News / Economy

Libya Says Aims to Run Economy, Banking Under Islamic Law

FILE - A man walks past a Nike shop on Venice Street in Benghazi, Libya, Nov. 7, 2013.FILE - A man walks past a Nike shop on Venice Street in Benghazi, Libya, Nov. 7, 2013.
x
FILE - A man walks past a Nike shop on Venice Street in Benghazi, Libya, Nov. 7, 2013.
FILE - A man walks past a Nike shop on Venice Street in Benghazi, Libya, Nov. 7, 2013.
Reuters
— Libya will transform its banking and economic system to comply fully with Islamic law that bans interest payments, the economy minister and other officials said on Monday, but they gave scant details on how the plans would be implemented.
 
Under Moammar Gadhafi, who was overthrown in 2011, the growth of Islamic banking was not encouraged and four state-controlled institutions dominated the relatively undeveloped financial sector of the OPEC oil producer.
 
Two years after Gadhafi's ouster, Prime Minister Ali Zeidan's government says it wants to attract foreign investment and develop the non-oil sector of the economy but is struggling to assert its authority against heavily-armed tribesmen and militias, and parts of the country remain outside its control.
 
It has also been weakened by political wrangling with Islamists who dominate the parliament, the General National Congress (GNC), which strongly backs the plans to introduce Islamic law into the economy.
 
Economy Minister Mustafa Abu Fanas said experts would now study how best to apply Islamic Sharia law in the economy.
 
“Regarding a starting date, this will need studies ... to see how and when we will transform,” he told reporters on the sidelines of a conference organized by his ministry to explore ways to introduce Islamic law.
 
“I can't give an exact start date,” Fanas said.
 
‘Strong economy’
 
When asked whether banks could retain conventional business models, he said: “Many researchers say there could be a gradual transformation by the Islamic and other banks towards an Islamic system, but in the long-term it is in our interest to have it ... to build up a strong economy.”
 
Some banking officials, technocrats and liberals privately fear a hasty transformation might add to the political turmoil in Libya, where militias use weapons seized in the 2011 uprising to lay siege to ministries or oil facilities to press their financial and political demands.
 
Fanas said the GNC had given the government time to ban interest payments, with the change to be in force by the start of 2015.
 
Salah Makhzoum, deputy head of the GNC, told the conference that Libya would be joining a growing international trend as more and more states turned to Islamic law following banking crises in the United States and Europe.
 
“The world is moving towards an Islamic economy,” he said.
 
Libya has about 16 mostly conventional banks, which have few ties with the outside world, a legacy of its long isolation under Gadhafi.
 
As well as banning interest payments, Islamic law also forbids investment in the gambling industry and in firms producing alcoholic drinks or pornography.
 
Fanas said Libya had become too dependent on its oil sector and said the government wanted to boost investment to upgrade infrastructure including hospitals and universities. It is also overhauling a foreign investment law from the Gadhafi era.

You May Like

Uganda Court Annuls Anti-Gay Law

Court says law was passed in parliament without enough members present for a full quorum More

Video Thailand Makes Efforts to Improve Conditions for Migrant Laborers

In Thailand, its not uncommon for parents to bring their children to work; one company, in-collaboration with other organizations, address safety concerns More

In Indonesia, Jihad Video Raises Concern

Video calls on Indonesians to join Islamic State of Iraq and the Levant, ISIL More

This forum has been closed.
Comment Sorting
Comments
     
by: Anonymous
January 06, 2014 10:02 PM
yeah... that will do it... Islamic deemookrassy... more blood libation...

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
In Thailand, Some Efforts to Improve Conditions For Migrant Laborersi
X
Steve Herman
August 01, 2014 6:22 PM
Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video In Thailand, Some Efforts to Improve Conditions For Migrant Laborers

Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video Public Raises its Voice on Power Plant Pollution

In the United States, proposed rules to cut pollution from the nation’s 600 coal-fired power plants are generating a heated debate. The U.S. Environmental Protection Agency, charged with writing and implementing the plan, has already received 300,000 written comments. As VOA’s Rosanne Skirble reports, another 1,600 people are lining up this week at EPA headquarters and at satellite offices around the country to give their testimony in person.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video China Investigates Powerful Former Security Chief

The public in China is welcoming the Communist Party's decision to investigate one of the country's once most powerful politicians, former domestic security chief Zhou Yongkang. Analysts say the move by President Xi Jinping is not only an effort to win more support for the party, but an essential step to furthering much needed economic reforms and removing those who would stand in the way of change. VOA's Bill Ide has more from Beijing.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.