Shariah Compliant AI enabled SCF Core Focus

Islamic Supply Chain Finance (ISCF) provides Shariah-compliant tools to support trade and production. Instruments like Murabaha and Tawarruq offer financing and liquidity, while Salam and Istisna enable advance and custom order payments. Ijarah supports asset leasing, and Mudarabah and Wakala facilitate profit-sharing and agency-based transactions—ensuring ethical, transparent, and risk-shared supply chain operations.

Tawarruq

A financing arrangement where a buyer purchases a commodity on a deferred payment basis and sells it to a third party for cash. Used to obtain liquidity while complying with Shariah law.

Murabaha

A cost-plus-profit sale where the seller discloses the cost and profit margin to the buyer. In supply chain finance, it’s used for purchasing goods with deferred payments.

Salam contract

A forward sale contract where the buyer pays in advance for goods to be delivered at a future date. It supports suppliers needing upfront capital for production.

Ijarah

A leasing agreement where one party leases an asset to another for a fixed rent. In supply chains, it’s often used for equipment or vehicle financing.

Mudarabah

A profit-sharing partnership where one party provides capital (rabb-ul-mal) and the other provides expertise (mudarib). Used to finance businesses or suppliers with shared profit/loss.

Wakala

An agency agreement where one party (agent) acts on behalf of another (principal) for a fee. Applied in SCF to manage procurement or collection on behalf of the financier.