Ethiopia Marks New Milestone in Interest-Free Banking and Takaful Development

6th International Interest-Free Banking and Takaful Forum by AlHuda CIBE Connects Global Expertise with Africa’s Emerging Islamic Finance Markets

(August 17, 2026 - Addis Ababa, Ethiopia): Ethiopia has reached another important milestone in the development of its interest-free banking and Takaful industry with the successful convening of the 6th International Interest-Free Banking and Takaful Forum, organized by AlHuda Centre of Islamic Banking and Economics (AlHuda CIBE) at the Hyatt Regency Addis Ababa.

Held under the theme “Connecting Global Expertise with Africa’s Emerging Islamic Finance Markets,” the Forum brought together regulators, policymakers, banking and insurance executives, Shariah experts, fintech professionals, academics, investors, consultants and other industry stakeholders. Participants representing 20 countries attended the Forum, reflecting the growing international interest in Ethiopia and Africa as emerging markets for interest-free banking, Takaful and financial solutions.

Speaking at the Forum, Mr. Muhammad Zubair, Chief Executive Officer of AlHuda CIBE, said that Ethiopia has made encouraging progress in developing its interest-free banking and finance industry and possesses considerable potential for further expansion.

He stated that the increasing participation of financial institutions, regulatory developments, demand for interest-free financial services and growing awareness among customers are providing a strong foundation for the sector.

Mr. Zubair further highlighted the importance of developing qualified human resources to sustain this growth. He said that AlHuda CIBE’s Online Professional Development Program has attracted around 800 registered professionals, demonstrating the strong demand for specialized knowledge and professional capacity in the industry.

“The future growth of interest-free banking and finance in Ethiopia will depend not only on expanding institutions and products, but also on developing a strong pool of qualified professionals. The participation of around 800 professionals in our online development initiative is an encouraging sign and will contribute toward addressing the human-resource and professional-capacity gap in the interest-free finance industry,” Mr. Zubair said.

He added that AlHuda CIBE has maintained a long-standing commitment to the development of interest-free finance in Ethiopia. Its contributions have included supporting the establishment of the first three Takaful window operations in Ethiopia, professional and institutional capacity building, technical assistance, and arranging international exposure visits for Ethiopian professionals to learn from established interest-free banking and Takaful markets in different countries.

H.E. Solomon Desta, Vice Governor – Financial Stability, National Bank of Ethiopia, emphasized the Bank's continued commitment to strengthening the country's interest-free finance ecosystem.

"The National Bank of Ethiopia appreciates the role of AlHuda CIBE since it entered the Ethiopian market. Their contributions have been instrumental in building the foundation for our interest-free finance sector. We are committed to the continued development of regulatory frameworks towards interest-free banking and Takaful, recognizing their vital role in financial inclusion alongside instruments like Micro Takaful. As part of our institutional transformation, the Bank has devised many change tools in respect of interest-free banking and Takaful. With the development of our capital market and the Ethiopian Securities Exchange, our future is focused on more inclusion. AlHuda is doing well, and we are confident that such events will bring more changes and further developments in the sector."

Mr. Abdirahman Omar Ibrahim, Director of Public Debt Management, Central Bank of Somaliland, Somaliland, said that Somaliland is doing its best in interest-free banking and Takaful and that he will share and learn from the experience gained at the Forum.

"Somaliland is doing its best in interest-free banking and Takaful. This Forum provides a valuable opportunity to share our experience and learn from the global expertise gathered here, which will further strengthen our efforts in developing a robust and inclusive interest-free financial sector."

Dr. Yared Mola, President of the Association of Ethiopian Insurers (AEI), Ethiopia, highlighted the growing importance of Takaful within Ethiopia’s evolving insurance landscape.

He stated that as President of AEI, building capacity, regulatory changes and creating awareness are key lessons learned from this Forum.

"Since the introduction of Takaful by AlHuda CIBE in Ethiopia, we have witnessed increasing growth in the sector. This Forum has provided valuable insights on capacity building, regulatory developments, and awareness creation, which are essential for the continued expansion of Takaful and its contribution to financial inclusion," Dr. Yared Mola said.

He emphasized that sustained development would require greater public awareness, professional capacity, suitable regulatory frameworks, product innovation and continued cooperation among insurers, regulators and industry stakeholders.

The Forum was attended by distinguished government representatives, regulators and industry leaders, including H.E. Solomon Desta, Vice Governor – Financial Stability, National Bank of Ethiopia; H.E. Semereta Sewasew, State Minister of Finance, Ethiopia; Mr. Abdirahman Omar Ibrahim, Director of Public Debt Management, Central Bank of Somaliland, Somaliland; Dr. Yared Mola, President, Association of Ethiopian Insurers; Mr. Muhammad Asad Mehmood, Head of Chancery, Embassy of Pakistan in Ethiopia; and H.E. Mr. Zuhair Abdullah Ensour, Ambassador of Jordan in Addis Ababa.

The participation of senior regulators, policymakers and financial-sector professionals demonstrated the increasing institutional interest in creating a sustainable and inclusive ecosystem for interest-free financial services across Africa.

The Forum featured a series of technical and strategic discussions addressing the industry’s most pressing opportunities and challenges.

The technical session on “Interest-Free Banking in Africa — Growth, Opportunities & the Road Ahead” examined Ethiopia’s evolving legal and regulatory framework, the future of banking in Africa, community banking, MSME and retail finance, Shariah governance, and strategies for building profitable and sustainable interest-free banking institutions.

A dedicated panel discussion on “Takaful, Re-Takaful and TakaTech” explored the development of Shariah-compliant insurance, technology-driven Takaful models, market expansion and the role of Takaful in strengthening inclusive financial protection.

The afternoon panel on “Fintech, Shariah Governance and Interest-Free Capital Markets” examined the role of financial technology in accelerating Islamic finance adoption, Shariah governance, interest-free capital-market development and emerging opportunities for financial innovation.

An important feature of the Forum was the signing of institutional cooperation agreements between AlHuda CIBE and Digaf MFI, Capital Financial Excellence Center (CaFEC) S.C. respectively, aimed at strengthening professional and industry development.

The Forum also featured the inauguration of the 12th African Islamic Finance Summit – Hargeisa, Somaliland, further strengthening AlHuda CIBE’s commitment to developing Islamic finance platforms and professional collaboration across the African continent.

The Forum concluded with the distribution of Professional Development Program Certificates, reinforcing the importance of human-capital development and continuous professional learning for the sustainable growth of the industry.

The 6th International Interest-Free Banking and Takaful Forum was held under the patronage of the National Bank of Ethiopia and in association with Ethiopian Reinsurance. MAC & RO Capital FZC participated as Gold Partner, while Digaf joined as Technology Sponsor. The Forum was also supported by a diverse group of financial institutions and industry stakeholders, with sponsors including Bank of Somaliland, Dahabshiil Bank International, OGold, Ahli Takaful, Nyala Insurance S.C. and Open Space Financial Services.

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.

We are dedicated to serving the community as a unique institution, advisory and capacity building for the last twelve years. The prime goal has always been to remain stick to the commitments providing Services not only in UAE/Pakistan but all over the world. We have so far served in more than 35 Countries for the development of Islamic Banking and Finance industry. For further Details about AlHuda CIBE, please visit: www.alhudacibe.com.

For Media Contact:
Ms. Shehla Hameed
Communication Associate
info@alhudacibe.com
Call: +971 50 842 1423