The Bank of Uganda has issued the first Islamic Banking licence to Salaam Bank Limited.
Deputy Governor, Bank of Uganda, Michael Atingi-Ego handed over the licence to Salaam Bank officials led by Michael Mande yesterday in the presence of Ramathan Ggoobi, the Permanent Secretary/Secretary to the Treasury (PS/ST) at the Ministry of Finance, Planning and Economic Development.
The issuance of the Islamic Banking licence follows a directive from President Yoweri Museveni’s signing of the Financial Institutions (Amendment) Act 2023 last month, that paved way for the introduction of Islamic Banking in Uganda.
“The BoU is committed to providing oversight and support to Salaam Bank Limited as it embarks on this new journey. We believe that Islamic Banking has the potential to make a significant contribution to development of Uganda’s financial sector,” Anti-Ego said.
Islamic banking, also known as Sharia-compliant or Islamic finance, is a financial system that operates under principles of Islamic law, known as Sharia.
The introduction of Islamic banking marks a pivotal moment in Uganda’s financial landscape, unlocking fresh funding avenues for businesses and individuals, thereby fostering financial inclusion.
