Uganda Grants First Islamic Banking License, Boosting Financial Sector

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

Atingi-Ego presented the license 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 a Board member of the Bank of Uganda.

This historic issuance of the Islamic banking license comes following President Yoweri Museveni’s signing of the Financial Institutions (Amendment) Act 2023 last month, which paved the way for the introduction of Islamic Banking in Uganda.

During the license handover ceremony held at the Bank of Uganda’s head office in Kampala, Atingi-Ego stated, “The Bank of Uganda 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.”

Islamic Banking, also known as Sharia-compliant or Islamic finance, operates under the principles of Islamic law, known as Sharia. Its introduction marks a transformative moment in Uganda’s financial landscape, unlocking fresh funding avenues for businesses and individuals, thus promoting financial inclusion.