Global Banking News-January 31, 2018--UAE central bank to regulate
finance leasing contracts
Exploring Market through
Finance Leasing and Value-added Services
During the signing ceremony on Thursday, Hassan Hussein, the chairperson of Al Oula, said that the financing will be made available under the
finance leasing system in coordination with Banque Misr.
Some top companies are focusing on agricultural leasing, while others are moving from long-term, low-risk
finance leasing to short-term, high-risk operating leases.
The Implementation Regulation of the
Finance Leasing Law sets forth the provisions related to the contracts of the
finance leasing.
Finance leasing is more long-term than operating leasing.
Abdulrahman Al-Barak, the Shoura Council amended at its 16th session of its 3rd year of its fifth round the
finance leasing system, registered real estate mortgage system and the stock market system.
Finance leasing for high-value equipment offers efficiencies that can contribute to economic growth and companies are starting to realise that they do not have to own their assets to benefit from the planning of strategic acquisitions.
The main attraction of operating or
finance leasing is that precious capital is reserved for expenditure closer to the company's core, without affecting the balance sheet.
Type of financing offered by the leasing companies include tax-oriented
finance leasing, short-term operating leases, leveraged leases, conditional sales agreements, off-balance sheet loans and tax-exempt leasing.
The Group further bolstered its
finance leasing business by completing the acquisition of Jiashi .
It changed its name to Sembawang Capital in June 1995 to reflect the wide range of products and services it provides, including
finance leasing, office and industrial equipment, as well as factoring, syndicated loans and the financing of engineering projects.
