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Report Description

Report Description

Saudi Arabia leasing market is projected to register a robust growth during the forecast period 2024-2028, owing to increasing number of small and middle scale enterprises and rising awareness for benefits association with leasing instead of purchasing the products for limited product usage. Additionally, the rising support from government is playing a major role in Leasing industry of Saudi Arabia.

Long-term funding as well as overcoming various legal and tax barriers may be provided by financial leasing. They also have the comparative advantage of being adept at serving specific target markets or industries.

Financial leases are an alternative to using bank loans to finance equipment purchase. The equipment is chosen by the lessee, who then uses it for a sizable portion of the equipment's useful life after the lessor purchases it. Financial leases are frequently referred to as full-payout leases because they typically amortize the lessor's total purchase of the third party costs/fees/expenses of the Service Provider.

In term of regional share, Eastern region is expected to dominate the market in the forecasted period. According to the Kingdom's Vision 2030, eastern province is experiencing rapid urbanization, industrialization, and infrastructure development. The Eastern Province's emir, Prince Saud Bin Naif, recently unveiled the Central Awamiyah project, which aims to create a tourist destination along with a civil, cultural, and artistic center. This initiative is anticipated to increase the demand for construction equipment rental services.

Growing Tie-ups for Commercial Vehicle Lease are Propelling the Market Growth

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. For instance, the global cosmetics company Baheya World Ltd. Co. from Jeddah announced that it had reached a business agreement with the European truck rental firm, Fraikin Dayim Truck Rental Co., to support Baheya's kingdom-wide distribution of cosmetics to their network of beauty salons, sales agents, etc.

Growing Demand from Real Estate Leasing is Influencing the Market

Improvements in the economy and rising business activity in the first quarter of 2022, helped the office real estate market perform better across the kingdom. Furthermore, according to the Saudi Press Agency citing Ejar, the number of online lease agreements for real estate increased by 44% in 2021, compared to the previous year. Ejar is an integrated system that aims to develop the housing and real estate sectors in Saudi Arabia. It is a programme that aims to organize and promote investment in the real estate market as well as develop and renew services and strategic partnerships. Over 200,000 contracts were signed in ten months, leading up to October 2021, according to this online platform. The programme attributed the rise in online lease agreements to its ongoing efforts to create and update services and forge new strategic alliances. The most recent of which was its affiliation with the National Water Company, which makes it possible for the network's beneficiaries to change the water meter account's username to that of the actual real estate unit that is registered for the rental programme.

This sector is one of the major causes for the escalated demand for Leasing Segment within Saudi Arabia.

Increasing Addition to the Portfolio of Leasing Companies to Cater the Market Demand

The market is witnessing a significant rise in competition among the national and international players in the Leasing market. Companies are concentrating on expanding their respective portfolios within Saudi Arabia in order to reach a larger number of the targeted audience for leasing. For instance, to meet the evolving needs of Saudi corporate clients, leading car rental and leasing company Avis Saudi Arabia has introduced a new equipment leasing division., The company seeks to align itself with the Kingdom's Vision 2030 in order to take advantage of potential future growth opportunities in the transportation sector.

Significantly the market is expecting its service providers to cater the demand from variety of the prominent customers. Therefore, it is necessary and beneficial for the leasing firms to expand their portfolio, to remain competitive in the leasing market of Saudi Arabia.


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Market Segmentation

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, real estate lease. Based on provider type, the market is categorized into financial companies vs non-financial companies. By the tenure period, the market is categorized into less than 2 years, 2- 5 years, more than 5 years. Based on end user, the market is segmented into logistics/transport, FMCG, ecommerce, retail, industries, construction, government sector, others. Saudi Arabia leasing market is studied in Western, Central, Southern, Eastern and Northern regions.

Market Players

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., and Saudi Fransi Lease Finance Company, are the key market players operating in Saudi Arabia leasing market.

Attribute

Details

Base Year

2022

Historic Data

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Million, and CAGR for 2018-2023 and 2023-2028

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments covered

·         Leasing Type

·         Provider Type

·         Tenure Period

·         End User

Regional scope

Western, Central, Southern, Eastern and Northern

Key companies profiled

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., and Saudi Fransi Lease Finance Company.

