For South Africa, the potential sale of Shell’s retail network could reshape competition in the fuel sector while deepening ties with Gulf investors at a time of shifting global energy dynamics.
The oil major is in advanced talks to sell its South African downstream assets to the Abu Dhabi National Oil Company (Adnoc) in a deal estimated at $1 billion (about R16.4bn), signalling a significant shift in the country’s fuel retail landscape.
Shell confirmed that the “divestment process remains under way” as negotiations with Adnoc reached an advanced stage, declining to comment further on what it described as a confidential commercial process.
If finalised, the deal would give Adnoc control of about 600 service stations — close to 10% of South Africa’s fuel market — marking one of the most significant recent entries by a Gulf energy company into the domestic downstream sector.
The proposed sale is part of Shell’s broader strategy to streamline its global portfolio and focus on higher-margin operations, as major oil companies recalibrate amid volatile energy markets and geopolitical pressures.
For Adnoc, the acquisition aligns with its $150bn international expansion plan and underscores a growing push by Gulf states to deepen their commercial footprint across Africa, particularly in energy and logistics.
The deal comes amid heightened geopolitical tension in the Gulf, which has sharpened the focus on energy security and supply chain resilience. Against this backdrop, the United Arab Emirates (UAE) is stepping up efforts to secure trade routes and cement its role as a global logistics hub.
Senior officials and industry leaders recently met in Dubai to address mounting supply chain disruptions and rising costs affecting global trade flows. The meeting, chaired by UAE Foreign Trade Minister Thani bin Ahmed Al Zeyoudi, brought together representatives from shipping lines, ports and customs authorities.
Al Zeyoudi emphasised the Gulf country’s adaptive strategy to build resilience. Bilateral trade with South Africa had reached $6.5bn, with the Dubai Chamber of Commerce extending its operations in Johannesburg.
“The UAE will continue to play a pivotal role in supporting regional and international trade stability through targeted initiatives and adaptive policies,” Al Zeyoudi said, emphasising the country’s intent to build a “more connected, resilient and future-ready trade ecosystem”.
Amid the US-Israel war with Iran, authorities are prioritising the uninterrupted movement of essential goods and strategic commodities. The UAE pledged $1bn for AI development in Africa, anticipated to harmonise logistics networks.
Officials at the Dubai meeting also pointed to increased use of regional ports, including Fujairah and Khorfakkan and enhanced maritime links with key partners such as Oman and India. These are anticipated to provide trade flow relief interrupted by the closure of the Strait of Hormuz.
New systems, such as advanced cargo information processing, are being rolled out to reduce bottlenecks and improve turnaround times.
The Middle East accounts for 8% of South Africa’s agricultural exports, valued at $15.1bn in 2025, Zeyoudi noted, with the UAE a leading importer of citrus fruits projected between $164 million and $233m in 2025/2026, making the UAE a top Middle Eastern market.
Bin Damithan, the UAE chairperson of ports, customs and free zone cooperation, said: “We are currently rolling out several pilot projects, including the activation of the advance cargo information system through shipping companies for all green corridor cargo, as well as the launch of a new maritime feeder service linking the region with India, further strengthening trade connectivity.”
The Abu Dhabi National Oil Company is in advanced talks to acquire Shell’s South African downstream assets. The deal could reshape the country’s fuel retail sector and deepen Gulf investment ties