ADNOC Distribution has unveiled its five-year growth strategy, which targets 1,000 service stations, a 20% increase from 840 stations in 2023.

The strategy aims for a 50% rise in the number of non-fuel transactions and a 25% increase in convenience stores, the Abu Dhabi-listed company said in a statement on Tuesday.

The ADNOC subsidiary will scale up a franchise and sub-franchise model, providing a 2-3X yield versus the traditional rental model.

In addition, the company plans a minimum of 500 EV fast and superfast charging points to build a national network, a 10-fold increase from 2023.

ADNOC Distribution will allocate $250 million to $300 million annually for CAPEX, with 70% focused on growth. It further seeks OPEX savings of up to $50 million by 2028.

The new dividend policy proposal will provide $700 million annually or at least 75% of net profit, whichever is higher, subject to shareholder approval in March, the statement said.

(Editing by Seban Scaria