NBAD establishes Abu Dhabi National Leasing Company

Published October 12th, 2003 - 02:00 GMT

National Bank of Abu Dhabi has formed Abu Dhabi National Leasing (ADNL) as a fully owned subsidiary to assist companies to free up their capital resources and cash flows. 

 

The company is established as a limited liability company with a paid up capital of 10 million Emirati dirhams ($2.7 million). ADNL, a fully owned subsidiary of NBAD, is entitled to own, manage, sale, rent, lease and invest in all types of movable and fixed assets including any durable asset, plant, equipment, machinery and commercial vehicles. 

 

The new service is set to benefit a number of major United Arab Emirates (UAE), foreign companies and government organizations, and presents an alternative to traditional bank financing.  

 

For corporate companies, leasing is an attractive option to the conventional borrowing, particularly in industries such as construction, transportation and real estate,” said ADNL General Manager, Yousef Abdulla Yousef.  

 

“Leasing is based on the principle that profits are earned through the use, rather than the ownership of equipment and assets. Whilst conventional banking finance often requires the borrower to provide collateral as security for the loan, leasing has no such requirement,” explained Yousef.  

 

“Leasing can allow new businesses with limited capital and credit history or small businesses without a history of financial statements to quickly boost their operations. Leasing provides more financial leeway as the lessee's debt ratios and equity capital remain intact, thereby making available working capital for more productive operational uses and business opportunities.” — (menareport.com) 

 

 

 

© 2003 Mena Report (www.menareport.com)


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