Statement of the Special Legal Value (AAOIFI) in Libyan Islamic Financial

Abstract

 The study aimed to demonstrate the extent to which Sharia standards (AAOIFI) are considered a law that binds Islamic financial institutions within the State of Libya in terms of manufacturing Islamic banking products, drafting contracts, setting conditions, and resolving any problems that may occur during implementation and application, so that they have a legal value of mandatory and reference in Judiciary and arbitration, and this matter is of great importance in the financial and banking field in the world today, whose institutions are governed by clear laws and regulations that they abide by and work in accordance with. Thus, it was necessary for Islamic financial institutions when they entered this global financial system to define their legislative and legal system in order to avoid various legal and regulatory difficulties. It hinders it from achieving its goals. The research followed the descriptive analytical method by extrapolating and collecting the basic literature on the subject, then arranging, formulating, and analyzing it in an attempt to address the research problem. The study concluded that the Sharia standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions have a mandatory status within Libyan banks that operate in Islamic banking formats, and this is limited to what is not stated in the text. Legal, or published by the Central Bank of Libya, or local Sharia standards that dealt with Islamic banking issues, and that the Libyan experience, despite its short life sban in Islamic banking, was the first to adopt Sharia standards (AAOIFI) in its financial institutions. And issuing standards Local legitimacy is of great importance in taking into account the specificity that characterizes by the Libyan economy and its institutions. The study also recommends issuing a special law for Libyan Islamic finance - comprehensive and taking into account compatibility with the prevailing peremptory legal rules and the provisions of Islamic Sharia - which, with its articles and provisions, takes precedence over the prevailing civil law, given that the civil and commercial law becomes general in contrast to this special law.