The Bank of Uganda (BOU) has issued the first Islamic banking licence to Salaam Bank Limited, also known as Sharia-compliant, which will be operating under the principles of Islamic law, known as Sharia.
Its introduction marks a pivotal moment in the Ugandan financial landscape, unlocking fresh funding avenues for businesses and individuals.
In a statement released on September 8, 2023, the Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, handed over the licence to Michael Mande on behalf of Salaam Bank Ltd., witnessed by Ramathan Ggoobi, the finance ministry’s permanent secretary and the Secretary to the Treasury, at the Bank of Uganda head office in Kampala.
“The BOU is committed to providing oversight and support to Salaam Bank Limited as it embarks on this new journey,” Atingi said.
He noted that Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector.
This issuance of the licence follows the signing of the Financial Institutions (Amendment Bill) Act 2023 last month.