First Habib Modaraba

What First Habib Modaraba does

First Habib Modaraba (FHM) is a Pakistan-based Non-Bank Islamic Financial Institution (Modaraba) established in 1985 as a subsidiary of Habib Metropolitan Bank Limited. The company operates from a five-office network across Karachi, Lahore, Islamabad, and Multan, and is listed on the Pakistan Stock Exchange under the ticker FHM, issuing tradable Modaraba certificates to public investors. It has maintained the highest AA+ long-term credit rating in the Modaraba sector from PACRA for 18 consecutive years and distributes a consistent cash dividend to certificate holders, with a 22.5% cash dividend declared for 2025.

FHM's product portfolio spans two main categories: Deposit Schemes (Certificate of Investment under Musharakah profit-sharing, tenures from 3 months to 5 years) and Financial Services (Diminishing Musharaka for asset ownership, Consumer and Corporate Car Financing via Ijarah, a Residual Value (RV) Car Financing Model with lower EMIs, Istisna Financing for working capital, Plant Machinery/Generators/Equipment Financing, and Solar Power Equipment Financing). All products are Shariah-compliant and governed by an internal Shariah advisor framework, with the company holding ISO-class regulatory standing as an SECP-supervised NBFI. Distribution combines direct branch relationships (decade-long corporate fleet financing partnerships with blue-chip local and multinational firms) with an online application portal and rent calculator for retail and investment flows.

FHM generates revenue through recurring rental income on Ijarah-financed vehicles and equipment, profit-share margins on Musharakah-based financing and investment certificates, and residual-value gains at end-of-tenure. The customer base is bifurcated between individual consumers (car financing, investment certificates) and corporate clients (fleet financing, plant and machinery, solar equipment). The company shows no disclosed AI/ML capabilities, no recent M&A, and no external funding rounds, positioning it as a stable, dividend-oriented institution executing incremental product diversification within a niche Islamic finance segment.

Name

First Habib Modaraba

Legal name

First Habib Modaraba

Website

https://habibmodaraba.com

Company type

Public

Founded year

1985

Operating status

Operating

Short description

First Habib Modaraba is a Pakistan-listed Non-Bank Islamic Financial Institution (Modaraba) and subsidiary of Habib Metropolitan Bank, offering Shariah-compliant financing and investment products - including car financing, corporate equipment financing, and Musharakah investment certificates - to individual consumers and corporate clients across Pakistan.

Ownership category

akta.pro rank

Product category

Islamic Non-Bank Financial Services

NAICS

All Other Financial Investment Activities (52399), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Personal Credit Institutions (6141), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Shariah-compliant Financing Products (Murabaha, Ijara, Tawarruq, Istisna, Salam) (FSABAGAH)

akta.pro secondary industries

Islamic Deposit & Account Products (Current/Savings/Investment Accounts) (FSABAGAI), Islamic SME & Commercial Banking (FSABAGAB), Shariah Governance, Compliance & Advisory (Shariah Boards, Audit, Fatwa) (FSABAGAJ)

Keywords

• Islamic financial services
• Shariah-compliant financing
• Modaraba investment
• Car financing solutions
• Corporate equipment financing

Headquarters

HQ city

Karachi

HQ country

Pakistan

HQ region

Asia

Offices5 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Car Financing (Ijarah): Revenue generated from Ijarah-based car financing to individuals and corporates. Customers pay monthly rentals for vehicle usage over specified tenures.
2. Corporate Financing Services: Financing solutions for corporate customers including fleet financing, plant machinery, generators, equipment financing, and solar power equipment. Revenue from financing margins and rental income.
3. Certificate of Investment (Musharakah): Investment certificates with 3 months to 5 years tenure offering competitive returns. FHM pools investor funds and deploys in Shariah-compliant business activities, sharing profits with investors.
4. Diminishing Musharaka: Joint ownership financing where FHM's ownership share decreases as customer purchases units over time, with profit earned on FHM's remaining share.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

First Habib Modaraba is a Non-Bank Islamic Financial Institution in Pakistan offering Shariah-compliant financial products. Its portfolio includes Musharakah-based Certificate of Investment (deposit scheme with tenures from 3 months to 5 years) and financing products covering Diminishing Musharaka, consumer and corporate Ijarah car financing, an RV (Residual Value) financing model, Istisna financing, plant/machinery/equipment financing, and solar power equipment financing.

