A good financial sector is an important requirement in any country in achieving economic growth. Withour proper regulations, a financial sector will not be deemed productive. The Somalia Federal Government has identified the development of the banking sector as one of the six crucial factors for reviving the country's economy. Hence, the federal government has allocated more than $2.5 million to regulate this sector. The Central Bank of Somalia Act 2011 states that all the banks should comply with Shariah laws, as Somali society being one hundred percent Muslim. However, with the absence of any Islamic bank regulations in Somalia, it enables the country to develop or adopt any regulation that is deemed workable ...
