DUBAI- Emirates (EK) has completed a 12-year Shariah-compliant French Lease financing to support its acquisition of 2 new Airbus A350-900 aircraft in 2026.
Dubai Islamic Bank (DIB) and Natixis Corporate & Investment Banking (Natixis CIB) arranged the deal, which joins two financing frameworks that are usually structured separately.
Emirates Is Combining French Lease and Islamic Finance
The financing arrangement introduces an approach that integrates French Lease considerations with the requirements of Shariah-compliant financing.
These 2 frameworks are generally structured independently because they follow different financial and compliance requirements.
By bringing them together within one financing structure, Emirates, DIB and Natixis CIB have developed a solution designed to accommodate both frameworks while meeting Islamic law requirements.
The 12 year transaction directly supports Emirates’ acquisition of two new Airbus A350-900 aircraft scheduled for 2026. It also forms part of the airline’s long-term financing strategy, which focuses on accessing alternative capital sources and maintaining flexibility in funding its fleet expansion.
The structure highlights the versatility of Islamic finance in supporting complex aviation transactions. It demonstrates how airlines can combine established aircraft financing arrangements with Shariah-compliant principles to access diversified pools of international capital.
Dubai Islamic Bank and Natixis CIB Lead Financing
Dubai Islamic Bank and Natixis Corporate & Investment Banking acted as Islamic Financiers and Arrangers for the transaction.
Both institutions brought their respective expertise in corporate banking, Islamic financial structuring and aviation finance to develop the financing arrangement.
Dubai Islamic Bank also served as the Shariah Structurer. Its Shariah team played an important role in aligning the applicable French Lease considerations with Shariah standards.
Naveed Ali, Chief of Corporate Banking at DIB, highlighted the growing sophistication and international relevance of Islamic finance. He explained that the transaction demonstrates how Shariah-compliant financing can support the long-term financial requirements of major international businesses, including complex cross-border aviation transactions.
Ali also emphasised the contribution of DIB’s corporate banking and Shariah structuring capabilities. The bank’s Shariah team worked to ensure that the relevant French Lease requirements were aligned with Islamic finance standards.
This involvement demonstrates the ability of Islamic financial institutions to participate in sophisticated international financing arrangements while maintaining the requirements of Shariah compliance.
Natixis CIB contributed its transportation finance expertise to the transaction. Jean Chédeville, Head of Transportation Finance at Natixis CIB, highlighted the bank’s ability to develop tailored financing solutions that deliver additional value to its clients.
He also described the agreement as another tailored aircraft delivery funding solution for Emirates and welcomed the partnership with Dubai Islamic Bank on the financing structure.
Emirates Strengthens Long-Term Financing Strategy
The transaction supports Emirates’ broader strategy of diversifying its funding sources while continuing to expand its aircraft fleet. The airline is pursuing alternative financing solutions that can accommodate its long-term aircraft acquisition requirements.
Derek Blaney, Acting Chief Financial Officer at Emirates Group, said the airline continues to explore diverse financing solutions and innovative funding structures as part of its long-term financial strategy.
He highlighted the complementary capabilities of Dubai Islamic Bank and Natixis CIB in bringing Islamic finance and French Lease financing together. The arrangement provides Emirates with another funding option while supporting its ongoing fleet expansion.
Blaney also emphasised the importance of Emirates’ strong financial performance and proven track record. These factors provide the airline with access to innovative financing solutions and allow it to work with international financial institutions on specialised aircraft funding arrangements.
The transaction reflects Emirates’ approach of using different financing frameworks to diversify its capital sources and support its aircraft acquisition programme.
Global Aviation Finance Market
The Emirates financing agreement demonstrates the growing potential of Shariah-compliant structures in the global aviation finance market. By combining Islamic finance principles with French Lease considerations, the transaction provides an alternative approach to funding commercial aircraft acquisitions.
The integration of these frameworks is particularly relevant for international financing arrangements that must accommodate different financial, legal and compliance requirements. The transaction demonstrates how financial institutions can structure solutions that address these considerations within a single arrangement.
It also highlights the growing sophistication of Islamic finance and its application beyond traditional financing activities. The participation of an international airline, an Islamic bank and a global investment banking institution illustrates the potential for collaboration between different areas of financial expertise.
Emirates’ transaction establishes a potential repeatable blueprint for future international aviation financings seeking to combine French Lease structures with Shariah-compliant requirements.
For airlines, such arrangements could expand access to alternative capital sources. For financial institutions, they demonstrate opportunities to develop specialised financing structures that address the changing capital requirements of the global aviation industry.
Shariah-Compliant Aircraft Financing
Emirates’ 12-year French Lease financing agreement with Dubai Islamic Bank and Natixis CIB supports the acquisition of two Airbus A350-900 aircraft in 2026 while diversifying the airline’s funding options.
Beyond the immediate aircraft acquisitions, the transaction demonstrates how French Lease structures and Islamic finance principles can be integrated within a single financing arrangement.
Its approach provides a potential reference for future cross-border aircraft financing transactions seeking to meet both commercial financing requirements and Shariah standards.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
