Customer Adoption of Islamic Banking in Non-Islamic Countries: Empirical Evidence from Uganda

• Author(s): Niringiye Sam
• Paper ID: 1708199
• Page: 22-30
• Published Date: 02-05-2025
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 8 Issue 11 May-2025

Abstract

Islamic banking has gained global recognition as an alternative financial system that adheres to Sharia principles, avoiding interest-based transactions. Despite its growing presence, adoption in non-Islamic countries remains relatively low. This study investigates the factors influencing customer adoption of Islamic banking services in Uganda, a predominantly non-Islamic country. The research employed a cross-sectional survey design, collecting data from 95 respondents predominantly in urban areas using structured questionnaires. The study explores levels of awareness, perceived benefits, socio-economic influences, and barriers to adoption of Islamic banking. Specifically, findings revealed that limited awareness, accessibility, and trust are key challenges hindering widespread acceptance. Based on these findings, the study recommends increased public education, regulatory support, and tailored financial products to enhance adoption.

Keywords

Customer Adoption, Islamic Banking, Non-Islamic Countries, Uganda

Citations

IRE Journals:
Niringiye Sam "Customer Adoption of Islamic Banking in Non-Islamic Countries: Empirical Evidence from Uganda" Iconic Research And Engineering Journals Volume 8 Issue 11 2025 Page 22-30

IEEE:
Niringiye Sam "Customer Adoption of Islamic Banking in Non-Islamic Countries: Empirical Evidence from Uganda" Iconic Research And Engineering Journals, 8(11)