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France,Saudi Arabia,South Africa,United Arab Emirates : AIRBUS, ISLAMIC DEVELOPMENT BANK develop Islamic aircraft leasing fund

July 2, 2014

Airbus Group and Jeddah-based Islamic Development Bank (IDB) are launching a syariah-compliant aircraft leasing fund in order to meet the increasing demand for commercial financing from airlines in the Middle East, Asia and Africa.

It is stated that the fund will exclusively finance Airbus aircraft and has a target size of US$5 billion and could help boost the European planemaker's edge against rival Boeing in the fast growing commercial airline market in the Gulf region.

The European planemaker established the fund in partnership with Dubai-based Quantum Investment Bank and Palma Capital, and will seed it together with the IDB.

For this the fund manager will be Cayman-based International Airfinance Corporation.

Gulf airlines such as Etihad Airways, Emirates and Qatar Airways have transformed the aviation industry over the last decade through aggressive expansion, while Islamic finance is a growing element to win business in the region.

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Source: TendersInfo (India)

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