From fuel stops to high-tech hubs: how Saudi Arabia’s service station market is transforming
By Hesham Elshafei
The service stations industry in Saudi Arabis is expanding and transforming rapidly under the supervision of the Ministry of Energy in order to align with the KSA ‘mega vision 2030’. The market is now transforming from one focused on the simple refuelling process to more comprehensive, high-tech hubs, offering enhanced retail services such as automatic car wash, convenience stores and electric vehicles charging units at some locations, reflecting a 7.5% expected CAGR from 2025-2034.
As of late 2024, stations will be required to have advanced digital systems, including central pump to POS integration, tank monitoring with leak detection systems; applying all the safety and compliance standards to meet international market standards, this is expected to filter the market players into the big local and international players only within the coming 5 years, specially with the slim margin of fuel in KSA and big CAPEX required to align with the compliance requirements to stay in the Market.
Saudi Arabia has around 7500 service stations, ALDREES maintains the highest market share of 17% corresponding to 1300 stations, SASCO is also a local giant in the Saudi Market with 600+ stations, ARAMCO as well is heavily strengthening its retail presence acquiring SAHEL FUEL and Partnering with TotalEnergies. Other international and regional market players are already here like SHELL, CIRCLE K, ADNOC, having big expansion plans in the KSA market.
There are also many local reputable companies with an impactful presence in the market and they are doing their best to maintain their presence and footprint. Businesses such as JOIL, Liter, Orange, Petrogen, OOMCO, FUELWAY and PETROLY.
Currently the market is experiencing a shift towards branded, organized retail, with more focus on consumer experience and retail excellency standards, which is expected to eliminate the existence of independent and small operators in the coming period either through merges or acquisitions.
In 2026, over 130 stations in major cities like Riyadh, Dammam and Jeddah began introducing 98 OCTANE Gasoline introduced as a 3rd grade for MOGAS in the market.
Along with the evolution that is happening in the fuel business, convenience stores are starting to increasingly develop in the market, with many market players shifting from just renting out the space to local baqalas (local supermarkets), towards considering C-stores as an important hub for enhancing consumer experience and as an important destination hub for their stations. In this regard, Kuwait giant C-store chain TROLLEY has stepped heavily into the market with around 60 stores in Riyadh, signing an MOU with market giants ALDRESS & Aramco to open stores at their locations will also be a game changer in the retail market within the coming years.
Hesham Alshafei
A retail expert for more than 22 years, always focused on to delivering value to customers. Most of my professional career was with EXXONMOBIL starting as an ON THE RUN station manager, Moving through different retail roles that includes Category Management, Operations Management, Retail support and Health& Safety. Being a part of a multinational organization prioved great experience for me as it exposed me to different European markets in addition to the Egypt.
I’ve been working in the KSA market for 4 years now, witnessing all the changes that are happening in such dynamic and challenging environment with my most recent role as Operations Director for Orange KSA Fuel stations Company. Currently I am still trying to deliver more value into the retail sector for growing companies through consultation and trainings as well as write articles like this for my friends at Global Convenience.
