1. Please introduce yourself and your role as CEO of Wadaag Bank.
My name is Abdirahman Muse. I have over 18 years of experience in banking, insurance, financial regulation, and institutional development, including more than 12 years in the financial sector.
I previously served as Director General of the Somaliland National Insurance Authority and as Director of Banking and Financial Institutions Supervision at the Bank of Somaliland. I have also been a Senior Lecturer at the University of Hargeisa.
I hold an MBA in Islamic Banking and Finance from the International Islamic University Malaysia and am a Chartered Islamic Finance Professional (CIFP) graduate of INCEIF, Malaysia.
Today, I serve as CEO of Wadaag Bank. This role is meaningful because we are not simply establishing another bank — we are building a modern, inclusive, ethical, and technology-driven Islamic bank from the ground up, serving individuals, SMEs, entrepreneurs, farmers, and the wider community in Somaliland and East Africa.
2. How would you describe the current state of Islamic banking in Somaliland?
The Islamic banking sector in Somaliland is still at an early stage but has enormous potential. Islamic finance is not merely an alternative here — it is the dominant framework for formal banking.
Somaliland has established a legal foundation through the Islamic Banking Act, Law No. 55/2012. Currently, only six Islamic banks operate in the market, including Wadaag, leaving considerable room for growth, innovation, and financial inclusion.
Key opportunities include:
Financial inclusion — a large portion of the population remains outside the formal banking system.
SME and entrepreneurship finance — through structures such as Murabaha, Musharakah, Mudarabah, Ijarah, and Qard Hasan.
The diaspora market — creating Shariah-compliant savings and investment channels.
Digital banking and fintech — connecting mobile money with formal Islamic banking.
There are also major opportunities in agriculture, livestock, trade, real estate, renewable energy, and infrastructure.
3. What is your vision for Wadaag Bank?
Our vision is:
“To be East Africa’s most trusted, inclusive, and transformative community bank, empowering people through ethical finance and shared prosperity.”
Our key strategic priorities are:
Expanding financial access — reaching over 150,000 underserved and unbanked individuals and SMEs within three to five years.
Supporting local enterprises — providing financing and advisory support to micro and small businesses.
Mobilizing diaspora investment — developing Shariah-compliant products for savings and productive investment.
Advancing financial literacy — especially among young people, women, and underserved communities.
Promoting digital and inclusive banking — making services accessible, affordable, and Shariah-compliant.
4. How can Islamic banking contribute to financial inclusion in Somaliland?
Islamic finance is the principal framework for formal banking in Somaliland under Law No. 55/2012. The question is not whether Islamic banking can contribute to inclusion, but how we can make it more accessible, affordable, and relevant.
For individuals, Islamic banks can provide savings, current accounts, investment accounts, payment services, and financing consistent with their values.
For SMEs and entrepreneurs, Islamic finance offers Murabaha for trade financing, Musharakah and Mudarabah for partnership and investment, Ijarah for leasing, and Qard Hasan for social and emergency needs.
For underserved communities, technology and agency banking can dramatically reduce the cost and distance of accessing formal financial services.
At Wadaag Bank, we aim to reach more than 150,000 underserved individuals and SMEs within three to five years through mobile banking, agency banking, digital onboarding, and tailored Islamic finance products.
For us, Islamic banking is not simply about Shariah compliance — it is about fairness, accessibility, ethical finance, risk sharing, and shared prosperity.
5. What are the major opportunities and challenges facing Islamic banks in Somaliland?
Challenges include:
A relatively narrow product range in many markets.
Concentration of banking services in urban areas.
The need for greater digital integration.
Opportunities include:
Developing genuine Shariah-compliant products based on risk sharing, investment, leasing, and partnership.
Using agency and mobile banking to reach rural communities.
Transforming diaspora remittances into long-term savings and productive investment.
Developing housing finance, green finance, agricultural finance, livestock finance, and SME financing.
At Wadaag Bank, we are focusing on product innovation, digital transformation, financial inclusion, stronger Shariah governance, and collaboration between banks, regulators, fintech companies, and development institutions.
