Libya to list maiden Islamic real estate investment fund on the back of Islamic economic transformation - IFN

Libya to list maiden Islamic real estate investment fund on the back of Islamic economic transformation

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LIBYA: Industry reports have revealed that Libya is looking to list its first Islamic real estate investment fund on the Libyan Stock Market by March 2014. A group of private investment firms are said to be launching the fund for approximately LYD165 million (US$130.28 million) in an attempt to target the country’s property market. Reportedly targeting a return of 20%, the real estate fund will be a combination of commercial, residential and industrial property. Ringing in the new year, the Libyan government declared its intention to transform the country’s banking and economic system to fully comply with Islamic laws. The Central Bank of Libya recently conducted a consultation with the heads of the Islamic banking departments of the country's local banks to discuss the issue. During the meeting, a review was conducted on the progress of the conversion as well as the implementation of Law No.46 by Libya’s National Transitional Council for the abolition of interest payments. In a statement made on the 6th January 2014, Libya’s economy minister, Mustafa Abu Fanas, said that experts are currently in the process of studying the application of Shariah law in the Libyan economy. A dateline has not been set for the completion of the economic transformation. However, the General National Congress has provided the government with a timeframe to implement the ban on interest payments, which will be in force by the year 2015. According to Mustafa, Libya is currently too dependent on its oil sector; and the government is looking to boost and attract foreign investments to further develop the non-oil sector of the economy and upgrade the country’s infrastructural facilities.