Budget Saudi expects profit from used car sales to continue, develops tech to maintain affordable prices: CEO

Fawaz Danish, President and Group CEO of Budget Saudi

United International Transportation Co. (Budget Saudi) is expected to maintain strong sales of used cars until the year-end and going forward, President and Group Chief Executive Officer (CEO) Fawaz Danish, told Argaam in a telephone interview.

Used car sales are among the group’s core activities, along with short-and-long-term car rentals.

The used car market is still highly promising, Danish said, noting that Budget Saudi is developing its technologies to maintain affordable market prices and offer high-quality products to boost the number of buyers, given that the car sale earnings have the highest contribution to the company’s profit.

Moreover, expansion in sales channel technologies will provide promising opportunities for the group, Danish explained, pointing to the partnership Budget Saudi entered into with Syarah application.

On the other hand, Danish attributed the 149% surge in Q2 2021 net profit, compared to the year-ago period, which was impacted by the COVID-19 curfew, to improved short-term rentals. He also expected the segment’s revenue to grow as of the fourth quarter of the year amid an increase in the number of visitors and pilgrims.

Danish added that demand for long-term rentals is improving amid stability in the segment revenue between the first and second quarters of the year, stressing that Budget Saudi was awarded new contracts, which will be reflected by the year-end. 

Budget Saudi reported a net profit after Zakat and tax of SAR 111.4 million for the first six months of 2021, a 64% increase, compared to SAR 68 million in the year-earlier period. The second-quarter net profit more than doubled to SAR 56.3 million, Argaam reported.