Qatar Financial Centre (QFC), a leading onshore financial and business centre in the region, has published a comprehensive report titled, “The Qatar Financial Centre – A Compelling Destination for Aircraft Leasing Companies.” The report highlights emerging trends in global aviation, specific leasing opportunities in Qatar’s aviation industry and the appealing legal structures available on the QFC platform that make it ideal for aircraft leasing firms. 

Authored by Thaddeus Malesa, Senior Advisor for Economics and Research at QFC, the report hinges on the increased activity of airplane lessors during the pandemic and the fast-changing dynamics in the industry. According to the report, for the first time in history, the number of globally leased planes in 2021 exceeded those owned by operators. Aircraft lessors drove global purchasing activity and accounted for nearly 60 per cent of all airplane deliveries. Wholesale sale-and-leaseback agreements also increased during the period, with at least six major international air carriers entering such contracts.

Commenting on the potential of the aircraft finance and leasing industry Yousuf Mohamed Al-Jaida, Chief Executive Officer, QFC, said: “The aviation industry has witnessed varying levels of recovery as vaccines administered increase worldwide. The ability to quickly adapt in response to rapidly-changing aviation dynamics is what will primarily drive the industry forward amidst ongoing COVID-19 variants emerging around the globe.”

Al-Jaida added: “Qatar’s economy is set to expand dramatically over the coming decade, driven by a series of business investments in key sectors, including aviation. QFC’s attractive ecosystem, business-friendly regulations, best-in-class tax regime, along with its proximity to one of the world’s premier airlines with set global expansion plans, will be an ideal platform for global aviation lessors.”

The report revealed that the world’s largest 30 lessors seek out deals with airlines that use their assets efficiently. Therefore, it is wise for these lessors to place their assets with financially secure operators such as Qatar Airways.  

Speaking on the launch of the report, Thaddeus Malesa, Senior Advisor for Economics and Research, QFC, said: “QFC’s latest report identifies how COVID-19 is restructuring the aviation sector, driving long-term changes in fleet composition, redefining business strategies, and adjusting flight routes to optimise business performance. QFC offers a structure that allows lessors to maximise current market opportunities and Qatar’s burgeoning aviation industry.”

QFC is an onshore jurisdiction that allows registered companies to enjoy competitive benefits, such as up to 100% foreign ownership, 100% repatriation of profits, 10% corporate tax on locally sourced profits, and an extensive double taxation treaty network with over 80 countries, a legal environment based on English common law and the right to trade in any currency.