The feasibility of adopting Islamic Banking system under the existing laws in Uganda

Purpose – In 2014, Islamic finance assets are estimated to have exceeded US$2 trillion with over 100 products and an annual growth of over 20.7 per cent, across more than 76 countries, most of which are members of the Organization of Islamic Cooperation (OIC). Despite this remarkable market expansio...

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Main Authors:	Lujja, Sulaiman, Mohammed, Mustafa Omar, Hassan, Rusni, Oseni, Umar Aimhanosi
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Limited 2016
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/53584/ http://irep.iium.edu.my/53584/ http://irep.iium.edu.my/53584/ http://irep.iium.edu.my/53584/1/The%20feasibility%20of%20adopting%20islamic%20banking%20in%20uganda.pdf http://irep.iium.edu.my/53584/7/53584_The%20feasibility%20of%20adopting%20islamic%20banking_Scopus.pdf

id	iium-53584
recordtype	eprints
spelling	iium-535842017-03-29T08:37:37Z http://irep.iium.edu.my/53584/ The feasibility of adopting Islamic Banking system under the existing laws in Uganda Lujja, Sulaiman Mohammed, Mustafa Omar Hassan, Rusni Oseni, Umar Aimhanosi HG1501 Banking Purpose – In 2014, Islamic finance assets are estimated to have exceeded US$2 trillion with over 100 products and an annual growth of over 20.7 per cent, across more than 76 countries, most of which are members of the Organization of Islamic Cooperation (OIC). Despite this remarkable market expansion, numerous OIC members such as Uganda are yet to fully adopt this unique financial system because of regulatory constraints. Thus, the purpose of this paper is to examine the extent to which Uganda can benchmark the Malaysian experience and best practices to overcome the regulatory challenges in introducing Islamic Banking.Design/methodology/approach – This exploratory study adopts qualitative research methods through documentary review to elicit relevant information from the existing laws in Uganda that would accommodate the Islamic Banking system. Interpretive analysis and analytical methods are used to analyze data. Findings – The Malaysian experience and best practices of Islamic Banking regulation need to be benchmarked by regulators. Relevant laws which require some amendments include section 37(a) and 38(1) of the Financial Institutions Act 2004 and section 29(3)(a) of the Bank of Uganda Act 2000. Similarly, tax legislation needs amendments to ensure a level playing field for Islamic finance and conventional finance products. Originality/value – This is one of the earliest studies on models of Islamic Banking regulation suitable for adoption in Uganda. This study contributes to literature on how other jurisdictions (especially those with less regulatory prudence) could regulate Islamic Banking in a dual banking system jurisdiction. Emerald Group Publishing Limited 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/53584/1/The%20feasibility%20of%20adopting%20islamic%20banking%20in%20uganda.pdf application/pdf en http://irep.iium.edu.my/53584/7/53584_The%20feasibility%20of%20adopting%20islamic%20banking_Scopus.pdf Lujja, Sulaiman and Mohammed, Mustafa Omar and Hassan, Rusni and Oseni, Umar Aimhanosi (2016) The feasibility of adopting Islamic Banking system under the existing laws in Uganda. International Journal of Islamic and Middle Eastern Finance and Management Vol. 9 No. 3, 2016 pp. 417-434, 9 (3). pp. 417-434. ISSN 1753-8394 http://www.emeraldinsight.com/doi/full/10.1108/IMEFM-09-2014-0084 http://dx.doi.org/10.1108/IMEFM-09-2014-0084
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Lujja, Sulaiman Mohammed, Mustafa Omar Hassan, Rusni Oseni, Umar Aimhanosi The feasibility of adopting Islamic Banking system under the existing laws in Uganda
description	Purpose – In 2014, Islamic finance assets are estimated to have exceeded US$2 trillion with over 100 products and an annual growth of over 20.7 per cent, across more than 76 countries, most of which are members of the Organization of Islamic Cooperation (OIC). Despite this remarkable market expansion, numerous OIC members such as Uganda are yet to fully adopt this unique financial system because of regulatory constraints. Thus, the purpose of this paper is to examine the extent to which Uganda can benchmark the Malaysian experience and best practices to overcome the regulatory challenges in introducing Islamic Banking.Design/methodology/approach – This exploratory study adopts qualitative research methods through documentary review to elicit relevant information from the existing laws in Uganda that would accommodate the Islamic Banking system. Interpretive analysis and analytical methods are used to analyze data. Findings – The Malaysian experience and best practices of Islamic Banking regulation need to be benchmarked by regulators. Relevant laws which require some amendments include section 37(a) and 38(1) of the Financial Institutions Act 2004 and section 29(3)(a) of the Bank of Uganda Act 2000. Similarly, tax legislation needs amendments to ensure a level playing field for Islamic finance and conventional finance products. Originality/value – This is one of the earliest studies on models of Islamic Banking regulation suitable for adoption in Uganda. This study contributes to literature on how other jurisdictions (especially those with less regulatory prudence) could regulate Islamic Banking in a dual banking system jurisdiction.
format	Article
author	Lujja, Sulaiman Mohammed, Mustafa Omar Hassan, Rusni Oseni, Umar Aimhanosi
author_facet	Lujja, Sulaiman Mohammed, Mustafa Omar Hassan, Rusni Oseni, Umar Aimhanosi
author_sort	Lujja, Sulaiman
title	The feasibility of adopting Islamic Banking system under the existing laws in Uganda
title_short	The feasibility of adopting Islamic Banking system under the existing laws in Uganda
title_full	The feasibility of adopting Islamic Banking system under the existing laws in Uganda
title_fullStr	The feasibility of adopting Islamic Banking system under the existing laws in Uganda
title_full_unstemmed	The feasibility of adopting Islamic Banking system under the existing laws in Uganda
title_sort	feasibility of adopting islamic banking system under the existing laws in uganda
publisher	Emerald Group Publishing Limited
publishDate	2016
url	http://irep.iium.edu.my/53584/ http://irep.iium.edu.my/53584/ http://irep.iium.edu.my/53584/ http://irep.iium.edu.my/53584/1/The%20feasibility%20of%20adopting%20islamic%20banking%20in%20uganda.pdf http://irep.iium.edu.my/53584/7/53584_The%20feasibility%20of%20adopting%20islamic%20banking_Scopus.pdf
first_indexed	2023-09-18T21:15:47Z
last_indexed	2023-09-18T21:15:47Z
_version_	1777411552765280256

The feasibility of adopting Islamic Banking system under the existing laws in Uganda

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