ADNOC Distribution to acquire 15 fuel stations in Saudi Arabia for $10m

The new locations will bring ADNOC’s total network to 17 stations across Saudi Arabia, as part of phase one of the company’s expansion plans in the country.

ADNOC Distribution, the UAE’s largest fuel and convenience retailer, announced today the execution of a definitive agreement to acquire 15 service stations in Saudi Arabia for AED 36.7 million ($10 million). Upon completion of this transaction, subject to certain conditions including obtaining regulatory approvals, the new locations will bring ADNOC’s total network to 17 across Saudi Arabia.

Located in the eastern region, with sites dedicated to both highway commuters as well as in-community convenience, the new stations will be refurbished in line with ADNOC Distribution brand standards and offer fuel and retail services to customers, including convenience stores.

The addition of these new stations shows ADNOC plans to grow its retail business in Saudi Arabia, where the company sees value creation potential coming from uplift in fuel margins and its integrated approach to managing fuel and non-fuel retail offerings, according to a press release.

“We see this expansion as a natural progression since opening our first station in 2018 and look forward to significantly increasing our presence in the coming years. This is the first announcement of many we intend to make with Saudi being a key strategic market for us,” said Acting CEO, ADNOC Distribution, Ahmed Al Shamsi.

“Saudi Arabia is the largest market in the GCC and there is huge potential for experienced fuel operators like us to consolidate the market and capture further growth,” said Al Shamsi.

“We are currently in discussions on a range of opportunities to further build on our network in the country. With such a vast and diverse landscape, we aim to bring our fuel and retail experience to benefit local communities and industrial areas across the Kingdom.”

ADNOC Distribution obtained a license to own, operate and manage fuel stations across Saudi Arabia in 2018, and opened two initial locations that same year - along the Riyadh-Dammam highway, and in the city of Hofuf in Al-Ahsa governorate.