Customization scope

10% free report customization with purchase. Addition or alteration to regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

 

Report Scope:

In this report, Saudi Arabia Leasing market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • Saudi Arabia Leasing Market, By Lease Type:
    • Commercial vehicle lease
    • Heavy equipment lease
    • Plant and machinery lease
    • Real estate lease

·         Saudi Arabia Leasing Market, By Provider Type:

o   Financial companies

o   Non-financial companies

·         Saudi Arabia Leasing Market, By Tenure Period:

o   Less than 2 years

o   2- 5 years

o   More than 5 years

·         Saudi Arabia Leasing Market, By End User:

o   Logistics/Transport

o   FMCG

o   Ecommerce

o   Retail

o   Industries

o   Construction

o   Government sector

o   Others

·         Saudi Arabia Leasing Market, By Region:

o   Western

o   Central

o   Southern

o   Eastern

o   Northern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in Vietnam greenhouse market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).
Saudi Arabia Leasing an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]
Table of content

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer (B2C Model Analysis)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.     By Gender

4.2.2.     By Age

4.2.3.     By Occupation

4.3.  Company Awareness

4.4.  Challenges Faced Post Availing Leasing

4.5.  Sources of Awareness for Different Companies Who Offers Leasing

5.    Saudi Arabia Leasing Market Outlook

5.1.  Market Size & Forecast

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.    By Lease Type Market Share Analysis (Commercial Vehicle Lease, Heavy Equipment Lease, Plant and Machinery Lease, Real Estate Lease)

5.2.2.    By Provider Type Market Share Analysis (Financial Companies vs Non-Financial Companies)

5.2.3.    By Tenure Period Market Share Analysis (Less than 2 years, 2- 5 Years, More than 5 Years)

5.2.4.    By End User Market Share Analysis (Logistics/Transport, FMCG, Ecommerce, Retail, Industries, Construction, Government Sector, Others)

5.2.5.     By Regional Market Share Analysis

5.2.5.1.         Western Market Analysis

5.2.5.2.         Central Market Analysis

5.2.5.3.         Southern Market Analysis

5.2.5.4.         Eastern Market Analysis

5.2.5.5.         Northern Market Analysis

5.2.6.     By Company Market Share Analysis

5.3.  Saudi Arabia Market Mapping & Opportunity Assessment

5.3.1.     By Lease Type Market Mapping & Opportunity Assessment

5.3.2.     By Provider Type Market Mapping & Opportunity Assessment

5.3.3.     By Tenure Period Market Mapping & Opportunity Assessment

5.3.4.     By End User Market Mapping & Opportunity Assessment

5.3.5.     By Regional Market Mapping & Opportunity Assessment

6.    Saudi Arabia Commercial Vehicle Lease Market

6.1.  Market Size & Forecast

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Provider Type Market Share Analysis

6.2.2.     By Tenure Period Market Share Analysis

6.2.3.     By End User Market Share Analysis

7.    Saudi Arabia Heavy Equipment Lease Market

7.1.  Market Size & Forecast

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Provider Type Market Share Analysis

7.2.2.     By Tenure Period Market Share Analysis

7.2.3.     By End User Market Share Analysis

8.    Saudi Arabia Plant and Machinery Lease Market

8.1.  Market Size & Forecast

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Provider Type Market Share Analysis

