Budget Saudi to pursue expansion in northern Saudi Arabia: CEO

United International Transportation Company Ltd. (Budget Saudi) is currently expanding its footprint in northern Saudi Arabia, its CEO Fawaz Danish told Argaam in an exclusive on Thursday.

“Our expansion drive comes in line with the NEOM project and other cultural activities in Al-Ula region, which bolstered demand for the company’s services,” Danish said.

Budget Saudi’s local market share stands at almost 25 percent; however, no sufficient data is available on the exact market share.

Commenting on the full-year results, Danish said a decline in 2018 revenue is attributed to lower short-and-long term rentals. The revenue drop was rather offset by better fleet utilization.

The car rental service provider cut 2018 costs by over SAR 6 million, which lifted the annual figures when compared to 2017.

“Budget Saudi has maintained long-term rental rates at nearly 90 percent driven by its contracts with corporate clients, which ensures high utilization rates,” he added.

Additionally, short-term rentals improved by over 2 percent year-on-year in 2018. The company is eying better rates this year, Danish concluded.

Budget Saudi reported a 14 percent rise YoY in 2018 net profit to SAR 169.98 million, Argaam earlier reported.