Salaam Bank, a division of the Djibouti-based Salaam Group, has inaugurated Uganda’s inaugural Islamic banking institution, signaling a significant development in the country’s financial landscape.
President Yuweri Museveni presided over the inaugural ceremony, joined by distinguished guests including the Foreign Affairs Minister of Djibouti and the Director General of Salaam Bank in Uganda.
Soundbite of Uganda President
This milestone follows the enactment of legislation last year permitting Islamic banking practices in Uganda. Islamic finance principles, which adhere to religious precepts such as prohibition of interest payments and avoidance of investments in certain sectors like gambling, are now accessible through Salaam Bank Limited.
With approximately 14% of Uganda’s population identifying as Muslim, the introduction of Islamic banking addresses a longstanding need within the community for sharia-compliant financial products. Advocacy from Muslim leaders and officials played a pivotal role in the legislative process, fostering an environment conducive to Islamic banking institutions’ entry into the market.
Minister of Foreign Affairs of Djibouti, Mohamud Ali Yusuf, expressed optimism regarding the bank’s potential contribution to Uganda’s economy, highlighting Salaam Bank’s expanding footprint across the continent.
Soundbite of Djibouti FM
The Director General of Salaam Bank in Uganda emphasized the strategic significance of launching Uganda’s first Islamic bank, underscoring the sizable Muslim demographic in the country. Immediate plans include the establishment of five branches in Kampala to better serve the community.
Soundbite Of the Director
Salaam Bank’s decision to enter the Ugandan market was prompted by growing demand, as evidenced by the enthusiastic turnout of approximately 50,000 attendees at the launch event. This overwhelming response underscores the eagerness of Ugandans to access Salaam Bank’s tailored financial services.
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