Bank of Uganda, the financial sector regulator, has issued the first Islamic Banking licence to Salaam Bank Limited. 

Deputy Governor, Bank of Uganda, Michael Atingi-Ego on Friday issued the first Islamic Banking licence to Salaam Bank Limited.

The issuance of the Islamic Banking licence follows President Yoweri Museveni’s signing of the Financial Institutions (Amendment) Act 2023 last month.

The law and its assent by the President paved way for the introduction of Islamic Banking in Uganda.

“The BoU is committed to providing oversight and support to Salaam Bank Limited as it embarks on this new journey. Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector,” Atingi-Ego said.

Islamic Banking is a financial system that operates under the principles of Islamic laws. Bank of Uganda said this is a pivotal moment in the country’s finance sector.