Afghanistan Banks Association

د افغانستان د بانکونو ټولنه
Afghanistan Banks Association
Voice of The Banks

Afghanistan Banks Association

Updated on 23-April-2018

Islamic Bank of Afghanistan provides the following services and products:

1. Murabaha

Murabaha is a particular kind of sale where the seller discloses it’s cost and profit
charged thereon.
It is a contract wherein the bank, upon request by the customer, purchases an asset
from the third party usually a supplier/vendor and resells the same to the customer
either against immediate payment or on a deferred payment basis.

2. Ijarah

Ijarah technically means to give something on rent. IBA provides Ijarah based products
to provide exible solution for meeting long term financing requirements of the
This product is used for the financing of assets such as plant, machinery and vehicle.

3. Diminishing Musharaka

This is a medium and long term financing product, where the IBA and the customer
jointly purchase an asset and create joint ownership in the asset.
This mode is used for financing of fixed assets such as land, factory, building etc…

4. Istisna

Istisna is a type of sale transaction where the buyer places an order with the seller to
manufacture certain asset and the sale is completed upon delivery of the asset to the
IBA offers an Istisna based solution to finance complete working capital requirements
of its customers.

5. Salam

Salam is a sale whereby the seller undertakes to supply some specific goods to the
buyer at a future date in exchange of an advanced price fully paid at spot.
The contract of Salam creates a moral obligation on the Salam seller to deliver the
The Salam contract cannot be cancelled once signed.