The Muslim Parliamentary Caucus has commended the Speaker and legislators for passing the Islamic Banking law in Parliament.
Speaking at the fourth Iftar dinner held at Parliament on Friday, 10th June 2016, the Chairperson of the Muslim Parliamentary Caucus, Hon. Hood Katuramu (PWD, Western) said that the Ugandans will now be able to benefit from the flexible financial solutions provided by Islamic financial institutions.
“The government has been receiving support from Islamic financial institutions in the sectors of agriculture, rural electrification, tertiary institutions and infrastructure development,” Katuramu said.
“Banking is a new area which is warmly welcome”
He said that the support from the sector will be extended to Ugandans regardless of their religious backgrounds.
Katuramu further encouraged Parliament to make regulations in order to operationalise the Islamic financing sector.
“Efforts are being made to establish a forum on Islamic financing to equip MPs to be in position disseminate knowledge on this new innovation to their constituents,” he said.
In her response, the Speaker, Rt. Hon. Rebecca Kadaga, said she was very excited about Islamic banking.
“I have been told before that Islamic banking has friendlier lending terms than any other banking institutions and that it benefits everyone regardless of their religion,” Kadaga said.
She also expressed gratitude to the President for assenting to the Financial Amendment Act and to the Islamic community for fronting the idea.
She further wished the Muslim society a successful month of Ramadhan.
This follows the passing of the Financial Institutions (Amendment) Bill 2015 by Parliament that introduces three new products: Islamic Banking, Banc assurance and Agent Banking to Uganda’s Banking Sector.
The Islamic Banking model follows the Shariah law in which the institution does not charge interest on money taken out by a borrower.