GOLD ROAD CAR RENTAL CO. L.L.C is a corporate vehicle rental provider, specializing in long-term leases for construction and maintenance firms. Established in 2022 in Dubai, the company operates a fully owned fleet of minibuses and vans, ensuring cost efficiency and asset control. With high fleet utilization (300+ days per year), the company secures stable revenue through long-term contracts with major construction firms.

Fleet & Financial Strategy

The company owns and actively expands its fleet, reinvesting profits into vehicle renewals and acquisitions to meet client demand. This self-financing model eliminates reliance on leasing and external financing while allowing scalable growth through secured credit lines.

Competitive Advantages

Fully owned fleet – Eliminates leasing costs, ensuring financial flexibility and profitability.
Long-term B2B contracts – Partnerships with leading construction firms provide stable cash flow and predictable demand.
High operational efficiency – A lean structure and direct fleet ownership reduce overhead costs.
Sustainable growth strategy – Profits are reinvested into fleet expansion, minimizing reliance on debt.

Key Challenges

High capital expenditures – Fleet ownership requires continuous reinvestment, affecting short-term liquidity.
Limited fleet size – The company’s current fleet restricts its ability to take on larger contracts.
Client concentration risk – A strong reliance on construction clients makes revenue sensitive to industry downturns.
Economic exposure – The cyclical nature of the construction sector may impact rental demand.
Maintenance and depreciation costs – Full ownership results in ongoing upkeep expenses.

Growth Plan of Gold Road Car Rental Co. L.L.C

GOLD ROAD CAR RENTAL CO. L.L.C has established a strong position in the construction and maintenance sectors, securing long-term corporate partnerships that ensure stable revenue streams and high fleet utilization. In 2025, the company is focusing on strengthening its B2B market presence and expanding its corporate fleet rental operations.

Expanding within the B2B sector – The company is executing a €256,500 contract with DUTCO TRAVEL & TOURISM L.L.C, supplying 10 Mercedes Benz Vito vehicles to a hotel chain for a minimum six-month period. This contract, originating from an existing construction client’s affiliated maintenance company, highlights GOLD ROAD CAR RENTAL CO. L.L.C’s ability to leverage industry relationships to expand into new corporate sectors.

By maintaining its focus on corporate rentals, the company ensures business stability while diversifying within the B2B market. The fleet expansion driven by this contract enhances operational capacity and strengthens GOLD ROAD CAR RENTAL CO. L.L.C’s long-term growth potential in the hospitality sector, without shifting towards short-term consumer rentals.

Justification for Growth

The company anticipates significant revenue growth in 2025 and beyond, driven by:

A secured contract with DUTCO TRAVEL & TOURISM L.L.C, ensuring a stable and predictable revenue stream.
High demand for rental vehicles in the UAE, fueled by economic growth, a large expatriate workforce, and an expanding corporate sector.

These factors reinforce GOLD ROAD CAR RENTAL CO. L.L.C’s position as a reliable corporate vehicle rental provider, ensuring sustained financial expansion.

Loan Collateral

GOLD ROAD CAR RENTAL CO. L.L.C secures the €511,000 loan with a combination of existing fleet assets and newly acquired vehicles. The collateral package includes:

Existing fleet, valued at approximately €150,000.
10 new Mercedes Benz Vito Business 2023 vehicles, purchased using the loan funds, with an estimated value of €450,000 - €470,000 after acquisition and initial use.

Despite an estimated 15% annual depreciation, the total collateral value remains sufficient to cover the loan principal. As a rental company, GOLD ROAD CAR RENTAL CO. L.L.C’s fleet serves as both a secured asset and a revenue-generating resource, ensuring financial stability and repayment capacity.

Risk scoring

Collateral
Company Assets
Total risk score
BBB
Debt to equity
3.33
LTV
85 %
Credit history
8/10

Details

GOLD ROAD CAR RENTAL CO. L.L.C has demonstrated consistent revenue growth, driven by long-term corporate contracts and strategic reinvestment in fleet expansion. The company follows an asset-based financial model, ensuring cost efficiency and stable profitability without reliance on external financing.

Revenue and Net Profit Trends

2023:

Revenue - 102 528€

Net Profit - 41 706€

2024:

Revenue - 141 699€

Net Profit - 24 302€

2025 forecast:

Revenue - 507 040€

Net Profit - 344 129€

In 2024, revenue increased by 38.2%, reflecting strong client demand and new contract acquisitions. However, net profit declined due to a €43,500 reinvestment in fleet expansion. Without these capital expenditures, adjusted net profit would have reached €67,802, showing a real profitability increase of 62.5%.

