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Report Description

Report Description

UAE leasing market is anticipated to project robust growth in the forecast period on account of increasing demand for car leasing, rising number of commercial activities, government initiatives, etc. A lease is a contract wherein the owner (lessor) of an asset (leased asset) grants the lessee access to the asset for a consideration (rent). The consideration could either be fixed or based on variables, for a time period (lease period), or could also  be fixed or flexible, with the understanding that, subject to the embedded options of the lease the asset will either be returned to the lessor or disposed of in accordance with the lessor's instructions at the end of such period. Lease financing is gaining popularity in the country since it offers several advantages such as lower monthly payments, tax benefits, fixed rate of financing, etc. Also, less initial cash investment is required in leasing which makes it more convenient for individuals.

However, in 2022, there has been a rapid increase in rent by around 25% in the majority of districts, making it unsustainable. This has been a huge impact on affordability and has made it harder for tenants to renew their lease. This factor could hamper the market growth.

On Demand Mobility Aiding the Market Growth

Companies are focusing on offering car leasing financial services where consumers can lease a brand-new car for a year. They could also exchange those vehicles for a new one each year. It is now simpler for customers to subscribe to vehicles since companies have acknowledged the viability of having on-demand services and have in many ways equated it to car ownership and its liabilities. For instance, in 2022, Self-Drive, the smart mobility application, announced a new “drive a new car every year” program under the name ‘Neos,’ which aims at offering UAE customers flexibility and the option to drive a new car every year. Local dealers will subsequently send the vehicle to their used car division. To provide this program, the company has teamed up with automobile manufacturers and car dealerships all around the nation. As all the services are included in a single monthly charge, there are no down payments. These financial leasing services claim to be a hassle-free alternative to car ownership. Such factors are anticipated to further expand the market growth of the leasing market in the forecast period.

Government Initiatives Boosting Market Growth

The UAE government has been taking several initiatives to improve the leasing services, which is further encouraging consumers to opt for such services. This is significantly contributing to the overall growth of the market. For instance, in 2022, The Dubai Land Department confirmed its agreement with Emirates NBD to start the process of taking annual lease payments directly out of tenants' bank accounts. Previously, big developer-landlords charged an extra cost to tenants who requested direct debit. This change also offers support for the UAE's proposal to decriminalize most components of a bounced check. This factor is projected to fuel the market growth of leasing during the forecast period in UAE.

New Players Entering Market Fueling the Market Growth

The UAE leasing market has been observing an increase in the number of market players over the past couple of years. For instance, in 2022, a new fintech startup was launched in UAE and Saudi Arabia markets, named Five FS. The company aims to offer customers free access to five financial services, including loans, mortgages, deposits, insurance, and leasing. Hence, this factor is anticipated to further boost the market growth during the forecast period.


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Market Segmentation

The UAE leasing market is segmented based on lease type, provider type, tenure period, end users, region, and competitional landscape. Based on lease type, the market is fragmented into commercial vehicle lease, heavy equipment lease, plant and machinery lease, real estate lease. Based on provider type, the market is segmented into financial companies vs non-financial companies. Based on tenure period, the market is segmented into less than 2 years, 2- 5 years, and more than 5 years. Based on end users, the market is further segmented into logistics/transport, FMCG, ecommerce, retail, industries, construction, government sector, others. The market analysis also studies the regional segmentation to devise regional market segmentation, divided among Dubai, Abu Dhabi, Sharjah, and the rest of UAE.

Company Profiles

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 are among the major market players in the UAE platform that lead the market growth of the UAE leasing market.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Million and CAGR for 2018-2022 and 2023-2028

Report Coverage

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

Segments Covered

·         Lease Type

·         Provider Type

·         Tenure Period

·         End Users

·         Region

Regional Scope

Dubai, Abu Dhabi, Sharjah, Rest of MEA

Key Companies Profiled

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

Customization Scope

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

Pricing and Purchase Options

Avail of 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/pdf format on special request)

 

Report Scope:

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

  • UAE Leasing Market, By Lease Type:
    • Commercial Vehicle Lease
    • Heavy Equipment Lease
    • Plant and Machinery Lease
    • Real Estate Lease
  • UAE Leasing Market, By Provider Type:
    • Financial Companies
    • Non-Financial Companies
  • UAE Leasing Market, By Tenure Period:
    • Less than 2 years
    • 2- 5 Years
    • More than 5 Years
  • UAE Leasing Market, By End Users:
    • Logistics/Transport
    • FMCG
    • Ecommerce
    • Retail
    • Industries
    • Construction
    • Government Sector
    • Others
  • UAE Leasing Market, By Region:
    • Dubai
    • Abu Dhabi
    • Sharjah
    • Rest of MEA

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the UAE leasing 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).
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.    UAE 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 Users Market Share Analysis (Logistics/Transport, FMCG, Ecommerce, Retail, Industries, Construction, Government Sector, Others)

