Overview of the leasing sector
The drafting of the rating of Uzbek lessors established that 126 financial institutions engaged in leasing activities were registered in 2016. According to the State Committee of Statistics of Uzbekistan, 79 organizations, including 22 banks, worked actively. The rest were engaged in the monitoring and repayment of leasing fees under projects concluded in previous years.
The volume of new leasing operations as of the first half of 2016 has increased by 2%. Thus, over this period the volume of new leasing deals totaled 430.4 billion soums, which is 77 billion soums more than last year.
The highest growth rates in new leasing operations have traditionally been demonstrated by major players of the leasing market. These include O’zqishloqxojalikmashlizing, Uzbek Leasing International А.О., O’zavtosanoat - Lizing and O’zmeliomashlizng. Of note is the steady growth of the company Taiba Leasing in the first half year, which has landed in fifth place. Nearly half of new leasing deals concluded (47.5%) falls on these companies.
Based on analytical data provided by leasing companies, including banks, the portfolio of leasing operations totaled 2.626 trillion soums and in comparison with the results of 2015 this indicator grew by 7.3%. The leasing portfolio of commercial banks totaled 916.2 billion soums and amounts to nearly 35% of the total leasing portfolio.
Looking into the structure of property leased according to the main types of assets, it should be noted that while retaining last year’s trends the modernization of industrial companies and demand for high-tech equipment is on the up. As a result, the share of technological equipment has grown considerably and landed in a leading position. The volume of leased technological equipment has totaled 163 billion soums. The sphere of food production enjoys particular demand – 35.1 billion soums, construction services and construction materials production – 29.4 billion soums, and land improvement – 23.7 billion soums. In terms of the volume of leased pieces of technological equipment the leader is Kapital Bank (36 bln soums), next follow O’zmeliomashlizing (23.7 bln soums) and Hamkorbank (6.3 bln soums).
Thus, technological equipment is followed by the agricultural sector with a share of 27% (115.3 bln soums), where O’zqishloqxo’jalikmashlizing (114.2 bln soums) traditionally holds a dominant position.
Leased vehicles totaled 74.5 billion soums with a market share of 18%. O’zavtosanoat-Leasing retains its leading position, having implemented 45 projects worth 19.8 billion soums. It is noteworthy that the share of real estate, which retains trends of previous years, has increased and totaled 17%, which in monetary terms amounts to 73.6 billion soums. Asaka Bank is the leader in terms of leasing real estate (16.9 bln soums).
The prospects of Uzbekistan’s leasing market
An analysis of the Uzbekistan’s leasing market in the early half of 2016 has revealed the following trends:
The market of leasing services has a huge potential for growth. Year after year, competition in the leasing market grows, which points to an increase in the level of leasing services provided.
As in previous years, one of the decisive factors in the development of the leasing sector is the access of lessors to sources of funding. Leasing companies have to sort out the issue of foreign direct credits and cooperation with insurance companies to fund leasing deals.
In the near future, leasing, which ensures well-organized and protected relations between all participants of the finance-investment chain and contributes to the revamp of key economic sectors and regional infrastructure, may become one of the prospective tools for ensuring sustainable development of Uzbekistan’s innovative economy.
The following areas have good growth prospects in the leasing market in Uzbekistan:
• Textile industry;
• Printing, packaging;
• Processing and storage of fruit and vegetables;
• Food production;
• Renewable energy sources;