Budget Saudi, the kingdom’s leading car rental company, has renewed its Budget & Payless Franchise agreement with Avis Budget Group. The agreement will extend the two entities’ partnership for another 10 years, until 2033.

Unitrans Group, through its flagship brand Budget Saudi, holds the title of being the world’s single largest franchise owner of ABG group in that category. This global recognition, coupled with a legacy of 45 years in Saudi Arabia, underscores Budget Saudi's commitment to delivering world-class services and creating memorable journeys and experiences.

The agreement was confirmed and announced at a signing ceremony held during Avis Budget Group’s Middle East Conference in Jeddah, recently.

The Budget & Payless Franchise agreement was signed by Hans Mueller, VP Global Licensees, ABG Group; and Fawaz Abdullah Danish, President and Group CEO, Budget Saudi.

They were joined at the Middle East Conference — the largest regional get-together of its kind organised by Avis Budget Group — by a selection of leading Avis Budget Group executives and senior management from the UK, US and Singapore, as well as delegates from the GCC, Jordan, Lebanon and Kazakhstan.

The renewal of the agreement is followed by the announcement of Budget Saudi’s robust financial performance for the year 2023. The company recently reported profitability exceeding SAR 277.3 million ($73 million), a 10% increase from the previous year.

Furthermore, revenue growth for the year 2023 was an impressive 34.4% higher than the previous year, underlining Budget Saudi's strong financial health and promising future.

Fawaz Danish, President and Group CEO, Budget Saudi, said: “The franchise agreement signed for 10 years augurs well for the company and its growth strategy. It demonstrates the trust of Avis Budget Group Group in our company and our ability to deliver consistently and grow exponentially in the coming years.

“The brand Budget & Payless is secure in our portfolio in Saudi Arabia and is well positioned to achieve our vision of being the most comprehensive transportation solutions provider in the Kingdom: a one-stop-shop for wide-ranging vehicle renting and leasing services, as well as premier limousine operations.

“We are fully focused on achieving our accelerated growth plans for the next five years.”

Budget Saudi has seen substantial growth in its revenues and fleet. As part of its growth strategy — and in accordance with Vision 2030 — the company has launched a diversity of sustainable green initiatives to reduce the carbon footprint of its fleet.

The company has also inducted EV vehicles to its fleet for rental and leasing services and is taking proactive steps to advance the Kingdom’s burgeoning EV infrastructure, in line with the Saudi Green Initiative. – TradeArabia News Service