Hertz forms joint venture in Saudi Arabia
By Murray Pollok01 February 2010
Hertz Equipment Rental Corporation (HERC) is to start renting equipment in Saudi Arabia through a joint venture with Saudi based Dayim Holdings Company Ltd. Dayim is an investment company formed in 2006 to create partnerships with foreign investors.
The joint venture - between HERC, Dayim and Hertz Corp - will rent and sell equipment and tools to construction and industrial markets throughout Saudi Arabia. HERC has not said where the rental locations will be and when they will start operating.
"The equipment rental market in Saudi Arabia is expanding rapidly, driven by heavy construction and opportunities in the petro-chemical industry", said Mark Frissora, chairman and chief executive officer of Hertz Corp, "Our joint venture with Dayim Holdings will enable HERC to tap into growth throughout the country.
"With an established presence in the Kingdom, HERC will be able to offer a one stop shop for equipment rental and fleet management needs for this important market."
Dayim's executive chairman HRH Prince Khalid bin Bandar bin Sultan, said; "HERC is a global leader in the field of equipment rental, therefore we believe that it is ideally placed to serve the Kingdom's aggressive expansion plans in all relevant sectors."
The move into the Middle East is not a surprise since HERC is already active in China where it has two rental locations. It has said in the past that it was looking for growth opportunities in new markets.
HERC is the latest western rental company to move into the Middle East market. Over the past 18 months companies including Riwal, GAM and Speedy Hire have established operations in the region. Aerial platform company Lavendon group has been present in the region for several years.
Dayim Holdings was established in 2006 as a vehicle for investment and partnerships in Saudi Arabia. It favours joint ventures, investment and strategic partnerships with globally renowned companies and is present in sectors including construction, oil and gas, security, IT and telecommunications.
Gerald Plescia, Hertz executive vice president and president of HERC, said; "This was truly a collaborative effort as our HERC teams from the US, Europe, and Asia worked closely with the Dayim team to put this important business partnership together. The combined strength of these two organizations will enable outstanding growth opportunities for both and allow us to deliver the highest level of service to those customers in Saudi Arabia."