Market Trends 2016ibem-management.com/onewebmedia/GULF MARKET RESEARCH.pdfmanaged by MIDROC...

Market Trends 2016 Presentation made and rights full owned by IBEM International Business & Executive Management

GULF GOES SMART WITH DRIVE – THRU FUELING SYSTEMS

Presentation made and rights full owned by IBEM International Business & Executive Management


The Region which is commonly known as Gulf region consist of seven Arab states

which are surrounding or being attached to the Arabian Gulf, as:

• Kuwait,

• Bahrain,

• Iraq,

• Oman,

• Qatar,

• Saudi Arabia

• United Arab Emirates (UAE)

All of these nations (with the exception of Iraq) are part of the Cooperation

Council for the Arab States of the Gulf.

Within this alliance main strategic initiatives are driven as community, from foreign

affairs to the business strategies and guidelines.

INTRODUCTION TO THE GULF REGION


In strong contrast to e.g. Europe we can see a strong affection to be served well, even

at the petrol pump. Consequently, the job is done by someone else and self service is

not existing.

The easy availability of cheap labor mostly from Asia, or African region, allows a men

operated petrol pump at all times if desired.

Drive Thru petrol pumps, or automatic refueling without the need to leave the car has

a great perspective in the Gulf. No-one likes to go out of his car for refueling.

Payment was cash only, but since 2015 more and more petrol distributors are going to

accept credit or debit card payments as step into smart solution.

Ecological awareness has lead to the creation of green petrol stations in a wider scale,

where even no water will be wasted and washing water will be recycled within the

station and reused.

As the Gulf countries directing investment into industries and businesses which create a

positive image and brings new technologies first into the market. That’s the best timing for introduction of Drive Energy into that market.

SERVICE ORIENTATION


.

A certain one hour wait for filling up the tanks is not deterring UAE motorists from frequenting the

petrol pump across the border in Oman .

The petrol pump in Madha, Oman, which lies on the road linking Fujairah and Khor Fakkan, sees

long queues of cars with UAE number plates round the clock .

Manual refueling was yesterday….



GOING WITH THE EVOLUTION

Evolution belonging to our life

Its no more the question if….

It is the question WHO is the first


COMPANY 2010 2015 2020

ADNOC Distribution 222 350

ENOC

Emirates National Oil Company Ltd

EPPCO

Emirates Petroleum Products Company LLC 150

WOQOD Qatar Fuel 250 300

TEYSEER Service Centre

QP Qatar Petroleum

Saudi Aramco

ENOC Saudi Arabia 30

NAFT Services Company

ALDREES 450

Petromin Corporation

SASCO Saudi Automotive Services Co

TASHELAT Marketing Company 300

KNPC

Kuwait National Petroleum Company 99

OULA 40 50

SOOR

Q8 4.400

Al MAHA

Petroleum Products Marketing 163

Al -Sarooj Group 52

SABCO MEDIA SAQC

OMANOIL 152

BAPCO

Bahrain Petroleum Company 16

NUMBER OF PETROL STATIONS PRO COMPANY


For a motorist in Qatar, filling up his car at a petrol station is becoming as nightmarish. Motorists

in Qatar increasingly complain that at any given time of the day a petrol station is crowded

with vehicles and queues are sometimes frustratingly serpentine. It takes no less than half-an-

hour every time.

The increasing number of vehicles in the country means that there is a severe shortage of

petrol stations in and outside Doha. Petrol stations haven’t kept pace with the exploding

population and the increasing number of cars. Many old petrol stations in the city have faced

the bulldozers and given way to modern structures.

Special complicated is the situation outside Doha. Some areas have several petrol stations

while others don’t have even one. The geographical distribution of petrol stations is wrong.

They should be distributed based on the density of population. Often motorists needs to come

to Doha just to fill their cars.

For the motorists is during peak hours, particularly in the morning, very difficult to fill their cars

even in an emergency as there are long queues of heavy vehicles, buses and vans at almost

all petrol stations for diesel. In the Industrial Area, the crowding at petrol stations is huge. Qatar

needs more filling stations.

Qatar Fuel Company (Woqod), which has been opening several petrol and service stations

across the country, says it builds facilities on land provided by the government. There is many

new stations in the design phase and will be built in In 2013, Woqod opened five petrol stations

across the country, the number of gas stations will be double in 2016.

As the number of vehicles on Qatar’s roads climbs alongside the country’s growing population,

long lines – sometimes extending onto major roads and causing traffic backups – at the limited

number of pumps within the city can often be observed.

QATAR MARKET SITUATION


Qatar Fuel "WOQOD" formed in 2002 as a

joint stock company listed in Qatar

Exchange.

