Islamic Finance in Libyan Commercial Banks and its Role in Promoting Financial Inclusion (A Field Study of Commercial Banks Operating in Sirte).

Abstract

This study seeks to examine the crucial role of Islamic finance in advancing financial inclusion by offering Sharia-compliant financial products and services that promote the integration of various segments of society into the financial system, thereby improving their standard of living. To strengthen the theoretical framework, the study focused on the evolution, characteristics, and concept of Islamic finance, as well as the significance of financial inclusion and the indicators used to measure it, Within the analytical framework, a descriptive and analytical methodology was adopted to explore the role of Islamic finance and assess its contribution to enhancing financial inclusion. Data were collected through a questionnaire distributed to a purposive sample of clients from commercial banks in the city of Sirte. The collected data were analyzed using appropriate statistical methods through the SPSS program, The findings revealed a strong and positive relationship between Islamic finance and all dimensions of financial inclusion—namely quality, usage, and accessibility. Islamic finance plays an effective role in improving the quality of banking services, enabling clients to utilize them, and facilitating access, particularly for financially marginalized groups, The study recommended increasing public awareness and financial education campaigns about Islamic financial products and further simplifying the procedures associated with these products to achieve broader and more effective financial inclusion