The United International Transportation Company (Budget Saudi) has secured a long-term deal with Saudi Basic Industries Corp (SABIC), one of the world's biggest petrochemical companies.

The four-year contract, valued at SAR39.8 million, is for the lease of the transport firm’s 263 vehicles to SABIC, according to a disclosure on the Saudi Stock Exchange (Tadawul) on Monday.

The leasing deal will be automatically renewed for 12 months at the end of the initial term.

“This contract will have a positive impact on the financial statements during the contract period starting from the first quarter of 2024,” Budget Saudi said.

“This contract falls within the expansion plan of [Budget Saudi], which is based on solid strategic plans and aims to stimulate operational growth…”

Last August, the vehicle leasing company signed a non-binding memorandum of understanding with the Saudi Economic and Development Holding Co. (SEDCO) to acquire all shares of its subsidiary, Al-Jazeera Equipment Company Limited (Auto World).

(Writing by Cleofe Maceda; editing by Seban Scaria)