The Development Bank of Ethiopia (DBE) is considering the introduction of Sukuk, Sharia-compliant Islamic bonds, as part of its efforts to expand interest-free financial services in the country.
The Bank has held discussions with FSD Ethiopia on the potential implementation of Sukuk, an Islamic financial instrument that raises funds through the issuance of certificates representing proportional ownership in underlying assets, in accordance with Sharia law.
According to officials familiar with the talks, DBE has been studying the Sukuk framework for some time and has already completed several preparatory steps. Current discussions are focused on translating these preparations into effective implementation.
The meeting was attended by Isaias Kassa (PhD), President of the Development Bank of Ethiopia, and Hikmet Abdullah, Chief Executive Officer of FSD Ethiopia, along with senior representatives from both institutions. Deliberations covered areas of technical assistance and capacity-building support for the Bank’s interest-free banking operations, as well as prospects for broader institutional collaboration.
If implemented, Sukuk issuance would mark a significant addition to Ethiopia’s evolving interest-free finance landscape, offering alternative financing mechanisms aligned with Islamic finance principles.
