Saudi leasing market could be as much as $10 billion
Gulf Installments CEO says Saudi companies want greater access to credit for growth.
David Hunt is CEO at Gulf Installments
The head of a major financing company has estimated that the rental of heavy plant, machinery, medical equipment, and contracting and constructing equipment could be worth as much as $10 billion in an interview with Arab News.
David Hunt, CEO of Gulf Installments said the popularity of the firm’s Shariah-compliant finance packages are being boosted by an SME sector hungry for credit to fund business growth.
“This expansion is in line with the company’s commitment to make its Shariah-compliant credit solutions available to SMEs across the Kingdom,” Hunt told the newspaper. “Although Saudi SMEs account for 90 percent of Saudi businesses and 24.7 percent of total employment, they represent only 2 percent of the Saudi banks’ lending market. With over 500,000 SMEs in the Kingdom, many of which are underserved, credit demand outpaces supply.”
Describing the Kingdom’s installment and leasing market as “very huge” he estimated that demand could be worth $1.3 billion to $10 billion.
Gulf Installments is operating in the Kingdom with $26.6 million in capital – it is a member of Saudi Credit Bureau (SIMAH) and follows strict rules of Saudi Arabian Monetary Agency (SAMA) – and was established in 2012 by SHUAA Capital following @the success of Shuaa’s subsidiary Gulf Finance Corporation in the UAE”.
Hunt revealed that within the first three months of operations, Gulf Installments managed 30 deals which ranged from $80,000 to $2.13 million – the average deal being between $260,000 to $800,000.
