Air Arabia has financed six new A320s in a $230 million Islamic financing deal from Dubai Islamic Bank (DIB). The Ijara loan facility will finance the delivery of a new aircraft every two months starting January 2015.
"This Ijara facility is another milestone in our collaboration with Air Arabia, epitomising the bank's commitment to make Islamic finance a household name in every industry segment in the UAE and beyond," Adnan Chilwan, CEO of Dubai Islamic Bank, said.
"Though Islamic finance is fast gaining acceptance around the world in every facet of banking and finance sector, it is particularly seen to be prolific in driving the infrastructure development in key home markets," he added.
Air Arabia has now received 29 of the 44 A320 aircraft it ordered from Airbus in 2007.
Adel Ali, Group CEO of Air Arabia, said: "We are glad to have our 2015 aircraft financing requirement done through a local Islamic bank, which reflects the trust and confidence we have in the local banking and finance industry.