Abstract
Islamic banking and finance is considered a novel way of conducting financial transactions for growth and social justice. It has expanded in an unprecedented manner since its initial appearance in the mid-1970s. Since then, Islamic banking has earned recognition worldwide which paved the way for a rapid growth in the Islamic banking services industry in the future. Based on the above background, this study focuses on the potential of introducing a full fledge Islamic banking system in Libya, and the feasibility of introducing Qard Al- Hassan Banking system as the purest form of Social Islamic banking system in Libya .