Obstacles to Offering Islamic Investment Deposits in the Libyan Market (A Case Study of the Libyan Islamic Bank)

Abstract

This study aims to analyze and assess the obstacles hindering the introduction of investment deposits by investigating the reasons behind the reluctance to offer such deposits in Libyan commercial banks, with an applied case study on the Libyan Islamic Bank. The core problem of the study revolves around the following question: What are the factors preventing the introduction of investment deposits as a source of financing at the Libyan Islamic Bank?

The researcher adopted a descriptive and analytical methodology, employing a questionnaire as the primary data collection tool. A total of 85 questionnaires were distributed to employees at the main administration of the Libyan Islamic Bank. Of these, 80 were retrieved, with 79 valid for statistical analysis. The data were analyzed using the Statistical Package for the Social Sciences (SPSS).

The study concluded that there are administrative and organizational barriers that have led to a decline in the quality of various types of investment services. Moreover, the bank's management lacks the motivation to introduce investment deposits in light of the ongoing lack of security and limited investment awareness among business owners. The study recommends restructuring the bank's administrative framework to align with developments in the Islamic banking industry, and actively participating in conferences, seminars, and workshops to raise cultural and investment awareness among traders and businesspersons. This, in turn, would enhance their trust in investment deposits and increase their demand, thereby strengthening the bank's role in economic development.