Hello @Aisha Al Fudhaili ,
Thank you for posting here.
I am sorry, after a lot of my research, I can not find a proper article (configure shibboleth IDP v4 in local Active Directory) for your reference.
The link might be helpful
Installing a Shibboleth 3.x IdP
https://tuakiri.ac.nz/confluence/display/Tuakiri/Installing+a+Shibboleth+3.x+IdP
And here are configuration Shibboleth 2 in Azure AD.
Azure AD/Office 365 Single Sign-On with Shibboleth 2
http://novacontext.com/azure-adoffice-365-single-sign-on-with-shibboleth-2/
Configure Shibboleth SP (SAML SP) to use Azure AD as the IDP
https://learn.microsoft.com/en-us/answers/questions/135373/configure-shibboleth-sp-saml-sp-to-use-azure-ad-as.html
Because shibboleth IDP is non-microsoft product, I suggest you can try to ask engineers from shibboleth IDP for help if it does not work above.
Thank you for your understanding and support.
Best Regards,
Daisy Zhou