Leasing in the Middle East

[Frans Jansen]

Dear leasing colleagues,

I am about to start a discussion with a consultancy company, advertising a senior post in leasing (see attachment) in Damman, Saudi Arabia. Having worked in the European landscape for over 25 years, I am coming to the conclusion that my age (56) is playing a role in finding a suitable position in Europe, hence my contemplating this move. Can anybody provide me with general advise in terms of conditions, risks, their own experience in the region, etc.? Thanks very much! Frans

[Pat Tellez]

How developed is the leasing business in The Middle East. Is there an opportunity there?
We at Water Capital are expanding world wide and considering several countries and local leasing companies that we could partner with. We would need a pointman.
Our formula has proven to be very successful. We have been growing steadily 100% every year for the past five years and our goal from 2007 to 2012 is to stay the same course arriving at 2012 funding 1 billion USD in industrial equipment, machinery and real estate.

[Frans Jansen]

Pat,
Thanks for your reply. As to your needing a pointman, please contact me ([e-mail])/www.leasingservices.nl. The activities detailed on the web site cover over 25 countries. Prior to 2006 (when Leasing Services started), I had senior international positions at AT&T Capital, Heller Financial, Chase and Siemens Financial Services. I am sure we can quickly establish whether there is a mutual interest in a more indepth discussion.
Kind regards, Frans

[Pat Tellez]

Frans,
We are an asset based leasing company that after originating receivables we dispose of them in several fashions; Portfolio selling, Vehicle to the market and or individual paper allocation with permanent funding sources world wide.
We would like to start both originating and selling the payment streams the mentioned different fashions and/or other you might suggest.
Regards.

[Frans Jansen]

Pat,
It's crystal clear that with a one billion USD target world wide expansion is required. I believe I know Europe as I know my backyard and I am looking for ways of capitalizing on my 25 years of European experience - in any format whatsoever. If you have a presentation on your strategy, please send it to me via e-mail ([e-mail]) and let me help you filling out possible blanks. Best regards, Frans

[Fred St Laurent]

I am extremely interested in discussions here from a staffing point of view. We have been expanding and hope to strengthen our staff internationally. One of my best recruiters speaks fluent Arabic and I am seeking multi-lingual interns.
What countries would you target as fertile for growth now. In the immediate future?

[Frans Jansen]

Fred,
As to the languages: fluent in English, German, French and Dutch - no Arabic, unfortunately (and no Chinese either!). Speaking of China (and India for that matter): these countries will see tremendous growth in their economies, so also in leasing. Having said that, there are numerous smaller European countries (Baltics, Slovenia, Croatia, Serbia) that will also show substantial growth but we should not be talking percentages but $$$, shouldn't we? And apart from that, I see tremendous scope for smaller players in the mature markets (UK, Germany, France, Benelux). Here we've had a wave of consolidation, resulting in a few very dominant and large players who are all fishing in the same pond (IT, Office Equipment, Transportation, Medical Equipment). Focusing on niches in these traditional markets (and aligning with manufacturers and dealers) will lead to success. An example: for 2 years we have been pioneering in the international "professional sound and lighting" segment. Many financiers are not interested in this kind of equipment - they simply don't have the resources to figure out what the opportunities are. And then all of a sudden we see that IBM Global Finance (out of all parties) sets up a multi country program with www.barco.com - Should I say: "Help they are fishing in our pond!"..or should I be pleased with the fact that ignorance in respect of this market is perhaps disappearing?
(By the way, where they go wrong is that the provision of services to internationally operating vendors must be truly international and not restricted to a few countries. Today we have offered Barco to be complementory to the IGF program. If they handle 6 or 7 countries, we can help them in another 25...).
Another aspect to consider: take e.g. demographic statistics (from the UN web site) and conclude that by 2014 over 53% of the Italian population is not active (i.e. under 18 or over 60)...We call it "the grey wave" . Now from a leasing company's perspective: assume they are already financing medical equipment - by entering into "the care market", they will have guaranteed success in the countries where a grey wave will take place. Fred, I can go on forever - happy to have a telco on it, if you wish. Best regards, Frans

[Fred St Laurent]

Thanks for the info Frans.
One of my best recruiters is going to be in Egypt during the first two weeks of July and she will be visiting several potential clients there.
Her specialty is Commercial Banking and she has also supported my leasing efforts.

[Frans Jansen]

As to leasing in Egypt: I have a contact there with Orix but they can only handle transactions for limited companies (and unfortunately, most clients that I see coming in the vendor finance business in that country are sole traders - mainly for tax reasons). Best regards, Frans

[Fred St Laurent]

Yes I could see how leasing would be difficult there because of the restrictions many have concerning interest income (it is actually not allowed)

Our focus there would be strictly business and corporate banking.

[Frans Jansen]

Fred,
There are numerous ways to circumvent this - I will try to attach a document which outlines some possibilities. Just in case anyone is interested. Frans

[Fred St Laurent]

WOW!
Thanks Frans.
We actually extended our recruiter's stay to 5 weeks.

[Frans Jansen]

Fred (or any one else): I currently have a transaction to fund for and end user in UAE/Dubai for an amount of US$ 600k. Full pay out over 3, possibly 4 years. I approached the GM's of both Orix and Abu Dhabi National Leasing. Apart from the "read receipts" no feedback at all.
A comment from a friend of mine (a Dutch investment banker in Dubai): "they're just not interested and US$ 600k is really small ticket..." Would anybody have a contact for me? Thanks, Frans