Dr Sultan Al Jaber, Minister of State and Adnoc Group chief executive, said it was important for business leaders to convey a positive, optimistic, and credible way forward, with humility and honesty, amid the Covid-19 pandemic.
“It is essential to communicate a message of unity, that we are in this together and will find our way through together," he said during the company's 'virtual majlis' discussion.
The crisis "has highlighted just how forward-thinking our leadership’s guidance has been in directing this transformation. As a result, Adnoc is now far stronger and better positioned to manage the current market dynamics", Dr Al Jaber said.
The Abu Dhabi National Oil Company is running the virtual majlis initiative as part of its participation in the UAE Volunteers initiative, geared towards bringing together officials and experts to engage on the key issues facing the world today.
The full transcript of the conversation between Dr Al Jaber and Helima Croft, Managing Director and Global Head of Commodity Strategy at RBC Capital Markets is below.
Dr Sultan Al Jaber: Hi, Helima.
Helima Croft: Hello, your excellency.
SAJ: I hope you and your family are safe and well.
HC: We are very well, we just miss Abu Dhabi.
SAJ: How have you been spending your time?
HC: We've been spending our time in our house in Rhode Island. How have you been spending your time? How's working from home?
SAJ: It has definitely been an adjustment working from home. In fact, for me… work-life balance has been more like work-life integration.
Trust me, for the last eight weeks I haven’t really left this desk… and I’ve been very much tied to technology.
HC: We are very much living in a changed world, Dr Sultan, what is your view of the global economic outlook, and in oil markets in particular?
SAJ: You know, Helima, we are in an uncharted territory. We have never before experienced a time when the level of economic activity has dropped off this far… and this fast.
I am, in fact, in constant contact with our international partners and friends to share views and best practices in response to what is a fast evolving situation.
The fact is… right now… no-one is in a position to predict exactly what a recovery could potentially look like.
And as you know, most economists agree that a recovery will be more of a U-shape rather than a V-shape.
Having said that…when it comes to oil, there are good signs that the market has tightened in recent weeks.
And the Opec plus plus agreement, voluntary cuts outside of Opec and the production shut ins are working together to start to rebalance the market.
This, in my view, will take time… as economies begin to open up, demand will follow… but the path to the next normal will not be a straight line.
HC: Dr Sultan, with all of this uncertainty, how is Adnoc remaining resilient?
SAJ: You know, Helima, today… to a certain extent… we are seeing the benefits and the results of the steps we have taken on over the last four years… and if there is anything this crisis has taught us… it is just how forward thinking our leadership's guidance has been in directing this important transformation.
And as a result, Adnoc is now far stronger and better positioned to manage the current market dynamics.
Through our transformation… we have focused on what we can control… and that is our costs.
We’ve been, in fact, laser focused actually… on being one of the lowest cost producers in the world.
And this has given us the flexibility and the resilience that we need at times like these.
At the same time, we have also evolved our business model to enable us to generate and maximise value through partnerships and transactions that leverage our asset base and attract strategic foreign investments.
Of course, in this environment, we are continuing to work even harder to preserve our resources, drive more efficiency, optimise, and maximise our profitability.
HC: How are you dealing with the risks that Covid-19 presents to your business?
SAJ: Our number one focus has been the health and safety of all our employees and colleagues.
And this in fact is very much in line with the UAE’s overall response to Covid-19, which has prioritised clearly the health and safety of everyone living here in the UAE.
The UAE has so far conducted over 1.5 million tests... that is one of the highest, if not the highest per capita ratios in the world.
And, at Adnoc, we have taken additional precautions to enhance the safety of our employees, including comprehensive testing, minimising staff on site and ensuring all office-based employees can work effectively from home.
On top of that, transparent communication has been critical. We are using all our channels to keep everyone aware, informed and very updated on the latest guidelines.
HC: You mentioned the UAE's approach. And the testing ratio is incredibly impressive. What other steps is the UAE taking?
SAJ: As I mentioned earlier… the foundation of the UAE's response has been comprehensive testing.
At the same time, the UAE believes that international cooperation is key to managing the crisis.
So we are staying connected to the rest of the world through health diplomacy, delivering aid and personal protective equipment (PPE) to more than 47 countries so far, when they need it and where they need it most.
HC: It's fascinating to see the different response strategies to Covid-19 crisis. What has this period taught you about leadership?
SAJ: You know, Helima… we are learning something new every day and learning in real time.
In our experience so far, Covid-19 has highlighted the importance of three key leadership qualities. Capability, crisis management and connectivity.
The first responsibility of any CEO is to protect the health and wellbeing of employees and to ensure business continuity at all times and under any circumstances.
