Market for Islamic aircraft-loans doubles

Dubai

THE market for Islamic aircraft loans may have just doubled in size.

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. The deal has a list price of US$7.7 billion compared to about US$5.8 billion raised globally since 2006 through Syariah-compliant aviation loans. Airbus is selling the aircraft to the Aircraft Leasing Islamic Fund, which will lease them to Saudia.