Uganda: Banks can now offer Islamic banking products
Regulators have amended the regulation to allow for this banking model.Commercial banks in Uganda can now offer Islamic banking products, after regulators amended the legal restrictions that prevented the implementation of this alternative banking model and adopted new regulations.
These Shariah compliant products can now be offered within the premises of existing commercial banks or at a dedicated bank.
Justine Bagyenda, a director at the Bank of Uganda (BoU), told the Monitor that financial institutions can already apply for a licence.
She praised the Islamic banking model, noting that it has gained prominence internationally due to its resilience to financial crises.
"The Islamic finance model has contributed to the spread of real-asset-based finance principles in many jurisdictions and is regarded as an ideal option for the financing of infrastructure projects," she said.