"The signing confirms that the GAA has been appointed as exclusive distributors of Renault passenger cars and light commercial vehicles across the Kingdom," said Katsumi Nakamura, Renault's executive vice president, after signing the distributorship agreement.

A total of SR100 million will be initially invested for expanding Renault's operation in Saudi Arabia as part of this agreement.

"The distributorship brings a renewed approach to ensure optimum levels of quality, expertise and service to be delivered to customers, matching Renault's ambitious plans for the Kingdom," said Nakamura. Ahmad Bahwan, chairman of GAA; Abdullah S. Al-Baazei, managing director of Saleh Al-Baazei & Sons; and Emmanuel Levacher, Renault vice president for sales and marketing attended the ceremony, where the announcement was formally made.

Referring to the better prospect for Renault cars, Nakamura said that the Gulf Advantage brings with them 75 years of combined industry experience. He said that Renault was a leading brand representing over 100 years of automotive excellence. In 1999, Renault bought a 44.3 percent stake in Nissan forging a powerful alliance. Today, the Renault-Nissan alliance forms the fourth largest automotive group in the world.

Bahwan said that Zahid Tractor's Renault car operations will end on July 8, and the Gulf Advantage will officially commence operations on July 17 as exclusive Renault partners from their new premises in Jeddah, Riyadh and Dammam.

"We are honored to be working with one of Europe's leading car manufacturers and are confident of strengthening the brands position further," he added.

The Kingdom remains the largest market in the Middle East and fifth in the world for auto parts, accessories, service, and garage equipment, said Mustansir Lakdawala, Renault's GCC managing director.