The Abu Dhabi National Oil Company (Adnoc) said it has signed a joint venture agreement with its holding company ADQ to create a new investment platform to fund and oversee the development of industrial projects within the planned Ruwais Derivatives Park, a key enabler of Adnoc Downstream’s 2030 smart growth strategy and the UAE’s chemicals and industrial growth strategy.

Under the terms of the agreement, Adnoc will hold a 60 per cent majority equity share in the JV, while ADQ will have the remaining stake.

Adnoc and ADQ both have strong track records of driving private sector growth in Abu Dhabi. At the core of its current plans, Adnoc’s in-country-value, ICV, programme, to date, has driven more than AED44 billion ($12 billion) back into the UAE economy and created over 1,500 private-sector jobs for UAE nationals since it was launched in 2018.

ADQ brings together a range of vital local expertise across power and logistics, industrial fabrication and manufacturing which will support the development of the planned Derivatives Park in Ruwais.

With the required approvals, the JV will be incorporated in Abu Dhabi Global Markets with both companies jointly determining the JV’s management team and board, in line with global corporate governance best practice.

The duo will jointly evaluate and invest in anchor chemicals projects, said Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group CEO, after sealing the agreement with Mohamed Hassan Alsuwaidi, CEO of ADQ.

“The range, scale and calibre of resources Adnoc and ADQ each bring to this new chemicals investment platform underscore Abu Dhabi’s position as a leading global destination for international investors and industrial partners,” stated Dr Al Jaber.

The JV partners will conduct a comprehensive feasibility study to further develop identified projects in Ruwais.