Islamic Financing - A Successful Takeoff or a Crash Landing? Whether or Not Islamic Financing Should Be Used to Finance and Lease Aircraft

Abstract

As international air travel continues to increase, Islamic financing is a key option to consider in securing aviation financing. This paper begins with background information of the foundation of Islam. Then, it explains the applicable international treaties and their roles within Middle Eastern nations. Next, Islamic finance law is addressed, followed by Islamic aviation and leasing in general. Finally, this paper concludes with a case study of how these principles come into play in the United Arab Emirates.

Keywords: Aviation Financing, Islamic Financing, Finance Law, Sharia, Aircraft Leasing, Aircraft Financing, Air Travel, Air Law, United Arab Emirates, Middle East

JEL Classification: D81, E62, F23, G00, G15, G29, G39, K23, L91, L93, N25, N75, O16