Islamic Banking in Libya Challenges and Ways to Address Them

Abstract

This research aims to study the challenges facing Islamic banking in Libya and shed Light on ways to address them, which would contribute to the development of the banking sector and enhance its role in the national economy, the study adopted a descriptive approach to describe the reality of Islamic banking in Libya and used the historical approach to clarify the emergence and development of Islamic banking, the research also relied on the analysis of secondary sources as the main tool for data collection, the study concluded that the most important challenges lie in the weakness of the legislative environment, the lack of specialized cadres, Excessive reliance on the Islamic murabaha formula, and the weakness of the banking technological infrastructure, the study recommended the need to diversify Islamic financing tools and enhance training and sharia supervision.