Museveni launches first-ever Islamic Bank in Uganda

Uganda’s President Yoweri Museveni has officially launched the country’s first-ever interest-free commercial Islamic bank.

Salaam Bank Limited, a subsidiary of a Djibouti-based bank, is the first institution to offer Islamic financing in the country.

Mr Museveni said the institution had a potential to significantly contribute to the development of the country’s financial sector and attract more Muslim investors.

“I encourage you to fight poverty and create wealth,” the president said shortly after launching the bank on Wednesday in the capital, Kampala.

In September last year, the Salaam bank was granted its first Islamic banking license after the Ugandan parliament passed legislation authorising Islamic banking, which Mr Museveni signed into law.

It is not allowed to pay and receive interest in Islamic banking, but rather it is based on profit sharing.

Source:BBC