The market - as the Saudi Arabian economy continues to adapt to lower oil prices and a challenging economic and political climate, the requirement for maintaining adequate cashflow while continuing to provide equipment services remains strong across all sectors. Businesses are looking for flexible financial solutions to allow them acquire these assets, and AHEL’s equipment leasing division has been set up to meet this exact demand.

 

Why leasing? Leasing allows businesses acquire fixed assets without making a major capital investment. The basic concept is that revenues are earned through the use and not the ownership of assets. AHEL offers a Shariah compliant lease product where the lessor (AHEL) is the legal owner of the asset, and the lessee (Client) expenses the repayments over the life of the lease.

 

Key Features & Benefits:

 

• Long term solution. Provides an alternative form of long term financing. AHEL offers leases for up to 4 years tenure.

• Hedge against inflation. Rentals are fixed for the duration of the lease thus protecting the customer against inflation and interest rate rises.

• Maintain cash. Asset acquisition through leasing conserves cash & bank lines of credit, allowing these sources to be used for other areas of business growth.

• Simplicity & flexibility in financial reporting. For lessees, operating leases are "off balance sheet items", thereby having a positive impact on certain key financial ratios - e.g. low debt/equity, high asset turnover, ROA & ROE.

 

Which sectors can avail of leasing? AHEL's target market includes the following sectors:

 

• Construction & Contracting.

• Energy, Oil & Gas.

• Transportation.

 

If you are interested in knowing more about AHEL's lease offerings then please enquire via our contact form.