An Exploration of the Attitude, Perceived Value and Awareness of Islamic Finance towards Acceptability among White-Collar Elite: Case of Central Kampala, Uganda

Abstract

Islamic finance is a substantive paradigm premised on Islamic epistemology. This is a new concept in Uganda. In the amended Financial Institution Act, legislation was passed to develop Islamic finance. This will enable the creation of a series of Islamic finance products benefiting the Ugandan populace. In addition, the passing of the final Regulations of the Act by the Ministry of Finance is expected to provide accommodation of Islamic finance into the laws of Uganda. Concomitantly this study sought to explore awareness, attitudes towards and perceived value of Islamic finance towards its acceptability by white collar elite in the capital city of Uganda. The study adopted a purposive sampling and a multivariate linear regression was used to understand the effect of three key factors anticipated to affect the acceptability of Islamic financing in Uganda that is attitude, perceived value and awareness. The results reveal that awareness of Islamic banking products and services is likely to positively affect the attitude of the elite towards Islamic banking. More than half (52%) of sampled elites were not aware of Islamic finance and 51.9% are bound to use Islamic banking and financial products only if it is made available in Uganda. Additionally, 76.8% firmly believe that Islamic finance is benevolent to their well-being. A fact suggests that the more an individual is made aware of Islamic Finance, the more likely their attitude towards Islamic Finance products. Additionally, the intention of the elite in Uganda to accept Islamic banking is more affected by their perceived value rather than their attitude.