Aircraft Leasing Islamic Fund and Airbus

Islamic financing: Airbus is selling the aircraft to the Aircraft Leasing Islamic Fund, which will lease them to Saudia, according to Business Week. The deal underscores the growing importance of Islamic financing to the airline industry, after Airbus helped established a fund and the UK backed an Emirates airline sukuk. Not content with issuing two of the largest sukuk on record to fund its aviation ambitions, Saudi Arabia - via its state- owned carrier - last week placed orders for 50 planes from Airbus Group SE. The deal has a list price of $7.7 billion compared to about $5.8 billion raised globally since 2006 through Shariah-compliant aviation loans. Global Shariah-compliant financial assets may almost double in the four years to 2018, according to Ernest & Young. Islamic financing, particularly sukuk, is the smart way to go, Nabil Issa, a Riyadh-based partner at law firm King & Spalding LLP, which helps arrange Shariah-compliant deals, said June 17. The International Air Transport Association expects Middle East passenger growth of 13 per cent this year, the fastest in the world. (news.financializer.com). As reported in the news.