JEDDAH, 7 September 2004 — Some 700 limousine companies in the Kingdom are thinking of merging into one company or three with a capital of SR3.5 billion.
Owners of the companies were expected to meet at the Riyadh Chamber of Commerce and Industry to discuss steps for the merger and define the new firm’s objectives and plans.
The new company is expected to operate a large fleet of taxis, establish fuel stations and automobile workshops and set up factories for car spare parts. It also intends to purchase buses to operate services between Saudi cities and to foreign countries, and invest in transport and tourism projects.
Saud Al-Nafie, a representative of limousine companies, said companies in different parts of the Kingdom have been invited to take part in the meeting.
The meeting, he said, would select a working team to make contacts with international consultancy firms to conduct a feasibility study within three months.
The merger is expected to strengthen the companies and increase their revenues. “Hundred and twenty-six companies from a total of 700 have agreed to the merger plan,” Al-Eqtisadiah business daily quoted Nafie as saying.
Another plan is to establish three firms, accommodating the largest number of limousine companies, he pointed out.
“A number of Saudi consultancy companies have already presented their offers to conduct the feasibility study,” he said. The study must be conducted on the basis of the reality on the ground and after making field visits, he said. Yesterday’s meeting in Riyadh came after a year of consultations between representatives of limousine companies.
“This is the first constituent meeting of the new company,” Nafie said, adding that the new firm has no relation with the Saudi Communication Company, which recently launched a publicity campaign.
