Salaam Bank, a unit of Djibouti-based Salaam Group, launched Uganda’s inaugural Islamic banking-compliant financial institution, following the country’s legalization of Islamic banking last year.
The launch was officiated by Ugandan President Yoweri Museveni, marked a significant milestone following the implementation of a law authorizing Islamic banking within the East African nation.
Islamic finance, adhering to Sharia principles, abstains from interest payments and certain investments like gambling. With Muslims constituting approximately 14% of Uganda’s populace, the introduction of Sharia-compliant banking addresses a longstanding need within the community.
Ibrahim Abdirahman, the bank’s board chairman, highlights the potential for Salaam Bank to facilitate the issuance of Sharia-compliant bonds for government infrastructure initiatives, further advancing Islamic finance in Uganda.
