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.
#NEW: 𝗣𝗥𝗘𝗦𝗦 𝗥𝗘𝗟𝗘𝗔𝗦𝗘
— Bank of Uganda (@BOU_Official) September 8, 2023
Bank of Uganda issues first Islamic Banking Licence to Salaam Bank Limited.
Deputy Governor, Bank of Uganda, Mr. Michael Atingi-Ego today, issued the first Islamic Banking licence to Salaam Bank Limited.#IslamicBankingUG pic.twitter.com/dJS0mBpZYn
“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.
