Central Bank of Somalia Invites Takaful Firms to Apply for Licenses

PRESS RELEASE Ref. 1742-CU-07/13 Date: 13 July 2025 Tel:+252 610 620004 Corso somalo 55, PO Box 11 Mogadisho, Somalia For further inquiries please contact Eimail: Communications@centralbank.gov.so website:www.centralbank.gov.so Central Bank of Somalia Invites Takaful Firms to Apply for Licenses Mogadishu, Somalia – 13 July 2025. The Central Bank of Somalia (CBS) is pleased to announce the formal commencement of the licensing process for Takaful (Islamic insurance) service providers, following the enactment of the National Takaful Law in May 2025. In line with this milestone, CBS, through its Licensing and Supervision Department, held a workshop on 02 July 2025, for all registered Takaful operators. The event served to introduce and operationalize key regulatory instruments essential to the formalization and effective oversight of Somalia’s Takaful sector. Until now, Takaful firms have operated under a basic registration regime, with limited regulatory and supervisory oversight. The newly issued regulations mark a major step forward in strengthening consumer protection, promoting sectoral stability, and building public confidence in Takaful services across Somalia. CBS has prioritized the implementation of three foundational regulations endorsed by its Board of Directors in May 2025:

1. Licensing Regulation
2. Financial Reporting Regulation
3. Capital Adequacy and Solvency Regulation These regulations, particularly those related to licensing and prudential standards, aim to safeguard the soundness and sustainability of the Takaful industry, ensuring its alignment with international best practices while remaining compliant with Shariah principles. Effective June 06, 2025, all Takaful firms operating in Somalia are required to apply for a license within a six-month window, in accordance with the new regulatory framework. CBS encourages all firms to begin the application process promptly to ensure a smooth transition into the formal licensing regime. CBS reaffirms its commitment to working closely with Takaful firms throughout the licensing process and beyond, offering guidance and support to promote full compliance and the healthy development of the sector. For more information, please contact: Central Bank of Somalia Licensing and Supervision Department Email: licensing@centralbank.gov.so Website: www.centralbank.gov.so -END-