https://en.sputniknews.africa/20230909/uganda-grants-first-islamic-banking-license-boosts-the-sector-1061988880.html
Uganda Grants First Islamic Banking License, Boosts the Sector
Uganda Grants First Islamic Banking License, Boosts the Sector
Sputnik Africa
Shariah-compliant financial instruments are experiencing rapid global growth, and it is projected that their value will reach $3 trillion worldwide within the... 09.09.2023, Sputnik Africa
2023-09-09T16:52+0200
2023-09-09T16:52+0200
2023-09-09T16:52+0200
sub-saharan africa
east africa
uganda
djibouti
economy
finance
bank
central bank
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Uganda's central bank has recently issued its first Islamic banking license. The move comes after the country implemented legislation in June to allow Sharia-compliant financial activities within its borders.According to Uganda's main financial institution, the implementation of Islamic finance, which facilitates interest-free transactions, has the potential to greatly boost the growth of Uganda's economy. It is worth noting that Uganda's economy is the third largest in East Africa.The central bank highlighted that Islamic finance can appeal to a fresh set of customers who have previously refrained from borrowing from conventional lenders due to religious reasons.bank noted.Deputy Governor Michael Atingi-Ego of the central bank firmly believes in the immense potential of Islamic banking to greatly contribute to the growth and advancement of Uganda's financial sector.The central bank also assured its commitment to providing oversight and support to Salaam Bank Limited as it embarks on this new venture.Last year, Salaam African Bank entered the Ugandan market by acquiring Top Finance Bank Ltd. This strategic move demonstrates the bank's ambition to strengthen its foothold in East Africa and expand its influence across the region.The approval of Islamic banking in Uganda was granted by the country's parliament in June. In August, Ugandan President Yoweri Museveni took a significant step by signing the Financial Institutions Act of 2023 into law. This crucial development establishes a robust legal foundation for Islamic finance in the country.
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east africa, uganda, djibouti, economy, finance, bank, central bank, banking, islam, yoweri museveni
Uganda Grants First Islamic Banking License, Boosts the Sector
Muhammad Nooh Osman
Writer/Editor
Shariah-compliant financial instruments are experiencing rapid global growth, and it is projected that their value will reach $3 trillion worldwide within the next decade, a significant increase from about $2.1 trillion at the end of 2016
Uganda's central bank has recently issued its first Islamic banking license. The move comes after the country implemented legislation in June to allow Sharia-compliant financial activities within its borders.
The Islamic banking license has been granted to Salaam Bank Ltd, a subsidiary of Djibouti-based Salaam African Bank, the Bank of Uganda (BoU) said in a statement on Friday.
According to Uganda's main financial institution, the implementation of Islamic finance, which facilitates interest-free transactions, has the potential to greatly boost the growth of Uganda's economy. It is worth noting that Uganda's economy is the third largest in East Africa.
The central bank highlighted that Islamic finance can appeal to a fresh set of customers who have previously refrained from borrowing from conventional lenders due to religious reasons.
bank noted.
Deputy Governor Michael Atingi-Ego of the central bank firmly believes in the immense potential of Islamic banking to greatly contribute to the growth and advancement of Uganda's financial sector.
"We believe that Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector," he stated in the released statement.
The central bank also assured its commitment to providing oversight and support to Salaam Bank Limited as it embarks on this new venture.
Last year, Salaam African Bank entered the Ugandan market by acquiring Top Finance Bank Ltd. This strategic move demonstrates the bank's ambition to strengthen its foothold in East Africa and expand its influence across the region.
The approval of Islamic banking in Uganda was granted by the country's parliament in June. In August, Ugandan President Yoweri
Museveni took a significant step by signing the Financial Institutions Act of 2023 into law. This crucial development establishes a robust legal foundation for Islamic finance in the country.
