South Africa

There is no separate Islamic banking law; banks work under the ordinary Banks Act. Prudential Standard CODI 1 (6 Mar 2024) says a bank whose business must follow Shari'ah enters into specific transactions with the deposit insurer instead of the standard loan. Section 24JA of the Income Tax Act defines 'sharia arrangements' such as mudaraba, murabaha and sukuk. SARS issued a binding private ruling on a mudaraba arrangement in 2017 (BPR 257).

• “a bank whose banking activity must comply with Sharīʻah and its practical application, must enter into specific transactions with the Corporation”
  Prudential Authority, South African Reserve Bank · 2024-03-06
• “This ruling determines the income tax consequences of an Islamic financing arrangement, known as a “mudaraba” arrangement, for the parties.”
  South African Revenue Service · 2017-01-16
• “24JA. Sharia compliant financing arrangements”
  Acts Online (LexisNexis/Acts.co.za) · secondary

• Albaraka Bank Limited · full bankClassic AccountForeigner AccountResidential Finance
• Absa Bank Limited - Absa Islamic Banking · windowIslamic savings and investmentsIslamic transactional accountsIslamic vehicle finance
• FirstRand Bank - FNB Islamic Banking (not re-checked 14 Nov 2026: site behind a bot check) · windowIslamic Personal AccountsIslamic Business AccountsIslamic Savings and Investments
• The Standard Bank of South Africa - Shari'ah Banking · windowShari'ah investment accountsDiners Club Shari'ah Charge cardShari'ah Fiduciary Solutions

• “a practical & sustainable alternative option to conventional banking models”
  Albaraka Bank Limited
• “Membership to CODI is automatic and compulsory for all registered banks.”
  South African Reserve Bank
• “Albaraka Bank Limited”
  Prudential Authority, South African Reserve Bank · 2025
• “The PA has imposed administrative sanctions on Albaraka Bank Limited (Albaraka) as a result of its non-compliance with certain provisions of the FIC Act”
  South African Reserve Bank / Prudential Authority · 2026-09-11
• “Enjoy secure and transparent financial solutions that are tailored to your values.”
  Absa Bank Limited
• First National Bank (FirstRand Bank)
• “An alternative approach to banking based on fairness, transparency, and shared responsibility.”
  Standard Bank of South Africa

• Republic of South Africa (National Treasury) · 2014 · US$500 million, 5.75-year, Al-Ijara structure, 3.90% coupon, listed in Luxembourg
• Republic of South Africa via The RSA Domestic Sukuk Trustee (RF) Proprietary Limited · 2023 · ZAR20.386 billion, Al-Ijarah, four tranches (RS2029, RS2031, RS2034, RS2036), fixed profit rates 9.87% to 11.90%, to be listed on the JSE Interest Rate Market

• “The Republic of South Africa has successfully concluded its debut US$500 million 5.75-year Sukuk (Islamic) bond issuance”
  National Treasury · 2014-09-17
• “launch of the first sovereign Rand-denominated Al-Ijarah Sukuk on the African continent”
  National Treasury · 2023-11-24
• JSE / Engineering News · 2022-10-28 · secondary

No takaful law or Prudential Authority takaful standard was found. Ordinary licensed insurers sell takaful-style cover: Bryte Insurance describes its own 'Shari'ah compliant cover' on its website. FNB lists a takaful product, but its page was behind a bot check and was not read.

• “reasonable financial security against unpredicted catastrophe, disaster or risk”
  Bryte Insurance Company Limited
• First National Bank

Board Notice 90 of 2014 (Collective Investment Schemes Control Act, 8 Aug 2014) defines 'Islamic Compliant Instrument' and the term 'Shari'ah compliant portfolio' and lists Islamic bonds (sukuk) among allowed assets. Board Notice 136 of 2016 gave managers of these portfolios an exemption from some limits for 36 months from 8 Aug 2016, so it is no longer current. No later FSCA notice on these portfolios was checked.

• “"Islamic Compliant Instrument" means an instrument held in a Shari'ah compliant portfolio”
  Financial Services Board (now FSCA), Government Gazette No. 37895 · 2014-08-08
• “is not yet sufficiently developed to enable full compliance with the Notice by a manager of a Shari'ah Compliant Portfolio”
  Financial Services Board (now FSCA), Government Gazette No. 40166 · 2016-07-29
• JSE Limited · 2025-02