Religion and cultural dimensions of trust in the emerging financial market in Libya

A number of different factors affect stock market development in emerging markets. This paper addresses the role of culture and religion in the development of the Libyan stock market. In particular we examine the role of trust in the efficient operation of an emerging market and the importance of culture, religion and other variables in enhancing trust between market agents. The findings of this study are that both culture and religion have an important role in Libyan stock market development. Both culture and religion are dimensions that may lead to the enhancement of trust, which itself then may lead to successful financial market development in Libya.