Sharia law and Islamic banking in Uganda

Abstract

I would like to applaud Isaac Christopher Lubogo new ground breaking book on Islamic banking in Uganda I have no doubt this book will be a blessing to scholars and judiciary in understanding the signifinancy of Islamic banking and how it will be a blessing in the development of the financial sector in Uganda, as a ground breaking book it highlights the challenges of Convention Banks and how the capitalistic ideology has impeded the rapid growth of financial sector. Lubogo in his book, highlights the pitfalls that need to be handled by government. He explores the evolution of Islamic banking from both the Quran and the Bible. For example: he refers to the Holy Quran under sharia Law where it Provides " those who charge interest are in the same as those controlled by the devils's influence." God permits commerce and prohibits interest (Ribah). The Holy Bible too in where he makes a critical analysis from the Jewish and Christian perspective where he refers to the Holy Bible in Deuteronomy 23:19. Ezekiel 18:8-9, Mathew, 21:12-13, which all comply with the Islamic teaching that interest and usury are forbidden. In his intellectual wisdom he looks at Islamic finance from both Islamic and non Islamic perspective. He looks at Global trends in Islamic banking, where for example: in UK, USA, Japan and China consider seriously some form of sharia compliance Since Uganda is no exception to this trend, the author in his books advocates for Uganda to embrace Islamic banking like some East African countries namely: Kenya, Tanzania, Rwanda. ( Much thanks to finance Trust Bank Uganda which has recently launched the Halal account) The author examines the Financial Institutions Amendment Act 2016,which was passed by parliament and assented by President on 19 Jan 2016, to provide Islamic banking in Uganda. The author queries the delay in licensing Islamic banking since 2017, when the Governor of Uganda stated that Islamic Finance was to commence. The author in his wisdom examines the Islamic modes of finance, to both muslims and non muslims. The author gives guidance musharak( Joint Venture) Mudarab ( profit sharing), murabah ( cost Plus). ijrah (leasing), Asalm ( forward sale and Istisna (manufacturing contracts). In his book he explores the misconception that have impeded Islamic finance in Uganda