Saudi Arabia’s Taajeer in expansion drive

03/12/2012 08:05 AST

Taajeer, a Saudi leasing specialist company, posted SAR 121 million profit in the first nine months of 2012, or a growth of SAR 28 million, representing 30 per cent increase compared to the same period last year, the company said in a statement recently.

Commenting on the results, Omar Hindi, CEO and managing director of the company, forecast that the company would post record profits of SAR 170 by the end of the year, saying that the rental revenues alone rose by SAR 34 million in the period under review.

He said Taajeer's robust profits are on account of growing bank confidence, where the total bank financing through securitization reached SAR 800 million in the first nine months of this year.

He further said "the company will post new record (profits) through the settlement of five-year bonds issued in 2008 for SAR 250 million that will mature in Dec. 30, 2012. The settlement and securitization of the bonds will help in raising the company's credit level rating.

Hindi added, "The achieved profits mainly generated by the automotive sector, and the real estate (for individuals) and machinery sectors, were expected to contribute strongly in the company's results in the future."

And in order to cope with the increasing demand for leasing services from the corporate sector, Taajeer further said it will open one branch in Najran by end of 2012, and plans to open three branches in Tabuk, Hail and Jouf next year.

On the company's corporate social responsibility initiatives, Taajeer, in cooperation with the Traffic Department and Ministry of Education, presented safe driving program for three years to school students in Jeddah, Riyadh and Dammam.

The programme included explanation of traffic rules to 4,0000 students in each region aiming to reduce traffic accidents.

He further said that 35 per cent of its clients are now using SADAD services to facilitate rental installments.

Taajeer services include purchasing of cars, machineries and real estate based on lease with the promise of ownership.

CPI Financial