Emirates airline seeks Islamic finance for planes deals
09 Nov 2011
(MENAFN) Emirates airline, Dubai’s flag carrier is seeking Islamic finance to fund aircraft deliveries as international banks shy away from aircraft deals over the euro zone debt crisis, Reuters reported.
Tim Clark, Emirates president, said that EU lenders, especially French banks, which have been major financiers for Emirates’ aircraft deals with Airbus and Boeing, have become less attracted to new financing deals because of the crisis.
Clark confessed that the airline would be in new territory with sukuk-based financing deals.
Islamic finance is known for being more expensive than conventional money, however the gap between the two, especially in the fixed income sector, has narrowed during the global financial turmoil of the past year and may, for now, have disappeared completely.