The concept of Islamic Financial Management in the light of Quranic Teachings: A way forward to Organizations

Abstract

This study aims to explore the concept of Islamic Financial Management (IFM) from the perspective of Quranic Verses. Islamic Financial Management is a significant concept, and its roots are present in Quranic Verses. It mirrors the comprehensive approach in which ethical and moral principles are ingrained. To explore IFM from the perspective of the Quran, a qualitative research approach was incorporated and qualitative content analysis was applied as a data analysis technique to analyze the Quranic Verses selected based on purpose sampling. The results indicated that four significant themes emerged from Quranic verses explaining the IFM concept. These themes are ‘Interest prohibition and fair trade promotion’, ‘Wealth as a trust and sense of accountability’, ‘Social responsibility and wealth distribution’, and ‘Trust and contract fulfilment’. Based on these findings, organizations are recommended to concentrate on developing financial policy frameworks based on the concept of IFM in the light of the Quranic Teachings.