Islamic Banking: BoU issues first licence to Salaam Bank

Bank of Uganda (BoU) has authorized Salaam Bank to start offering Islamic Banking services in Uganda.

Mr. Michael Atingi-Ego, the Deputy Governor, Bank of Uganda on Friday handed over the first operational certificate to the administrator of Salaam Bank, launching Islamic Banking in the country.

Speaking at the ceremony, Atingi-Ego noted that Islamic banking has the potential to make a significant contribution to the development of Uganda’s economy.

“The Bank of Uganda is committed to providing oversight and support to Salaam Bank Limited as it embarks on this new journey. Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector,” Atingi-Ego said.

He says within the next 12 months, the bank will be delivering Islamic Banking services.

“As you are all aware, Islamic Banking is based on the principals of Sharia which prohibit charging of interest, promoting products with uncertainty such as speculation, gambling, and activities that society deems detrimental,” he added.

The move follows  President Museveni’s signing of the Financial Institutions (Amendment) Act 2023 last month, which paved way for the introduction of Islamic Banking in Uganda.

Written by Moses Ndhaye