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President Yoweri Kaguta Museveni has launched Salaam Bank, Uganda’s first ever licensed Islamic Banking institution.
The President launched the bank on Wednesday during Ramathan dua prayers organised by the Office of the National Chairman-NRM at Kololo Ceremonial Grounds.
Islamic banking is a form of banking based on Islamic principles. Basically, in Islamic banking it is not allowed to pay and receive interest but rather it is based on profit sharing. Islamic banks focus on generating returns on investments through investment tools that are “Sharia” compliant.
Speaking during the event, President Museveni welcomed the Bank to Uganda, before assuring them of support to smoothly run their operations in the country.
The Board Chairman of Salaam Bank, Ibrahim M. Abdirahman informed the President that he signed the Islamic bank regulations into law at a time when the Islamic community really needed it.
In September last year, Bank of Uganda granted its first Islamic banking license to Salaam Bank Uganda Ltd, a subsidiary of a Djibouti-based bank after Parliament passed legislation to authorize Islamic banking, which President Museveni signed into law in August 2023.
