Dubai Aerospace Enterprise (DAE) secured $2.8 billion in new credit facilities from 15 international banks. This move expands its total available credit to nearly $4 billion.
Half of the funds will repay existing loans, while the rest will support growth plans and liquidity needs. Moreover, the arrangement combines conventional and sharia-compliant financing.
The facilities include $2.3 billion in conventional credit and $500 million in sharia-compliant liquidity. They are denominated in US dollars and UAE dirhams. The loans mature in March 2031.
The timing coincides with the ongoing US-Israeli war against Iran, which began on February 28. As a result, Gulf businesses face potential cashflow pressures and delayed payments.
Emirates NBD and First Abu Dhabi Bank acted as lead arrangers, bookrunners, and coordinators for the conventional tranche. Meanwhile, Abu Dhabi Islamic Bank arranged the sharia-compliant portion.
CEO Firoz Tarapore said the facilities reinforce DAE’s liquidity strength and operational stability. Therefore, the company can pursue strategic acquisitions and expansion confidently.
Last month, DAE agreed to acquire Macquarie AirFinance, part of Australia’s Macquarie Group, for $7 billion. This acquisition will expand its fleet and regional presence significantly.
The Investment Corporation of Dubai, the government’s main investment arm, owns DAE. Consequently, investor confidence remains strong due to government backing.
Industry experts note aircraft leasing companies benefit from delayed Boeing and Airbus deliveries. Furthermore, IATA director Willie Walsh highlighted that these delays support higher regional lessor revenues.
The new credit facilities allow DAE to expand its fleet, secure financial resilience, and strengthen operational capacity. Ultimately, the company aims to capitalize on emerging aviation market opportunities.
Additionally, DAE plans to leverage the facilities for digital innovation in fleet management and aviation services. This strategy could enhance operational efficiency and reduce maintenance costs substantially.
Analysts say the strengthened liquidity positions DAE to weather regional geopolitical risks while maintaining customer trust. Investors are likely to view the move as a sign of stability.
