In a major milestone for both the aviation and Islamic finance sectors, Turkish Airlines has successfully closed its first-ever Islamic financing arrangement to fund the acquisition of a brand-new Airbus A350 aircraft. The deal, backed by Dubai Islamic Bank (DIB), marks the airline’s entry into Shariah-compliant funding and reflects the growing intersection between global aviation financing and Islamic banking principles.
According to credible industry disclosures, the financing structure involves a 12-year lease agreement in line with Shariah tenets, making it one of the most notable aircraft financing deals out of the Middle East this year. The transaction was tailored under an Ijara framework — a leasing model widely accepted in Islamic finance, where the bank retains ownership of the asset while the airline pays rent over the agreed period.
Dubai Islamic Bank, the United Arab Emirates’ largest Islamic lender by assets, provided the funding support for the acquisition. The deal is part of Turkish Airlines’ broader fleet expansion strategy as it positions itself to meet increasing global passenger demand, enhance long-haul capacity, and modernize its operations with more fuel-efficient, wide-body aircraft.
The Airbus A350 is one of the latest-generation aircraft designed for long-haul travel, offering improved fuel efficiency, reduced emissions, and enhanced passenger comfort. Turkish Airlines’ inclusion of the A350 in its growing fleet reinforces its ambitions to strengthen its international routes, particularly in Asia, Africa, and North America — key markets in its post-pandemic growth plan.
By opting for an Islamic financing structure, the Istanbul-based flag carrier aligns itself with a financing model that continues to gain traction globally, especially among Middle Eastern lenders and investors. It also signals a strategic move to diversify its funding sources while building financial instruments that cater to Islamic investors.
This milestone not only diversifies Turkish Airlines’ funding portfolio but also showcases Dubai Islamic Bank’s rising profile in global aviation finance. The bank has in recent years increased its exposure to asset-backed deals in line with its Shariah principles, tapping into growing demand among airlines looking for ethical and interest-free financing options.
The deal reflects broader trends in the aviation industry, where airlines are increasingly exploring alternative funding structures amid rising interest rates and currency volatility. For Turkish Airlines, this Islamic lease agreement opens the door for future Shariah-compliant funding options, especially as it seeks to grow one of the largest airline fleets in Europe and the Middle East.