Towards Islamic banking in Uganda:

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Kampala International University, School of Law
Islamic banking in Uganda derives its existence and power from the Financial Institutions (Amendment) Act 2016. The concept of Islamic banking is a new phenomenon in the banking system of Uganda's secular environment. CuJTently this concept is mainly regulated by the Financial Institutions (Amendment) Act 2016. This thesis analyzes the Islamic banking regulatory framework, prospects and the challenges which are likely to impede its operations. The thesis explains the fact that although Islamic financial institutions have to operate in accordance with Shari 'ah principles, this may be restricted by the Central Bank's regulations and policies especially the Financial Institutions (Islamic Banking)Regulations 2018 and other regulations. In conducting the study the researcher relied on qualitative methodology. Accordingly, data was collected using both primary and secondary source of information. The keyc findings show that the adoption of Islamic banking is likely to have some legislative challenges which cam1ot effectively serve the tJ.ue operation of Islamic banking. There are law~ and procedures that are likely to run counter to the principles oflslamic banks which if applied to them could cause undue unfairness to the Islamic banks and which would defeat the whole purpose of establishing Islamic banking in Uganda. The thesis recommends that to ensure a proper and supporting Islamic banking legal system in Uganda, amendments in existing laws, which are likely to be repugnant to Islamic banking, are required to promote Islamic banking law compliant products.
Thesis Submitted to the College of Higher Degrees and Research In Partial Fulfillment of the Requirement for Award of the Degree of Master of Laws (Commercial Law) of Kampala International University Kampala, Uganda
Commercial Law, Islamic banking, Secular legal environment, Uganda