Introduction

Abdul Majid Zabuli (August 14, 1896 – November 23, 1998) stands as a seminal figure in Afghanistan's economic history. As a pioneering entrepreneur, reformist, and statesman, Zabuli played a pivotal role in transitioning Afghanistan from a traditional agrarian society to a more diversified economy. His foresight and initiatives laid the groundwork for modern banking and industrial development in the country.

Work and Life

Born in 1896 in the Nawa district of Ghazni province, Zabuli pursued his education in Herat and later in Tashkent, exposing him to diverse economic models. In 1917, he took over his father's export-import business, facilitating trade with Iran and Russia. By 1922, he had relocated the company's headquarters to Tashkent and subsequently to Moscow, where he operated a textile mill under the Soviet Union's New Economic Policy.

Zabuli’s commercial success and growing reputation soon reached Afghanistan. After Mohammed Nadir Khan regained power in 1929, following the fall of Amanullah Khan and a period of national unrest, he sought capable Afghans abroad who could contribute to the country’s recovery and modernization. Recognizing Zabuli's economic acumen and international experience, Nadir Khan personally invited him to return and take part in shaping Afghanistan's post-crisis economy. Upon his return, Zabuli was entrusted with key responsibilities to help build financial institutions and stimulate industrial growth. This marked the beginning of his deep involvement in Afghanistan’s economic restructuring.

Achievements

Here are some of his phenomenal achievements:

• Founding Afghanistan's First National Bank

  In 1932, Zabuli established the Ashami Company, which evolved into the Bank-e-Millie Afghan (National Bank of Afghanistan) in 1933. This institution became the cornerstone of Afghanistan's financial system, regulating currency and providing credit facilities. Notably, Zabuli innovatively navigated Islamic prohibitions on interest by introducing a 'money ticket' system, allowing the bank to earn profits without charging traditional interest.

• Industrial and Economic Development

  His entrepreneurship didn’t stop with banking. Zabuli used the bank to support a wide range of industrial initiatives. He oversaw the creation of Afghanistan’s first large-scale manufacturing and processing facilities, including cotton and wool mills, sugar factories, and textile production plants. Under Zabuli's leadership, the National Bank financed numerous industrial projects, including cotton processing plants in the north, a textile mill in Pol-e-Khomri, a sugar factory in Baghlan, and a woolen textile mill in Kandahar which helped decentralize economic growth and develop infrastructure beyond Kabul. These ventures significantly contributed to Afghanistan's industrialization and economic diversification.

• 12-Year Development Plan

  In 1948, Zabuli was appointed Minister of National Economy in Shah Mahmud Khan’s cabinet. During his term, he proposed a groundbreaking 12-year development plan estimated at $450 million that included investments in public works, mining, education, and industrialization. Though not fully realized, this plan reflected his long-term vision for an economically independent Afghanistan with a diversified, modern economy. As Minister of National Economy in 1948, Zabuli proposed an ambitious 12-year development plan estimated at $450 million.

• Trade Policy

  Zabuli also played a significant role in shaping Afghanistan’s trade policies and international partnerships. In the 1930s and 1940s, he helped shift the country’s trade dependence away from British India by encouraging closer economic ties with Germany, Japan, and the Soviet Union. During World War II, he facilitated the opening of the National Bank’s overseas branch in Berlin and helped establish Afghanistan as a neutral yet economically active country.

• Innovative Financial Instruments and Investment Promotion

  Zabuli introduced creative financial instruments to comply with Islamic finance principles while mobilizing capital for industrial and infrastructural development. He also encouraged the formation of joint-stock companies and offered favorable loans to support Afghan entrepreneurs and civil servants in building homes and starting businesses.

Legacy

Abdul Majid Zabuli’s legacy is etched into the very foundation of Afghanistan’s modern economy. By establishing Bank-e-Millie Afghan (Afghan National Bank), he not only pioneered the country’s first national banking system but also served as a beacon of reformist economic thought. He remains revered as the father of Afghanistan’s banking system—a title earned through visionary leadership, bold reforms, and an unwavering commitment to national economic independence.

In the final decades of his life, Zabuli dedicated himself to promoting economic education and research. He was a firm believer in the power of data-driven policymaking and supported platforms for open discourse and critical analysis of Afghanistan’s socio-economic challenges. Recognizing the transformative role of education in national development, Zabuli worked toward strengthening Kabul University as a hub for intellectual growth. He actively advocated building partnerships between Kabul University and reputable international universities, aiming to promote collaborative research, faculty exchange programs, and the sharing of global best practices in economics and development. His vision was to expose Afghan students and scholars to global academic standards while encouraging the development of locally grounded solutions. His will included a profound and symbolic wish—to establish a trust fund and transfer his entire estate to Kabul University once a representative and inclusive government came to power. This gesture underscored his enduring commitment to youth empowerment, institutional development, and the role of higher education as the cornerstone of Afghanistan’s long-term progress.

Zabuli passed away in New York in 1998 at the age of 102, but his legacy endures. The Majeed Zabuli Center for Economic Research & Policy Analysis in Kabul continues to honor his name, serving as a hub for academic inquiry and policy engagement. His lifelong commitment to entrepreneurship, reform, and national progress remains a source of inspiration for generations of Afghans striving to build a resilient, self-reliant nation.