Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
ADNOC Distribution, the Abu Dhabi-listed fuel retailer and retailing arm of ADNOC, is betting on “The Hub” — an expanded and lifestyle-oriented retail concept — to anchor its next phase of growth.
“The Hub’ is a bold new concept that reimagines roadside retail as a destination for fuel, fast charge, food, fun, and family,” said Athmane Benzerroug, Chief Strategy, Transformation and Sustainability Officer at ADNOC Distribution, in an interview with Aletihad on the sidelines of ADIPEC 2025.
The company plans to open 30 Hubs over the next three years, through a combination of new developments and upgrades to select existing stations “based on customer demand and community needs.” The first Hub, located in Al Shawamekh City in Abu Dhabi, will open by the end of November. “This flagship location will bring to life our new retail concept — a vibrant, integrated destination that combines fuel, fast charging, gourmet food, family-friendly spaces, and digital convenience,” Benzerroug said. “It marks a significant step in our journey to redefine the roadside retail experience in the UAE.”
While the company’s traditional fuel business remains central to operations, ADNOC Distribution is deliberately widening its revenue base. “We are doubling down on our non-fuel retail strategy by transforming our service stations into destinations of choice,” Benzerroug explained. “This includes enhancing our offerings across convenience stores, car wash services, lube changes, EV charging, and property management.”
In the third quarter of 2025, the company expanded its EV charging network to nearly 400 fast and superfast points, underscoring its move toward a more diversified and sustainable mobility ecosystem. “While fuel remains a core part of our business, we are actively future-proofing our model to ensure we’re not solely reliant on traditional fuels,” he added.
Digitalisation and artificial intelligence are central to this transformation. “AI is at the heart of our operational strategy,” Benzerroug said. “We’ve deployed over 20 AI initiatives across our value chain — from predictive fuel demand algorithms with 95% accuracy, to hyper-personalised customer experiences via our app, loyalty programme, and services like ‘Fill & Go’ and ‘Click & Collect.’ These tools are already enhancing efficiency, reducing waste, and elevating service quality across our 980-plus station network.”
ADIPEC 2025, he noted, has provided a strong platform for ADNOC Distribution to strengthen partnerships and showcase innovation. “One of the key highlights has been the signing of a landmark agreement with the Abu Dhabi Department of Energy to enable seamless digital integration for petroleum product permits — a move that supports Abu Dhabi’s vision for a fully integrated digital energy ecosystem.”
The company’s leadership also participated in closed-door executive roundtables and high-level discussions with international energy leaders. “These engagements reflect our commitment to driving digital transformation, regulatory innovation, and sustainable growth across the energy value chain,” Benzerroug said.
On the financial front, ADNOC Distribution recently extended its dividend policy through 2030, maintaining an annual payout commitment of $700 million or 75% of net profits through 2028. “Starting Q1 2026, we will shift to quarterly dividend payouts, enhancing predictability and shareholder value,” Benzerroug said. “Since our IPO in 2017, we’ve delivered consistent and growing returns, with a current dividend yield exceeding 6%.”
The ADNOC officer also highlighted the company’s upgraded growth guidance, reflecting its expanding regional footprint. “We’ve raised our network expansion guidance for the second time in 2025, showcasing the robust performance of the business across our core and growth markets,” he said. “In Saudi Arabia, we’ve more than doubled our network to 172 stations, and we’re on track to reach 1,150 stations by 2028.”
