Mogadishu, Somalia – On Thursday, President Dr. Hassan Sheikh Mohamud signed into law four critical pieces of legislation aimed at strengthening Somalia’s financial sector and laying the groundwork for sustainable economic growth.
The newly enacted laws include the Insurance (Takaful) Bill, the Income Tax Bill, the Revised Financial Institutions Bill, and the Revised Anti-Money Laundering and Counter-Terrorist Financing Bill.
These laws represent a major milestone in Somalia’s economic reform agenda. The Insurance (Takaful) Bill introduces a Sharia-compliant insurance framework, broadening access to financial services for Somali citizens and businesses.
The Income Tax Bill, meanwhile, aims to increase domestic revenue generation, helping the government reduce dependency on external aid.
The Revised Financial Institutions Bill modernizes the regulatory framework for banks and non-bank financial institutions, promoting transparency, accountability, and financial stability.
In tandem, the Revised Anti-Money Laundering and Counter-Terrorist Financing Bill enhances Somalia’s capacity to combat illicit financial activities and align with international standards.
President Mohamud described the laws as “transformative tools” that will “bolster investor confidence, protect financial systems, and unlock meaningful opportunities for the Somali people.”
The passage of these bills is expected to attract both local and foreign investment, accelerate job creation, and foster inclusive economic development across the country.