Adnoc Distribution, the UAE’s largest fuel and convenience retailer, is open to boosting its presence in new markets depending on commercial viability and regulations, the company’s chief executive has said.
Entry into a new country will depend on factors such as demographics, the regulatory framework and potential financial returns, Bader Al Lamki told The National in an interview on Tuesday.
As part of its five-year growth strategy, Adnoc Distribution plans to run a total of 1,000 stations in the UAE, Saudi Arabia and Egypt by 2028, up from 840 in 2023.
“Jumping to 1,000 would be within our current core market but [we are] also open to exploring new markets, as long as the opportunity makes commercial sense and [it is] demonstrated that the market is ready,” Mr Al Lamki said.
Within the UAE, Adnoc Distribution has the “lion’s share” of service stations but the company will continue to focus on Dubai and the Northern Emirates, he added.
"We do have a good spread of stations across all seven emirates and we will continue to expand ... the Dubai market is very important [and] Northern Emirates is equally important as well," Mr Al Lamki said.
The company’s new growth strategy, announced this week, includes building at least 500 electric-vehicle charging stations across the UAE by 2028, as well as a new dividend policy.
Under the proposed policy, shareholders will receive dividends totalling $700 million each year, or 75 per cent of net profit, whichever is greater. The plan will be presented for shareholder approval at the company’s annual general meeting in March.
“The guidance that we have given to the market at the beginning of the [company’s] IPO journey has been fulfilled with the historic achievement last year of achieving $1 billion in Ebitda [earnings before interest, taxes, depreciation and amortisation],” Mr Al Lamki said.
Reaching that target called for a “strategy rethink” but he is “bullish” about the path ahead, he added.
“We want to establish ourselves as a leading Middle East fuel and retail service provider.”
The UAE’s fuel station market is expected to reach 2.25 million barrels per day by 2029, from this year’s estimate of 2.01 million bpd, recording an annual growth of 2.2 per cent, according to Mordor Intelligence.
The growing demand for fuel stations, increasing adoption of the compact fuel station concept and expansion of existing infrastructure are expected to drive the market during the forecast period, the research firm said.
For 2023, Adnoc Distribution's net profit dropped by 5.4 per cent year-on-year to Dh2.6 billion ($710 million). However, revenue during the same period increased by about 8 per cent to Dh34.63 billion.
The company aims to reduce operating expenses by up to $50 million in the next five years, while earmarking between $250 million and $300 million each year for capital expenditure.
Last year, Adnoc Distribution completed the acquisition of a 50 per cent stake in TotalEnergies Egypt, marking its entry into the country.
The company said nine service stations were rebranded to Adnoc in Cairo last year, with more targeted for the year ahead.
Adnoc Distribution, which operates 50 EV charging points in the UAE, teamed up with Abu Dhabi National Energy Company, better known as Taqa, last January in a joint venture to build and operate electric vehicle infrastructure in Abu Dhabi.
The company, E2GO, aims to become the main provider of EV charging points and associated infrastructure in the UAE capital.
"The intent is to build charging points that car owners are able to access and plan their journey with ease. We have the advantage of being on highways and also in communities," Mr Al Lamki said.
The UAE, Arab world's second-largest economy, aims for EVs to make up 50 per cent of traffic on the roads by 2050.
EV sales are rapidly increasing in the Emirates, now representing more than 1 per cent of the overall car market.
KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Wes%20Ball%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Owen%20Teague%2C%20Freya%20Allen%2C%20Kevin%20Durand%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3.5%2F5%3C%2Fp%3E%0A
Profile of Tamatem
Date started: March 2013
Founder: Hussam Hammo
Based: Amman, Jordan
Employees: 55
Funding: $6m
Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
Zayed Sustainability Prize
The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Ultra processed foods
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The biog
Age: 19
Profession: medical student at UAE university
Favourite book: The Ocean at The End of The Lane by Neil Gaiman
Role model: Parents, followed by Fazza (Shiekh Hamdan bin Mohammed)
Favourite poet: Edger Allen Poe
The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
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