Mid East lagging behind in global asset leasing take-up says Big Ticket specialist

"Despite strong worldwide growth of 6% annually, asset leasing remains an under-utilised strategic financing option in the Middle East, accounting for less than 10% of the worldwide market," said Gordon Dixon, OIL's Chief Executive Officer.

"This is despite the Middle East being a rich source for asset leasing as governments and companies seek new financing methods and means of diversifying access to capital. Privatisation, which leads to better balance sheet management, has re-emerged as a key regional issue, and leasing ideally suits this concept by reducing reliance on outright purchases and vendor financing."

Dixon says efficient leasing structures would help the Middle East secure inward investment and assist in managing constrained capital budgets.

"The UAE, in particular, is increasingly encouraging private sector support for the development of new business and the privatisation of existing businesses. Leasing has an important role to play in that process," Daixon said.

"There's also opportunity to develop and deliver a commercial value Islamic leasing product as an alternative to traditional finance methods, giving access to funds which would not otherwise be tapped."

OIL, which has a representative office in Seattle, USA, aims to build its asset and risk profile from its current US $472 million value to US $1,500 million over the next three years, through increased diversification of its asset portfolio, with targeted moves into shipping, infrastructure and power plant financing.

"Our strategy is to grow the company in a structured manner, building up a diverse portfolio of assets," said Dixon. "We will expand both our asset and customer base to diversify risk, leverage economies of scale and develop our product range with the creation of innovative and customised leasing solutions. We are intent on becoming a dominant regional."

OIL's current asset portfolio includes 12 aircraft on long-term lease to major regional and international flag carriers and a 50% stake in a capesize bulk carrier ship, acquired last year. The 172,000 tonne Japanese built vessel is capable of carrying a variety of dry cargoes, including iron ore, coal and grain.