ENOC AND Al Rostamani form joint venture
Emirates National Oil Company continues its efforts to diversify its revenue base, this time through a tieup with the Al Rostamani Group.
Emirates National Oil Company (ENOC) and Al Rostamani Group have introduced a branded automotive service centre chain. The new chain, ‘Fix Plus’, aims to offer quick vehicle repair and maintenance services for UAE residents.
The two groups have entered into a balanced equity agreement, with equal representation on the board of directors and a start-up capital of AED 1.4 million to cover initial equipment investment.
The first two ‘Fix Plus’ sites will open at the Tasjeel registration sites in Sheikh Zayed Road and Ghusais.
“Apart from being the first in the market, the move meets our strategic objective of business diversification in our drive to reduce dependence on gasoline-generated income,” said Hussain Sultan, chief executive officer, ENOC.
This comment is a thinly-veiled reference to ENOC’s losses on pump petrol, which the company must sell at below market rates because of federal caps on petrol prices.
For Al Rostamani, the move represents a deeper commitment to an industry it is already closely involved in through its representation of Nissan, Renault and Michelin in the region.
“Our extensive experience in automotive services makes this an ideal partnership,” said Abdul Wahed Al Rostamani, managing director, Al Rostamani Group. “This venture fills a gap in the market and will provide top quality service and repairs at highly competitive prices,” he added.