Fundamentally… the capability of every organisation in keeping their people safe and their operations running smoothly is in fact being tested.
At the same time, leaders are being measured against how well they manage a crisis… ensuring their organisations can run under stress.
And then there is connectivity… How clearly leaders communicate to their people what they need to do to stay safe.
HC: And how do those lessons apply at a business level?
SAJ: Leadership in business is very much similar. The first responsibility of any CEO is to protect the health and wellbeing of employees and to ensure business continuity at all times and under any circumstances.
Staying connected through digital technology has, in fact, been vital and extremely important. Our people have logged over 30 million minutes of video meetings over the last two months and I am personally very much in constant contact with my people and my colleagues and my managers across all operations in different sites and platforms.
Conveying a positive, optimistic and credible way forward… with humility and honesty… is, in fact, very essential. And it is okay to admit that you don’t have all the answers.
Finally, it is essential to communicate a message of unity, that we are in this together and we will find our way through this together.
Halima, before we finish, let me turn the tables and ask you a question. What’s your outlook for oil markets going forward?
HC: I mea,n our outlook is that essentially we are seeing a green shoots of recovery in places like China, in places like the US as global lockdown conditions ease, that the recovery in gasoline demand will be essential in balancing in the market, and the important steps that Opec+ has taken, should help us avoid as an inventory iceberg.
So while the recovery is not going to be short, its not going to be easy, we think the fundamental right steps have been taken to get this market on a sounder footing.
SAJ: I very much appreciate it.
HC: Thank you so much, Dr Sultan, for your time today.
SAJ: Thank you for the opportunity, speak to you soon.
HC: Thank you.
SAJ: Thank you, take care. Bye bye.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
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Killing of Qassem Suleimani
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Don't get fined
The UAE FTA requires following to be kept:
- Records of all supplies and imports of goods and services
- All tax invoices and tax credit notes
- Alternative documents related to receiving goods or services
- All tax invoices and tax credit notes
- Alternative documents issued
- Records of goods and services that have been disposed of or used for matters not related to business
UAE squad
Rohan Mustafa (captain), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan
HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
Director: Shahad Ameen
Rating: 3/5
Juliot Vinolia’s checklist for adopting alternate-day fasting
- Don’t do it more than once in three days
- Don’t go under 700 calories on fasting days
- Ensure there is sufficient water intake, as the body can go in dehydration mode
- Ensure there is enough roughage (fibre) in the food on fasting days as well
- Do not binge on processed or fatty foods on non-fasting days
- Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates
- Manage your sleep
- People with existing gastric or mental health issues should avoid fasting
- Do not fast for prolonged periods without supervision by a qualified expert
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Brief scores
Day 1
Toss England, chose to bat
England, 1st innings 357-5 (87 overs): Root 184 not out, Moeen 61 not out, Stokes 56; Philander 3-46
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
About Seez
Company name/date started: Seez, set up in September 2015 and the app was released in August 2017
Founder/CEO name(s): Tarek Kabrit, co-founder and chief executive, and Andrew Kabrit, co-founder and chief operating officer
Based in: Dubai, with operations also in Kuwait, Saudi Arabia and Lebanon
Sector: Search engine for car buying, selling and leasing
Size: (employees/revenue): 11; undisclosed
Stage of funding: $1.8 million in seed funding; followed by another $1.5m bridge round - in the process of closing Series A
Investors: Wamda Capital, B&Y and Phoenician Funds
The Indoor Cricket World Cup
When: September 16-23
Where: Insportz, Dubai
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
The biog
Name: Atheja Ali Busaibah
Date of birth: 15 November, 1951
Favourite books: Ihsan Abdel Quddous books, such as “The Sun will Never Set”
Hobbies: Reading and writing poetry
How to report a beggar
Abu Dhabi – Call 999 or 8002626 (Aman Service)
Dubai – Call 800243
Sharjah – Call 065632222
Ras Al Khaimah - Call 072053372
Ajman – Call 067401616
Umm Al Quwain – Call 999
Fujairah - Call 092051100 or 092224411
The five pillars of Islam
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
West Asia rugby, season 2017/18 - Roll of Honour
Western Clubs Champions League - Winners: Abu Dhabi Harlequins; Runners up: Bahrain
Dubai Rugby Sevens - Winners: Dubai Exiles; Runners up: Jebel Ali Dragons
West Asia Premiership - Winners: Jebel Ali Dragons; Runners up: Abu Dhabi Harlequins
UAE Premiership Cup - Winners: Abu Dhabi Harlequins; Runners up: Dubai Exiles
UAE Premiership - Winners: Dubai Exiles; Runners up: Abu Dhabi Harlequins
Killing of Qassem Suleimani
