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RIYADH: Saudi Automotive Services Co. is set to launch the Kingdom’s largest fuel station worth SR35 million ($9.3 million) in the first quarter of 2024, according to its CEO.
In an interview with CNBC Arabia, Riyadh Al-Malik said the establishment of the facility, also referred to as Al-Jazeera 1, took into account future development operations.
The move falls in line with the firm’s aim to provide services to automobiles and travelers by establishing a network of vehicle service stations.
It also aligns with SASCO’s goal of reaching 600 facilities by the end of 2024.
Located along King Fahd Road, serving as a link between Riyadh and Al-Qassim province, the new station covers an area of 280,000 sq. m. and is situated on the central island along the highway connecting Al-Qassim and Riyadh, SASCO said on X.
This route records the highest traffic volume in Saudi Arabia, exceeding 100,000 vehicles on average.
Al-Jazeera 1 will serve as a hub for travelers between Al-Qassim and Riyadh, the company added.
During the interview, Al-Malik revealed that the company will enter another model station into service in the second quarter of 2024 in an attempt provide logistical services to travelers.
The company’s stations cover the most prominent regions of the Kingdom, the CEO stressed.
SASCO currently owns and operates 541 stations in the Kingdom and 50 new stations are scheduled to enter service in 2024.
In addition to this, the CEO disclosed that that the entity has loans worth SR1.4 billion, of which SR369 million were repaid in 2023.
He went on to say that most of the loans held by companies are long term and medium term.
This comes as the firm has cash flows that allow them to be repaid, the CEO said stressing that SASCO has a market share in gas stations in the Kingdom of up to 5 percent.
In 2022, the company signed an agreement for a Shariah-compliant loan worth SR375 million from Bank Albilad.
The 10-year deal came as an extension to a SR504 million loan that was obtained earlier that year from Riyad Bank, a bourse filing revealed at the time.
The company operates car service stations, restaurants, and a gasoline transporter fleet. It also supplies spare parts for workshops.