Experts have urged Muslims across the country to benchmark with the Catholics who have been successful with Centenary Bank in the implementation of Islamic banking.
The remarks were made during Salam Ramadhan Symposium that takes place every Sunday at Hotel Africana where a number issues ranging from Islamic Financing and banking, Ramadhan and other Islamic issues are discussed.
The head of Islamic Investment at Micro Support Centre(MSC), Dr. Sulaiman Lujja said more than 50 million people have been pushed into poverty due to Covid-19 and Islamic banking should be one of the interventions along other poverty alleviation programmes.
“Muslims should participate in emyooga, there is also emyooga Islamic SACCO. The longest verse in the Quran is talking about Islamic banking. It is not true that borrowing money is not allowed in Islam,” said Lujja, calling upon Muslims to engage in Islamic banking.
Lujja explained that Islamic banking is not a religious operation as it is commonly perceived by many Ugandans, adding that it is not intended for Muslims only but also other religious denominations.
“We thank the government and President Museveni for recognising Islamic banking. Islamic banking exists in Europe and the US. Islamic banking is not strong in Uganda because muslims have not engaged in it,” said Lujja.
Islamic banking is guided by Sharia principles as laid down in Islamic commercial law. It applies only a portion of Sharia which relates to commercial transactions.
Like other religions, Islam prohibits interest which is a backbone of conventional banking system. In addition to interest, Islam prohibits other unethical business conducts such as; excessive uncertainty, gambling, speculation and materialism.