Airbus’ $100 million Shariah bet indicates Gulf carrier boom

` DUBAI: Airbus and Jeddah-based Islamic Development Bank will each provide 10% of an initial $1 billion in equity for a Shariah fund that may grow five-fold in its first two years, according to Dubai-based Quantum Investment Bank Ltd., one of the placement agents for the fund.

The vehicle will buy new and used planes and lease them to carriers. Borrowers in the air-transport industry have raised almost $10 billion in Shariah-compliant debt since 2012.