Regulatory Alerts2011-02-23
Law No. 116/AN/11/6th L on the Establishment of Islamic Banks in Djibouti
The National Assembly of Djibouti enacted Law No. 116/AN/11/6th L to establish a legal framework for Islamic banks, defining them as credit institutions adhering to Sharia precepts and prohibiting interest-based transactions. The legislation mandates prior approval from the Central Bank of Djibouti, outlines permissible legal forms and operational activities (including Murabaha, Musharaka, and Ijara), and requires the appointment of a Sharia Committee to ensure transactional compliance. Furthermore, it grants existing institutions a six-month registration window and two-year transition period, exempts participatory accounts from mandatory reserves, and establishes priority rights for deposit holders during liquidation.
Share