Borrowing in Sudan: a fully Islamic banking system

In Sudan, borrowing means using Islamic contracts such as murabaha, musharaka or ijara, signed in Sudanese pounds with banks supervised by the Central Bank of Sudan, in an economy deeply disrupted by the war that broke out in April 2023.

SDG Central Bank of Sudan
Borrowing in Sudan: a fully Islamic banking system

A banking sector governed by Sharia since the 1980s

Sudan aligned its financial system with Sharia after 1984. No Sudanese bank charges interest: it buys an asset and resells it with a markup, becomes a partner in the project or leases the equipment. A high Sharia supervisory authority checks product compliance.

The Central Bank of Sudan and its move to Port Sudan

The Central Bank of Sudan, established by a 1959 law, supervises banks and microfinance institutions. Its Khartoum headquarters, damaged during the fighting, was retaken by the army in March 2025, while many of its functions have been run from Port Sudan.

The Sudanese pound and the new 1,000 SDG note

All local financing is denominated in Sudanese pounds (SDG), a heavily depreciated currency. To fight counterfeiting after stocks of banknotes were looted, the Central Bank issued a new 1,000-pound note in 2024 featuring Port Sudan.

Murabaha, salam, ijara: the most common contracts

Murabaha, a sale with a markup agreed in advance, dominates lending to individuals. Salam funds harvests through advance purchase, ijara leases an asset before ownership passes, and diminishing musharaka is used to buy a home or business premises step by step.

What the 2023 war changed for borrowers

Since April 2023, most Khartoum branches have closed, some public salaries have been suspended or cut to 60% in state-owned companies, and banks have sharply restricted new financing, especially outside the eastern and northern states.

Bankak and mobile banking apps

The Bankak app from Bank of Khartoum, the country's largest bank, has become the main tool for sending money, paying bills and receiving funds from abroad. Internet shutdowns nevertheless frequently disrupt these services in conflict areas.

The main banks operating in the country

Besides Bank of Khartoum, the market includes Faisal Islamic Bank, Omdurman National Bank, Al Baraka Bank Sudan, Sudanese French Bank and Tadamon Islamic Bank. Specialised banks fund specific sectors, such as Sudanese farming and livestock.

The credit information and scoring agency

Before granting financing, banks must record and check the customer's data with the credit information and scoring agency operating under the Central Bank. An old unpaid debt can therefore block an application at a different institution.

Microfinance: a mandatory share of bank portfolios

The Central Bank requires banks to allocate at least 12% of their portfolio to microfinance. Together with guarantees from the Kafalat agency, this rule feeds microcredit in Sudan for small traders, craftspeople and rural families.

Public funds and social schemes

Several bodies complement what banks offer: the National Fund for Housing and Reconstruction, the National Fund for Student Support, the Zakat Chamber and public pension funds. Their support remains limited and is often slowed down by the war.

Hawala and remittances from Gulf expatriates

Many households rely on money sent by relatives in Saudi Arabia, the Emirates or Egypt. Hawala, an informal transfer network, is widely used, but it builds no banking history that would later help you obtain a Sudanese personal loan.

Be careful with online loan offers

The liquidity crisis fuels scams: fake lenders on Facebook or WhatsApp, upfront fee demands before disbursement, people posing as agents of Sudanese banks. A licensed bank never asks for a prior transfer through an app to reserve financing.

Getting Islamic financing in Sudan, step by step

  1. Check that your bank's branch is operating in your state, as many branches in Khartoum and Darfur remain closed.
  2. Open or reactivate a Sudanese pound account with your national number and activate the bank's mobile app.
  3. Have your income paid into the account or show regular inflows, including transfers received from abroad through the banking channel.
  4. Present the asset or project to be financed with a pro forma invoice, since the bank buys the asset itself under murabaha.
  5. Agree to a check with the credit scoring agency and provide a guarantor or collateral depending on the amount requested.
  6. Sign the Islamic contract setting the total markup, the SDG repayment schedule and late penalties paid to charity.

What makes up the cost of Sudanese financing

ItemHow it works in SudanWhat changes the amount
Murabaha markupProfit fixed at signing, no interestTerm, expected inflation, customer profile
Processing feesCharged by the bank when the file is openedBank and type of financing
Takaful insuranceIslamic cover for the asset or the borrowerAsset value and age
GuaranteesSalaried guarantor, cheque, mortgage or pledgeAmount and term
Late penaltiesPaid to charity, not kept by the bankContract and Sharia rulings

Documents Sudanese banks ask for

  • Sudanese ID card or passport with national number
  • Salary certificate from the employer
  • Bank statements for the last six months
  • Pro forma invoice for the asset to be financed
  • Guarantor's documents
  • Commercial register and licence for a business
Common refusals and traps in Sudan
  • Applying at a branch whose head office has lost contact with regional branches since the war, which stalls the processing of the file.
  • Showing income received only through hawala, with no banking trace, when the bank requires verifiable inflows on the account.
  • Forgetting an old unpaid debt recorded with the credit scoring agency, which leads to an almost automatic refusal at other banks.
  • Paying fees to a so-called lender met on social media, when no licensed bank asks for an advance via Bankak or mobile transfer.
  • Signing without reading the total murabaha markup, which may remain payable even after early repayment depending on the clauses.

Lenders to contact

  • Faisal Islamic Bank (Sudan): Pioneering Sudanese Islamic bank providing Sharia-compliant banking services and financing to individual customers and businesses across Sudan.
  • Bank of Khartoum: Sudanese commercial bank offering Sharia-compliant financing, notably murabaha, for individual customers and businesses seeking transparent financing.

Credit in Sudan in five questions

Is there a usury rate cap in Sudan?

No, because the Sudanese banking system prohibits interest. Banks earn a commercial markup set in the murabaha contract or a profit share under musharaka. The Central Bank regulates these practices and a Sharia authority checks that the products on offer are compliant.

Can you borrow in US dollars in Sudan?

Financing for individuals is in Sudanese pounds. Some foreign trade operations can be denominated in foreign currency, but access to hard currency is controlled by the Central Bank and depends on what banks have available, which has fallen sharply since the conflict.

Are banks still lending since the war began?

Yes, but selectively. Branches in Port Sudan, Kassala, Gedaref and the north work better than those in Khartoum. Applications from employees of sound organisations or traders with an active account get priority, while others often have to wait.

Does hawala help you get financing?

No. Hawala moves money but leaves no trace a bank can use. Receiving diaspora remittances into a bank account or through Bankak does more to demonstrate your ability to repay.

Who supervises microfinance institutions in Sudan?

The Central Bank of Sudan supervises banks and microfinance institutions. It sets the minimum share of portfolios devoted to microfinance and has a dedicated unit, supported by the Kafalat guarantee agency.

Official source: Central Bank of Sudan