Bank of Uganda (BoU) has given the green light to Salaam Bank to commence offering Islamic Banking services in Uganda. In a significant development, Mr. Michael Atingi-Ego, the Deputy Governor of Bank of Uganda, presented the inaugural operational certificate to the administrator of Salaam Bank on Friday, marking the official launch of Islamic Banking in the country.
Addressing attendees at the ceremony, Atingi-Ego emphasized the potential of Islamic banking to play a pivotal role in advancing Uganda’s economic development. He stated, “The Bank of Uganda is fully committed to overseeing and supporting Salaam Bank Limited as it embarks on this new venture. Islamic banking holds the promise of making a substantial contribution to the growth of Uganda’s financial sector.”
Atingi-Ego further disclosed that Salaam Bank is on track to roll out its Islamic Banking services within the next 12 months. He explained, “As you are all aware, Islamic Banking is rooted in the principles of Sharia, which prohibit the charging of interest and endorse products free from uncertainty, such as speculation and gambling, as well as activities perceived as detrimental to society.”
This development follows the recent signing of the Financial Institutions (Amendment) Act 2023 by President Museveni. The act effectively paved the way for the introduction of Islamic Banking in Uganda, marking a significant milestone in the country’s financial landscape.
