Under the agreement, Groupe Renault is to bring its latest products and technological know-how, whilst Al-Futtaim, through its new subsidiary Al-Futtaim Automotive Pakistan (Private) Limited, will establish a new manufacturing and assembly plant, and exclusively distribute Renault cars through its extensive knowledge of the market. Construction of the new plant is expected to start in Karachi in the first quarter of 2018, and the first units are planned to be delivered in 2019.

Al-Futtaim is said to have built considerable strength and credibility through its numerous businesses across 29 countries. Its global automotive operations extend to 11 markets across the Middle East, Africa and South Asia, and Pakistan represents one of the most dynamic opportunities in these regions, in particular due to the new Automotive Development Policy.

“Groupe Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10% annual growth rate. By partnering with Al-Futtaim, a very professional and renowned automotive partner, Groupe Renault aims to become a major player in Pakistan. We aim to bring our latest products and cutting-edge technology and set new benchmarks of safety and quality in the market,” said Fabrice Cambolive, Senior Vice President, Chairman of the Africa Middle-East India Region, Groupe Renault.

The finalisation of the transaction is subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities.