Bank of Uganda (BoU) has officially authorized Salaam Bank to initiate Islamic Banking services in Uganda.
On Friday, Michael Atingi-Ego, the Deputy Governor of the Bank of Uganda, presented the inaugural operational certificate to the administrator of Salaam Bank, marking the commencement of Islamic Banking in the country.
During the ceremony, Atingi-Ego emphasized the potential of Islamic banking to make a substantial contribution to Uganda’s economic development.
He stated, “The Bank of Uganda is committed to overseeing and supporting Salaam Bank Limited as it embarks on this new venture. Islamic banking holds the potential to significantly contribute to the growth of Uganda’s financial sector.”
Atingi-Ego further revealed that within the next 12 months, Salaam Bank will commence the delivery of Islamic Banking services. He explained, “As you are all aware, Islamic Banking is based on the principles of Sharia, which prohibit the charging of interest and promote products without uncertainty, such as speculation, gambling, and activities deemed detrimental to society.”
This development follows President Museveni’s signing of the Financial Institutions (Amendment) Act 2023 last month, which paved the way for the introduction of Islamic Banking in Uganda.