The leading fuel distributor in the United Arab Emirates (UAE), ADNOC Distribution is all set to acquire 15 service stations in Saudi Arabia as part of its growth strategy for the Kingdom.
The $10 million (AED36.7 million) deal is expected to be finalized once it meets certain conditions including obtaining regulatory approvals.
With its extensive presence in the seven emirates, the acquisitions support ADNOC Distribution’s strategy to become a leading fuel operator in one of the largest oil producers in the world.
ADNOC Distribution’s first service station in the Kingdom was opened on the Riyadh-Dammam highway around 40 kilometers from the capital in Saudi Arabia in December 2018. The firm quickly followed by another one in the city of Hofuf within Al Ahsa Governate.
The current deal will take the total tally of ADNOC Distribution’s service stations in the Kingdom to 17.
“Expanding our presence in Saudi Arabia is an important milestone for our company and part of our profitable growth strategy. 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 as we make ADNOC service stations a destination for all in Saudi.”
Mr. Al Shamsi further added that “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. And 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.”