integration of assets, a crucial prerequisite to meet rising global demand and adjust to market trends. Integration reduces costs and increases supply chain operability, and, future growth will be led by petrochemical feedstock. As such, margins of refined and petrochemical products are slowly moving in the opposite direction of margins of unrefined products. Thus, merging the two assets makes ADNOC more stable.
Broadly speaking, the foray into downstream will create an added revenue source to mitigate fluctuations in the oil price. In the short term, it will create new opportunities for EPC contractors and manufacturers charged with the construction of new gas pipelines. And in terms of integration, a major opportunity is offered by the Internet of Things and the connected manufacturing systems, which can significantly improve the interconnectedness of operations, provided that they remain thoroughly protected from cyber-attacks.
In the long term, the challenge will lie in adjusting to the change in the chemicals growth model in a sustainable, yet competitive, way to push value through the downstream segment.
It started with the reorganization of one brand, and followed with the ongoing internationalization of its business model and partnership announcements. By displaying its commitment to pushing the value through the downstream segment, ADNOC keeps cruising relentlessly on its journey toward becoming a global energy player. The prolific shift best not be lost in the myriad of announcements: ADNOC is setting up the future of the UAE and knows exactly what it is doing.

TABLE OF CONTENTS
Focus: Tackling Unlawful Cryptocurrency Use
Crypto Crime
The rapidity and anonymity of crypto-transactions make them attractive not only to risk-prone investors, but also to criminals. Finding an efficient solution that does not completely undermine or overturn the nature of digital currencies is proving to be extremely hard.
read articleGuest Speaker
Juan Carlos Varela, President, Republic of Panama
TBY talks to Juan Carlos Varela, President of the Republic of Panama, on expanding the country's diplomatic footprint, the importance of participating in Expo 2020, and both countries' respective leadership roles as regional entrepôts.
read articleInterview
Rashed A. Al Blooshi, Chief Executive, Abu Dhabi Securities Exchange (ADX)
TBY talks to Rashed A. Al Blooshi, Chief Executive of Abu Dhabi Securities Exchange (ADX), on highlighting the opportunities available to companies on ADX, adopting best practices in the field, and further developing the market.
read articleFocus: ADNOC’s Partnership Model
Spheres of Influence
Following the announcement of an expanded partnership model and a more active approach to managing its businesses and portfolio of assets, a series of cooperation accords position the national oil company as a champion of commercial liberalism.
read articleInterview
hmed Omar Abdulla, CEO, Abu Dhabi Polymer Company Ltd (Borouge),
TBY talks to Ahmed Omar Abdulla, CEO of Abu Dhabi Polymer Company Ltd (Borouge), on the impact of its new Borouge 4 plant, specialized solutions for global challenges, and the need to continue to invest in innovation.
read articleInterview
Philippe Peccard, President Middle East Engineering & Investment Projects, Linde Group
TBY talks to Philippe Peccard, President Middle East Engineering & Investment Projects of Linde Group, on being a key partner of its regional partners, developing the downstream value chain, and further enhancing operations with technology.
read articleFocus: In-Country Value
Time to Commit
The announcement of the In-Country-Value program is a significant step for ADNOC and Abu Dhabi in growing the local private sector. Vertically, it will develop the energy industry through a trickle-down effect; horizontally, it will affect other sectors through a multiplier effect in the long-term.
read articleInterview
Ali Vezvaei, Executive President & CEO, Bilfinger Middle East
TBY talks to Ali Vezvaei, Executive President & CEO of Bilfinger Middle East, on its keys areas of focus in the UAE, trends in the hydrocarbons sector, and the application of energy efficiency technologies to new sectors.
read articleInterview
Samia Bouazza, Managing Director , Multiply Marketing Consultancy
TBY talks to Samia Bouazza, Managing Director of Multiply Marketing Consultancy, on satisfying sophisticated consumers with high purchasing power, targeting different categories of the population, and thinking globally while acting locally.
read articleInterview
Yousuf Al Shaibani, Director General, Mohammed Bin Rashid Space Centre (MBRSC)
TBY talks to Yousuf Al Shaibani, Director General of the Mohammed Bin Rashid Space Centre (MBRSC), on the goals of the national space program, attracting youth to the program, and the significance of KhalifaSat.
read articleInterview
Abdulla Jassem bin Kalban, Managing Director & CEO , Emirates Global Aluminium (EGA)
TBY talks to Abdulla Jassem bin Kalban, Managing Director & CEO of Emirates Global Aluminium (EGA), on its expansion upstream, strategies to grow the sector, and sustainability initiatives.
read articleInterview
Sheikh Abdulla bin Mohammed Al Hamed, Chairman , Department of Health (DoH)
TBY talks to Sheikh Abdulla bin Mohammed Al Hamed, Chairman of the Department of Health (DoH), on facilitating investment for local and foreign investors and building and maintaining a sustainable workforce.
read articleFocus: Technical Training vs. Academic Teaching
Balanced Learnıng
Abu Dhabi's technical institutes are growing in popularity among young Emiratis; however, finding a balance with more traditional academic programs is paramount to ensure the development of a truly knowledge-based economy.
read articleInterview
Noura bint Mohammed Al Kaabi, Minister , Culture and Knowledge Development
TBY talks to Noura bint Mohammed Al Kaabi, Minister of Culture and Knowledge Development, on the Creative Industries Contributions Index, bridging the AI-culture divide, and adopting a systems leadership approach moving forward.