WOQOD owns a fleet of over 250 road

tankers distributing fuels to service stations

and commercial bulk customers such as

contractors and major infrastructure projects

all over the State of Qatar.

2016 plans Woqod to build around 50 petrol

stations around the country.

In the meantime, awaiting Woqod

government approval for proposals to build

fuel stations or deploy mobile stations along

key locations as a fast solution for the

problem.

Woqod is expected to open 13 “additional”

service stations by 2016, besides several

expansion projects to be launched this year

in different areas of Qatar, mainly in Doha.

The remaining projects will be completed by

the end of 2016.

QATAR MARKET SITUATION

Teyseer Service Centre, established in 1976, is

a pioneer and leading provider of quality

auto care services and petrol.

Teyseer Service Centre, is considered to be

the biggest service station in the Gulf. The

company presently operates four petrol

stations and five service stations. The

company equipped with the most modern

machinery and employs the most skilled

manpower expertise.

The company forms part of Teyseer Group,

one of the leading business groups in Qatar.

Qatar Petroleum (QP) is a state owned

petroleum company in Qatar and owner of

several gas stations in Qatar.

Currently Qatar Petroleum is the third largest

oil company in the world by oil and gas

reserves


SAUDI ARABIA MARKET SITUATION

The UAE-based Emirates National Oil

Company ENOC is one of the three

companies that won the qualification

certification from the Saudi Municipal and

Rural Affairs Ministry to open more outlets,

manage, operate and maintain fuel service

stations across the highways and roads in the

Kingdom of Saudi Arabia.

ENOC plans to increase the number of

service stations in the Kingdom following the

certification. The goals of ENOC is to provide

the highest quality service standards as well

as invest in new stations that offer the full

breadth of services. This is a true milestone in

the geographic expansion strategy to Saudi

Arabia, one of the fastest growing

economies in the region.

Naft Services Company a petrol station

operating company in Saudi Arabia founded

in 1987. NAFT is part of an international

group of companies owned by Sheikh

Mohammed Hussein Ali Al Amoudi and

managed by MIDROC Holdings.

Naft Services Company aims to become the

leading service station chains in Saudi

Arabia. It is one of the largest companies

and recognized for the exceptional quality

and reliability of its products and services.

Aldrees was established in 1957.

In 1963 the Company rented its first Petrol

Station in Riyadh, the Capital of the

Kingdom.

During the past forty-five years the Petroleum

Services Division has expanded its operations

in the Kingdom, winning over contracts both

from the Government institutions and Private

companies. Aldrees Petroleum & Transport

Services Co. Ltd operates a retail network

of more than 450 petrol filling stations and a

fleet of 1,032 tractor heads with 1,376 cargo

carriers ranging from chemical/lubricant

tankers, trailers, bulkers, to flat beds.


Petromin Corporation was formed in 1968 by

a Royal decree.

The purpose of establishing the company

was to provide lubricants to the Saudi market

as strategic commodity that has become

increasingly necessary and in-demand to the

development of Saudi Arabia.

In 1995, the company decided to build its

own drum manufacturing plant in Riyadh to

cover its own requirement of over 200,000

metal drums annually and sell the same to

the third party blenders. This plant now

operates under a joint venture with a global

player. Within the 45+ years, since its

inception, Petromin Corporation has

Continually expanded and grown in

manufacturing capacity and product

development. Striving always to remain on

the forefront of technology, by keeping its

products abreast with all original engine

manufacturer (OEM) approvals and keeping

up with American Petroleum Institute (API)

and other worldwide entities' performance

levels and specifications for their products .

Today, Petromin Corporation produces over

150 different products, is the market leader in

the Kingdom of Saudi Arabia and exports to

over 35 countries in the GCC, Middle East,

Africa and Asia.

SASCO (Saudi Automotive Services Co) is a

Saudi public shareholding company

established in1982.

SASCO’s activities are represented in a fuel

station network, car service centers, a

number of motels, restaurants, fuel

transportation, the import and sale of

equipment, as well as the provision of

beverages supplied using modern and well-

maintained equipment. The company also

imports and sells raw materials for


construction and operation, purchases and

leases real estate, and operates an

automobile association to issue international

driving licenses and the Customs Transit

(Triptik) books.

SASCO aims to become the premier

company, in terms of service quality and

integration, and an example in the field of

automotive service, rest house and motel

management, on the highways of the

Kingdom of Saudi Arabia.


The world leader in crude oil

production, Saudi Aramco's owns and

operates an extensive network of refining

and distribution facilities, and is responsible

for the gas processing and transportation

installations that fuel Saudi Arabia's industrial

sector.

