On-Demand Mobility to Boost the UAE Leasing Market Growth During the Forecast Period
Rising
demand for car leasing among consumers, government initiatives, and ease of
payment modes are the leading factors driving the UAE Leasing market during the
projected period.
According to
TechSci Research report, “UAE Air purifiers Market – By
Region, Competition, Forecast & Opportunities, 2018-2028F” The rising demand from FMCG
sector, growing number of government initiatives, and increasing commercial
activities are some of the factors fueling the overall sales of this market around
the UAE. If a business in Dubai or the
UAE offers credit or financing in exchange for payment, it is regarded as a
lease finance business. Giving loans to related or unrelated parties, getting
into a finance agreement, leasing property other than land, offering credit in
the form of hire purchase agreements, long-term credit plans, etc. are all
included in the credit or financing.
Lease has a basic term that
cannot be terminated throughout that time. This fundamental term's duration is
determined by the asset's economic life and is typically shorter than the
predicted asset life. With this agreement, the lessee has the option to
continue using the asset after the basic period has passed or, alternatively,
to purchase it at a pre-agreed amount after the lease expires. Leasing is
frequently utilized for real estate, construction projects, and extremely
expensive machinery. Usually, during the lease time, the lessor is able to
recoup his investment in the item. The concept of leasing is gaining popularity
in the country, owing to various advantages offered by such services like convenience,
since it is the easiest method of financial fixed assets. It also saves time
because assets can be used right away without having to wait for approval,
sanction, etc. after applying for a loan.
Browse over XX market data Figures spread through XX Pages and an in-depth TOC on the "UAE Leasing Market"
Moreover, in
2020, the government implemented ESR (Economic Substance Regulation), which mandates the companies
to comply with ESR Notification filing, Economic Substance Test, and ESR Return filing. The implementation of the ESR is
anticipated to increase transparency in the tax procedures used by businesses
in the UAE. The businesses must be financially viable in one or more of the
pertinent operations they carry out in the UAE. However, businesses on the
mainland as well as those operating in free zones have been seeking additional
clarification on pertinent activities, particularly the lease-finance industry
activity.
Additionally, due to rising
commercial activities, the market is further expanding. For instance, in 2022, Line
Investments & Property, the shopping mall and management division of Abu
Dhabi-based Lulu Group International, announced that it had signed retail
leasing deals in order to add a wide variety of entertainment options at
Silicon Central, which is a new two-level retail and leisure destination within
Dubai Silicon Oasis. With 81,500 square metres of GLA and 3,500 parking spots,
Silicon Central claims to provide variety of brands.
Also, the online platforms
have made it easier for individuals to avail such services. People can now
choose their preferred lease plans on the basis of amount, tenure, etc. while
also being able to compare plans with various leasing finance providers.
The UAE leasing market is
segmented based on lease type, provider type, tenure period, end
users, and
region. In terms of lease type, the market is segmented into commercial vehicle
lease, heavy equipment lease, plant and machinery lease, real estate lease.
Among which, commercial vehicle lease dominates the market due to the increase
in commercial activities in the country. In terms of tenure period, the market
is segmented into less than 2 years, 2- 5 years, more than 5 years. Among
which, the 2-5 years segment dominates the market since the tenure period for
commercial vehicle leasing generally range from 2-5 years. These factors are
projected to fuel the market growth in the forecast period.
Key market players in the UAE
leasing market include:
- Amlak
Finance PJSC
- GC
Leasing Middle East FZCO
- First
Abu Dhabi Bank PJSC
- Link
Lease Equipment Rental LLC
- SAMAA
Finance
- Diamondlease
LLC
- AVIS
UAE Rent A Car CO.(LLC)
- Al-Futtaim
Transport and Rental LLC
- AWR
Mobility L.L.C.
- LeasePlan
Corporation N.V.
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"The UAE leasing market has
been observing significant growth over the past few years. Increase in
commercial activities in the market are expected to drive market growth at a
higher rate during the forecast period. Also, government initiatives are
further encouraging the population to opt for these services. Such factors are
further anticipated to contribute to the growth of this market.” said Mr. Karan
Chechi, Research Director with TechSci Research, a research-based UAE management
consulting firm.
UAE Leasing Market, By Lease Type (Commercial Vehicle Lease,
Heavy Equipment Lease, Plant and Machinery Lease, Real Estate Lease), By Provider Type (Financial Companies vs Non-Financial
Companies), By Tenure Period (Less than 2 years, 2- 5 Years, More than 5 Years),
By End Users (Logistics/Transport, FMCG, Ecommerce, Retail, Industries,
Construction, Government Sector, Others), By
Region, Competition, Forecast & Opportunities, 2018-2028F”, has
evaluated the future growth potential of leasing and provides statistics and
information on market structure, size, share, and future growth. The report is
intended to provide cutting-edge market intelligence and help decision-makers
take sound investment decisions. besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges and
opportunities present in leasing market of UAE.
Contact
Mr. Ken Mathews
708 Third Avenue,
Manhattan, NY,
New York – 10017
Tel: +1-646-360-1656
Email: [email protected]
Website: https://www.techsciresearch.com