Mayzuh Company Limited CEO, Sheikh Mohamed Issa, speaks at a validation workshop on the Listing and Trading Rules for Islamic capital market products in Kigali on Tuesday. . PHOTO | COURTESY
Kigali. The Rwanda Stock Exchange (RSE) has become the first securities exchange in East, Central and Southern Africa to establish dedicated Listing and Trading Rules for Islamic capital market products, marking a significant step towards expanding Shariah-compliant investment opportunities in the region.
The new framework is expected to facilitate the listing and trading of a wide range of Islamic financial instruments, including Sukuk (Islamic bonds), Islamic collective investment schemes and Shariah-compliant real estate investment trusts (REITs).
Speaking during a validation workshop for the rules, RSE chief executive officer, Pierre Celestin Rwabukumba, said the initiative would enhance the exchange's capacity to attract capital from both regional and international investors.
“The introduction of these rules will open up new opportunities for capital mobilisation from East Africa and Gulf Cooperation Council countries, as various Shariah-compliant instruments will be able to cross-list on the Rwanda Stock Exchange,” he said.
The rules were developed by Tanzania-based Mayzuh Company Limited with financial support from Luxembourg Aid and Development.
According to Mayzuh Company Limited chief executive officer, Sheikh Mohamed Issa, the framework provides comprehensive legal, regulatory and Shariah compliance requirements for Islamic capital market products.
Luxembourg's envoy to Rwanda, Jeanne Crauser, said the development would strengthen Rwanda's position within the global Islamic finance industry. “The establishment of Islamic capital markets listing and trading rules will open the Rwanda Stock Exchange to the wider world of Islamic finance and attract new investors,” she said.
The workshop was also attended by Rwanda Capital Market Authority (CMA) chief executive officer, Romeo Ngarambe, who pledged the regulator's support for initiatives aimed at diversifying capital market products and improving market infrastructure.
“Clear regulations are essential for advancing Shariah-compliant products and enabling sustainable financial instruments to access Rwanda's capital markets,” he said.
The rules development process was led by Sheikh Issa, who is also Yusra Sukuk Company's executive chairman and who served as lead consultant on the project.
He has previously worked with regulators across the region on Islamic finance frameworks.
In 2022, he supported the establishment of Corporate, Municipal and Subnational Sukuk Guidelines for Tanzania's Capital Markets and Securities Authority (CMSA), which were subsequently gazetted in 2023.
He later worked as a consultant for the United Nations Economic Commission for Africa (UNECA) in developing Islamic capital market guidelines for Uganda's Capital Markets Authority.
The latest development positions Rwanda among a growing number of African countries seeking to tap into the global Islamic finance market, which continues to attract interest from investors looking for Shariah-compliant investment opportunities.
