The Central Bank of Somalia (CBS) has officially launched the licensing process for Takaful service providers, marking an important step in the country's journey towards establishing a robust and Sharia-compliant insurance sector.

Since June 6, 2025, all Islamic insurance companies (takaful) in Somalia have six months to apply for a license from the Central Bank to operate in order to operate. The announcement was made by the banking regulator on Sunday, July 13, 2025. By December 6, 2025, these Islamic insurers will have to comply with this measure in order to be legally recognized. This reform follows the adoption in May 2025 of a new law on takaful

Through this measure, the Central Bank of Somalia intends to oversee a sector that has hitherto operated without clear rules. Takaful insurance companies operate in Somalia with simple basic registration, without strict control or regulatory oversight by the Bank. From now on, they will have to apply for a license to continue to practice. The aim is to formalize the activity of Islamic insurers in order to make this sector more solid, transparent and safe for customers

The Central Bank assures that it will work closely with businesses throughout the licensing process by offering advice and support for full compliance. An explanatory workshop was held on 2 July to present the new rules to all registered takaful insurance operators in the country

This new regulation is based on three pillars: licensing. Each company must make a formal request to operate. Then financial information: companies must publish reliable and detailed financial reports, and finally equity and solvency: insurers must prove that they have enough resources to cover the risks associated with their activities.