The aim of the research is to know the Islamic financing formulas that can promote entrepreneurship, in addition to supporting entrepreneurial projects and encouraging innovation among entrepreneurs and academics. The research problem was represented by answering the following question: What impact can be avoid from leadership and innovation and their role in raising the level of employee performance in Islamic banks The two researchers relied on the descriptive method as it is appropriate for this type of research.? The research pointed out that leadership is one of the means adopted by Islamic banks in their activities seeking to generalize the provisions of financial transactions based on the application of the provisions of Islamic Sharia in their various dealings and activities that are far from dealing with usury. We note the diversity of the formulas applied in Islamic banks, the most important of which are Murabaha for the person ordering the purchase, Ijarah ending with ownership, Istisna’, Musharaka.etc. At the end of the research, the researchers reached a number of results, the most important of which are: that the idea of leadership and innovation in Islamic banks seeks to comprehend and implement the economic and social function of money in Islam. In addition to the commitment of Islamic banks to Islamic rules and principles in financial and banking transactions, Islamic Banks must pay attention to economic and social activities by developing means of attracting funds and directing them towards investment, and all channels of investment and dealing must be far from dealing with usury.