Expected effects of joining the World Trade Organization on the Islamic banking sector in Libya

Abstract

The study primarily aimed to highlight the nature and economic impacts expected from joining Libya to the World Trade Organization and implementing the General Agreement on Trade in Services (GATS)—specifically its provisions on financial services—- on the Islamic banking sector in Libya. The study concluded that the net positive or negative effects are largely dependent on the effective use of the period preceding and following the accession for reforming the banking sector, alongside managing the controlled, gradual exposure of this sector to foreign competition.  Besides to that it depends on selecting the most appropriate alternatives for the expected implementation of GATS.   In this context, the alternative of controlled openness of the banking sector to foreign competition was chosen due to its advantages over other alternatives.