Budget Saudi CEO says Saudi lease, rental sectors remain ‘highly promising’

Fawaz Danish CEO of United International Transportation Co.’s (Budget Saudi)

United International Transportation Co.’s (Budget Saudi) CEO Fawaz Danish highlighted that several Tadawul-listed players are currently undervalued, including his company, making these stocks more appealing for new investors.

In an interview with Argaam on the sidelines of the 11th Annual EFG Hermes Investor Conference in London, Danish said that meetings held during the event with investors — whether local, GCC, or international funds — showed strong interest in investing in Budget Saudi’s shares, as they seek to tap companies with a clear vision and growth potential.

Danish expressed optimism about the Saudi car rental sector amid its continued growth, underscored by the Kingdom’s strong economy, increased intercity travel, and the growing female participation — all ultimately contributing to higher demand for rental services. He stressed, “The Saudi car lease and rental sectors remain highly promising.”

Over the past two decades, regional and sectoral performance variations have been witnessed across Budget Saudi’s Kingdom-wide branches. This creates balance in terms of business performance by offsetting weaker areas with stronger ones, the top executive underlined.

Seasonality, according to the CEO, exists but its effective management is doable. The momentum created by Saudi Arabia's summer and winter seasons as well as the year-round festivals lead to varied performance across Budget Saudi’s branch network. This provides stability by allowing one area's success to offset seasonal dips in another, ensuring consistent company-wide results, he added.

Danish also pointed out, “Key partners in the delivery and logistics market have driven much of Budget Saudi’s growth over the last five years — which has become a critical market for us, particularly since the COVID-19 pandemic shifted consumer habits from direct purchasing to reliance on app-based services. These partnerships, in turn, have unlocked significant growth opportunities for the company.”

“Budget Saudi is expanding in lockstep with the rapidly growing delivery and logistics market across the Kingdom. The company’s strong financial performance provides a foundation for future expansion. Aligned with Saudi Arabia’s economic outlook, its strategy is to build long-term partnerships within the fastest-growing sectors, with the delivery and logistics market at the forefront of its targets for the next five years,” the CEO said.

Regarding Budget Saudi’s acquisition of Al Jazira Equipment Co. Ltd. (AutoWorld), the top executive noted that the takeover began to bear fruit. “Financial results are getting consolidated, and the merger is generating tens of millions in synergies between the two companies’ operations, which should lift profitability.”

The CEO explained that Budget Saudi has so far achieved the desired outcomes from this acquisition, with the remainder of the year representing an opportunity for more.

As for the Saudi-listed company’s performance in Q3 2025, Danish offered a positive outlook, citing strong progress on both group-wide growth plans and profitability targets. He stated that the sound results witnessed in H1 2025 have built confidence for the remainder of the year.

According to Argaam’s data, Budget Saudi’s profit rose to SAR 168.4 million by the end of H1 2025, compared to SAR 140.9 million in the same period a year earlier. The second-quarter earnings also increased by about 21% year-on-year to SAR 85.6 million.