The Extent of Variation in Murabaha ImplementationBetween Islamic Banks (Al-Yaqeen Bank) and CommercialBanks (Al-Aman Bank)

Abstract

This study aims to examine the reality of implementing Islamic
Murabaha within the Libyan banking environment through an
analytical comparison between specialized Islamic banks (Al-
Yaqeen Bank) and commercial banks (Al-Aman Bank). To achieve
this objective, the study adopted an exploratory descriptive
methodology, utilizing precise research tools to ensure the
objectivity of the results. Data were collected via questionnaires and
analyzed using appropriate statistical methods through
the SPSS software.
The findings revealed a clear disparity in implementation efficiency
between the two banks. Specifically, the commercial bank does not
physically possess the commodity (the subject of the Murabaha)
prior to the sale, rendering the documentary and Sharia-compliance
cycle incomplete. Furthermore, the traditional operational nature of
commercial banks is not fully compatible with Islamic banking
requirements. The study also indicated that procedures in
commercial banks are more complex and difficult compared to
Islamic banks, signaling gaps in practical application and a lack of
flexibility in existing systems to meet Islamic financing needs.

Additionally, the results highlighted that commercial banks face
fundamental challenges in transitioning toward Sharia-compliant
Murabaha, including staff training hurdles and difficulties in aligning
prevailing commercial laws with precise Sharia regulations.