Budget Saudi CEO says Saudi lease, rental sector remains ‘highly promising’

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

United International Transportation Co.’s (Budget Saudi) CEO Fawaz Danish said that several Tadawul-listed companies are undervalued, including his company, which makes it appealing to new investors in the market.
 

During an interview with Argaam on the sidelines of the 11th Annual EFG Hermes Investor Conference in London, Danish said that meetings during the event with investors — whether local, GCC, or international funds — showed strong interest in investing in the company’s shares, as they look for opportunities in companies with a clear vision and expected business growth.
 

Danish expressed optimism about the car rental sector in Saudi Arabia amid the sector’s continued growth, underscored by the Kingdom’s strong economy, the increasing number of intercity trips, and the growing participation of women in the market, which contributes to higher demand for rental services. He stressed that the lease and rental market in the Kingdom remains highly promising.
 

Over the past two decades, there has been variation in the performance of sectors and branches across regions: some sectors grow while others decline. This creates balance in the company’s performance by offsetting weaker areas with stronger ones. Seasonality exists but can be managed effectively, as during the summer and winter seasons and various festivals across the Kingdom, where performance in one area compensates for another, providing stability in the company’s results despite seasonal fluctuations, according to the CEO.
 

He pointed out that one of the company’s biggest growth partners over the past five years has been major firms in the delivery and logistics market, which has become a major market especially after the COVID-19 pandemic with consumer habits shifting from direct purchasing to reliance on apps, which offered significant growth opportunities for the company through these partnerships.
 

“This sector continues to grow rapidly in the Kingdom, and along with it, Budget Saudi is also expanding. The company’s figures are very solid, and this area is among its future targets to achieve the desired growth over the next five years, in line with its strategy and plans based on the Kingdom’s economic outlook. The company always follows the fastest-growing sectors and builds long-term partnerships within them,” the CEO said.
 

Regarding Budget Saudi’s acquisition of Al Jazira Equipment Co. Ltd. (AutoWorld), the CEO confirmed that the takeover outcome has begun to appear. “Financial results are becoming consolidated, and the merger is generating tens of millions in synergies between the two companies’ operations, which are expected to reflect positively on profits. Budget Saudi has achieved its desired outcomes from the acquisition so far, and the remainder of the year represents an opportunity for further achievements,” he said.
 

As for his expectations for the company’s performance in Q3 2025, Danish confirmed the continuation of the group’s growth plans and its goal to achieve solid profits, adding: “So far, performance in the first six months has been good, and we hope the second half meets the expected ambitions.”
 

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. Q2 profit increased by about 21% year-on-year to SAR 85.6 million.