Our Product Suite
Eight Shariah-compliant products spanning trade finance, Islamic leasing, partnership finance, deposits, infrastructure, capital markets, and social finance.
- Shariah-Compliant Products
- 8
- SSB Status
- Pre-Approved
- Reporting Standard
- AAOIFI
- Sectors Served
- All
IDIB offers Afghanistan's most comprehensive portfolio of Shariah-compliant financial products and services, developed in strict accordance with AAOIFI standards and pre-approved in their entirety by the independent Shariah Supervisory Board.
Our product suite spans asset-based trade finance, Islamic leasing, equity partnership instruments, capital market structures, and development finance — enabling IDIB to serve clients across all sectors, sizes, and financing needs.
Every product is designed to be commercially competitive, developmentally impactful, and authentically Shariah-compliant.
Asset-Based Finance
Trade finance and Islamic leasing
IDIB's two primary financing instruments cover the full spectrum of working capital, trade, equipment, and infrastructure needs — in forms that are both commercially competitive and free of riba.
01
Murabaha Financing
Cost-Plus Trade Finance
IDIB purchases a specified asset on behalf of the client and resells it at a fully disclosed, agreed-upon markup — eliminating riba while providing the economic equivalent of working capital or import finance. The total cost and profit margin are transparent and fixed at inception; no hidden charges or variable interest are applied.
Key Use Cases
- Working capital for SMEs and commercial enterprises
- Agricultural inputs — seeds, fertilizers, irrigation equipment
- Construction materials and equipment procurement
- Import finance
- Tenor
- 3–24 months
- Structure
- Fixed disclosed markup
- Security
- Asset ownership until payment
02
Ijara Financing
Islamic Leasing
IDIB purchases an asset and leases it to the client for an agreed rental over a defined period. IDIB retains ownership of the asset throughout the lease term — providing strong credit risk mitigation — while the client benefits from the use of the asset without riba. The Ijara wa Iqtina variant provides an option for the client to acquire the asset at lease end.
Key Use Cases
- Capital equipment and agricultural machinery
- Vehicles and transport fleets
- Infrastructure and renewable energy assets
- Commercial real estate
- Variant 1
- Operating Ijara
- Variant 2
- Ijara wa Iqtina
- Ownership
- IDIB retains throughout term
Partnership Finance
03
Musharakah & Diminishing Musharakah
Equity Co-Investment and Shariah-Compliant Home Finance
Musharakah is a partnership financing arrangement under which IDIB and the client jointly invest in a venture and share profits according to a pre-agreed ratio, with losses shared in proportion to capital contributions.
Diminishing Musharakah (Musharakah Mutanaqisah) enables IDIB to finance home purchases and enterprise acquisitions through a gradual buyout structure: IDIB and the client co-own the asset; the client progressively purchases IDIB's share until full ownership is transferred — a fully Shariah-compliant alternative to a conventional mortgage.
Key Use Cases
- Business co-investment and project finance equity
- Home finance via Diminishing Musharakah
- Enterprise acquisition and expansion
04
Mudarabah
Profit-Sharing Finance
Mudarabah is a profit-sharing arrangement under which IDIB provides capital (as Rab al-Mal) and the client provides expertise and management (as Mudarib). Profits are shared according to a pre-agreed ratio; financial losses are borne by IDIB as capital provider, except in cases of client negligence or misconduct.
Mudarabah also underpins IDIB's Profit-Sharing Investment Accounts on the funding side — creating a consistent Islamic finance architecture across both assets and liabilities.
Key Use Cases
- Entrepreneurial business ventures
- Specialized trading activities
- Profit-Sharing Investment Accounts (liability side)
Deposits & Savings
05
Profit-Sharing Investment Accounts
Shariah-Compliant Deposits
PSIAs are IDIB's Shariah-compliant alternative to conventional interest-bearing deposit accounts. PSIA holders participate in the real economy without engaging in riba — aligning their savings with their faith and their country's development.
PSIAs enable Afghan savers, businesses, and institutions to put their funds to productive use in a manner that is fully consistent with Islamic principles.
Target Depositors
- Individuals
- Small & Medium Enterprises
- Institutional Investors
- Government Entities
- NGOs & Development Organizations
How PSIAs Work
A Mudarabah-based structure that links depositor returns to real economic performance — not to a fixed interest rate.
Deposit on Mudarabah Basis
PSIA holders deposit funds with IDIB — IDIB acts as Mudarib (manager) and the depositor as Rab al-Mal (capital provider).
IDIB Invests in Shariah Portfolio
IDIB pools the funds and deploys them across its Shariah-compliant asset portfolio — financing real economic activity, not riba-bearing instruments.
Profits Distributed by Pre-Agreed Ratio
Profits generated are distributed between IDIB and PSIA holders according to a transparent, pre-agreed profit-sharing ratio — no fixed interest, no hidden charges.
Development & Capital Market Instruments
Financing scale, markets, and social purpose
Three instruments that extend beyond conventional financing — mobilizing capital for national infrastructure, developing Afghanistan's capital markets, and channeling resources to social development.
06
Project & Infrastructure Finance
Large-Ticket Development Finance
IDIB structures large-scale project and infrastructure finance transactions using combinations of Musharakah, Ijara, and Istisna — the latter specifically suited for the construction phase of infrastructure projects. IDIB co-finances alongside multilateral DFIs including the Islamic Development Bank and AIIB, with all structures pre-approved by the SSB.
Every large-ticket project undergoes a comprehensive development impact assessment alongside its commercial credit analysis.
Priority Sectors
- Renewable energy (solar and hydro)
- Road and logistics infrastructure
- Urban water and sanitation
- Telecommunications
- Industrial parks
07
From Year 3Sukuk
Islamic Capital Market Instruments
Sukuk are Shariah-compliant investment certificates that represent ownership interests in underlying assets, usufructs, or project cash flows — providing the economic function of bonds without riba. IDIB will develop and launch its Sukuk structuring and issuance capability from Year 3, with Ijara-based Sukuk as the backbone instrument.
Target Issuers
- Afghan government (sovereign Sukuk)
- State-owned enterprises
- Large private sector corporates
- PPP project companies
08
Qard Hasan
Benevolent Interest-Free Finance
Qard Hasan is an interest-free benevolent loan extended by IDIB for qualifying development, humanitarian, or social purposes. The borrower repays only the principal — no markup, no profit, no interest. IDIB's Qard Hasan facilities are linked to Waqf structures where available, mobilizing Islamic social finance capital for community development.
One of the purest expressions of Islamic finance's social mission and a cornerstone of IDIB's development impact framework.
Key Use Cases
- Qualifying social enterprises
- Humanitarian relief support
- Community development projects
- Waqf-linked social infrastructure
Shariah Compliance Assurance
Every product. Every transaction. Independently verified.
Product approval and transaction review processes are governed by AAOIFI Governance Standard No. 1 and IFSB Guiding Principles on Shariah Governance — ensuring IDIB operates at a level comparable to the most respected Islamic financial institutions globally.
- Pre-Launch Approval
- All products are reviewed and formally approved by the SSB before being offered to clients.
- Periodic Transaction Audit
- The SSB and Internal Shariah Audit function conduct periodic, risk-based audits of IDIB's transactions and operations.
- Annual Shariah Compliance Report
- An independent Annual Shariah Compliance Report is published and made publicly available each year.
- Non-Compliant Income Disposal
- Any non-compliant income identified by the SSB is directed to charitable purposes — not retained by IDIB.
