Abu Dhabi Current Affairs - 2020

RIL becomes first Indian Company to be valued at USD 150 Billion

In rupee term, Mumbai based Indian Multinational conglomerate company, Reliance Industries Limited (RIL) on 19th June 2020 was valued at USD 150 billion following a rise in the share market, this also made RIL the first-ever Indian company to achieve a market value of above Rs 11 lakh crore. The positive growth in the shares of the company was registered after it announced that the company has become net debt-free well ahead of its target of March 2021.

As of 31st March 2020, Reliance has a total debt of Rs 161,035 crore. Despite a pandemic, airlines & other international travel being suspended and a lockdown in most International business hubs across the world, in a period of 58 days, Reliance Industries was able to raise more than Rs 168,818 crore.

Breakdown of which as follows:

  • The existing shareholders of the company were offered shares worth Rs 53,124.20 crore.
  • The remaining Rs 115,693.95 crore was raised through 11 deals of stake sale in RIL’s subsidiary Jiop Platforms.

Stake’s of approx 24.70% in Jio Platforms are now owned by the following companies: United States company Facebook bought 9.99% stake at Rs 43,574 crore, this deal to date is the largest Foreign Direct Investment (FDI) in any sector in India. Other companies are Abu Dhabi based investment companies- Mubadala and Abu Dhabi Investment Authority, United States companies- General Atlantic, Silver Lake, Vista Equity Partners, KKR & CO. Inc., TPG Capital, and Catterton Partners. The most recent of the stake sale of 2.32% was on the 18th of June 2020 to the Public Investment Fund of Saudi Arabia at Rs 11,367 crore.

New Natural Gas Reserves discovered in UAE

On February 2, 2020, the United Arab Emirates discovered shallow natural gas reserves of about 80 trillion cubic feet. The reserve was discovered between the Emirates of Abu Dhabi and Dubai.

Highlights

In November 2019, UAE announced the discovery of 7 billion barrels of oil. This raised the crude reserves of the country to 105 billion barrels making it the sixth largest in the world. IT had also announced the discovery of 58 trillion cubic feet of gas. This puts the total reserves of natural gas of UAE to 273 trillion cubic feet conventional gas and 160 trillion cubic feet unconventional gas.

UAE

The UAE is formed by seven Emirates namely Dubai, Abu Dhadi, Ajman, Sharjah, Ras Al-Khaimah, Fujairah and Umm Al-Quwain. Around 30% of the GDP of the country is directly based on oil and gas.

India-UAE

The India-UAE bilateral trade currently stands at 59.9 billion USD. India is the third largest investor in UAE. There are more than 2 million Indian population living and working in UAE. The total remittances from UAE to India in the year 2009 was 10 to 12 billion USD. This is one-third of the total remittances received by India and also highest among all the GCC countries.