Towards Islamic banking in Uganda:
Loading...
Date
2018-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, School of Law
Abstract
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.
Description
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
Keywords
Commercial Law, Islamic banking, Secular legal environment, Uganda