Uganda Issues First Islamic Banking Licence in Boost to Financial Sector

The Deputy Governor of Bank of Uganda, Michael Atingi-Ego, has issued the first Islamic banking licence to Salaam Bank Limited.

Atingi-Ego handed over the licence to Michael Mande in the presence of Ramathan Ggoobi, the Permanent Secretary/Secretary to the Treasury (PS/ST) at the Ministry of Finance, Planning and Economic Development and Board member of BoU.

The issuance of the Islamic Banking licence follows 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 the development of Uganda’s financial sector,” said Atingi-Ego during the handover ceremony held at the BoU head office in Kampala.

Islamic Banking Islamic banking also known as Sharia-compliant or Islamic finance, is a financial system that operates under the 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.

About Salaam bank

Salaam African Bank (SAB), headquartered in Djibouti entered the Ugandan market last year when it  acquired Uganda’s Top Finance Bank Limited (TFB).

Salam African Bank was officially opened in 2008 and since then, the bank has risen to become the largest in Djibouti.