Somaliland have a strategic vision to develop 100% Shariah-compliant banking and Financial System in the Country: Abdinasir Hirsi, Governor, Central Bank of Somaliland
AlHuda Centre of Islamic Banking and Economics (AlHuda CIBE) is pleased to announce the commencement of a major strategic consultancy assignment with the Central Bank of Somaliland (BoS), marking a significant step toward establishing a fully developed Islamic banking and capital market ecosystem in the country. The inaugural meeting, held at the Central Bank of Somaliland headquarters, was attended by Mr. Muhammad Zubair- CEO, AlHuda CIBE FZ LLE UAE, Mr. Abdinasir Ahmed Hirsi, Governor, Central Bank of Somaliland, Mr. Hamse A. Khaire – Deputy Governor, and Director of the Public Debt Management Department Mr. Abdirahman Omar Ibrahim.
During the meeting, Governor Mr. Abdinasir Ahmed Hirsi shared his perspective on this important initiative and highlighted the vision of the Central Bank of Somaliland for modern Islamic financial systems, he also added that Somaliland have a strategic vision to develop 100% Shariah-compliant banking and Financial System in the Country. the Director General of the Central Bank of Somaliland Mr. Yasin Jama Axmed also expressed his commitment for fostering a conducive environment to the growth of Islamic banking products development, he also affirm his willingness to create a sustainable financial landscape that aligns with Islamic principles, promoting financial inclusion and stimulating economic development across Somaliland land financial institutions.
The consultancy assignment entrusted to AlHuda CIBE encompasses a broad spectrum of interrelated developmental components. These include conducting extensive research and environmental assessments, designing a comprehensive suite of Islamic banking products, and guidance on Shariah governance framework. The work also covers the formulation of operational frameworks and manuals, capacity-building programs for banking professionals with pilot testing and recommendations, and the provision of ongoing Shariah advisory support.
A major area of focus within this assignment is the development of Somaliland’s Islamic capital market, particularly the structuring of Sukuk as a sovereign and commercial investment instrument. Through this component, AlHuda CIBE will guide the Central Bank of Somaliland in establishing the regulatory and institutional foundations required for Sukuk issuance, capital market supervision, and long-term investment mobilization. This initiative is expected to significantly enhance Somaliland’s ability to finance infrastructure, strengthen fiscal resilience, and attract both domestic and international investors seeking Shariah-compliant opportunities. Simultaneously, the project places strong emphasis on Islamic banking product development, ensuring that financial institutions in Somaliland will be equipped with modern, competitive, and fully Shariah compliant retail, corporate, and SME offerings. These efforts support the broader objective of promoting financial inclusion and fostering responsible economic development based on the principles of transparency, risk-sharing, and Islamic financing. AlHuda CIBE will undertake the development of Islamic banking operations for the Central Bank and its commercial bank separately, recognizing the unique regulatory and institutional needs of each.
Mr. Muhammad Zubair, CEO of AlHuda CIBE, expressed his commitment to supporting Somaliland in this landmark transformation and emphasized the importance of a well-structured Islamic financial system in achieving sustainable economic growth. He also mentioned that the Islamic capital market & Sukuk are indispensable for the smooth development of Islamic Banking and Finance industry in any country.
Islamic finance continues to demonstrate global relevance as a stable, asset-backed, and socially responsible financial model. Through this consultancy, Somaliland is strategically positioning itself to harness these strengths, ensuring that its financial sector evolves in line with international best practices while maintaining full Shariah compliance. AlHuda CIBE’s technical expertise and global experience will play a pivotal role in shaping a modern, resilient, and inclusive Islamic financial ecosystem for the nation.
About AlHuda CIBE: AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research and provide state-of-the-art Advisory Consultancy and Education through various well-recognized modes viz. Islamic Financial Product Development, Shariah Advisory, Trainings Workshops, and Islamic Microfinance and Takaful Consultancies etc. side by side through our distinguished, generally acceptable and known Publications in Islamic Banking and Finance.