Skip to content Skip to Search
Skip navigation

Adnoc L&S bags $975m EPC contract for ‘artificial island’

By Pramod Kumar
Adnoc Drilling plans to reallocate staff as the rig fleet expands over the next 18 months Adnoc L&S

The newly-listed Abu Dhabi National Oil Company (Adnoc) logistics subsidiary has secured a $975 million contract to build an artificial island.

The contract – the first major award for Adnoc Logistics and Services (Adnoc L&S) after being listed on the Abu Dhabi Securities Exchange (ADX) on June 1 – was awarded by Adnoc Offshore. 

The award is part of offshore field Lower Zakum’s long-term development plan to increase crude output.

Adnoc L&S has a fleet of 245 vessels and approximately 540 vessels operated and chartered annually, combined with its 1.5 million sq m logistics base in Abu Dhabi.

Adnoc’s in-country value programme states that at least 75 percent of the total contract value for dredging, land reclamation and marine construction of the artificial island “G” for the Lower Zakum offshore field will flow back into the UAE economy.

Last month the order book for the initial public offering (IPO) of Adnoc L&S reached over $125 billion, hitting an oversubscription level of 163 times.

The IPO was priced at the top of the range at AED2.01 per share, valuing the company at $4.05 billion. The price range was set between AED1.99 and AED2.01 per share on May 16.  

Register now: It’s easy and free

AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East.

Why sign uP

  • Exclusive weekly email from our editor-in-chief
  • Personalised weekly emails for your preferred industry sectors
  • Read and download our insight packed white papers
  • Access to our mobile app
  • Prioritised access to live events
Register for free

I’ll register later

Latest articles

Street vendors in the historic Balad district of Jeddah. Falling oil prices have hit the Saudi economy

Saudi Arabia’s debt burden ‘to rise more quickly’, says IMF

The International Monetary Fund has revised its forecast for Saudi Arabia’s debt burden as tumbling oil prices dent the country’s revenues. The IMF is now projecting that Saudi government gross debt will be 44.5 percent of GDP by 2029, according to the twice-yearly Fiscal Monitor released in Washington DC on Wednesday.  In last October’s report, […]

Industrial shipping Maersk container shipping at Salalah Oman Middle east

Oman’s free zones attracted $4bn in investments last year

Private businesses invested OR1.6 billion ($4.1 billion) in Oman’s free zones, economic zones and industrial cities last year, highlighting the sultanate’s growing appeal as a regional business hub. The sultanate signed a total of 325 investment agreements across six major jurisdictions, Oman Daily Observer, a local news outlet, reported, citing a report by Duqm Economist […]

Customers use Al Rajhi cash dispensers at a branch in Mecca. The bank's total assets have topped SAR1 trillion

Al Rajhi Bank reports 34% rise in quarterly profit

Al Rajhi Bank, the world’s largest Islamic bank by capital, has reported a 34 percent increase in net profit for the first quarter of 2025, to SAR5.9 billion ($1.5 billion). The Saudi bank’s total assets have risen by 22 percent to SAR1.02 trillion, marking the first time Al Rajhi has surpassed the trillion-riyal mark. Its […]

New factories and licenses issued in Saudi Arabia's industrial sector are projected to generate over 5,600 jobs, marking significant growth in February

New licences drive strong Saudi industrial growth

Saudi Arabia’s industrial sector recorded strong growth in February, with 105 new industrial licences issued, representing a 66.7 percent month-on-month increase. These newly awarded licences represent around SAR1 billion ($272 million) in investments and are expected to create 1,504 jobs, according to a report by the Ministry of Industry and Mineral Resources’ National Industrial and […]

Sandstone rock formations rise above the Hisma desert, Neom

Aiman Al Mudaifer named permanent CEO of Neom

Neom is to appoint Aiman Al Mudaifer as its permanent chief executive, more than five months after he took on the role of acting CEO. Al Mudaifer has worked for the Public Investment Fund, the $925 billion sovereign wealth fund backing Neom, since 2018. He took over the CEO’s post at Neom, one of the […]

Container vessels in Istanbul's Ambarli Port. Turkey's manufacturing base is struggling with rising borrowing costs

Turkey worried that cheap Asian goods will hurt economy

Turkey is concerned that an enduring trade war between the US and China and other Asian countries may encourage manufacturers to flood Turkey’s market with cut-price goods to make up for US losses, the finance minister has said. That could damage Turkey’s own manufacturing base, already struggling with high and rising borrowing costs and domestic […]

A shop in the Gold Souk in Deira, Dubai. Sellers are suffering as the price of gold continues to soar

Gold’s record run brings little joy for Dubai jewellers

In the bustling Gold Souk in Dubai, dubbed the “City of Gold”, 22-karat gold jewellery is a traditional favourite for weddings, religious celebrations, and as a family investment. Yet with bullion prices hitting record highs above $3,400 an ounce, there are signs of change, as buyers opt for diamonds and lighter gold jewellery instead. While […]

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum (centre) witnessed the agreement for the du data centre

UAE’s du and Microsoft to build $544m hyperscale data centre

UAE telecom provider du and tech company Microsoft are to build a AED2 billion ($544.54 million) hyperscale data centre. The data centre will be built in stages, gradually increasing capacity to satisfy rising demand, the UAE state-run news agency Wam reported on Tuesday. The facility’s computing capabilities will be utilised by Microsoft, the main tenant, […]

GCC officials are expected to push for better access to advanced US semiconductors and AI tech during Donald Trump's visit to the Gulf

Donald Trump will visit Gulf nations in May

US President Donald Trump will visit Saudi Arabia, Qatar and the United Arab Emirates from May 13 to 16, the White House has confirmed. The highly-anticipated visit to the Gulf region will mark Trump’s second foreign trip of his second term, as he will first travel to Rome this week for Pope Francis’ funeral. “The […]

Ramadan food discounting and lower transport costs contributed to inflation hitting a five-month low in March in Dubai, though housing costs persist

Dubai inflation falls to its lowest in five months

Dubai’s annual consumer price inflation fell in March to its lowest in five months, driven by lower transport and food costs, according to official data from Dubai Statistics Centre. The headline CPI inflation rate declined to 2.8 percent on an annual basis, from 3.2 percent in each of January and February. That is the lowest […]

A Volkswagen dealership in Shenzhen, China. Foreign car makers in China are losing market share to domestic rivals

Volkswagen to export surplus stock from China to Middle East

Volkswagen is to start exporting cars from China, aiming to sell in other Asian markets, South America and the Middle East, its China chief Ralf Brandstaetter has said. Brandstaetter also said that the carmaker was ready to tackle domestic competition in the country. Carmakers in China, including Volkswagen, are grappling with how to make use […]

2SBHG03 Serious thinking businessman working with tablet computer inside office. Businessman in shirt working at workplace, using laptop, sitting at desk, using financial app.

Turkish startup funding plunges in first quarter

Uncertainty in the Turkish economy and government budget cuts are weighing on the country’s startup environment, with venture capital funding for new projects falling in the first quarter to their lowest in more than 18 months. Turkish technology startups attracted $58 million in the three months to March 31, almost 50 percent down on the […]