"Islamic Sukuk Accreditation Requirements in Libya to Benefit from the Malaysian Experience"

Abstract

This paper aimed to review the most important international experiences and practices of the role played by Islamic Sukuk in financing infrastructure projects. Given the development and spread of this Islamic finance industry by increasing global and local offerings (during the period 2016-2021), in addition to presenting the successful global experiences in Sukuk issuances that achieve economy maximizing (Malaysia, UAE, Saudi Arabia), and knowing their prospects in Libya. The descriptive-analytical approach was adopted in this study because of its suitability to the nature and objectives of the research. The paper reached several conclusions, including that Islamic Sukuk played a prominent role in providing funding for massive developmental projects, and its flexibility has made it a leading position among various funding sources.Among the leading global experiences is the Malaysian experience, which has an average trading volume of around 50% of the Islamic capital market and an accumulated basis for the period from 2001 to 2021. Malaysia has continued to maintain ite firet position in Islamic Sukuk issuances with a combined local and international issuance of about $877 billion. Through this research paper, it became clear that Islamic Sukuk is one of the most important financial instruments compatible with Islamic law and widely spread in international financial markets. It can have a significant impact on the development process in Libya after the issuance of Law No.4 for the year 2016 on Islamic Sukuk. Despite the positive outlook for Islamic Sukuk, it faces many difficulties and challenges (legal, economic, technical, regulatory,...,etc.) . There are also many areas that need to be provided to help the success, growth and development of the lslamic Sukuk issuance process in Libya.