JEDDAH: The business of leasing of automobiles, real estate property and machinery is growing by leaps and bounds. "It's now a multibillion riyal business in Saudi Arabia," Taajeer CEO and DG Omar Mohammed Hindi told a press conference at the Jeddah Hilton earlier this week.
Asked what was the size of the Saudi leasing market, Hindi said: "The turnover of our company's leasing business alone is SR800 million. You can imagine the size of the leasing market from this figure, as there are other major players in the business."
Leasing is becoming more popular among automobile buyers. There are also those resorting to leasing for real estate and machinery, he added. Small business leasing is best used for equipment. Businesses will typically lease large pieces of equipment, which are necessary for operations. There is a big difference between a loan and a lease, which should be understand so one can make the best decision for one's business.
Hindi said the company's new business strategy entailed the launch of specialized and innovative marketing and sales program for cars, heavy machinery and real estate. "The new strategy also includes future plans to further increase the company's presence in the market by opening three new branches each year to reach a total of 26 by the end of 2014. The final part of the strategy is to continue investing in our corporate social responsibility program."
Hindi, who hinted that the company would present its proposal to Capital Market Authority (CMA) seeking a 30 percent increase in its capital, said the company would make additional investments in the Saudi market to cope up with the increasing leasing demand. "By becoming a publicly traded company, we will be able to improve our market position and achieve leadership in the leasing sector," he said.
He added that Taajeer, a Saudi joint stock firm with a proven record in rental and leasing service over the past decade, followed business strictly based on Shariah.
By K.S. RAMKUMAR
© Arab News 2010
