The central has granted Salaam Bank to start offering Islamic banking products in the country.
The bank has become the first financial institution in Uganda to be licenced to offer Islamic banking services in the country.
On Friday 8th September, Bank of Uganda deputy governor, Michael Atingi-Ego handed over the licence to the bank officials in the presence of the Ministry of Finance Permanent Secretary, Ramathan Ggoobi.
According to him, the the operational certificate allows the Administrator of Salaam Bank to effectively starting the Islamic banking in the country.
He noted that he is optimistic that the legal reforms that have been put in place to support the operations of Islamic banking will fully make the bank successful.
Within the next 12 Months the central bank is expecting the bank to start delivering the services to the community.
The BoU 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,” said Mr Atingi-Ego, at the handover ceremony held at the BOU head office in Kampala.
Meanwhile, the Secretary to the Treasury, Ramathan Ggoobi described the move as a big milestone to the country's economy.
“I am happy that everyone now will participate in the formal financial sector,” He said.