Product overview

First Habib Modaraba operates as a Non-Bank Islamic Financial Institution offering a portfolio of Shariah-compliant financial products and services. The company provides two main categories: Deposit Schemes (Certificate of Investment based on Musharakah) and Financial Services (financing products). The financial services include Diminishing Musharaka for asset ownership, Consumer and Corporate Car Financing solutions (including a Residual Value model with lower EMIs), Istisna Financing for working capital, Plant Machinery/Equipment Financing, and Solar Power Equipment Financing for green initiatives. All products operate under Islamic finance principles with Shariah compliance certification.

Differentiator

Problem solved

Functional benefit

Brands

• FHM Consumer Car Financing: Shariah-compliant car financing solution for corporate employees and self-employed individuals.
• FHM RV Financing Model
• FHM Corporate Car Financing

Products and services

• Certificate of Investment (Musharakah based)

Quantifiable outcome

• AA+ long-term credit rating maintained for 18+ years - indicating very strong capacity for timely payment of financial commitments
• +1 more outcomes

Named customers2 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Scale indicators4 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Meezan Bank: Pakistan's largest Islamic bank, offering a comparable full-spectrum of Shariah-compliant products including Ijara, Diminishing Musharaka, Murabaha, and corporate financing. Competes with FHM across both consumer and corporate Islamic financing segments.
• BankIslami Pakistan: Full-service Islamic commercial bank in Pakistan providing Ijara, Musharaka, Murabaha, and corporate financing products. Overlaps directly with FHM's consumer car, asset, and corporate financing offerings at greater scale.
• Al Baraka Bank (Pakistan): Pakistani subsidiary of Al Baraka Banking Group offering Islamic consumer and corporate financing, including auto Ijara and asset financing. Competes with FHM in the Shariah-compliant asset financing space.
• Dubai Islamic Bank Pakistan: Pakistan operations of Dubai Islamic Bank, a major Islamic bank offering Shariah-compliant consumer financing (auto, home) and corporate financing directly competitive with FHM's Ijara and Musharaka products.

Regional players

• NRSP Microfinance Bank: Pakistan-based microfinance/NBFI offering asset financing to underserved consumers and SMEs. Comparable in regulatory classification and asset-financing orientation, though focused on smaller ticket sizes than FHM.

Direct peers

• KASB Modaraba: Pakistan-based Modaraba providing Shariah-compliant financing, investment certificates, and Islamic leasing services. Directly comparable as a peer NBFI in the same Modaraba sector competing for certificate-holder funding and corporate financing mandates.
• First National Bank Modaraba: Pakistan-based Modaraba offering Musharakah-based investment products and Shariah-compliant financing including Ijara. Operates in the same regulatory and competitive niche as FHM.
• Habib Metro Modaraba: Sister Modaraba within the broader Habib Group ecosystem, operating as a Non-Bank Islamic Financial Institution with overlapping Shariah-compliant financing products (Ijarah, Diminishing Musharaka, certificates of investment). Direct competitor in the Modaraba sector for both funding and deal flow.
• Standard Chartered Modaraba: Pakistan Modaraba offering certificate-based Islamic investment products and Shariah-compliant financing services. Comparable in business model as a listed Modaraba competing for retail and corporate Islamic financing.

Others

• House of Habib / Habib Group (parent ecosystem): Umbrella Habib Group conglomerate that owns Habib Metropolitan Bank (FHM's parent). Adjacent enabling entity providing strategic direction, distribution, and brand premium that underpins FHM's competitive positioning.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/p/First-Habib-Modaraba-100064521346581
• LinkedInlinkedin.com/company/first-habib-modaraba
• Instagraminstagram.com/firsthabibmodaraba

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about First Habib Modaraba