Boeing Capital is considering offering Islamic financing options for its aircraft, in conjunction with a partner bank or financial institution to create a Shariah-compliant offering. While this project is in its early stages, “it will be Islamic content and it will support airline financing” said Vasgen Edwards, managing director for Middle East-Africa customer financing.
Airbus established the Alif Fund in 2014, a shariah-compliant aircraft leasing fund headquartered in Dubai. Boeing is late to the game, and behind its chief competitor in providing the Shariah-based financing. Emirates, Etihad and Fly Dubai have all issues Islamic bonds, and there is a significant need for aircraft in the Islamic countries.