Islamic Finance Country Report Djibouti – Unleashing the Potential for the Future

The Djibouti Islamic Finance Country Report analyses the outlook, trends, and prospects of Islamic finance in Djibouti. The country introduced Islamic banking in 2006 with the establishment of an Islamic bank branch, and since then Islamic finance spread quickly. This report finds that three full-fledged Islamic banks are at present operational in Djibouti, and Islamic banking constitutes about 17 percent of the total banking industry assets.

The report recommends a re-design of the institutional framework governing Islamic finance, developing a national strategy to enhance human capacity, and undertaking stronger public sensitization on Islamic finance. The report also identifies potential opportunities for Djibouti in Islamic financial sectors other than banking, such as the development of Takāful industry, which could benefit from the positive attitude of the population towards Islamic finance and which could also complement the rapid development of Islamic banking.