8.2.2.     By Tenure Period Market Share Analysis

8.2.3.     By End User Market Share Analysis

9.    Saudi Arabia Real Estate Lease Market

9.1.  Market Size & Forecast

9.1.1.     By Value

9.2.  Market Share & Forecast

9.2.1.     By Provider Type Market Share Analysis

9.2.2.     By Tenure Period Market Share Analysis

9.2.3.     By End User Market Share Analysis

10.  Market Dynamics

10.1. Drivers

10.1.1.  Rising demand from e-commerce industry

10.1.2.  Growing numbers of Leasing Firms

10.1.3.  Significant and Convenient Tenure period

10.2. Challenges

10.2.1.  Fierce Competition

10.2.2.  Issue of Bad Debts

11.  Impact of COVID-19 on Saudi Arabia Leasing Market

11.1.              Impact Assessment Model       

11.1.1.  Key Segments Impacted

11.1.2.  Key Regions Impacted

11.1.3.  Key End User Impacted

12.  Market Trends & Developments

12.1.              Surging demand from Resilient business model

12.2.              Rising awareness for benefits of leasing services

12.3.              Growing support from Government Agencies

12.4.              Increasing emphasis on cost effective alternatives

12.5.              Propelling domestic investment

13.  SWOT Analysis

13.1.              Strengths

13.2.              Weaknesses

13.3.              Opportunities

13.4.              Threats

14.  Policy & Regulatory Landscape

15.  Saudi Arabia Economic Profile

16.  Competitive Landscape

16.1.              Company Profiles

16.1.1.  Yanal Finance Company

16.1.1.1.      Company Details

16.1.1.2.      Products & Services

16.1.1.3.      Financial (As reported)

16.1.1.4.      Key Market Focus & Geographical Presence

16.1.1.5.      Pricing of Target Products

16.1.1.6.      Market positioning

16.1.1.7.      Key Management Personnel

16.1.2.  Gulf Lifting Financial Leasing Company

16.1.2.1.      Company Details

16.1.2.2.      Products & Services

16.1.2.3.      Financial (As reported)

16.1.2.4.      Key Market Focus & Geographical Presence

16.1.2.5.      Pricing of Target Products

16.1.2.6.      Market positioning

16.1.2.7.      Key Management Personnel

16.1.3.  AJIL Financial Services Company

16.1.3.1.      Company Details

16.1.3.2.      Products & Services

16.1.3.3.      Financial (As reported)

16.1.3.4.      Key Market Focus & Geographical Presence

16.1.3.5.      Pricing of Target Products

16.1.3.6.      Market positioning

16.1.3.7.      Key Management Personnel

16.1.4.  Al Yusr Leasing & Financing Co

16.1.4.1.      Company Details

16.1.4.2.      Products & Services

16.1.4.3.      Financial (As reported)

16.1.4.4.      Key Market Focus & Geographical Presence

16.1.4.5.      Pricing of Target Products

16.1.4.6.      Market positioning

16.1.4.7.      Key Management Personnel

16.1.5.  Gulf Finance Company

16.1.5.1.      Company Details

16.1.5.2.      Products & Services

16.1.5.3.      Financial (As reported)

16.1.5.4.      Key Market Focus & Geographical Presence

16.1.5.5.      Pricing of Target Products

16.1.5.6.      Market positioning

16.1.5.7.      Key Management Personnel

16.1.6.  GuidanceATEL Equipment Support Company Limited

16.1.6.1.      Company Details

16.1.6.2.      Products & Services

16.1.6.3.      Financial (As reported)

16.1.6.4.      Key Market Focus & Geographical Presence

16.1.6.5.      Pricing of Target Products

16.1.6.6.      Market positioning

16.1.6.7.      Key Management Personnel

16.1.7.  United International Transportation Co. (Budget Saudi)

16.1.7.1.      Company Details

16.1.7.2.      Products & Services

16.1.7.3.      Financial (As reported)

16.1.7.4.      Key Market Focus & Geographical Presence

16.1.7.5.      Pricing of Target Products

16.1.7.6.      Market positioning

16.1.7.7.      Key Management Personnel

16.1.8.  Al Arabi Heavy Equipment Lease Company

16.1.8.1.      Company Details

16.1.8.2.      Products & Services

16.1.8.3.      Financial (As reported)

16.1.8.4.      Key Market Focus & Geographical Presence

16.1.8.5.      Pricing of Target Products

16.1.8.6.      Market positioning

16.1.8.7.      Key Management Personnel

16.1.9.  Kirnaf Co.

16.1.9.1.      Company Details

16.1.9.2.      Products & Services

16.1.9.3.      Financial (As reported)

16.1.9.4.      Key Market Focus & Geographical Presence

16.1.9.5.      Pricing of Target Products

16.1.9.6.      Market positioning

16.1.9.7.      Key Management Personnel

16.1.10.  Saudi Fransi Lease Finance Company

16.1.10.1.    Company Details

16.1.10.2.    Products & Services

16.1.10.3.    Financial (As reported)

16.1.10.4.    Key Market Focus & Geographical Presence

16.1.10.5.    Pricing of Target Products

16.1.10.6.    Market positioning

16.1.10.7.    Key Management Personnel

17.  Strategic Recommendations/Action Plan

17.1.              Key Focus Areas

17.2.              Target Regions

17.3.              Target Provider Type

17.4.              Target End User

18.  About Us & Disclaimer

 (Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

Frequently asked questions

Because an individual is only required to pay for the depreciation of the vehicle during the lease term, along with interest charges (also known as rent charges), taxes, and fees, lease payments are almost always lower than loan payments.

Based on tenure period, the market is divided into less than 2 years, 2- 5 years, and more than 5 years. The period of 2-5 years is expected to hold the largest market share in the forecast period owing to growing demand for commercial vehicles sectors that prefers to own a vehicle for limited duration.

The companies such as 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., and Saudi Fransi Lease Finance Company are the key players which are dominating in the Saudi Arabia Leasing market.

By supporting financial projects or other initiatives that save money, leasing offers by providing 100% financing. Leasing is a source of additional capital because it does not affect already established credit lines. Instead, these lending firms supports its customers by providing vehicle, equipment, land and required machinery in the form of long-term rental agreement.

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