Historic Partnership Announcement

Turkey’s national carrier Turkish Airlines (THY) has entered into a landmark financing agreement with Dubai Islamic Bank (DIB), marking the airline’s inaugural use of Islamic finance principles for aircraft acquisition. The historic deal was formalized during a ceremony held in Istanbul on Monday, July 28, 2025, for the procurement of Airbus A350 aircraft.

According to THY Chairperson Ahmet Bolat, this agreement represents a pioneering approach for the airline, as it marks their debut venture into Shariah-compliant financing for fleet expansion. “This deal showcases our dedication to financial innovation while strengthening our aircraft fleet, and it opens a new chapter in our collaboration with prominent institutions across the UAE and the wider Gulf region,” Bolat explained during the signing ceremony.

Industry Significance and Leadership Perspectives

Adnan Chilwan, DIB’s group CEO, emphasized the broader implications of this transaction for the Islamic finance sector. He highlighted that at a time when international markets are reconsidering sustainable finance fundamentals, this deal demonstrates that Islamic finance has evolved beyond a specialized niche to become a robust and globally applicable financial framework.

“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 stated. The collaboration extends beyond mere financial arrangements, as it supports Turkish Airlines’ strategic expansion while simultaneously reinforcing economic connections between the UAE and Turkey.

Transaction Details and Strategic Impact

The leasing arrangement with DIB, recognized as the world’s first Islamic bank, will be conducted in Swiss francs. The agreement culminated after approximately one year of preparation and planning, reflecting the complexity and significance of integrating Islamic finance methodology into Turkish Airlines’ funding portfolio.

The deal introduces Shariah-compliant structures into the carrier’s funding mechanisms as part of a broader strategy to diversify their financial portfolio. This transaction establishes Turkish Airlines as a pioneer among major international carriers in embracing Islamic finance for aircraft procurement, potentially encouraging other airlines to explore similar Shariah-compliant funding options.

The partnership represents more than just an aircraft financing agreement—it symbolizes the growing acceptance and integration of Islamic finance principles in major international business transactions while strengthening economic ties between Turkey and the UAE.

Original Article:

Daily Sabah. (2025, August 4). Turkish Airlines inks 1st Islamic finance deal to buy Airbus A350s [News article]. https://www.dailysabah.com/business/transportation/turkish-airlines-inks-1st-islamic-finance-deal-to-buy-airbus-a350s/amp