Saudi Aramco's value has been estimated at

anywhere between US$1.25 trillion and US$10

trillion, making it the world's most valuable

company A broad network of bulk plants

and air-fueling units strategically located

throughout the Kingdom supplies thousands

of bulk customers with products ranging from

gasoline and jet fuel to fuel oil and liquefied

petroleum gas. Added to this are gigantic

tank farms that enable terminal exports of

crude, natural gas liquids and refined

products through the Arabian Gulf and the

Red Sea.

Interconnected with these storage facilities

are extensive delivery systems that enable

timely and reliable delivery of product. In a

continually evolving world, the Saudi

Aramco's supply and distribution operations

strive to surpass customer expectations by

providing state-of-the-art facilities run by a

world-class workforce.

Tas'helat Marketing Company is a large retail

fuel distribution company with a network of

about 300 Petrol Stations in the Kingdom of

Saudi Arabia.

Tas'helat was formed in 1957 as a separate

retail fuel marketing business with Tas'helat

Establishment In 1999, a group of investors

acquired Tas'helat Marketing Company.

At the time of acquisition the Company had

about 50 retail outlets.

The new investors have given a new impetus

to Tas'helat Marketing Company's business.

The Company has been re-organized with

special emphasis to the servicing standards.

The retail fuel network has continuously been

extended in order to penetrate all geographic regions of the country.



UAE MARKET SITUATION

ADNOC is currently working to deploy best-in-

class services through integrating smart

technologies.

The services should be faster, easier and

safer, and will provide our customers with a

convenient and seamless experience every

time they visit one of our SMART service

stations.

With the rapid expansion of Abu Dhabi as a

Gulf hub boasting some of the finest new

architecture in the Middle East, the

government aim to professionalize vehicle

maintenance services and offer drivers a

high quality range of services from the brand

that they know they can trust.

ADNOC Distribution commissioned Circle to

develop a new 'state of the art' light vehicle

repair concept. The operations are delivered

by a range of leading maintenance brands

such as Bosch, all under the banner of

ADNOC Autoserv.

The environments are high-tech and

comfortable taking advantage of the

ADNOC Oasis convenience store concept.

Smart service stations into 2020

The new Autoserv brand pulls upon the

strong reputation of ADNOC Distribution

already widely recognized as a leader in the

market. New sites are currently under

construction and the new network is planned

to have 50-60 sites in the coming 3 years.

ADNOC Distribution (Abu Dhabi National Oil

Company for Distribution) is a leading player

in the retail energy and lubricant industries.

In the United Arab Emirates (UAE) ADNOC

Distribution currently has 222 petrol stations 5

fuel terminals.

It has a range of traditional and green

energy products that covers various

economy sectors including land, sea and air

transportation, electricity generation, and

construction.

The company employs over 7000 people

and is part of ADNOC Group – ranked

among the top ten energy companies

globally.



ADNOC plans capital investment of Dh1.5

billion mainly in service stations in 2016 alone.

2013 ADNOC has taken over 75 petrol

stations run by the UAE fuel retailer Emirate in

Sharjah, Ras Al Khaimah, Ajman, Umm Al

Quwain and Fujairah.

In 2016, will Adnoc add about 125 new

stations, out of which 34 are under

construction and 15 in the tendering process.

The cost is on average between Dh15 to

Dh30 million per station. Within the

investment plan for 2015/2016, ADNOC is

planning to add petrol stations on the

Smart service stations into 2020

Ioutskirts of Abu Dhabi island.

It will construct 44 new stations in Abu Dhabi

alone to remedy the fuel shortage in the

capital. This will reduce the burden on petrol

stations in Abu Dhabi.

Adnoc Distribution is also expanding in Saudi

Arabia, the Arabian Gulf region’s most

populous country, offering its services and

brand under a 15-year franchise agreement

with Saudi-based Al Olaibi Group.

If the operation proves successful, will

ADNOC look at other countries as well.



Emirates National Oil Company Limited

Owned by Investment Corporation of Dubai

Building upon the solid foundations it has laid

in the petroleum retailing business through

EPPCO, ENOC is now taking petroleum

retailing to a higher level with the

establishment of the ENOC Retail Network.

These next generation service stations will

complement the EPPCO retail network and

will add significant benefits to the entire

group.

Primarily aimed at young UAE nationals,

ENOC Retail introduces new technologies to

enhance customer convenience and overall

service satisfaction. The secondary target will

be other brand- and quality-conscious

customers.

And together, the EPPCO and ENOC Retail

Networks provide customers with better

access to the highest quality service and

product offerings in this part of the world.

