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ADNOC Distribution announces AED 60m lubricant deals and deepens UAE localization

by James Bryant
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ADNOC Distribution announces AED 60m lubricant deals and deepens UAE localization

ADNOC Distribution highlights local sourcing, AED60m lubricants deals and AI retail rollout at Make in UAE 2026

ADNOC Distribution advances UAE local industry with 70% local sourcing for stations, AED60m lubricants deals and AI retail rollouts to boost resilience.

ADNOC Distribution on the Make in UAE 2026 platform underscored its commitment to bolstering national industry and expanding local content across its retail and service network. The company, which serves roughly 700,000 customers daily through its extensive network of service stations and convenience stores, presented data and strategic initiatives aimed at deepening supplier localization and improving customer experience. Executives highlighted a blend of manufacturing partnerships, digital innovation and supply‑chain investments designed to strengthen operational resilience and sustainability.

Local sourcing and tenant contribution figures

ADNOC Distribution reported that 70% of materials used in building its service stations are sourced locally, reflecting a deliberate shift toward domestic suppliers. The company said local firms make up 77% of total tenants across its stations and generate 45% of tenants’ combined annual profits, signaling stronger economic participation by UAE businesses. These figures were presented as evidence of the company’s role in supporting the broader national industrial strategy and the country’s localisation targets.

Retail assortment and food‑service localisation

The company revealed that locally manufactured products account for 32% of the merchandise assortment in Oasis by ADNOC convenience stores. ADNOC Distribution added that 95% of items on its food and beverage menus are produced in the UAE, underscoring efforts to prioritise homegrown suppliers for fast‑moving consumer categories. Executives said this approach not only supports national manufacturers but also reduces supply‑chain exposure and enhances freshness and traceability for customers.

Lubricants partnerships and manufacturing investment

As part of its industrialisation push, ADNOC Distribution announced strategic partnerships in the lubricants sector with Borouge and Emirates Global Aluminium valued at approximately AED 60 million. The deals aim to bolster national manufacturing flexibility and to advance sustainability objectives within lubricant production. Company representatives described the investments as part of a targeted plan to increase the local value added content of lubricants, where they reported achieving a 96% local value‑added metric in current operations.

Digital cashiering and AI deployments in retail

ADNOC Distribution said it is rolling out self‑payment solutions powered by artificial intelligence at 50 Oasis by ADNOC locations, marking a move toward faster, contactless retail transactions. The company also indicated it operates more than 20 AI‑based initiatives aimed at accelerating service delivery, improving accuracy and enhancing the overall customer experience across its retail and forecourt channels. These digital initiatives form a central pillar of the company’s broader transformation program to modernise retail operations while supporting local technology providers.

Operational resilience across stations and stores

The firm stressed that operational resilience remains a central tenet of its business model, noting uninterrupted availability of fuel, electric vehicle charging, lubricants and essential goods across its network. ADNOC Distribution reported maintaining continuity at about 590 service stations and 380 stores during the most recent 50‑day reporting window, an outcome it attributed to strengthened local supply chains and investment in sustainable infrastructure. Company officials said diversification of revenue streams and closer collaboration with local partners were key enablers of that performance.

ADNOC Distribution framed its Make in UAE 2026 participation as a platform to communicate its localisation strategy and to showcase collaborations with national suppliers and technology vendors. The company emphasized that partnerships, local manufacturing agreements and AI‑driven retail solutions are being scaled intentionally to meet shifting consumer needs while supporting national economic objectives.

The firm said future steps will focus on expanding local supplier networks, deepening manufacturing partnerships and accelerating deployment of advanced technologies across its retail footprint. ADNOC Distribution intends to continue investing in sustainability measures, resilient logistics and digital tools that enhance operational efficiency and customer convenience.

ADNOC Distribution’s presentation at Make in UAE 2026 reflects a concerted effort to translate localisation targets into concrete procurement, manufacturing and technology outcomes. The company’s mix of commercial partnerships, local sourcing metrics and AI deployments signals a multi‑pronged strategy intended to support UAE industry while modernising the consumer retail experience.

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