The largest Islamic bank in the United Arab Emirates and the first in the world, DIB, has successfully completed a historic aircraft financing deal with Turkish Airlines, the country’s flag airline. This transaction paves the path for Shariah-compliant structures to operate as a driver for growth inside one of the most prominent airline fleets in the world and the first Islamic aircraft finance agreement to assist the flag carrier’s expansion.
In DIB’s continuous efforts to increase the global influence of Islamic finance, the deal marks an important turning point. DIB reinforces the power, legitimacy, and flexibility of Islamic finance in providing intricate cross-border funding arrangements by allowing one of the top airlines in the world to implement a financing structure that is completely consistent with Shariah.
The deal is the first time Turkish Airlines has ever financed an aircraft using Islamic finance, adding Shariah-compliant arrangements to its funding mix as part of a larger diversification plan. The purchase and integration of a new Airbus A350-941 into Turkish Airlines’ fleet was financed by DIB, and the deal was set up as a 12-year Islamic financing lease (Ijarah).
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