In the light of Fiqh al-Sirah, the economic and commercial principles of the Prophet Muhammad ﷺ: A comparative study of the contemporary financial system

Abstract

This study explores the economic and commercial principles of the Prophet Muhammad ﷺ in the light of Fiqh al-Sīrah and presents a comparative analysis with contemporary financial systems. The research highlights that the Prophetic economic model is fundamentally grounded in ethical values such as honesty, trustworthiness, transparency, justice, and social responsibility. In the Prophet’s ﷺ teachings and practices, trade is not merely a profit-oriented activity but a morally regulated system aimed at ensuring fairness, protecting the rights of all parties, and eliminating exploitation, fraud, and injustice. In contrast, modern financial systems, despite their institutional development and technological advancement, often suffer from structural inequalities, ethical deficits, and recurring financial crises. The study argues that integrating the ethical-economic principles derived from the Sunnah into contemporary financial frameworks can contribute to greater economic stability, fairness in wealth distribution, and sustainable development. Ultimately, the Prophetic model offers a holistic paradigm that combines moral integrity with practical economic governance, making it highly relevant for addressing the challenges of today’s global financial systems.