15 December 2009
KUWAIT -- The leasing market in Kuwait is the most active in the Middle East and North Africa (MENA) region which abounds in companies leasing autos, furniture, and other goods but sees little activity in the sector, a corporate report said Tuesday.
The report was issued by Kuwaiti Sabaek for Leasing and Investment, which said the leasing in Market in Kuwait, too, shrank due to lack of adequate legislation till recently. Issue of required organizational structures invigorated the sector by a good margin, it added.
Companies including Agility and the Commercial Markets Complex Company started operating in leasing activities in the 1980s but the trend only picked up in the late 90s and early in the new millenium, the report said.
The auto lease market saw considerable growth over the past eight years with major auto companies accounting for 80 percent of the market, which in total comes to USD 1.4 billion in value. Leasing divisions meanwhile account for 30-35 percent of auto sales per year through the lease-to-purchase system.
The top client for the auto lease sector in Kuwait is the government and the modernization of fleet of cars operated by the companies helps along promoting lease, the report added.
The company also noted aircraft lease in Kuwait is also the most active in the region, particularly gaining after freeing the field of aviation, as is the shipping sector. The GCC's shipping lease sector grew considerably over the past five years and the main figures in the action are Kuwait's Oil Tankers Company and Arab Oil Company.
The real estate sector also saw a boom in lease after 2003 with scores of skyscrapers and hundreds of investment buildings popping up, developed by both local and other investors.
This sector is expected to see continued boom, the report noted, in view of the government's plans to establish new hospitals and medical care facilities.
One main factor behind strength of the residential-purpose leasing activity in Kuwait, the company also noted, is that over 70 percent of the state's population is made up of non-nationals who are not allowed to own real estate, and thus seek to lease.
KUWAIT -- The leasing market in Kuwait is the most active in the Middle East and North Africa (MENA) region which abounds in companies leasing autos, furniture, and other goods but sees little activity in the sector, a corporate report said Tuesday.
The report was issued by Kuwaiti Sabaek for Leasing and Investment, which said the leasing in Market in Kuwait, too, shrank due to lack of adequate legislation till recently. Issue of required organizational structures invigorated the sector by a good margin, it added.
Companies including Agility and the Commercial Markets Complex Company started operating in leasing activities in the 1980s but the trend only picked up in the late 90s and early in the new millenium, the report said.
The auto lease market saw considerable growth over the past eight years with major auto companies accounting for 80 percent of the market, which in total comes to USD 1.4 billion in value. Leasing divisions meanwhile account for 30-35 percent of auto sales per year through the lease-to-purchase system.
The top client for the auto lease sector in Kuwait is the government and the modernization of fleet of cars operated by the companies helps along promoting lease, the report added.
The company also noted aircraft lease in Kuwait is also the most active in the region, particularly gaining after freeing the field of aviation, as is the shipping sector. The GCC's shipping lease sector grew considerably over the past five years and the main figures in the action are Kuwait's Oil Tankers Company and Arab Oil Company.
The real estate sector also saw a boom in lease after 2003 with scores of skyscrapers and hundreds of investment buildings popping up, developed by both local and other investors.
This sector is expected to see continued boom, the report noted, in view of the government's plans to establish new hospitals and medical care facilities.
One main factor behind strength of the residential-purpose leasing activity in Kuwait, the company also noted, is that over 70 percent of the state's population is made up of non-nationals who are not allowed to own real estate, and thus seek to lease.
© KUNA (Kuwait News Agency) 2009
