RIYADH: Saudi Arabia’s AviLease has secured investment-grade corporate credit ratings from Moody’s and Fitch Ratings, as the global aircraft lessor continues to expand its portfolio and strategic role within the Kingdom’s aviation sector.  

Owned by Saudi Arabia’s Public Investment Fund, AviLease announced it received a Baa2 rating with a stable outlook from Moody’s and a BBB rating with a stable outlook from Fitch.  

The two agencies highlighted AviLease’s high-quality portfolio of new-technology aircraft with a strong credit mix, alongside its robust balance sheet and growth trajectory. 

In an interview with Arab News, Edward O’Byrne, CEO of AviLease, said: “We just received Baa2 from Moody’s and BBB from Fitch, which is two notches into the investment grade, and we got standalone investment grade from Moody’s, which is quite remarkable given the vintage of the company. We’re less than three years old.” 

He continued: “We’re now part of a very small group of leasing companies — ten altogether, with us included — and on the aviation side, on the airline side, 11 airlines are IG-rated. So it’s a very, very small group.”  

O’Byrne emphasized that the new ratings will give AviLease greater access to international markets, allowing it to tap into capital markets, lower the cost of financing, and de-risk its liability structure.  

“This allows us to not only issue debt here in Saudi Arabia, but globally, and that means we can go to the US capital markets, but also Japan, and also the sukuk market if we want to,” he said.    

O’Byrne added: “That gives us a lot of flexibility and, obviously, the ability to lower our spreads, our cost of financing. In reality, we’re about two years ahead of our business plan already.”  

He noted that the company is expected to become one of the largest players in the global leasing industry by 2030. 

O’Byrne also pointed to industry-wide challenges, particularly around aircraft supply. 

“We basically only have aircraft from either Airbus or Boeing. They represent about 90 plus percent of the production globally,” he said. “If either or both of those manufacturers can't produce at scale, then we have a problem.” 

The global aviation sector, he noted, has yet to return to pre-2018 production levels. 

“We have roughly 3,500 aircraft that have not been produced, they are missing in the industry,” O’Byrne said. 

He added that, as an aircraft owner managing a fleet of around 200 planes, the company benefits from limited supply, which increases demand for its aircraft. 

The company is also actively exploring sustainable aviation fuel initiatives in Saudi Arabia. 

“We’re also exploring critical e-fuels, and in Saudi Arabia, we have a unique opportunity to produce direct fuel from sun and wind power,” O’Byrne said.  

The ratings also recognize AviLease’s strategic role in supporting PIF’s aviation sector initiatives under Saudi Arabia’s Vision 2030. 

“The ratings open the door for even greater financial flexibility, as we will be able to tap into the unsecured debt capital markets,” said O’Byrne, in a press statement.  

He noted that AviLease has quickly joined the ranks of a distinguished group of aircraft lessors in the industry.  

Fahad Al-Saif, chairman of AviLease, said: “These ratings will enable AviLease to access global capital markets to finance its business strategies, positioning itself at the forefront of the aircraft leasing industry, in complete alignment with the National Aviation Strategy and Saudi Arabia’s Vision 2030.”   

RIYADH: Saudi investment firm Derayah Financial saw its assets under management soar to SR17 billion ($4.53 billion) in 2024 as it outpaced growth across the sector in the Kingdom, according to its CEO.

Speaking to Arab News at the Capital Markets Forum 2025, Mohammed Al-Shammasi revealed that this rise to a 70 percent year-on-year growth, ranking the company among the top independent firms in Saudi brokerage revenues, with the third-largest market share. 

Saudi Arabia’s asset management industry was set for growth in the second half of 2024 and into 2025, with AUM increasing 13.5 percent year over year to exceed $250 billion by mid-2024, according to a Fitch Ratings report released in October.

The Kingdom has the largest asset management industry in the Gulf Cooperation Council, the fifth-largest in the Organisation of Islamic Cooperation, and the second-largest public Islamic funds market globally. 

“The overall size of the market is actually growing at a very decent growth rate. So, if you look at retail brokerage or digital brokerage, it is historically growing at a 9 percent CAGR year after year,” he said, adding: “On the asset management side, that has been growing at around 14 percent year after year.” 

Oversubscribed IPO 

Al-Shammasi also discussed Derayah’s recent initial public offering, which was 162 times oversubscribed, underscoring the firm’s strong market position. “This is a great testament to the company’s performance over the past few years,” he said. 

Founded 17 years ago as a digital challenger in capital markets, Derayah has grown into Saudi Arabia’s third-largest brokerage on of the the largest independent brokers in the region. 

The IPO allows shareholders to sell 20 percent of the company’s shares in a secondary transaction, with 90 percent allocated to corporates and institutions and 10 percent to retail investors. 

“We think this will give us huge credibility in the market,” Al-Shammasi said, adding that the transaction could also pave the way for more fintech companies to list on the Saudi stock exchange. 

The CEO emphasized the strong demand for Derayah’s IPO from investors across Asia, Europe, and the US. “We have seen investors from all over the world submitting bids for our IPO,” he noted. 

Al-Shammasi further assured that Derayah is well-funded for the near future, with a debt-free balance sheet and a track record of generous dividend distributions. “The company does not really need any capital in the near term to continue its strategy and growth plans,” he said. 

“We have a perfect environment to raise money here in the Kingdom, and I’m more than happy to tap the market if we need it,” Al-Shammasi added. 

The CEO also revealed that Derayah has partnered with Alpaca, a significant player in international brokerage, to cater to the growing local fintech sector. The partnership aims to provide fintechs in Saudi Arabia with a localized version of Alpaca’s services while facilitating international investors’ access to the Saudi market. 

“Alpaca operates a lot of brokerage houses, and we believe this partnership will pave the way for international investors to come and trade in the local market,” he explained. 

The Capital Markets Forum 2025, hosted by Saudi Tadawul Group, aims to bring together policymakers, business leaders, and industry experts to discuss trends shaping the Kingdom’s capital markets and position Saudi Arabia as a key player in the global financial ecosystem.