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Leasing

In the Middle East and North Africa (MENA), access for new businesses to bank lending is limited, particularly for micro, small and medium sized enterprises. The objective of IFC Advisory Services' Leasing program is to increase the usage of leasing in the region to improve access to finance for small enterprises and strengthen the capacity of the financial sector. In particular, the program seeks to:

  • Create appropriate legal frameworks and tax regimes for leasing operations
  • Build capacity of lessors, lessees, equipment manufacturers and suppliers, regulatory agencies, governments institutions and others to facilitate the usage of leasing
  • Increase public awareness about leasing and its benefits to the economy
  • Create opportunities for domestic and foreign investment in leasing

The Leasing program currently operates in Afghanistan, Jordan, West Bank & Gaza, and Yemen. In addition, the program has helped build capacity of select financial institutions in several countries, including Algeria.


Hide details for What Does the Program Offer?What Does the Program Offer?
  • Recommendations to client–governments on improving the regulatory environment for leasing in the areas of civil regulation, taxation and accounting
  • Specialized training modules on leasing for entrepreneurs, financial institutions and government agencies
  • Market analysis on leasing for project stakeholders
  • High-visibility events, such as conferences and workshops with strong media coverage to increase awareness and knowledge of leasing

Hide details for Expected OutcomesExpected Outcomes

The expected outcome of the program is an increase in the volume of leasing transactions as well as the number of market players in a given country. In addition, the program seeks to create investment opportunities in the leasing sector.

Hide details for Key AchievementsKey Achievements

From the inception of IFC Advisory Services in MENA to the end of fiscal year 2007, the program has been successful at:
  • Drafting and/or contributing to the drafting of 21 new laws/regulations and amendments to laws/regulations
  • Training over 850 individuals on leasing, through 29 training events
  • Publishing 52 articles on leasing in local newspapers

In April 2007, the IFC-supported draft law on leasing was passed by Yemen’s parliament and endorsed by Yemeni President Ali Abdullah Saleh. The law establishes a clear set of rights and responsibilities for the parties of a lease and a new registry system for leased assets. In addition, it introduces speedy leased asset repossession procedures and sets out basic tax and accounting structures that create a level playing field between leasing and other types of financing, such as bank loans. Read more...


Hide details for Eligible Partners & ClientsEligible Partners & Clients
  • Financial institutions (e.g., banks, leasing companies, microfinance institutions)
  • Governments
  • Equipment suppliers
  • Investors

Hide details for Examples of ProjectsExamples of Projects
  • In Jordan, the leasing project is currently undertaking a capacity building initiative with the Microfund for Women to help the institution introduce and develop a sustainable leasing product. The project will assist the Microfund to develop leasing policies and procedures and conduct a number of extensive training sessions on the operational aspects of leasing, which include credit and risk management as well as training on legal, tax and accounting aspects of leasing. In the future, a portfolio review of operations is planned to ensure portfolio quality. The Microfund for Women will be the first microfinance institution in Jordan to introduce microleasing, which is expected to produce a strong demonstration effect.
  • IFC Advisory Services is also assisting the Central Bank of the Islamic Republic of Afghanistan in the development of the leasing sector in the country. IFC will provide advice on drafting enabling legislation, raise awareness about leasing and its benefits to stakeholders, and help build capacity of select financial institutions to offer leasing, primarily to micro, small and medium-sized enterprises.
  • In 2006, IFC completed a project with the Afghan Finance Corporation, the first and only active private leasing company in the country. IFC's project helped AFC enhance its credit and marketing procedures and improve its risk management systems. The results of the advisory services provided were very positive with a reported increase in AFC’s leasing portfolio of over 577 percent. Read more...

For additional information contact:

Thomas Jacobs
Senior Country Officer for Lebanon
E-mail: tjacobs@ifc.org

Murat Sultanov
Leasing Specialist
E-mail: msultanov@ifc.org