Letter from the Middle East: Selling off the family silver
Auctioning minority stakes in NOCs’ assets may fill short-term budget holes, but they are no guarantee of long-term change
Gulf countries may appear to be reaching for the Thatcherite handbook in pursuing part-privatisations and attracting outside capital into their oil industries at a time of fiscal stringency and growing pressures for diversification. But, on a closer look, raising funds and driving limited organisational improvements have so far been more prominent than any deep transformation. Leading the way Abu Dhabi’s Adnoc has blazed the trail, selling over the past three years minority stakes in its refining subsidiary, drilling company and oil and gas pipeline networks, as well as raising a $3bn bond for its oil export pipeline. It has also formed joint ventures with international partners in fertilise

Also in this section
13 June 2025
US policies may have lasting effects in sectors such as energy, that rely on predictable rules and long-term planning
13 June 2025
The two oil heavyweights’ diverging fiscal considerations are straining unity within the group
13 June 2025
CEO argues the upstream potential remains huge as analysts question future oil production for Canadian province’s offshore industry
13 June 2025
The country is facing energy shortfalls this summer amid reduced Iranian gas imports and difficulties leasing an FSRU