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FINANCIAL NEWS
Jeddah floods cause car rental firms losses
03 Feb 2011
(MENAFN) The Vice Chairman of the General Transport Committee at the Jeddah Chamber of Commerce and Industry, Saeed Al-Bassami, said that recent floods in the city caused car rental companies to lose around $26.660 million, reported The Saudi Gazette.
Al-Bassami said that car rental companies reported breaking down of almost 9,000 vehicles that were affected by bad weather conditions.
Al-Bassami said that insurance companies refused to compensate the losses of many companies, because of policies that do not cover natural disasters.
However, after the heavy rains and floods the car rental business began to gradually grow. Many companies also raised their prices by around 15 to 25 percent, Al-Bassami added.
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