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ADNOC’s deal global vote of confidence in UAE’s economy: Newspaper

ABU DHABI, 23rd June, 2020 (WAM) — When the world economy continues to reel under the devastating impact of the coronavirus pandemic, Abu Dhabi National Oil Company (ADNOC) on Tuesday clinched a massive deal with a consortium of global players, worth $20.7 billion (Dh78 billion) to invest in select ADNOC gas pipeline assets, Gulf News wrote in its today’s editorial.
“As part of the milestone agreement, a consortium of investors, comprising Global Infrastructure Partners (GIP) Brookfield Asset Management, Singapore’s sovereign wealth fund (GIC), Ontario Teachers’ Pension Plan Board, Ontario Teachers; NH Investment & Securities and Snam, will invest $10.1 billion to acquire a 49 percent stake in a newly formed subsidiary, ADNOC Gas Pipeline Assets, with lease rights to 38 pipelines,” the newspaper added.
ADNOC will hold the majority stake of 51 percent and will retain ownership of the pipelines. It will also manage operations and remain responsible for capital expenditure.
The newspaper continued, “The deal is the single-largest energy infrastructure investment in the region and the largest in the world in 2020. It is also part of ADNOC’s strategy, announced in 2017, to attract foreign capital and maximise the value of its assets and provides investors with a unique opportunity to invest in the company’s solid assets for low-risk energy infrastructure.
“More importantly, Dr. Sultan Al Jaber, Minister of State and ADNOC Group CEO says, the agreement “signals continued strong interest in ADNOC’s low-risk, income-generating assets, and sets another benchmark for large-scale energy infrastructure investments in the UAE and the wider region. It solidifies ADNOC’s position as an attractive partner and reinforces the UAE’s track record as the region’s go-to foreign direct investment destination, even during the current unprecedented circumstances.”
It added that the world economy has been struggling to recover from three months of lockdowns and containment measures aimed to combat COVID-19. The World Trade Organisation (WTO) on Tuesday announced that global trade has shrunk by 18.5 percent in Q2.
In the region, the challenge is even greater as armed conflicts continue to cripple the growth in those parts and their immediate vicinities. The energy sector has seen its share of the contraction too as demand plummeted during the coronavirus crisis.
All the while, the local newspaper continued, the UAE shines through the unprecedented crisis as one of the rare safe havens for investment and a peaceful, stable oasis of economic growth.
“An international agreement, on this level, to invest in ADNOC’s assets is simply a vote of confidence in the future of this country and its growth the fruit of a concrete and consistent national strategy to offer unique opportunities for global partners to invest in a modern, progressive and safe environment,” it concluded.