RIYADH: The Saudi car hire market will recover in the second half of the year led by short term rentals from Umrah and Hajj pilgrims, Budget CEO Fawaz Danish, told Asharq Business.
The resumption of international flights to the Kingdom is expected to boost demand, he said.
Car hire companies have been among the hardest hit by the pandemic with global travel coming to a near standstill. US-based Hertz became one of the first casualties in the sector after seeking bankruptcy protection in the early days of the pandemic.
Still, the influx of millions of pilgrims to the Kingdom offers great potential for the hire sector, Danish said.
The United International Transportation Company, trading as Budget Saudi Arabia, posted profits of SR187 million ($49.8 million) last year, which Danish said was a good performance considering prevailing market conditions.
Budget Co. has distributed SR310 million of its profits to shareholders.
Danish added that the planned listing of Theeb Rent a Car on the Tadawul stock exchange would be a further boost for the sector.
Saudi Budget boss sees recovery in car hire market helped by pilgrims in second half of year
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Saudi Budget boss sees recovery in car hire market helped by pilgrims in second half of year
- Market expected to pick up after Ramadan
- Sector hit hard by coronavirus pandemic
Closing Bell: Saudi main index closes in red at 10,818
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 126.83 points, or 1.16 percent, to close at 10,818.32.
The total trading turnover of the benchmark index was SR4.5 billion ($1.2 billion), as 26 of the listed stocks advanced, while 233 retreated.
The MSCI Tadawul Index decreased, down 15.78 points, or 1.07 percent, to close at 1,457.04.
The Kingdom’s parallel market Nomu lost 137.69 points, or 0.58 percent, to close at 23,413.78. This comes as 26 of the listed stocks advanced, while 40 retreated.
The best-performing stock was Alistithmar AREIC Diversified REIT Fund, with its share price surging by 3.81 percent to SR7.36.
Other top performers included Etihad GO Telecom Co., which saw its share price rise by 3.08 percent to SR91.90, and Consolidated Grunenfelder Saady Holding Co., which saw a 2.55 percent increase to SR9.65.
On the downside, Thimar Development Holding Co. was among the weaker performers, with its share price falling 6.52 percent to SR33.
Baazeem Trading Co. fell 4.94 percent to SR6.35, while Fawaz Abdulaziz Alhokair Co. slipped 4.05 percent to SR18.02.
On the announcements front, Saudi Electricity Co. has officially commenced the offering of a US dollar-denominated senior unsecured sukuk, following its earlier announcement.
The two-day offering, running from Jan. 15 to Jan. 16, will be carried out through a special purpose vehicle and is open to eligible local and international investors.
According to a Tadawul statement, the final amount, pricing, and maturity terms of the sukuk will be determined based on prevailing market conditions, with a minimum subscription set at $200,000.
SEC has mandated a consortium of sixteen global and regional financial institutions, including J.P. Morgan, HSBC, and Standard Chartered Bank, as Joint Lead Managers for the issuance. Upon completion, the sukuk are expected to be listed on the London Stock Exchange’s International Securities Market.
This issuance falls under SEC’s international sukuk program and is being offered in reliance on Regulation S, meaning it will be sold exclusively outside the US to non-US persons.
SEC’s shares traded 0.07 percent higher on the main market to reach SR14.08.
