Image Courtesy: Bank of Uganda

Islamic Finance

Uganda issues first Islamic banking licence

In a significant development for Uganda's financial sector, the country's central bank has issued its first Islamic banking licence.

The move comes after Uganda passed legislation in June to accommodate Shariah-compliant finance activities, marking a notable step towards the diversification of the nation's financial services.

The newly issued licence has been granted to Salaam Bank Ltd., a subsidiary of Djibouti-based Salaam African Bank, the Bank of Uganda said in a statement.

“We believe that Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector,” the central bank’s deputy governor Michael Atingi-Ego said.

The Ugandan parliament's decision to authorize Islamic banking earlier this year laid the groundwork for this transformative development. By embracing Islamic finance principles, Uganda aims to tap into a previously underserved market segment while diversifying its financial services industry.


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