Sector of financial leasing is considered one of the funding sources that play significant role in financing investments, especially those related to small and medium industries that need machines and equipments, and the like of requisites for the industrial activity, which are funded along many years to reduce investment costs required for the business operation. By virtue of financial leasing contract, the user (lessee) has the right to use certain asset owned by the renter in accordance to contractual agreement between both parties, that entitled one of them the right to usufruct an asset owned by the other party in return of periodical installments for specific time. The lessee can buy the asset from the renter at the end of the contract term. 
 
Privileges of Financial Leasing     
 
Enable companies to own capital assets required for its business with no need to freeze large sum of their money, in the event of purchasing these assets. The fund offer 100% of the asset value, that allow for considerable cash flow that can be used in other activities, especially funding working capital turnover.    
Financial leasing give an option for companies to either own assets or not, protect lessee from asset depreciation as a result of technological development, facilitate replacements and renewals, and convoy by technological development that contributes in increasing competitive capability of products, in addition to protecting lessee from raise of fund cost where interest rate is determined, that represent the company's return, on fixed base during the contract term.  
 
Main Indicators of Financial Leasing Sector
 
Indicators of financial leasing for year 2015 show huge upturn in growth rates of business in domestic market in comparison with 2014. In 2015 Contracts' value increased to reach 19 billion pounds in comparison with 2014 that reached 7 billion pounds, with progress rate 178%. That upturn in comparison with the last year due to increase in value of some businesses, the most prominent of them are: real estate, lands and heavy equipments, as their contracts value reached 8.6 billion pounds in comparison with 2.8 billion pounds in 2014 achieving growth rate 207%. 
In 2015 value of contracts of heavy equipments have reached 5985 million pounds in comparison with year 2014 where they reached 743 million pounds with growth rate 705%. In 2015 business of machines and equipments raised by 71% and value of contracts reached 1569.87 million pounds in comparison with year 2014 where they reached 917.45 million pounds, in addition to raise in business of vehicles by 24% recording 1541.53 million pounds in 2015, compared to 1240.69 million pounds in 2014. 
 

Years

Number of Contracts

Value of Contracts (million L.E)

2010

1664

8494

2011

1640

8691

2012

1691

7996

2013

1896

6084

2014

2329

6962

2015

2720

19376

Progress of financial leasing (2010-2015)    
 
Structure of financial leasing market and companies:
 
In 2015 number of companies working in financial leasing sector has reached 33 with total number of contracts 2720 and estimated value with 19375.92 million L.E. Market shares of the most active companies working in financial leasing sector are as follows:
 

No.

Company

2014

2015

 

Number of contracts

Value by million L.E

Percentage %

Number of contracts

Value by million L.E

Percentage %

 

1

Egyptian Naval Drill

0

0

0

2

4857.52

25.07

 

2

International Company For Leasing (INCOLEASE)

285

1010.25

14.51

317

2067.05

10.67

 

3

CORPLEASE

269

1074.65

15.44

240

2024.84

10.45

 

4

QNB AlAhli Leasing Company

678

925.78

13.3

754

1788.49

9.23

 
 

5

Al Tawfeek Leasing Company (ATLC)

205

598.38

8.59

218

1694.2

8.74

 

6

AlAhli Leasing Company

38

127.9

1.84

54

1503.49

7.76

 

7

GB Lease

145

1061.07

15.24

164

1129.7

5.83

 

8

Techno Lease

12

297.55

4.27

29

979.28

5.05

 

9

EFG Hermes Leasing

0

0

0

53

707.62

3.65

 

10

Arab African International Leasing

0

0

0

8

559.29

2.89

 

11

ORIX Leasing Egypt

216

340.31

4.89

236

492.61

2.54

 

12

Tamweel Leasing Company

10

79.11

1.14

40

322.28

1.66

 

13

ADILEASE

138

217.37

3.12

184

305.15

1.57

 

14

Global Lease

0

0

0

53

290.18

1.5

 

15

El Saeed for Leasing Company

147

257.1

3.69

176

217.87

1.12

 

16

PLUS Leasing Co.

32

38.89

0.56

100

194.62

1

 

17

Piraeus Egypt Leasing Company

16

283.87

4.08

37

168.84

0.87

 

18

Emirates NBD Egypt

12

26.65

0.38

20

41.36

0.21

 

19

Mecca Leasing Corporation

6

3.43

0.05

7

12.71

0.07

 

20

Toshka Financial Leasing

57

43.36

0.62

13

7.7

0.04

 

21

Otrac Leasing Co.

19

20.3

0.29

4

5.05

0.03

 

22

El Karnak for Financing Leasing

2

112.99

1.62

9

3.14

0.02

 

23

Grand Investment for Leasing

3

2.27

0.03

1

1.57

0.01

 

24

Nile Financial Leasing (NFL)

8

97.9

1.41

1

1.35

0.01

 

25

Bayt El Khebra (BEK) finance leasing

12

208.44

2.99

0

0

0

 

26

Misr for Capital Lease

3

64.75

0.93

0

0

0

 

27

Suez Canal Company for Technology Setting

1

47.01

0.68

0

0

0

 

28

CIAF Leasing

2

14.06

0.2

0

0

0

 

29

ABC Leasing Company

2

4.1

0.06

0

0

0

 

30

Ikhwan Group for Leasing

7

2.7

0.04

0

0

0

 

31

Integrated Office Systems Company

2

1.07

0.02

0

0

0

 

32

LUNA Co. for Industrial Investments (SAE)

1

0.6

0.01

0

0

0

 

33

UBC Leasing

1

0.24

0

0

0

0

 

 

Total

2329

6962,1

100

2720

19375,92

100