National flag carrier Turkish Airlines (THY) on Monday announced it had signed a financing deal with Dubai Islamic Bank (DIB), the United Arab Emirates' (UAE) largest Islamic lender, for the purchase of Airbus A350 airplanes.
The method implemented in the agreement is a first, THY Chairperson Ahmet Bolat said during a signing ceremony in Istanbul, as it's the first time the carrier is using Islamic financing for an aircraft procurement.
"This transaction demonstrates our commitment to financial innovation and strengthening our fleet while also marking a new chapter in our cooperation with leading institutions in the United Arab Emirates and the broader Gulf region," Bolat said.
"We are pleased to have completed this landmark financing in collaboration with DIB and look forward to building on this partnership in the future," he added.
The transaction introduces Shariah-compliant structures into Turkish Airlines' funding portfolio as part of its broader diversification strategy.
"At a time when global markets are rethinking the foundations of sustainable finance, this transaction sends a clear signal that Islamic finance is no longer a niche; it is a resilient and globally relevant financial structure for the future," Adnan Chilwan, group CEO at Dubai Islamic Bank, said.
"For Turkish Airlines to embrace Shariah-compliant financing for the first time and to choose DIB as their Islamic finance provider reflects both the strength of our principles and the confidence they have placed in our capabilities," Chilwan said.
The collaboration "not only supports the airline’s strategic growth but also reinforces the strengthening of economic ties between the UAE and Türkiye," he noted.
"This relationship continues to thrive on a vision rooted in mutual respect, shared ambition and enduring cooperation," he added.
The leasing transaction with the world's first Islamic bank will be denominated in Swiss francs, according to a statement.
Completed after approximately a year of preparation, it aims to incorporate this financing method, actively used worldwide, into the flag carrier's financing portfolio, the statement read.
