09/07/2026 05:34 AST
Adnoc Distribution is keeping its sights firmly set on further expansion across Africa, Southeast Asia and the wider Middle East, even as it works through the regulatory approvals for its landmark South Africa acquisition, the company's CEO has said.
In an interview with Khaleej Times, Eng. Bader Saeed Al Lamki said the fuel and convenience retailer is well placed to keep growing both organically and through acquisitions.
"We have the balance sheet and experience. We know how to grow organically and inorganically, and the future holds nothing but sustained growth. We have the foundation for that. You have 50 years of operating experience, international experience in three geographies gives us a great insights," he said.
On Tuesday, Adnoc Distribution announced acquisition of Shell Downstream South Africa (SDSA) from Shell South Africa Holdings for $1 billion.
Al Lamki said Africa continues to be a "destination of choice" for the company, which will now have a footprint spanning the continent's south and north following the South Africa transaction.
"I will definitely see what else in the continent of Africa. Southeast Asia is an interesting landscape market, nothing in the horizon as of now, but it's a market that we keep on our eyes open for," he said, adding that the Middle East remains an area of interest for opportunities that "bring scale" and "value added opportunity."
Growth momentum continuing
Adnoc Distribution's UAE operations delivered strong results at the start of the year, with net income growing 21 per cent year-on-year in the first quarter of 2026.
"We have good start of the year with posted great results, 21 per cent growth in our net income year or year, when we see great momentum continuing," he said.
The company is expanding its quick-service restaurant partnerships, including with Americana, with plans to add up to 200 additional restaurants across its network.
Across its three core markets of the UAE, Saudi Arabia and Egypt, the company is guiding for between 40 and 60 new stations this year, alongside continued rollout of EV charging points.
On efficiency, Al Lamki said the company has already stripped out close to $130 million in structural operating costs over the past five to seven years and is targeting a further $50 million, half of which has already been delivered.
AI and robotics
Al Lamki said artificial intelligence (AI) and robotics have become core to the company's operations, serving two main purposes - enhancing customer experience through data analytics, and driving operational efficiency.
"We understand what and when the customers prefer - day, night, summer, winter, urban areas, highways, high-end locations... We have more than 250 million transactions every year. Those are wealth of data. And data is the new oil," he said.
The company currently has close to 20 AI use cases at various stages of development, he said. On the efficiency side, Adnoc Distribution last year launched an AI-driven fleet management system that has improved dispatch timing between depots and stations, reducing both costs and carbon emissions.
"We are now dispatching our products from the depots to the station at the right time when it's needed, not before or not after," Al Lamki said, adding that AI is also being used to optimise delivery truck routes using real-time traffic data.
He added that Adnoc Distribution maintained uninterrupted supply during recent periods of market volatility due to regional military conflict.
"There hasn't been a single day where there was a dry out in our station. There is no interruption to our operation, and this is also something that we take big pride in," he said, refering to recent Middle East involving the US, Israel and Iran, which fired missiles at the Gulf countries.
1,600 stations by 2027
Adnoc Distribution currently operates 1,032 stations across the UAE and Saudi Arabia as of the end of the first quarter, of which roughly 20 of a targeted 40-60 new stations have already been added this year.
Once the South Africa acquisition closes, the company's network is expected to jump to 1,600 stations, an increase of 55 per cent, Al Lamki said, adding that this year's guidance will "definitely need to be revisited" once the deal closes.
Khaleej Times
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