Sunday, September 17, 2006

Aircraft could be used significantly as the asset backing sukuk issues

"Aircraft 'sukuk' set to soar over Gulf", ITP Business News, September 17, 2006

Nadim Fattaleh, regional director at Boeing Capital Corporation (BCC), among industry experts, predicts that sukuk (Islamic bonds) backed by aircraft coule become a large market. The aircraft would be purchased using investors' funds and then leased to airlines for use (ijara if the asset remains owned by the original purchaser or ijara wa iktina if the lease ends with the transfer of the property to the lessee).

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