6. How is Wadaag Bank leveraging digital transformation?
Digital transformation is one of the most important pillars of our strategy. Somaliland has already demonstrated strong adoption of mobile money, and we see an opportunity to connect this with formal Islamic banking.
Our digital strategy includes:
Wadaag Pay — our mobile banking platform.
Mobile and internet banking.
Electronic and agent banking.
Digital customer onboarding and KYC.
Integration with mobile money platforms such as Zaad and eDahab.
USSD functionality for customers without smartphones.
Digital financing applications, disbursement, and repayment.
QR-based payments and modern payment solutions.
Technology should solve a problem. If a customer in a rural community must travel hours to visit a branch, digital banking can solve that. If a small business owner cannot afford time away from their business, digital services can help.
At the same time, digital transformation must be accompanied by strong cybersecurity, data protection, AML/CFT controls, and customer protection.
7. What role can Islamic banking play in supporting SMEs and economic development?
Islamic banking can play a very significant role because SMEs, entrepreneurs, traders, and farmers represent a large part of economic activity in Somaliland.
Access to appropriate capital is one of the biggest constraints facing entrepreneurs. Islamic finance offers a broad range of instruments:
Murabaha — for purchasing goods, equipment, and working capital.
Ijarah — for asset acquisition through leasing.
Musharakah and Mudarabah — for partnership and investment where risks and returns are shared.
At Wadaag Bank, we aim to go beyond financing by supporting entrepreneurship, financial literacy, digital payments, and business formalization.
I believe Islamic banking should be recognized not simply as an alternative financing mechanism, but as a tool for economic transformation and inclusive development.
8. How important is collaboration in strengthening Somaliland’s Islamic banking ecosystem?
Collaboration is extremely important. A strong Islamic banking ecosystem cannot be built by banks alone. It requires cooperation among regulators, banks, fintech companies, Shariah scholars, investors, development organizations, and international financial institutions.
Regulators must establish clear, predictable, and risk-sensitive frameworks that support innovation while protecting depositors. Banks must invest in technology, human capital, risk management, and Shariah governance. International organizations can contribute through technical assistance, capacity building, and investment.
There is also a strong need for collaboration in Islamic capital markets, Sukuk, agricultural finance, SME financing, digital payments, and Shariah governance.
9. What major trends do you expect to shape the future of Islamic finance in Africa?
I am very optimistic. Africa has a rapidly growing population, a large young demographic, increasing urbanization, expanding digital connectivity, and significant infrastructure needs.
I expect several major developments:
Digital Islamic banking will grow rapidly.
Financial inclusion will remain a major priority.
SME and entrepreneurship finance will expand.
Islamic capital markets and Sukuk will become increasingly important.
Green and sustainable Islamic finance will grow.
For Somaliland specifically, the opportunity is significant because of strong demand for Shariah-compliant services, a growing private sector, a large diaspora, and increasing digital adoption.
The future will belong to institutions that combine Shariah principles, technology, innovation, strong governance, and genuine economic impact.
10. What message would you like to share with policymakers, financial institutions, investors, and young professionals?
My message is simple: do not become tired of contributing to the development of Islamic finance. The industry still has enormous potential, particularly in Africa.
To policymakers and regulators: create an environment that promotes innovation, competition, financial stability, and responsible financial inclusion.
To financial institutions: go beyond replicating existing products. Develop new Shariah-compliant solutions that genuinely address the needs of individuals, SMEs, farmers, women, youth, and underserved communities.
To investors and international institutions: Africa presents enormous opportunities for responsible investment in infrastructure, SMEs, agriculture, energy, technology, and Islamic capital markets.
To young professionals: invest in your knowledge. Islamic finance requires expertise in both Shariah principles and modern finance, technology, risk management, and regulation.
Above all, remember that Islamic finance is not only about financial transactions. At its heart, it is about justice, transparency, ethical conduct, risk sharing, social responsibility, and shared prosperity.
If we combine these principles with innovation, technology, and strong governance, Islamic finance can become one of the most important drivers of inclusive and sustainable economic development across Africa.
At Wadaag Bank, our ambition is to be part of that journey — transforming ideas into impact and building a financial institution that creates lasting value for our customers, our communities, and the wider economy.