Abu Dhabi - The Abu Dhabi Investment Authority.

ADIA is the third most powerful institution in Abu Dhabi next to the Executive Council and SPC. It is headed by Mohammed Bin Habroush Al Suwaidi, chairman of Abu Dhabi's Finance Department (local finance ministry). 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 authority on day-to-day basis over the hydrocarbon 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 was reorganised in October 1998 and has since become a holding concern conducting its business as an integrated company. Now it has eight autonomous economic units called directorates, with the creation of five operating ones announced on Oct. 12. It was explained that these units were set up in order to "specify accountability and improve efficiency and effectiveness". New projects were not to be managed under the direct supervision of the concerned directorate. The eight units are: 1. The E&P Directorate, under Abdullah Bin Nasser Al Suwaidi, is in charge of the upstream sector. Under it come the operating subsidiaries: the onshore JV ADCO, headed by Kevin Dunne; the main offshore JV ADMA-OPCO, headed by Henry Bacconnier; the offshore ZADCO, headed by T. Shimamura; and National Drilling Co., headed by Najeeb Al Zaabi (see profiles of the operating companies in Gas Market Trends No. 2). Suwaidi headed a five-member committee which oversaw ADNOC's reorganisation. 2. The Gas Processing Directorate, under Rashid Bin Saif Al Suwaidi, is in charge of the gas plants and JVs. Under it come the onshore NGL/LPG JV Gasco, headed by Saif Nasser Al Suwaidi; the LNG joint venture ADGAS, headed by Rashid Al Jarwan; and the newly created, wholly-owned Abu Dhabi Gas Processing and Pipelines Co. (Gappco) which is headed by Mohammed Bin Rashid Al Otaiba. 3. The Chemicals Directorate under Abdullah Bin Said Al Badi. This division is responsible for the Borouge olefins project (60% ADNOC & 40% Borealis), which is headed by Olav Aas, and the fertiliser producer Fertil which is headed by Abdel Hakim Al Suwaidi (see DT No. 2). 4. The crude oil and products Marketing and Refining Directorate under Mohammed Al Hamli. This is responsible for the newly created Abu Dhabi Refining Co. (Refco), headed by Ali Bin Said Al Badi who previously was in charge of crude oil marketing; and ADNOC-FOD, headed by Jamal Jaber Al Dhareef. 5. The Shared Services Directorate, under Said Ahmad Al Ajlan, is the biggest of the five operating divisions. Under it come five units: the Abu Dhabi Drilling Chemicals & Products Co. (ADDCAP), headed by Mahfoudh Al Darbool; Abu Dhabi Petroleum Ports Operating Co. (ADPPOC), headed by Khalifa Al Qubaisi; Abu Dhabi National Tanker Co. (ADNATCO), headed by Mohammed Salem Al Dhaheri (who previously used to head the Projects Directorate); National Gas Shipping Co. (NGSCs), headed by Al Taher Musabbah Al Kindi; National Marine Services Co. (NMS), headed by Ali Mohammed Al Yabhouni; and the National Petroleum Construction Co. (NPCC), a JV with CCC headed by Akil Al Mahdi (see logistics in OMT 3). 6. The Management Support Directorate, under Ahmad Ali Al Sayegh. 7. The Finance Directorate, under Nasser Ahmad Al Suwaidi. 8. The Human Resources and Administration Directorate, under Khalaf Rashid Al Otaiba who previously was head of the processing division and was once head of the marketing division. ADNOC also has an executive committee responsible for discussing and following up all company business. This is chaired by the company's CEO, Yusuf Bin Omeir Bin Yusuf. Background: The characteristics of ADNOC's executive structure have changed radically over the past decade. 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 decade. 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 political and social standing, which in turn reflects the following factors: (a) his relation to the main groups in the Al Nahyan family, (b) his tribal background, (c) the wealth of his family, and (d) his educational or career background. The Formal State Structure: Abu Dhabi has an elaborate system of government, with an Executive Council (local cabinet) focusing on the emirate's needs and an annual budget far bigger than the federal budget. Beneath the crust is a modern technocratic structure increasingly filled by young Abu Dhabian university graduates, notably including the sons of the ruler. The emirate has maintained some of the old traditions, however, and the ruling family is closely associated with tribal clans through various institutions and collective decision making councils. These bodies are in the following order of importance: The Amiri Diwan (court), of the ruler Shaikh Zayed, which has two main branches: one in Abu Dhabi City at the Presidential Palace, being the highest seat in the union of seven emirates (the UAE), and one in Al Ain. The Diwan of the Crown Prince, Shaikh Khalifa Bin Zayed, who is the ruler's first son who will succeed Shaikh Zayed when the latter dies or abdicates. The Executive Council (cabinet) with a Department (ministry) for every sector, which matches the bureaucracy of the federal government based in Abu Dhabi, led by Shaikh Khalifa Bin Zayed. The Consultative Council (local parliament), which is appointed by the ruler and consists of representatives of the main clans of Abu Dhabi. The SPC, which is an autonomous body and ruler of the hydrocarbon sector. The Abu Dhabi Investment Authority, an autonomous body. The Municipal Council, mainly consisting of a municipality for each of Abu Dhabi and Al Ain. The Defence Council, which is in charge of Abu Dhabi's military establishment that is still being helped by British and Pakistani officers. The judiciary consists mostly of Egyptian judges or religious ulema, although the number of Abu Dhabians has been increasing in this sphere as well. Abu Dhabi is the wealthiest state in the Gulf, with more than $100 billion invested overseas. Its income from oil and gas exports and petrochemicals will be rising considerably in the coming years as its production capacities are being expanded. The Abu Dhabi Investment Authority (ADIA) is in charge of the emirate's local, regional and overseas investments. It was established in the 1970s to channel the emirate's surplus revenues into profitable placement. ADIA has since become the second most important institution in Abu Dhabi's economic system next to the Supreme Petroleum Council (SPC). The current UAE oil minister and key officials in various sectors in Abu Dhabi have come from ADIA. The Abu Dhabi Investment Co. (ADIC) is the executive arm of ADIA (see OMT).