ABU DHABI - The Abu Dhabi Investment Authority.

ADIA is the third most powerful institution in Abu Dhabi next to the Executive Council and the SPC. Although

ADIA is headed by young Shaikh Ahmad Bin Zayed. But its decision making mechanism is overseen by Ahmad Bin Khalifa Al Suwaidi, who represents Shaikh Zayed on the SPC, the boards of ADIA and other institutions. ADIA is in charge of the emirate's local, regional and overseas investments. Abu Dhabi Investment Co. (ADIC) is an executive arm of ADIA.

The Abu Dhabi National Oil Co. (ADNOC) is in charge of implementing SPC decisions and forms the second tier of power. It has day-to-day authority over the petroleum sector in Abu Dhabi, deciding how SPC decisions must be executed. ADNOC is in a position to advise and recommend to the SPC by using its experience - for example, by suggesting which is best among available options for a project and why.

ADNOC went through a massive restructuring process from October 1998 to mid-1999. The aim was to improve efficiency and prepare the company for future challenges. It has since become a holding concern conducting its business as an integrated entity, through eight autonomous directorates:

1. The E&P Directorate consists of four divisions: E&P Planning, Petroleum Resources, Onshore and Offshore. They have to "plan, guide and drive for the discovery and optimal development of Abu Dhabi's petroleum resources through exploration in own, joint venture or other concession areas", as determined by the SPC. Under this directorate come four operating units: the onshore JV ADCO, the main offshore JV ADMA-OPCO, the offshore ZADCO, and National Drilling Co. (see profiles of the operating companies in Gas Market Trends No. 2).

2. The Gas Processing Directorate is in charge of the gas plants and JVs. Under it come the onshore NGL/LPG JV Gasco which in 2001 absorbed Abu Dhabi Gas processing Co. (Atheer), and the LNG JV ADGAS.

3. The Chemicals Directorate is in charge of the chemicals sector including the Borouge olefins JV (60% ADNOC & 40% Borealis) and the fertiliser producer Fertil (see Downstream Trends No. 2).

4. The crude oil and products Marketing and Refining Directorate is in charge of sales, the Abu Dhabi Refining Co. (Takreer), and ADNOC-FOD.

5. The Shared Services Directorate is the biggest of the five operating groups. Under it come the Abu Dhabi Drilling Chemicals & Products Co. (ADDCAP), Abu Dhabi Petroleum Ports Operating Co. (ADPPOC), Abu Dhabi National Tanker Co. (ADNATCO), National Gas Shipping Co. (NGSCs), National Marine Services Co. (NMS), and the National Petroleum Construction Co. (NPCC - a JV with CCC). This directorate also has responsibility for providing the other groups with information technology (IT), project management, and procurement.

6. The Human Resources and Administration Directorate. In February 1999, this directorate set up an eight-member Projects Steering Committee to monitor, evaluate, streamline co-ordination of, and endorse or approve ADNOC's major civil projects.

7. The Management Support Directorate. 8. The Finance Directorate.

The latter three directorates come directly under the office of ADNOC's CEO, Yusuf Bin Omeir Bin Yusuf. ADNOC also has an executive committee responsible for discussing and following up all company business. This is chaired by the company's CEO.

Background: The characteristics of ADNOC's executive structure have changed radically over the past two decades. When ADNOC began operations in early 1972, Algerian executives were in charge. But a clear shift occurred in the mid-1980s, leading to the formation of the SPC in 1988 and the departure of Algerian CEO Mahmoud Hamra-Krouha in the same year.

Krouha and fellow Algerians in the management were replaced by young Abu Dhabian university graduates. The number of young Abu Dhabians joining the decision makers in ADNOC and other institutions has been increasing steadily over the past two decades. In the latest restructuring, ADNOC had to employ 200 more people, mainly Abu Dhabians.

The Al Nahyans are descended from Shaikh Nahyan, an 18th century tribal chieftain descended from Shaikh Yas. Originally from Yemen, near Maarib, Shaikh Yas was an ancestor of Dubai's ruling Al Maktoums as well. They formed the Bani Yas Confederation along with other tribes in Arabia and later moved to the southern Gulf coast (see Gas Market Trends).The power of any decision maker in Abu Dhabi depends on his of her political and social standing, which in turn reflects the following factors: (a) the person's relation to the main groups in the Al Nahyan family, (b) the tribal background, (c) the family's wealth, and (d) the educational or career background.