Saudi Arabia Leasing Market to be Dominated by Commercial Vehicle Lease in the Forecasted Period
Surging industrial projects,
rising initial costing for new industries and easy availability of leasing
providers are propelling the growth for Saudi Arabia leasing market.
According to TechSci Research report, “Saudi Arabia Leasing Market - Industry
Size, Share, Trends, Competition, Opportunities and Forecast, 2018-2028F” The Saudi Arabia Leasing market is expected to grow during the
forecast period, owing to the factors such as growing convenience of online
leasing platforms, rising investment within the country and attractive offers
by the lending firms to the beneficiary.
To generate income, Saudi Arabia is
heavily dependent on the oil and gas sector. The government has introduced
massive budget plans like the Saudi Vision 2030 National Transformation Program,
in an effort to lessen its reliance on the oil and gas sector and diversify its
revenue sources.
The government is encouraging the
development of the nation's infrastructure in order to meet the goals
established by the ministry level. The Red Sea Tourism Project, Qiddiya
Entertainment City, and Riyadh Metro are among the few government-backed
initiatives that are anticipated to increase the demand for construction
equipment rental services over the forecast period.
The National Infrastructure Fund (NIF)
will support the ongoing infrastructure development initiatives in 2021, with
the goal of luring foreign investment and partnerships to the nation. Therefore,
the introduction of numerous stringent measures by the government authorities
in these developed economies, coupled with various awareness programs promoting
the need for Leasing, is further fueling the market growth.
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Saudi Arabia leasing market is segmented
into lease type, provider type, tenure period, end user, regional distribution,
and competitive landscape. Based on lease type, the market is divided into
commercial vehicle lease, heavy equipment lease, plant and machinery lease, and
real estate lease. Commercial vehicle lease dominated the
Saudi Arabia Leasing market with a significant share. This is mainly because
instead of spending money on truck purchases, businesses prefer to rent or
lease trucks for their transportation needs. Truck leasing and rental services
provide modern truck models at a reasonable price while also eliminating
organizations’ maintenance and repair costs.
Based on provider type, the market is
categorized into financial companies’ vs non-financial companies. Financial companies are expected to
share the largest market in the forecast period, 2024-2028. many Financial
institutions that are backed by government-banks, have a propensity to lend to
large or big businesses that have established balance sheets and a profitable
track record. Additionally, because access to both medium- and long-term loans
by businesses has become so scarce, many new businesses that require extensive
capital resources and long-term funding are unable to develop or even get off
the ground. As a result, some non-bank financial institutions exist that are
still in the early stages of development and can meet the lending needs of
these small and medium-sized businesses. However, limitations in the number of
non-financial companies within the country, with stringent government law for
licensing, is responsible for the growth of financial companies in terms of
provider, within this leasing market.
Leading market players operating in the
Saudi Arabia Leasing market are:
- Yanal Finance Company
- Gulf Lifting Financial Leasing Company
- AJIL Financial Services Company
- Al Yusr Leasing & Financing Co
- Gulf Finance Company
- GuidanceATEL Equipment Support Company Limited
- United International Transportation Co.
(Budget Saudi)
- Al Arabi Heavy Equipment Lease Company
- Kirnaf Co.
- Saudi Fransi Lease Finance Company
To cater the demand from
small & medium enterprises for leasing, various companies came up with the
idea of online portals to fulfil the requirement of Saudi Arabian customers in
the easy and convenient manner. For instance, The Small & Medium
Enterprises General Authority (SMEA) and Al Yusr Leasing & Financing Co. have
decided to join the E-Finance Portal, which Monshaat (SMEA) launched to make it
simple for business owners and entrepreneurs to find the best financing options
through a single portal that gathers investors and organizations that support
finance electronically.
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“Government investment in construction activities,
growing presence of international companies in the country, and the benefits of
tax deduction are among the influential factors for the growth of leasing
market in Saudi Arabia. Moreover, the existence of online platforms is also anticipated
to aid in the market's expansion, given that 95.7% of the population of the
Kingdom has access to the internet.” said Mr. Karan Chechi, Research Director with TechSci Research, a
research based global management consulting firm”.
“Saudi Arabia 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 User (Logistics/Transport, FMCG, Ecommerce, Retail,
Industries, Construction, Government Sector, Others), By Region, Competition
Forecast & Opportunities, 2028F
has analyzed the future growth potential of Saudi Arabia leasing market and
provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and assist decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with significant
drivers, challenges, and opportunities in Saudi Arabia Leasing Market.
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