Abu Dhabi-based ADNOC Distribution plans to expand into Dubai in the second half of 2018, and further across the GCC into Saudi Arabia, Arabian Business reported, citing John Carey, deputy CEO.
“Dubai is the only emirate (in the UAE) that we don’t supply today. Our intention is to open two stations in 2018 and to grow our position beyond that in the next five years to get to having a strong position,” Carey said.
The fuel retailer also plans to expand into Saudi Arabia, he added, noting that talks are ongoing for a low-risk investment in a franchise model in the Kingdom.
“We will look at opening franchise, we are working with partners but we won’t heavily invest in Saudi in infrastructure,” Carey said.
However, the company will continue to consolidate market share locally, and will focus on the UAE as its priority over the next couple of years.
Elsewhere, the group plans to grow its revenues with broad investment in its petrochemicals and refining activities, in addition to continuing investments in technology to enable faster payments at pumps, he added.
ADNOC Distribution, the fuel retailing business of oil giant ADNOC, is gearing up for an initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX). Shares in the company will start trading on Dec. 13.
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