read articleInterview
Mohamed Khalifa Al Mubarak, Chairman , Department of Culture and Tourism (DCT)
TBY talks to Mohamed Khalifa Al Mubarak, Chairman of the Department of Culture and Tourism (DCT) Abu Dhabi, on the role of innovation, the late Sheikh Zayed's cultural vision, and strengthening cultural engagement among youth.
read articleInterview
Saif Saeed Ghobash, Undersecretary , Department of Culture and Tourism (DCT)
TBY talks to Saif Saeed Ghobash, Undersecretary of the Department of Culture and Tourism (DCT) Abu Dhabi, on becoming a beacon of cultural tourism, tailoring its approach to different markets, and penetrating the MICE segment.
read articleInterview
Humaid Matar Al Dhaheri, Group CEO , Abu Dhabi National Exhibitions Company (ADNEC),
TBY talks to Humaid Matar Al Dhaheri, Group CEO of Abu Dhabi National Exhibitions Company (ADNEC), on fast-tracking Abu Dhabi's economic diversification, the importance of the Year of Zayed, and technology's impact on the world of event planning.
read articleInterview
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister , Climate Change and Environment
TBY talks to Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Climate Change and Environment, on the UAE's commitment to reducing its ecological footprint, transitioning to a climate-resilient green economy, and the importance of sustainable green finance.
read articleInterview
Neri Askland, Vice President , Middle East and UAE Country Manager of Statoil
TBY talks to Neri Askland, Vice President of Middle East and UAE Country Manager of Statoil, on its efforts to help reduce its carbon footprint, opportunities for R&D in the area, and its collaboration with Masdar.
read articleFocus: Nuclear Energy
The Nuclear Option
The UAE is the first country in the MENA region to develop nuclear power, with Abu Dhabi's Barakah nuclear power plant. The Emirate hopes to achieve energy security and embrace alternative sources of energy, ensuring full cooperation and support from the international community.
read articleInterview
Christer Viktorsson, Director General , Federal Authority for Nuclear Regulation (FANR)
TBY talks to Christer Viktorsson, Director General of Federal Authority for Nuclear Regulation (FANR), on the role of the institution in advancing the nuclear energy regulatory environment, the Barakah Power Plant, and the importance of an integrated network.
read articleInterview
Eng. Omar Husain Al Hashmi, Acting Managing Director , Abu Dhabi Sewerage Services Company (ADSSC),
TBY talks to Eng. Omar Husain Al Hashmi, Acting Managing Director of Abu Dhabi Sewerage Services Company (ADSSC), on its successes with STEP, helping Abu Dhabi to reduce its carbon footprint, and its successful Emiratization policies.
read articleInterview
Saeed Al Bahri Salem Al Ameri, Director General , Abu Dhabi Food Control Authority (ADFCA)
TBY talks to Saeed Al Bahri Salem Al Ameri, Director General of Abu Dhabi Food Control Authority (ADFCA), on the Farmers Income Support Program, the UAE's agroecological climate, and introducing intelligent control systems.
read articleInterview
Falah Al Ahbabi, Chairman, Department of Urban Planning and Municipalities (DPM)
TBY talks to Falah Al Ahbabi, Chairman of Department of Urban Planning and Municipalities (DPM), on coordinating joint-investment programs and strategic alliances with the private sector and integrating technology within developments and services.
read articleInside Perspective
Mohammed Ahmed Bin Abdulaziz Al-Shehhi, Undersecretary of Economic Affairs, the Ministry of Economy
Mohammed Ahmed Bin Abdulaziz Al-Shehhi, Undersecretary of Economic Affairs of the Ministry of Economy, on efforts to enhance the UAE's intellectual property framework, creating a knowledge-based economy, and fostering a culture of innovation.
read articleInterview
Khalifa Al Mubarak, Group Chief Executive Officer & Managing Director, Mubadala Investment Company
TBY talks to Khaldoon Khalifa Al Mubarak, Group Chief Executive Officer & Managing Director of Mubadala Investment Company, on the company's diversification strategy, its technology investments, and its focus on innovation.
read articleFocus: Economic Stimulus Package
Desert Breeze
Abu Dhabi unveiled the new stimulus package, Ghadan 21, in effort to counter the post-oil crisis slowdown. While it might be too soon to call for the end of austerity measures, it definitely signifies the leadership's commitment to grow the Emirate's economy.
read articleInterview
Rashed Lahej Al Mansoori, Chairman, Statistics Centre- Abu Dhabi (SCAD)
TBY talks to Rashed Lahej Al Mansoori, Chairman of Statistics Centre-Abu Dhabi (SCAD), on its efforts to improve data collection and lower costs, innovative statistical development tools, and its Emiratization policies.
read articleInterview
Saeed Al Neyad, Director General, Abu Dhabi Monitoring and Control Centre (ADMCC)
TBY talks to Saeed Al Neyadi, Director General of Abu Dhabi Monitoring and Control Centre (ADMCC), on being a critical enabler for various key partner organizations, efforts to increase Abu Dhabi's competitiveness in tourism and commerce, and improving the quality of life for citizens and visitors.
read articleInterview
Nick Cochrane-Dyet, Chairman, British Business Group (BBG)
TBY talks to Nick Cochrane-Dyet, Chairman of British Business Group (BBG), on Abu Dhabi's forward-looking strategy, the need for British firms to continue to bring value to the Emirate, and areas of opportunity for the UK.
read article