This paper proposes a new understanding of the Qur’anic term “umma” through a thematic analysis of four exegetical works from the early Islamic period and the modern period. Umma commonly refers to a Muslim community in Islamic literature; nonetheless the first umma established in Medina in early Islamic history was pluralistic in nature. Conducting a thematic analysis on the Meccan verses of the Quran revealed that the Qur’anic usage of the term umma in various contexts does not signify a closed ritualistic community. The umma signifies an active concept necessitating a defined goal by active participants rather than a passive term defining a community with shared religion, ethnicity or culture. The analysis showed that the umma represents a “purposeful community” united through a common goal and book, which basically represents their mutual rights and obligations and defines their covenant to share a life. At the core of the concept of the umma is choice and responsibility. That what is given does not determine membership in an umma, instead what is chosen is key. Hence, the concept of the umma is grounded in the concept of the Book (al-Kit?b) and not of religion (al-D?n). Such is why the concept of the covenant is critical for the umma, because different individuals belong and adhere to an umma by either upholding a covenant with God to follow a specific divine revelation or by making a covenant with a leader and other people to establish a particular way of life. The Quranic notion of the umma challenges the common understanding of the umma as a static salvific community. In a socio-political context, the Medinan verses introduce the Qur’anic vision of a shared umma that is multi-religious and pluralistic in its make up, but unified in its goal and orientation. The unified umma seeks to settle their differences through a common book that outlines mutual rights and obligations of its different members, thereby establishing justice for the whole umma. That inclusive umma does not eliminate religious diversity but acknowledges the human right to choose his/her religion. Such findings have important ramifications for contemporary debates about questions of communal identity and community involvement in political governance in the modern world. This paper explores the Islamic theological foundation for establishing a civil society in a globalized setting. This research also contributes to a better assessment of recent uprisings, “the Arab Spring”, spreading across the Middle East.