The Role of Private Islamic Banks in Libya in Promoting Social Development :An Applied Case Study of Al-Yaqeen Bank

Abstract

This study aims to investigate the role of Al-Yaqeen Islamic Bank in supporting social development in Libya by evaluating its performance across three main domains: providing benevolent loans (Qard Hasan), financing social housing projects, and supporting charitable organizations. The research adopts an inductive philosophical approach based on the practical reality of the bank and employs a quantitative methodology through a single case study to analyze the bank’s contribution to enhancing the social dimension. The study population included all employees of the bank’s general administration, while a purposive sample was selected from employees directly involved in the activities under investigation. Data were collected using a questionnaire based on a five-point Likert scale, and both descriptive and inferential statistical techniques were applied, including means, standard deviations, reliability testing (Cronbach's alpha), and the Z-test to examine hypotheses. The results revealed a general decline in Al-Yaqeen Bank’s commitment to its social responsibilities, reflecting limited institutional attention to the social dimension compared to the economic one. The study also highlighted weaknesses in the bank’s provision of Qard Hasan to its rightful beneficiaries, a decrease in support for charitable organizations, and a clear shortfall in financing social housing projects, as interventions were largely limited to minor maintenance works that did not yield significant developmental impact. The study recommends strengthening the bank’s social role by diversifying the purposes of Qard Hasan, establishing transparent mechanisms to ensure access for eligible beneficiaries, forming developmental partnerships with civil society organizations, launching housing programs targeted at low-income groups, and developing a social development plan with clear, measurable objectives.