The UAE's big-ticket asset leasing company Oasis Leasing plans to expand its operating assets of $460 million to $1.2 billion. Growth is expected to come from the acquisition of individual assets, portfolios and existing businesses, and by creating innovative and customised leasing solutions, Oasis said. Current assets include 12 aircraft on lease to major regional and intternational flag carriers and a 50 per cent stake in a capsize dry bulk vessel acquired in 2001.
The company's management is confident it can compete successfully in a global industry that has grown from $40 billion to $500 billion in 20 years and continues to expand at 6 per cent annually. Oasis believes leasing take-up in the Middle East is lagging behind the rest of the world, offering huge growth potential.
"Oasis has been and continues to be a successful venture for Abu Dhabi and the UAE," said CEO of Oasis Leasing Gordon Dixon. "The returns to shareholders for this young company have been attractive and the cyclical nature of the leasing industry means there are many opportunities for us to grow and diversify our asset classes and to continue to generate attractive shareholder returns." The company, founded in 1997 by the Abu Dhabi-based UAE Ofsets Group, said expansion and diversification would ensure successful and sustainable growth and that it had the ability to finance a broad range of high-value assets including aircraft, ships and power generation equipment.
"The Middle East is 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," said Dixon.
"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. The current reality is that we have more new business than our existing capital base can sustain."
With shares listed on the Abu Dhabi Stock Exchange, Oasis Leasing, earlier this year, received the unanimous support of its shareholders to allow foreign ownership of up to 49 per cent of its shares. The shareholders also approved a rights issue to increase the company's capital base by Dh200 million to Dh700 million.
"We have not made any secret of our intention to grow the company and to increase the capital base to sustain that growth. The ability to offer shares to international investors will enable us, for the first time, to tap regional and global investors, and we look forward to being able to make significant announcements in support of this strategy in due course," said Dixon.
Leading institutional and notable private investors are among the company's 36,500 shareholder base. BAe Systems is the largest single shareholder with 12 per cent whilst other significant stakes are held by the Abu Dhabi Investment Company; Gulf Investment Corporation; Abu Dhabi Insurance Company; Dubai Investment Company and Emirates Insurance Company.
Last year the company reported strong financial results, with revenue up 26 per cent to $60million. Gross profit rose 36 per cent to $8.6million, reflecting a 29 per cent increase in leased assets.
