UAE’s Largest Fuel Retailer, ADNOC Distribution, Adopts Dirham Stablecoin Payments
The UAE's largest fuel and convenience retailer, ADNOC Distribution, a subsidiary of the Abu Dhabi National Oil Company, has announced a major strategic move to accept payments using a Dirham (AED)-backed stablecoin across its extensive retail network. This initiative marks one of the most significant real-world retail integrations of a regulated digital currency in the Middle East. The move aligns perfectly with the UAE's national strategy to position itself as a global leader in the digital economy and virtual asset innovation.
AE Coin: The Key to Regulated Retail Payments
ADNOC Distribution has signed a Memorandum of Understanding (MoU) with Al Maryah Community Bank to integrate the stablecoin, known as AE Coin, into its payment infrastructure. AE Coin is the UAE's first stablecoin to be licensed and regulated by the Central Bank of the UAE (CBUAE) and is fully collateralized, pegged 1:1 to the UAE Dirham (AED). This regulatory backing is the critical factor that allows a major state-linked corporation like ADNOC to adopt it, ensuring the transaction is compliant with national financial regulations. Customers will be able to pay for fuel, items at Oasis convenience stores, and car washes using AE Coin via the bank’s AEC Wallet. The integration uses blockchain technology to enable instant, secure, and frictionless transactions. This payment option is being rolled out across nearly 1,000 ADNOC Distribution locations, encompassing its network in the UAE, the Kingdom of Saudi Arabia (KSA), and Egypt. This massive scale instantly brings a regulated digital asset into the daily spending habits of millions of mainstream consumers.
Strategic Impact on the UAE’s Digital Economy
The adoption of AE Coin by ADNOC Distribution is a clear realization of the UAE’s broader strategy to lead global innovation in the digital economy and virtual assets. This move shifts stablecoins away from being purely speculative crypto assets into practical, high-volume, low-friction utility for everyday commerce. It effectively tests the stability and performance of a regulated stablecoin in a high-frequency retail environment. By integrating a central bank-licensed stablecoin, the initiative aligns with the UAE's focus on secure and regulated digital payment solutions. It provides a model for how virtual assets can be used while maintaining compliance with anti-money laundering and counter-terrorism financing (AML/CFT) standards. ADNOC Distribution CEO Eng. Bader Saeed Al Lamki stated that accepting AE Coin is part of the company's commitment to enhancing mobility and convenience retail through innovation, offering a reliable digital alternative to traditional payment methods. This collaboration between a major energy retailer and a regulated bank using a sovereign-backed stablecoin sets an important benchmark for how traditional sectors can embrace blockchain technology responsibly and at scale.