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