Emirates Petroleum Products Company

(EPPCO), LLC is a joint venture between

ENOC and CALTEX.

ENOC is the leading oil and gas company in

the region across a variety of sectors

including petroleum retailing, aviation

refueling, lubricants marketing and

terminalling.

EPPCO has a network of over 120 service

stations across Dubai and the Northern

Emirates.

EPPCO also runs the ENOC network of 30

service stations, the highly successful Tasjeel

car registration joint venture and the FixPlus

vehicle servicing centres.


KUWAIT MARKET SITUATION

Kuwait National Petroleum Company

(KNPC) was established in October 1960 as a

shareholder company owned by the

government and the private sector. After the

creation of Kuwait Petroleum Corporation

(KPC) in 1980, KNPC became fully owned

by KPC which itself is owned by the State of

Kuwait.

• 99 operation stations geographically

distributed in an elaborate manner

• 60 of it are self-service while a large

number of those facilities work for 24

hours a day.

• 37 stations as two of the company

facilities are currently under renovation.

The Majority of the stations previously owned

by the company were turned down to the

private sector in the course of a privatization

process.

This trend was stopped by KPC pending the

activation of the Privatization Council and

the issuance of its new regulations.

However the Local Marketing Department

still exercises supervision and audit on the

private sector owned facilities to ensure

quality control and compliance with the

Health, Safety and Environment rules.

Oula is currently planning a next generation

of environmentally-friendly, international-

standard service stations which are safe,

convenient and beautifully designed.

Oula is committed to opening 10 new

stations, and to have refurbished all 40 sites in

the near future.

One of Oula’s major innovations is to

connect all stations electronically with the

head office, delivering an integrated service

for individual and business customers using

the OulaCard and all other major credit

cards.


KUWAIT MARKET SITUATION

SOOR acquired from Kuwaiti National

Petroleum Company a set of /40 stations to

42 stations, and started operating the petrol

stations by May, 2006. A plan was set for

rehabilitating the stations at periodical stage.

The main objectives of the company are

ownership, construction, operation and

maintenance of fuel supplying stations in

addition to the construction, development,

operation and maintenance of customers’

service centers at these stations.

Q8 has a European network of more than

4,400 Q8 branded service stations extending

across six European countries: Italy, Denmark,

Belgium, the Netherlands, Luxembourg and,

in Sweden, as the OKQ8 joint venture.

Q8 is at the forefront of developing forecourt

retailing and constantly seeks to expand the

range of goods and services offered at Q8

service stations for motorists and local

communities.

Q8’s strong reputation for environmental

sensitivity is reflected by innovations at

service stations.

The company’s aim of its strategic plan is:

• Restructuring the petrol stations in its

entirety, in order to meet the

international evolution of such

investment.

• Providing automated paying feature for

all kinds of smart cards to be used within

all petrol stations.

• Exploiting the widest possible area of the

stations’ lands in the investment field,

within the limits authorized by the state.

• Work on increasing and expanding the

company’s activity by establishing new

petrol stations.


BAHRAIN MARKET SITUATION

The Bahrain Petroleum Company (BAPCO)

BAPCO is wholly owned by the Government

of Bahrain.

The BAPCO stations are the only chain of

Gas stations in Bahrain and they cover 16

locations. With the average person filling up

their car 2-3 times a week this is a prime

location for most brands to be seen.


OMAN MARKET SITUATION

Al Maha Petroleum Products Marketing

Company was established by virtue of a

Royal Decree issued by His Majesty Sultan

Qaboos Bin Said in 1993.

1999, Al Maha officially signed on a

partnership with Abu Dhabi based ABS

Lubricants to manage the newly instituted

company with a 65 percent stake by the

Government of the Sultanate of Oman and

35 percent by the Abu Dhabi based

company ABS Lubricants.

2004, Al Maha was converted from a limited

liability company to joint stock company

following the decision of the Ministry of Oil

and Gas and Central Bank of Oman to divest

their 65 % stake in the company by offering

60 %to the public and 5 % to ABS Lubricants.

In a short space of time span, Al Maha

Petroleum Products Marketing Company

S.A.O.G had an impressive success.

Started with the opening of the first fuel

station 1994, 1999, 52 filling stations had been

established all over the country.

2015 over 163 filling stations with c-stores and

souks throughout the country that have been

catering to the fuel needs of even the

remotest area in Oman

Al- Sarooj Group was established in 1983.

It currently owns and operates 52 filling

stations (50% owned) under the brand

names of Shell, Oman Oil and Al-Maha. Al

Sarooj Group is also ISO 2000:9001 certified

by BVQI Oman.

