Ugandan university in Islamic banking and finance training partnership

AlHuda CIBE said that because Uganda has a Muslim population of nearly four million, representing 12% of the total population of around 30 million, “there is a dire need to open up new horizons for Islamic banking and finance” in the country.

AlHuda CIBE said it is entering into partnership with the Uganda Technology and Management University which will promote training programmes and conduct workshops and seminars on Islamic banking and finance in the country.

“Muslims are now becoming more concerned with what is compliant with their faith and this crosses into their day-to-day financial dealings,” CIBE said.

The country head of AlHuda CIBE Uganda Ahmad Abdullah said “there is an enormous demand for Islamic banking and finance in Uganda”. He said the central bank of Uganda also welcomed the provision of Islamic financial services.

AlHuda CIBE chief executive officer Muhammad Zubair Mughal said the move into the Ugandan market is part of “a long term work plan”. AlHuda CIBE is registered in Uganda as a private limited company and has started working as a private entity in the country.

Zubair Mughal said he expected “the future progress of Islamic banking in Africa will not only increase the economic and trade undertakings... but will also be a simulative cause of national development and growth in gross domestic product”.

Founded in 2005, AlHuda CIBE is an advisory and consultancy firm dedicated to the promotion of Islamic banking and finance. The Ugandan training programme is set to start by the end of this month.

According to the results of a survey released last September by the Dubai Chamber of Commerce and Industry, gulf businesses have invested at least $30 billion in infrastructure projects in Africa over the past decade and are set to step up investment across the continent.

The survey showed that investment over the past decade amounted to up to 10% of total inflows from the Gulf, of which about $15bn was in loans and grants from Gulf development agencies and around 15bn in direct investments.

The survey said efforts by African regulators to “deepen Islamic financial systems” created an opportunity to encourage further Gulf investment in Africa’s infrastructure.

A report published in 2014 (80-page / 2.4MB PDF) by consultancy Ernst & Young said the number of foreign direct investment projects in Africa grew 27% from 2010 to 2011 and the trend was set to continue.

The Islamic Development Bank’s annual report for 2012 (201-page / 4.34 MB PDF) said that, together with the Arab Bank for Economic Development in Africa, it was cumulatively co-financing 59 operations for $4.8bn in African countries, focusing mainly on transport, agriculture and rural development.