Peax moots UAE expansion for second half of 2015
Saudi Arabia-headquartered equipment rental firm, Peax, has revealed tentative plans to expand into the Emirates during the second half of 2015
Peax has revealed the possibility of a move into the UAE rental market during the second half of 2015.
The Saudi Arabia-headquartered equipment hire firm, which is the rental arm of Saudi Diesel, told PMV that it was keen to expand its operations into other areas of the Middle East.
The news comes following the Peax’s positive assessment of the Middle East’s rental market; a climate in which the company has achieved double-digit growth for four consecutive years.
“We intend to take our business into neighbouring countries,” explained Mohsen El Najjar, general manager of Peax.
“Taking our lead from Saudi Diesel’s recent expansion into the UAE, we’re considering entering the Emirates’ rental sector,” he added.
Al Najjer and his colleagues are considering the move off the back of a sustained period of growth in Peax’s domestic market.
“Four years ago, we set out our plan to grow Peax,” he said.
“We wanted to increase our market share and improve our presence domestically. Since then, we have enjoyed four years of double-digit growth. The main indicator for us, of course, is revenue, but we also consider fleet utilisation and new client acquirement.
“In terms of revenue, we have achieved approximately 10% year-on-year growth during this period. In terms of new customers, we have probably grown by 15% to 20% during the same timeframe,” revealed Al Najjer.
If the UAE expansion does go ahead in 2015, the Peax GM says that it is likely to take place in the second half of the year.
For comprehensive analysis of the Middle East’s equipment rental sector, check out the December 2014 issue of PMV Middle East.