Exploring the Lived Ethical and Spiritual Experiences of Muslim Investors in Sharia-Compliant Finance

Abstract

Islamic economics provides a distinctive framework for integrating moral, spiritual, and financial dimensions in human economic activity. Within this field, the ethical experiences of Muslim investors in Sharia-compliant markets have become increasingly important as they reflect the intersection between faith-based values and modern financial behavior. However, existing research remains limited in capturing the subjective and spiritual dimensions of investors’ experiences, relying mostly on quantitative or normative approaches that fail to reveal the essence of moral consciousness in financial decision-making. This study employs an Interpretative Phenomenological Analysis (IPA) to explore how Muslim investors interpret the balance between profit and moral responsibility in their investment practices. Data were collected through semi-structured, in-depth interviews with twelve active Muslim investors and analyzed thematically to uncover essential meanings related to ethical reasoning, spiritual accountability (amanah), and divine blessing (barakah). The findings reveal that investment is perceived as an act of worship and moral trust rather than a pursuit of material gain, where spiritual intentionality guides decisions and fosters a sense of peace and moral fulfillment. This experiential understanding extends beyond compliance-based frameworks, emphasizing the internalized spirituality that defines ethical investment behavior. The study contributes to a deeper understanding of Islamic investment as a lived ethical experience by explicitly articulating its theoretical and practical implications for investor behavior, ethical governance, and Sharia-compliant financial design. Furthermore, the methodological rigor of the study is reinforced through the use of IPA’s systematic stages—bracketing, idiographic analysis, and cross-case thematic synthesis—ensuring depth, credibility, and transparency of interpretation. Participant characteristics, including age range, investment experience, and diversity of Sharia-compliant asset preferences, are highlighted to contextualize the phenomenological insights and strengthen the study’s transferability. The study offers clear implications for developing more human-centered Islamic finance models and enhancing ethical investment policies that integrate spirituality, morality, and social justice.