FINANCIAL CRISES AND RISK MANAGEMENT IN THE QUR’ĀN

Abstract

This research aims to clarify the methodology mentioned in the Qur’ān to deal with the economic and financial crises that have affected and continue to affect the global economy due to several factors. This includes how the Qur’ān deals with the risks faced by the financial market, the ways it recommends to avoid these risks, and the Quranic approach to confronting the economic crises. By taking Sūrah Yūsuf as a case study, we will see how Yūsuf عليه السلام as a unique economic figure dealt with the crisis, and the solutions and preventive measures he took to face the expected crisis. The importance of this research lies in confirming the validity of the Qur’ān: the advice it contains for all times and places and that it came inclusive of all aspects of daily life. The Qur’ān also deals with the issues of financial transactions and gave us the most prominent ways to solve them over 1400 years ago. The researcher relies on the descriptive–analytical method to analyze the mechanisms used by Yūsuf عليه السلام to confront the crisis, after employing the inductive method to examine the methodology. The research reveals several findings, one of them is that the fifteen-year period in which Yūsuf عليه السلام dealt with the crisis and was able to overcome it included the most important economic and financial principles that the Western world claims to have developed with its economic revolution.

KEYWORDS: Economic Crisis, Financial crises, Risk management, Qur’ān, Sūrah Yūsuf.