5.2.5.     By Region

5.2.5.1.         Dubai Market Analysis

5.2.5.2.         Abu Dhabi Market Analysis

5.2.5.3.         Sharjah Market Analysis

5.2.5.4.         Rest of UAE Market Analysis

5.2.6.     By Company Market Share Analysis

5.3.  UAE 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 Use Market Mapping & Opportunity Assessment

5.3.5.     By Regional Market Mapping & Opportunity Assessment

6.    UAE 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 Users Market Share Analysis

7.    UAE 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 Users Market Share Analysis

8.    UAE 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 Users Market Share Analysis

9.    UAE 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 Users Market Share Analysis

10.  Market Dynamics

10.1. Drivers

10.1.1.  Rising Demand from FMCG Sector

10.1.2.  On Demand Mobility

10.1.3.  Convenient Tenure period

10.2. Challenges

10.2.1.  High Competition

10.2.2.  Issue of Bad Debts

11.  Impact of COVID-19 on UAE Leasing Market

11.1.              Impact Assessment Model       

11.1.1.  Key Segments Impacted

11.1.2.  Key Regions Impacted

11.1.3.  Key End Users Impacted

12.  Market Trends & Developments

12.1.              Government Initiatives

12.2.              New Entrants

12.3.              Rise in Commercial Activities

12.4.              Cost Effective Alternatives

12.5.              Rising Awareness Among Consumers

13.  SWOT Analysis

13.1.              Strengths

13.2.              Weaknesses

13.3.              Opportunities

13.4.              Threats

14.  Policy & Regulatory Landscape

15.  UAE Economic Profile

16.  Competitive Landscape

16.1.              Competition Outlook

16.2.              Company Profiles

16.2.1.  Amlak Finance PJSC

16.2.1.1.      Company Details

16.2.1.2.      Products & Services

16.2.1.3.      Financial (As reported)

16.2.1.4.      Key Market Focus & Geographical Presence

16.2.1.5.      Pricing of Target Products

16.2.1.6.      Market positioning

16.2.1.7.      Key Management Personnel

16.2.2.  GC Leasing Middle East FZCO

16.2.2.1.      Company Details

16.2.2.2.      Products & Services

16.2.2.3.      Financial (As reported)

16.2.2.4.      Key Market Focus & Geographical Presence

16.2.2.5.      Pricing of Target Products

16.2.2.6.      Market positioning

16.2.2.7.      Key Management Personnel

16.2.3.  First Abu Dhabi Bank PJSC

16.2.3.1.      Company Details

16.2.3.2.      Products & Services

16.2.3.3.      Financial (As reported)

16.2.3.4.      Key Market Focus & Geographical Presence

16.2.3.5.      Pricing of Target Products

16.2.3.6.      Market positioning

16.2.3.7.      Key Management Personnel

16.2.4.  Link Lease Equipment Rental LLC

16.2.4.1.      Company Details

16.2.4.2.      Products & Services

16.2.4.3.      Financial (As reported)

16.2.4.4.      Key Market Focus & Geographical Presence

16.2.4.5.      Pricing of Target Products

16.2.4.6.      Market positioning

16.2.4.7.      Key Management Personnel

16.2.5.  SAMAA Finance

16.2.5.1.      Company Details

16.2.5.2.      Products & Services

16.2.5.3.      Financial (As reported)

16.2.5.4.      Key Market Focus & Geographical Presence

16.2.5.5.      Pricing of Target Products

16.2.5.6.      Market positioning

16.2.5.7.      Key Management Personnel

16.2.6.  Diamondlease LLC

16.2.6.1.      Company Details

16.2.6.2.      Products & Services

16.2.6.3.      Financial (As reported)

16.2.6.4.      Key Market Focus & Geographical Presence

16.2.6.5.      Pricing of Target Products

16.2.6.6.      Market positioning

16.2.6.7.      Key Management Personnel

16.2.7.  AVIS UAE Rent A Car CO.(LLC)

16.2.7.1.      Company Details

16.2.7.2.      Products & Services

16.2.7.3.      Financial (As reported)

16.2.7.4.      Key Market Focus & Geographical Presence

16.2.7.5.      Pricing of Target Products

16.2.7.6.      Market positioning

16.2.7.7.      Key Management Personnel

16.2.8.  Al-Futtaim Transport and Rental LLC

16.2.8.1.      Company Details

16.2.8.2.      Products & Services

16.2.8.3.      Financial (As reported)

16.2.8.4.      Key Market Focus & Geographical Presence

16.2.8.5.      Pricing of Target Products

16.2.8.6.      Market positioning

16.2.8.7.      Key Management Personnel

16.2.9.  AWR Mobility L.L.C.

16.2.9.1.      Company Details

16.2.9.2.      Products & Services

16.2.9.3.      Financial (As reported)

16.2.9.4.      Key Market Focus & Geographical Presence

16.2.9.5.      Pricing of Target Products

16.2.9.6.      Market positioning

16.2.9.7.      Key Management Personnel

16.2.10.  LeasePlan

16.2.10.1.    Company Details

16.2.10.2.    Products & Services

16.2.10.3.    Financial (As reported)

16.2.10.4.    Key Market Focus & Geographical Presence

16.2.10.5.    Pricing of Target Products

16.2.10.6.    Market positioning

16.2.10.7.    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 Distribution Channel

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

In UAE, leasing a car is a simple process that lets an individual drive away in the car of their choice with set monthly payments.

A personal right for a limited time-duration is a lease. For leases lasting ten years or more, it must be registered at the Dubai Land Department (DLD); for leases lasting less than ten years, it must be registered on the Ejari registry.

Leasing can be less expensive than renting. For the same length of time, a person normally pays less per month for a lease than for a rental car of the same model. At the end of the lease, a person may purchase the vehicle. Some leases also let a tenant to purchase out their lease.

A lease is an agreement between a tenant and landlord that grants the renter the right to occupy a rental property for a predetermined amount of time, usually six or twelve months. The contract is a binding agreement between the landlord and the renter.

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