The Central Bank of Somalia (CBS) said on Tuesday that it has issued its first licenses to companies providing Islamic Takaful insurance, following the passage of the Takaful Insurance Act in May 2025.

The bank said in a statement that four firms met regulatory requirements and received licenses: First Somali Takaful Insurance LTD, Amanah Insurance LTD, Baraka Takaful Insurance LTD, and Salmastar Insurance.

According to the CBS, the move is intended to strengthen oversight of the Takaful sector, ensure compliance with Sharia principles, implement modern risk management practices, and expand access to innovative insurance products.

“The licensing marks a foundational step in Somalia’s financial system. It is essential for supervising insurance companies and managing financial risks associated with these services,” CBS Governor Abdirahman Mohamed Abdullahi said.

Somalia has been working to modernize its financial infrastructure and regulatory environment as part of broader economic reforms. The introduction of a formal Takaful framework is expected to increase financial inclusion by offering products that cater to the country's predominantly Muslim population.

The statement added that the bank remains committed to developing and maintaining stability in Somalia’s financial sector.