United Arab Emirates Fuel Station Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

United Arab Emirates Fuel Station Market Trends and Insights

Growing Vehicle Parc Across UAE

The registered fleet grew to 4.56 million units by June 2025, advancing 9.35% year-on-year, as rising incomes and limited mass-transit options outside the two largest cities added incremental vehicles. Light commercial vehicles and SUVs dominate new registrations, bolstering gasoline and diesel throughput despite an uptick in EV sales. Low fuel taxes and competitive pump prices encourage high mileage per vehicle when compared with European norms. ADNOC Distribution delivered 11.7 billion liters during the first nine months of 2025, a 5.9% lift that tracks the fleet expansion. Operators densify networks along Dubai–Sharjah and Abu Dhabi–Al Ain corridors where commuter traffic peaks, aligning capacity with real-time demand analytics.

Liberalized Retail Fuel-Margin Policy

Monthly price adjustments tied to Brent crude started in 2015, transferring price risk to consumers while enabling operators to optimize margins. ADNOC Distribution improved gross profit by 12% during the first three quarters of 2025 by hedging procurement and leveraging data-driven pricing. ENOC and Emarat adopted similar hedging, but the scale gaps narrow their upside. The policy raises consumer price sensitivity, prompting loyalty programs and bundled convenience offers that defend traffic during high-price periods.

Expansion of Road & Logistics Infrastructure

More than USD 3 billion flowed into highway and port upgrades during 2024-2025, including widening of E11 and E311, reinforcing freight corridors to Jebel Ali Port. Logistics activity, up 7.2% in 2024, feeds diesel demand along extended truck lanes. Highway plazas linked to these arteries earn 20%-30% higher revenue per square meter vs. urban stations, justifying 6.6% CAGR growth. The Dubai Logistics Corridor, launched in 2024, slices transit times by 25%, amplifying concentration of fueling needs at strategic nodes and supporting premium pricing structures.

Tourism-Driven Gasoline & Diesel Demand

International arrivals reached 17.15 million visitors in 2024, adding substantial rental and taxi mileage that equates to 12%-15% of total gasoline and diesel volumes. Dubai International Airport handled 87 million passengers in 2024, strengthening ground-transport demand around the airport. With a 25 million visitor target for 2025, incremental demand could reach 200-250 million liters annually. Stations near tourist districts log up to 20% higher throughput during peak months, driving investments in multilingual interfaces and premium grades. Yet the gradual pivot to electric rental fleets could temper this driver beyond 2027.

Rapid EV-Charging Network Roll-Out

Public and semi-public charging points climbed to 868 by end-2025, equating to one charger per 5,250 vehicles, surpassing the IEA’s early-market threshold. Tesla added 12 Supercharger sites during 2024-2025, accelerating premium-segment electrification. Stranded capital risk emerges because a traditional pump island requires 7-10 years for payback, yet accelerated EV adoption could curtail utilization by the early 2030s. Operators retrofit sites with DC fast-chargers, though older urban grids present connection-cost hurdles.

Fleet Electrification Mandates for Taxis & Last-Mile

Dubai requires 30% of its 10,000+ taxis to be electric or hybrid by 2027, ramping to 90% in 2030. Abu Dhabi outlines analogous goals for 1,500 taxis. High-mileage segments consume up to four times more fuel than private cars, so policy affects urban stations disproportionately. Last-mile couriers pilot electric vans, chasing operating costs near USD 0.08-0.10 per kilometer versus USD 0.14-0.16 for diesel. Stations near fleet depots now layer EV charging, car washes, and telematics services to offset shrinking petroleum volumes.

Segment Analysis

By Fuel Type – Alternative Fuels Surge Amid Gasoline Dominance

Gasoline secured 60.1 of % United Arab Emirates fuel Station market share in 2025. Diesel maintains relevance with commercial fleets, yet heads toward marginal decline as electrification penetrates logistics and public-bus segments. Alternative fuels, notably hydrogen and EV charging, post a 23.5% CAGR, the sharpest across categories, powered by government mandates and decreasing charger capex. ADNOC Distribution targets 500-750 charging points by 2028, expanding the United Arab Emirates Fuel Station market footprint into electricity. Hydrogen remains pilot-scale due to dispenser costs and a nascent vehicle base, but strategic positioning today prepares operators for heavy-transport decarbonization. EV charging stands out as the primary growth vector through 2031, enabled by consumer familiarity and public-sector support. Those delaying multi-energy conversion may cede high-margin traffic to rivals that provide one-stop energy services.

The United Arab Emirates Fuel Station market size for alternative fuels is projected to climb steadily as policy pressure mounts, while diesel retention in long-haul segments cushions the transition. Liquefied petroleum gas and compressed natural gas together occupy a mid-single-digit space, promoted in taxis and select fleets where lower pump prices counter conversion costs. By 2031, the combined share of electricity and hydrogen is expected to challenge gasoline, forcing a recalibration of product mix, storage configuration, and pricing algorithms.