The total volume of petroleum products sold

throughout the above outlets is around 330

million litters per year which represent around

22% of the total volume of all filling stations

outlets in the Sultanate of Oman.


OMAN MARKET SITUATION

SABCO MEDIA SAQC belonging to a big Investment Group SABCO GROUP

omanoil operates a network of over 152 retail stations serving thousands of customers

everyday across the Sultanate.


THE BENEFITS AUTOMATED REFUELLING BUSINESS MODEL

Client’s main driver for creating business is

the higher throughputs and fueling time

reduction by up to 30%.

Given such an additional business potential,

short ROI cycles are possible. This requires on

the other hand a high inflow of costumers as

presented for the US and which should be

possible at high frequently used gas station in

the Middle East .

Automated refueling can have advantages

in areas where gas stations are operated

and at times where the stations are

operating Unmanned.

The main benefits of our smart solution are;

faster, cleaner and with the possibility to

capture 100 % of vapor from refueling. The

automatic service is differentiator for a fuel

retailer making it possible to win customers

from his competitors.

Client is interested in three business models:

Wholesale of the solution – Resale Agent Agreement

Licensed Manufacturing in Middle East – Key component insourced from

Drive Energy / Fuelmatics

Investment in Parent holding company Drive Energy / First Priority


INHABITANTS DEVELOPMENT NUMBER OF POPULATION

2000 – 2005 2005 - 2010 2015 POPULATION GROV RATE

IRAQ 37.000.000

SAUDI ARABIA

27.448.000 31.540.000 1,49%

UAE 4.100.000 5.800.000 147,7%

OMAN 2.599.000

2.773.479

4.300.000 22,9%

KUWAIT 2.193.651 2.737.000 3.000000 41%

QATAR 1.669.435 2.155.446

BAHRAIN 1.262.000 1.885.000 49,4%


GDP

2012 2015 GROWTH

IRAQ $223.5 billion -2,1%

SAUDI ARABIA $1506.8 billion 5,13%

UAE $570 billion 4,6%

OMAN $76.460 billion 5%

KUWAIT $200.062 billion

QATAR $181.7 billion 18,7%

BAHRAIN $33.63 billion 3,91%


MOTOR VEHICKLES PER 1000 PEOPLE LIST OF COUNTRIES BY VEHICLES PER CAPITAL

2010 2015 2020

IRAQ 50

SAUDI ARABIA 336

UAE 313

OMAN 215

KUWAIT 527

QATAR 532

BAHRAIN 537


OIL PRODUCTION bbl/DAY

2010 2015 2020

IRAQ 3,364,000

SAUDI ARABIA 11,624,000

UAE 3,474,000

OMAN

KUWAIT 2,767,000

QATAR 2,055,000

BAHRAIN


NUMBER OF PETROL STATIONS PER COMPANY

COMPANY 2010 2015 2020

ADNOC Distribution 222 350

ENOC - Emirates National Oil Company Ltd

EPPCO - Emirates Petroleum Products Company

LLC 150

WOQOD Qatar Fuel 250 300


QP Qatar Petroleum

Saudi Aramco

ENOC Saudi Arabia 30


ALDREES 450



TASHELAT Marketing Company 300

KNPC - Kuwait National Petroleum Company 99

OULA 40 50

SOOR

Q8 4.400

Al MAHA Petroleum Products Marketing 163

Al -Sarooj Group 52

SABCO MEDIA SAQC

OMANOIL 152

BAPCO - Bahrain Petroleum Company 16


REVENUE

COMPANY 2010 2015 2020

ADNOC Distribution US$60 billion

ENOC - Emirates National Oil Company Ltd

EPPCO - Emirates Petroleum Products

Company LLC

WOQOD Qatar Fuel


QP Qatar Petroleum

Saudi Aramco US$378 billion

ENOC Saudi Arabia


ALDREES



TASHELAT Marketing Company

KNPC - Kuwait National Petroleum

Company

US$251.94

billion

OULA

SOOR

Q8

Al MAHA - Petroleum Products Marketing

Al -Sarooj Group

SABCO MEDIA SAQC

OMANOIL

BAPCO - Bahrain Petroleum Company


MARKET LOBBY

IBEM is authorized per exclusive contract to introduce the opportunity in the entire Gulf Region

as a sole contractor


IBEM International Business & Executive Management Denmark Gersonsvej 25 2900 Copenhagen – Hellerup Germany Hektorstr. 11 10711 Berlin Phone: +49 30 257 40 386 Fax: +49 30 257 40 386 Mobile: +45 27 44 90 90 Email: [email protected] Http: www.ibem-management.com

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