Business
Global partners strengthen Afghan Islamic finance sector
Since 2024, more than 120 officials from Da Afghanistan Bank, commercial banks, and microfinance institutions have received certifications in areas such as Shari’ah compliance, Islamic accounting, and financial reporting.
The United Nations Development Programme (UNDP), the Islamic Development Bank Institute (IsDBI), and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) are scaling up efforts to strengthen Afghanistan’s financial sector through Islamic finance training and the adoption of international standards.
The partnership, part of the Global Islamic Finance and Impact Investing Platform (GIFIIP) launched by UNDP and IsDB in 2016, seeks to build resilience in Afghanistan’s fragile economy by positioning Islamic finance as a driver for sustainable development.
Since 2024, more than 120 officials from Da Afghanistan Bank, commercial banks, and microfinance institutions have received certifications in areas such as Shari’ah compliance, Islamic accounting, and financial reporting.
Training has included AAOIFI’s flagship programs—Certified Shari’ah Advisor & Auditor (CSAA), Certified Islamic Professional Accountant (CIPA), and others—alongside workshops on ethics, governance, and technical standards.
“These certifications are equipping Afghanistan’s financial sector with qualified professionals in Shari’ah compliance and financial reporting, ensuring alignment with global best practices,” the partners said in a joint statement.
By broadening institutional capacity and strengthening cross-border cooperation, the initiative aims to create a more inclusive financial system capable of supporting long-term growth.
Afghanistan’s banking sector has been under severe strain since the Islamic Emirate’s takeover in 2021, with international sanctions cutting off most external financing and foreign reserves.
Restrictions on the central bank have left commercial banks struggling with liquidity shortages, limited access to correspondent banking, and reduced public trust.
Within this constrained environment, Islamic finance is seen as a potential pathway to keep the sector functional, attract regional investment, and provide alternative tools for economic recovery.