Business & Money | Thursday 30 November, 2017 10:18 am |

SEDCO Holding Group a leading Shariah-compliant investment Group, reinforced its investment portfolio in car rental and leasing sector with latest franchise agreement between its operating company, (Auto World) and the German (Sixt), one of the largest car rental companies with a fleet of 215,000 cars, across 2,200 branches in more than 118 countries.

(Auto World), one of the largest car rental companies in Saudi Arabia, has made progress   in 2016 through its short and long term rental operations. As part of Sixt deal, Auto World has received major leasing customers s with their existing fleet including 7 new rental branches, 5 of which are hotel locations in Riyadh and Yanbu, 2 are downtown locations in Riyadh and Jeddah,  and transfer of 40 skilled employees from Sixt operations.

"This agreement is part of the Group’s expansion strategy to achieve sustainable profitable growth and further success. We constantly strive to support our portfolio through detailed and accurate investment criteria in order to achieve long term revenues, benefiting from the Group’s investment expertise.” said Anees Ahmed Moumina, Chief Executive Officer of SEDCO Holding Group.

“Saudi Arabia car rental and leasing industry has witnessed  a surge in revenues which are expected to grow up to SAR 3 billion by 2020, as revealed by “Kane Research” Report. The expected growth emanates from a number of factors, including population growth, growing numbers of pilgrims, Umrah performers and business visitors coupled with the development plans experienced by the Kingdom”, added Moumina

 

 “With this new partnership, Auto World will expand its rental business solutions to international levels by receiving inbound reservations from all around the world as well as generating outbound reservations for its existing and new customers within Saudi. This step will support and upscale our work” said Imad Zein, Chief Executive Officer of (Auto World). 

 

 “We are also planning to increase our branch network in 2017 to 32 branches and improve presence at airports and hotels. Despite tight competition, we are targeting to open more sales channels through local travel agencies and increase partnerships with major airlines and GDS’s in collaboration with Sixt Germany. With the global network of Sixt, Auto World will now have the ability to reach more than 118 countries”, added Mr. Zein.

 

The agreement will allow Auto World to improve rental operations offering cross border car rental services with other GCC franchisees and using dynamic pricing models based on yield management.

 

From 2010 until 2016, Auto World has grown its fleet size from 2,400 to 12,500 and targeting a fleet size of 17,000 in 2020.