MOGADISHU, Somalia – The Central Bank of Somalia (CBS) has officially initiated the issuance of licenses to companies providing Islamic Insurance services, known as Takaful, marking a historic milestone in the nation’s economic recovery. In a press statement released on Tuesday, the Bank announced that it has granted full operational authorization to the first group of insurance providers in the country’s history, following the ratification of the Takaful Insurance Law in May 2025.
The decision was finalized during a regular session of the Central Bank’s Board of Directors on January 24, 2026. After a rigorous review process, the Board approved the applications of four distinct entities that successfully met the regulatory requirements for licensure. The newly authorized companies are First Somali Takaful Insurance LTD, Amanah Insurance LTD, Baraka Takaful Insurance LTD, and Salmastar Insurance. These firms are now the first legally recognized entities to offer insurance products under the new regulatory framework.
This development represents a significant step toward formalizing Somalia’s financial sector. The Central Bank emphasized that this initiative aims to manage risks associated with the industry while establishing a robust insurance system that is fully compliant with Islamic Sharia principles. The introduction of these regulations is expected to enhance the availability of innovative financial services and boost the confidence of both international investors and local consumers in the Somali market.
The Governor of the Central Bank of Somalia, H.E. Abdirahman Mohamed Abdullahi, highlighted the strategic importance of this move for the broader economy. Speaking on the issuance of the licenses, the Governor stated that this action solidifies the foundations of the national financial system. He noted that licensing is essential for the effective supervision of insurance companies and for managing the financial risks associated with these services.
The Central Bank reaffirmed its commitment to the advancement and protection of the stability of the country’s financial system. By bringing the insurance sector under a legal umbrella, the government is moving to integrate Somalia more deeply into the global financial architecture while ensuring that its growth remains sustainable and secure.
