Libyan Law No. (6) of 2022: Towards a legislative bridge that supports Islamic banking in accordance with Sharia standard No. (38) AAOIFI.

Abstract

This study examined the extent to which Libyan Law No. (6) of 2022 on electronic transactions aligns with Shari’ah Standard No. 38 issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), which pertains to online financial transactions. The study aims to contribute to the development of a legal digital environment compliant with Islamic Shari’ah. The study relied on the descriptive-analytical and comparative methodologies, using textual analysis as a tool to extract and analyze legal and Shari’ah rulings. The “study sample” consisted of the text of Libyan Law No. (6) of 2022 and Shari’ah Standard No. 38, as they represent the primary methodological frameworks of the study and comparison. The introductory chapter was dedicated to presenting the basic concepts of Islamic banks and electronic contracts. The first chapter analyzed the Libyan law and Shari’ah Standard No. 38, followed by the second chapter, which focused on comparing the law with the Shari’ah standard, identifying areas of convergence and divergence, and highlighting legislative gaps that hinder full compliance between the law and Shari’ah regulations. The study revealed positive intersections, particularly regarding the validity of electronic contracts and consumer protection, while also identifying shortcomings in areas such as delivery (al-qabd), legal capacity, and data protection. The study concluded with a set of recommendations, most notably amending certain provisions of the law, adopting modern standards for data protection against cyber threats, and enhancing coordination between legislative and Shari’ah authorities to serve the development of Islamic digital banking.