Alafco sets course to beat headwinds

Banks like solid investments. Islamic banks require them. It is no surprise then that aircraft, airlines and aircraft leasing companies are increasingly favoured by sharia-compliant lenders.

In 2000, Kuwait Finance House, an Islamic banking company, jumped at the chance to buy into Alafco, the fast-growing Aviation Lease and Finance Company.

Alafco was transformed from a subsidiary of Kuwait Airways Corporation into a publicly listed business. It is now 54 per cent-owned by KFH, 11 per cent by Kuwait Airways while the remaining 35 per cent is public.