Islamic Finance Forms and Their Role in the Halal Food Industry Through Libyan Banks

Abstract

In this era, the world witnessed a quantum leap in the world of banking. After the “traditional” commercial banks that are based on usurious interest were the dominant over the world’s economy and money, Islamic banks appeared to reform the economy and money and rid them of what is not permissible according to Sharia. The banking industry is witnessing A tremendous development in Islamic banks, and this development was accompanied by a similar development in Islamic financing formulas that have characteristics that differ from others, which is the traditional “usury” finance, and these characteristics are what make Islamic finance the most capable of directing investments towards areas that lead to halal production, and it is concentrated on commodity finance and participatory finance, Where both the financier and the financier share the risks and returns of the financing formulas, and he is best able to optimally direct economic resources, give priority to financing the most feasible projects, and the availability of the legality and legality criterion for the halal food industry, and actually trading takes place on the commodity being financed. Since the Islamic financing formulas have several main advantages to encourage investment and manufacturing operations and halal production, the role of Islamic banks in supporting the halal food industry will have a positive impact on the structure and growth of the economy as a whole, and the emergence of capable and promising institutions that can create job opportunities for young people and promote the development process, and in cooperation with all Institutions and sectors in the country for Creating a supportive and enabling environment for Islamic banks in supporting the halal food industry. Hence the idea of ​​the research paper came, not to highlight the reality of Libyan banks by clarifying Islamic financing formulas and their role in the halal food industry. Therefore, the research paper was divided into two aspects: – The first aspect: Getting to know food industry The second aspect: Clarifying the financing formulas applied in Libyan banks and their role in the halal food industry, and addressing the advantages of Islamic finance compared to the advantages of other finances