Note: Segment shares of all individual segments available upon report purchase

By Service Offering – Multi-Energy Hubs Redefine Forecourt Economics

In 2025, fuel-and-convenience-store formats captured 49.9% of segment revenue, underpinned by ZOOM and ADNOC Oasis footprints that allocate 25%-35% of sales to non-fuel items. Multi-energy hubs grow at a rapid 20.2% CAGR, adding electricity and hydrogen to petroleum to widen wallet share. ADNOC plans 50-75 flagship multi-energy conversions by 2028, targeting fleets seeking reliability and single-stop refueling. Fuel-only sites decline as on-demand refueling apps grow; CAFU raised USD 15 million in 2024 and serviced 100,000 users by late 2025.

United Arab Emirates Fuel Station market participants realize that convenience retail insulates against pump-margin swings borne from deregulation. Quick-serve restaurant integration deepens average basket size and lengthens dwell time. ENOC’s QSR partnerships and Emarat’s drive-through coffee initiatives respond to consumer demand for curated experiences. The inevitable bifurcation positions urban micro-sites for speed, while highway plazas compete on comfort and amenities, forcing operators to match format with catchment demographics.

By Station Format – Highway Plazas Gain While Traditional Sites Retrofit

Traditional full-service formats accounted for 54.5% of 2025 revenue but are expected to surrender share as compact and plaza styles expand. Highway service plazas demonstrate 20%-30% higher revenue density and grow at 6.6% CAGR on the back of logistics traffic through widened E11 and E311 routes. ADNOC and ENOC have secured multiyear concessions on these corridors, aligning capex with predictable throughput. Compact urban stations under 500 m² emerge where land exceeds USD 1,000 per m²; ENOC piloted three such sites, achieving sub-four-year paybacks in 2025.

The United Arab Emirates Fuel Station market size for compact and micro-formats rises as operators seek network densification without proportional capital strain. Regulatory hurdles around fire safety and grid capacity temper roll-out pace, yet profitability advantages sustain interest. Traditional sites undergo phased retrofits that add DC chargers and digitized payment kiosks to remain competitive, gradually converting legacy canopy space into multi-energy islands as demand dictates.

By End-User – Transport & Logistics Fleets Accelerate

Retail motorists still dominate with a 58.8% share in 2025, driven by a high vehicle parc and favorable taxation U.AE. Nonetheless, transport and logistics fleets register a 7.1% CAGR, buoyed by 14.1 million TEU throughput at Jebel Ali Port and a 7.2% logistics sector growth in 2024. ADNOC Distribution logged a 9% lift in commercial-fleet volumes in 2025 as fleet-card programs lock customers into negotiated rates. Industrial users, construction and mining, consume diesel in remote zones serviced by mobile refuelers, whereas aviation and marine niches deliver high-value flows through specialized terminals.

The United Arab Emirates Fuel Station market size captured by fleet segments grows because on-road freight and last-mile delivery expand alongside e-commerce. Electrification pilots among couriers and taxis temper petroleum growth but expand electricity revenues for multi-energy forecourts. Operators tailoring invoicing cycles, telematics integrations, and predictive delivery win wallet share and defend against the margin compression typical of mass retail sales.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Dubai and Abu Dhabi collectively accounted for an estimated 65%-70% of the United Arab Emirates Fuel Station market revenue in 2025, reflecting density, tourism, and industrial activity. Dubai’s 3.6 million residents and 17.15 million visitors in 2024 drive robust retail traffic along the Sheikh Zayed corridor and around Dubai International Airport, which processed 87 million passengers in 2024. Abu Dhabi contributes heavy-duty and government-fleet demand, supported by 977 ADNOC-operated sites nationwide, roughly 400 of which reside in the emirate.

Sharjah’s 1.8 million population produces commuter surges that peak twice daily; stations proximate to E11 and E311 corridors log up to 15% higher throughput than inland peers. Fujairah captures cross-border flows to Oman and fuels marine bunkering, though retail volumes remain modest. Ras Al Khaimah and Umm Al Quwain exhibit the lowest station density yet fastest household growth, attracting incremental investment. The United Arab Emirates Fuel Station market size for Northern Emirates may therefore outpace the national average in percentage terms, though from a smaller base.

Cross-border fuel tourism, once significant on the Oman border, has moderated since both nations liberalized prices, but weekend spikes remain. Geographic strategy thus aligns capex with traffic profiles: premium multi-energy hubs populate Dubai and Abu Dhabi, whereas cost-efficient formats fill Northern Emirates white spaces. Misalignment risks extended paybacks and operational drag.