(MENAFN- Arab Times) KIPCO - the Kuwait Projects Company - has signed a Memorandum of Understanding (MoU) with the ORIX Corporation - the biggest non-bank financial services group in Japan.
The two companies intend to establish a strategic alliance for the development of leasing and financial services in the MENA region. The MoU between KIPCO and ORIX also includes an intention to carry out a feasibility study to explore the formation of a leasing company in Algeria. This feasibility study will commence in the next three months.
Representatives from both companies signed the MoU at an official ceremony in Kuwait last night. They said the synergies between KIPCO and ORIX will allow them to combine their expertise and experience in an expansion of their operations within the MENA region.
Speaking at the event, KIPCO's Vice-Chairman, Faisal Al Ayyar, said:
"ORIX is one of the world's biggest financial services companies and we are very pleased they have agreed to explore business opportunities with KIPCO. Their expertise, combined with our knowledge of the MENA region, will allow us to assess the potential of the leasing model in some of our key markets. Our intention to study the viability of a leasing company in Algeria is based upon our positive experiences there. Algeria has a business-friendly environment and huge potential for this type of business. I am delighted to welcome Miyauchi and his team to Kuwait and sign this MoU between our two companies."
ORIX Corporation's Chairman and Chief Executive Officer, Yoshihiko Miyauchi said:
"I am very happy to visit Kuwait and to have entered into a partnership with KIPCO. KIPCO and ORIX share the same business philosophy and objectives and we have today laid the foundation for a long and mutually beneficial relationship. For ORIX, the MENA region is an important market and we hope to expand strongly here in collaboration with KIPCO. Throughout the world, leasing has played an important role in establishing industrial infrastructure and job creation through the development of small and medium-sized businesses. However, in the MENA region the penetration of the leasing concept is still low. We believe through our venture with KIPCO, we will not only establish successful businesses, but will also contribute to the economies of the countries we will operate in."
It was also announced that KAMCO is acting as KIPCO's and ORIX's strategic business advisor on the Algerian feasibility study.
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