President Yoweri Kaguta Museveni has launched Salaam Bank, Uganda's first ever licensed Islamic Banking institution.
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.
The President launched the bank today during Ramathan dua prayers organised by the Office of the National Chairman-NRM at Kololo Ceremonial Grounds.
President Museveni wished the Muslims a fruitful Ramathan and prayed that God protects them.
He also reiterated his call to believers to make sure that they take part in income-generating activities to improve their livelihoods.
He however assured Muslims that in the near future he will have a meeting with their leaders so that they discuss PDM and riba and how Muslims can benefit from the program without any limitations.
“If you convince me that the PDM and Emyooga money has some contradictions as per the Islamic teachings, then I will find a way how I send your money direct to this bank,” he said.
President Museveni also welcomed the bank to Uganda, before assuring them of support to smoothly run their operations in the country.
“I welcome Salaam Bank to Uganda. This is a big market with a population of 48 million now and in the next 27 years, the population of Uganda will be 106 million. You are going to start right away to serve the people of Uganda,” he said.
The Minister of Foreign Affairs and International Cooperation of Djibouti who led the Djiboutian delegation to Uganda, Mahmoud Ali Youssouf, underscored the inspiring ambition of the Salaam Group to broaden the scope of its activities all over the continent including Uganda which he said has a safe and solid financial institution.
The Wakiso District Kadhi, Sheikh Erias Kigozi who spoke on behalf of Muslims, thanked President Museveni for being a hero, a patriot, a parent and a visionary leader with a mission and an ambition.
He also commended President Museveni for fighting and protecting the property of Muslims 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.