Theeb Rent a Car adds 2,000 vehicles, acquires 8.8% of short-term rental market: CEO

Naif Mohammed Al-Theeb, CEO of Theeb Rent a Car Co.

Theeb Rent a Car Co. renewed its fleet with more than 2,000 vehicles of 2022 models, bringing the size of the short-term rental fleet to about 10,500 cars, Chief Executive Officer (CEO) Naif Mohammed Al-Theeb told Argaam.

The company now has a fleet of more than 20,000 vehicles, he added.

There was a remarkable improvement in short-term rental rates during the third quarter, due to the gradual return to business after the coronavirus crisis.

The pick-up in business had a direct positive impact on the demand, leading to improved profit margin ratios, in addition to the upturn in long-term rental services and sale of used cars.

He clarified that the growth came with the gradual return of schools and Umrah pilgrims, as well as the domestic tourist seasons in the Kingdom.

Theeb Rent a Car secured the first place in the short-term rental sector, with a market share of 8.8%. It ranked fifth in the long-term rental sector, with a rate of 6.5%, which it started working on in 2014.

Al-Theeb stated that 57% of the total bank facilities provided to the company were utilized during the last period, which are directly related to the expansion activities.

He stressed that the company seeks to benefit from credit facilities with relatively low expenses to finance its expansion operations, affirming its keenness to maintain strategic relationships with major suppliers and financing agencies.

Regarding the Zakat, Tax and Customs Authority’s (ZATCA) correspondence about potential taxes related to a shareholder’s ownership, the CEO said: “What was received were just inquiries via e-mail at the beginning of 2021. These were answered in a timely manner and disclosed, in accordance with the regulations, and they are not considered official correspondence or Zakat claims”.

It is worth noting that the partner has made a pledge that he will bear any financial obligations related to the above-mentioned issue in case of its occurrence, he concluded.