Shuaa Capital’s Saudi unit has announced a preliminary agreement with Dubai’s Gate Capital Financial Services to launch a new fund aimed at consolidating the Kingdom’s fuel retail sector. The partnership’s objective is to establish a major national operator with a network of over 500 service stations across Saudi Arabia.
Quick Facts
- New fund targets Saudi fuel retail sector.
- Goal is a 500+ station national network.
- Strategy is to acquire existing operators.
A ‘Buy-and-Build’ Play for a Fragmented Market
The new fund, whose size has not been disclosed, will employ a “buy-and-build” strategy to achieve its ambitious scale. The plan is to first acquire an established fuel retail operator to serve as an anchor for the new entity.
Following the initial acquisition, Shuaa and Gate Capital will move to buy and integrate additional fuel-station operators, rolling them up into a single, cohesive national brand. This move targets a market currently served by more than 10,000 individual stations throughout the Kingdom.
Tapping a Growing Energy Retail Sector
The venture is timed to capitalize on significant market growth. According to Modor Intelligence, Saudi Arabia’s fuel station market was projected to be worth $43 billion in 2025 and is expected to climb to $55 billion by 2031.
“Saudi Arabia represents one of the most compelling energy retail markets regionally and globally, supported by strong economic fundamentals and an ambitious national transformation agenda,” said Nabil Al Rantisi, Group CEO of Shuaa.
About Shuaa Capital
Founded in 1979, Shuaa Capital was once one of Dubai’s most prominent investment banks. The firm has undergone several restructurings since the 2008 financial crisis. In March, the company reported a net profit of AED 156 million ($43 million), a significant turnaround from a net loss of AED 274 million in the previous year.
Source: AGBI
