Enoc to invest over Dh2b across UAE, Saudi Arabia

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DUBAI

Emirates National Oil Company (Enoc) said it plans to invest close to Dh2.2 billion over the next 10 years to expand its retail presence in the UAE and Saudi Arabia as it sees strong demand for fuel. Zaid Al Qufaidi, managing director of Enoc Retail, said the large demand is part of a bigger trend in the UAE where fuel consumption is well above the global average. He said each Enoc station in the country pumps 60,000 litres of fuel per day, compared to an average of 35,000 litres a day per station in other countries.

The demand comes even as the UAE’s government aims to reduce carbon emissions in the country by reducing consumption of fossil fuel and replacing it with more sustainable options such as hybrid fuel and solar power. In August 2015, the government removed subsidies on petrol prices, in a move aimed at lowering consumption and improving fiscal savings.

For Enoc, the removal of subsidies has made its retail unit profitable as of late 2015 as petrol prices rose. While the company, which is owned by the Dubai government, does not disclose its earnings, Al Qufaidi said profit margins in the UAE are strong.— VoM

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