Adnoc Distribution currently operates more than 420 service stations in the UAE. Courtesy: Adnoc
Adnoc Distribution currently operates more than 420 service stations in the UAE. Courtesy: Adnoc
Adnoc Distribution currently operates more than 420 service stations in the UAE. Courtesy: Adnoc
Adnoc Distribution currently operates more than 420 service stations in the UAE. Courtesy: Adnoc

Adnoc Distribution considering acquisition of $10m of assets in Saudi Arabia


Fareed Rahman
  • English
  • Arabic

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, is considering the potential acquisition of fuel distribution assets worth $10 million in Saudi Arabia, the company said on Monday.

The company's board will review the possible deal on Wednesday, it said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.

Adnoc Distribution has held long-standing ambitions to expand in Saudi Arabia, the Arab world’s largest economy.

The company listed expansion into the kingdom as one of its goals in its prospectus when it listed on the ADX three years ago and opened its first service station in the kingdom in 2018.

Adnoc Distribution currently operates more than 420 service stations in the UAE, according to its website.

The company said last month that it was in "advanced discussions to finalise land leases with landlords, as well as to grow our network inorganically" in Saudi Arabia.

“We see the Saudi Arabian fuel market as large and fragmented, with underdeveloped customer offerings," the company said.

"Adnoc Distribution’s experience and strengths can be leveraged to introduce world-class fuel station and customer service standards in Saudi Arabia to capture growth.”

The company reported a 22 per cent jump in its third-quarter profit to Dh671m ($183m) as direct costs fell by 47 per cent to Dh2.3 billion.

The company also expressed interest in expanding into Egypt, the Arab world's most populous nation.

In September, Adnoc successfully completed the placement of 1.25 billion of its shares in Adnoc Distribution with institutional investors.

This represented 10 per cent of Adnoc Distribution’s total share capital, and increased the company’s free float on the ADX to 20 per cent.

The company is the sole fuel distributor in Abu Dhabi and has a dominant market position in Sharjah, Ras Al Khaimah, Fujairah, Ajman and Umm Al Quwain.

It is rapidly expanding in Dubai, where it opened its 20th station last month, with between six and 11 more expected by the end of the year.

The expansion has already allowed the company to more than triple its footprint in the emirate, from just six stations at the start of the year.

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Can NRIs vote in the election?

Indians residing overseas cannot cast their ballot abroad

Non-resident Indians or NRIs can vote only by going to a polling booth in their home constituency

There are about 3.1 million NRIs living overseas

Indians have urged political parties to extend the right to vote to citizens residing overseas

A committee of the Election Commission of India approved of proxy voting for non-resident Indians

Proxy voting means that a person can authorise someone residing in the same polling booth area to cast a vote on his behalf.

This option is currently available for the armed forces, police and government officials posted outside India

A bill was passed in the lower house of India’s parliament or the Lok Sabha to extend proxy voting to non-resident Indians

However, this did not come before the upper house or Rajya Sabha and has lapsed

The issue of NRI voting draws a huge amount of interest in India and overseas

Over the past few months, Indians have received messages on mobile phones and on social media claiming that NRIs can cast their votes online

The Election Commission of India then clarified that NRIs could not vote online

The Election Commission lodged a complaint with the Delhi Police asking it to clamp down on the people spreading misinformation

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