President Museveni has officially launched Salaam Bank, Uganda’s first licensed Islamic banking institution.
Welcoming the bank in the country, Museveni pledged government support.
“I welcome Salaam Bank to Uganda. This is a significant market with a current population of 48 million, which is projected to reach 106 million in the next 27 years. You can begin serving the people of Uganda immediately,” he said.
Museveni assured the Muslim community that he would hold a meeting with their leaders to discuss the PDM and riba, exploring ways for Muslims to benefit from the program without any conflicts with Islamic teachings.
“If you can convince me that the PDM and Emyooga funds have contradictions with Islamic teachings, I will find a way to directly channel your money to this bank.”
Mahmoud Ali Youssouf, the Minister of Foreign Affairs and International Cooperation of Djibouti, emphasized the ambitious goals of the Salaam Group to expand its activities across the continent, including Uganda, which he described as having a secure and robust financial industry.
The board chairman of Salaam Bank, Ibrahim Abdirahman, informed Museveni that he signed the Islamic banking regulations into law at a time when the Islamic community greatly needed it.
“Indeed, you have been a true friend to this community. Salaam Bank received its license on September 8, 2023, which happened to be your birthday month, Mr. President,” he said.
“We sincerely thank you for wholeheartedly supporting us. The establishment of an Islamic Bank signifies a significant milestone in Uganda’s journey towards economic empowerment and inclusive financial growth.”
He highlighted that Islamic finance offers Sharia-compliant bonds, which the government can utilize to raise capital for infrastructure and other projects.
Salaam Bank Limited last year became the first financial institution in Uganda to be licenced to offer Islamic banking services in the country.
The development followed President Museveni’s signing of the Financial Institutions (Amendment) Act 2023 that paved way for the introduction of Islamic banking in Uganda.
Also known as Sharia-compliant or Islamic finance, Islamic banking is a financial system that operates under the principles of Islamic law, known as Sharia.
Islamic banking will also open doors for Ugandans to take interest free loans but also the lender and borrower share profits or losses on a pre-agreed ratio.
About Salaam bank
Salaam African Bank (SAB), which is headquartered in Djibouti entered the Ugandan market last year when it acquired Uganda’s Top Finance Bank Limited (TFB).
Salam African Bank was officially opened in 2008 and since then, the bank has risen to become the largest in Djubouti.
It has since expanded to Ethiopia, Kenya and Malaysia where it opened Waafi Bank.