For 2025, revenue is projected to more than triple, supported by the €256,500 contract with DUTCO TRAVEL & TOURISM L.L.C. The shift to higher-margin vehicles (Mercedes Benz Vito Business 2023) will significantly improve overall profitability.

The 2024 capital expenditure was fully allocated to fleet expansion, impacting short-term profitability but strengthening the company's market position.

Financial Strategy and Sustainability

GOLD ROAD CAR RENTAL CO. L.L.C follows a self-financed growth strategy, reinvesting earnings into fleet expansion instead of relying on debt or leasing. The company's long-term contracts ensure predictable revenue, and its high fleet utilization rate (300+ days per year) maximizes asset productivity.

With a focus on cost efficiency and contract-based revenue generation, the company is positioned for sustainable financial growth while maintaining strong profitability margins.

Total Loan Amount

GOLD ROAD CAR RENTAL CO. L.L.C is requesting €511,000 to expand its fleet and fulfill a €256,500 contract with DUTCO TRAVEL & TOURISM L.L.C. The loan will finance the purchase of 10 Mercedes Benz Vito Business 2023 vehicles, supporting the company’s expansion into the hospitality sector while strengthening its market position.

Number of Tranches and Disbursement Schedule

The loan will be disbursed in three tranches, structured to align with vehicle procurement and minimize financial strain:

€205,000 (4 Mercedes Benz Vito Business 2023 2.0T 7Seats)
€153,000 (3 Mercedes Benz Vito Business 2023 2.0T 7Seats)
€153,000 (3 Mercedes Benz Vito Business 2023 2.0T 7Seats)

This phased approach ensures efficient capital allocation, allowing the company to integrate the new vehicles into operations while maintaining financial flexibility.

Intended Use of Funds

The entire loan amount will be allocated to the purchase of 10 premium commercial vehicles, essential for fulfilling the hotel contract and expanding the company’s B2B portfolio.

Impact on Business Growth

The loan will directly contribute to increased revenue and profitability in 2025. The secured DUTCO TRAVEL & TOURISM L.L.C contract will drive revenue to €507,040, while net profit is expected to reach €344,129. The introduction of higher-margin vehicles will improve fleet profitability, and the expansion into the hospitality sector will open new opportunities beyond construction and maintenance clients.

Beyond immediate financial impact, the loan will strengthen the company’s competitive position, allowing it to expand its client base, secure additional long-term contracts, and compete effectively with larger rental providers.

Key facts

GOLD ROAD CAR RENTAL CO. L.L.C was founded
Dec 12, 2022
Start of active work/production
Jan 01, 2023

Borrower info

GOLD ROAD CAR RENTAL CO. L.L.C

GOLD ROAD CAR RENTAL CO. L.L.C is a corporate vehicle rental provider, specializing in long-term leases for construction and maintenance firms. Established in 2022 in Dubai, the company operates a fully owned fleet of minibuses and vans, ensuring cost efficiency and asset control. With high fleet utilization (300+ days per year), the company secures stable revenue through long-term contracts with major construction firms.

Market description & size

Regional Market Overview

The GCC car rental market is experiencing rapid growth, expected to expand from $0.9 billion in 2023 to $2.1 billion by 2030 (CAGR 15.12%). The Middle East car rental market as a whole is projected to reach $3.74 billion by 2029 (CAGR 10.42%). Key growth drivers include increased tourism, rising expatriate populations, and growing business activities. Government regulations limiting vehicle ownership further contribute to rental demand, particularly in urban centers.

UAE Market Overview

The UAE has one of the most developed car rental industries in the region, driven by high tourist influx, a large expatriate workforce, and corporate demand. The market is highly competitive, with global and regional players such as Thrifty, Sixt, Hertz, and Fast Rent a Car. Many companies are adopting digital solutions for fleet management and customer bookings, enhancing operational efficiency.

Key Clients and Market Positioning

GOLD ROAD CAR RENTAL CO. L.L.C primarily serves corporate clients in the construction and maintenance sectors, ensuring stable long-term contracts and high fleet utilization. The company has secured a strategic contract with DUTCO TRAVEL & TOURISM L.L.C, marking an expansion into the hospitality sector. Its major clients include:

DUTCO CONSTRUCTION CO. LLC
CONSTRUCTION & BUILDING ENGINEERING LLC
BELHASA PROJECTS GROUP LLC
KHANSAHEB CIVIL ENGINEERING LLC
AL SHAFAR GENERAL MAINTENANCE & DECORATION LLC

The company’s long-term agreements provide predictable revenue streams, reducing exposure to short-term market fluctuations.

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