Funding without charging interest

Islamic financial corporations now compete with conventional ones for aircraft leasing deals. The three airlines that have utilized Islamic finance thus far are Kuwait Airways Corporation, Emirates, and Pakistan International Airlines. One year ago, Kuwait Airways Corporation sealed a $464 million deal with Kuwait's International Investor. The transaction has been seen as an unprecedented one in the scale of its ambition. The airline has the option to buy seven airbuses following nine years of payments. The payments will cover 90% of the cost of the planes. The International Investor is interested in being involved with Kuwaiti privatization measures. Both Emirates and Pakistan International have signed Ijara contracts with the Al Rajhi Banking and Investment Corporation. The two airlines acquired airbuses in the arrangements. The Saudi financial institution desires to pursue more airplane transactions.