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Turkish Airlines Signs First Islamic Lease Agreement with Dubai Islamic Bank

Turkish Airlines Signs First Islamic Lease Agreement with Dubai Islamic Bank
Turkish Airlines has entered into its inaugural Islamic lease financing agreement with Dubai Islamic Bank (DIB) to acquire Airbus A350 aircraft, marking a pivotal development in the airline’s funding strategy. The agreement was formalized during a ceremony held in Istanbul on July 28, 2025, attended by Turkish Airlines Chairman Professor Ahmet Bolat and DIB CEO Dr. Adnan Chilwan, alongside senior executives from both institutions.
A Landmark Islamic Finance Transaction
This deal introduces an Islamic lease structure denominated in Swiss francs (CHF), representing a first for Turkish Airlines and a pioneering initiative for DIB within Türkiye’s aviation sector. The transaction, which required nearly a year of preparation, employs a globally recognized Islamic financial leasing model. It underscores Turkish Airlines’ commitment to diversifying its funding sources while embracing innovative financial solutions.
Professor Bolat emphasized that the partnership marks a new chapter in the airline’s financing approach, combining innovation with international collaboration. He stated, “This transaction demonstrates our commitment to financial innovation and our determination to strengthen our fleet.” Bolat further noted that the collaboration with DIB initiates a broader engagement with leading institutions in the UAE and the Gulf region, with intentions to expand this cooperation in the future.
Dr. Chilwan described the agreement as a testament to the strength of cross-border partnerships and shared strategic objectives. Highlighting Turkish Airlines’ global stature, he remarked, “Turkish Airlines, which holds the Guinness World Record for flying to the most countries, is a pioneer in terms of scale, vision, and global leadership.” He also underscored the significance of this being the airline’s first venture into Islamic financing, calling it “a key milestone” for both Turkish Airlines and the wider Islamic finance sector. According to Chilwan, the transaction not only supports the airline’s growth ambitions but also reinforces the growing importance of Islamic finance in global markets.
Strategic Implications and Industry Context
The agreement aligns with Turkish Airlines’ ongoing fleet expansion program, which focuses on acquiring new-generation wide-body aircraft and exploring alternative financing models to better align its capital structure with international market standards. By incorporating Islamic leasing, the airline is positioning itself to attract greater interest from Muslim-majority countries, potentially expanding its customer base.
Nonetheless, the adoption of Islamic finance introduces challenges, including stringent regulatory compliance requirements and the prospect of intensified competition as other regional carriers may adopt similar strategies. The regional aviation landscape is evolving rapidly, with recent developments such as Wizz Air’s exit from Abu Dhabi illustrating both the opportunities and complexities of operating in the Gulf market. As Turkish Airlines pioneers Islamic finance within its portfolio, competitors may respond by seeking their own partnerships in Islamic finance to maintain competitiveness and appeal to a broader demographic.
This agreement with Dubai Islamic Bank not only fortifies Turkish Airlines’ financial foundation but also signals a broader industry trend toward innovative, Sharia-compliant financing solutions in global aviation.

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