AZKA International Journal of Zakat & Social Finance

The Spiritual, Social, and Economic Impacts of Zakat on Its Payers: A Qualitative Study in The Eastern Province of Sri Lanka

2025-05-21T08:38:39+00:00

Zakat is considered to be the most essential Islamic obligation after prayer. Daily Prayer (Satat) is an obligation that connects a person with Allah; Zakat connects a person to others. Zakat aims to distribute income among people, create economic balance, and protect humanity. This study seeks to answer the research question of how Zakat impacts givers' spiritual, social, and financial aspects. A qualitative research method was chosen, and primary and secondary data were collected for the study. Interviews and observation were used to collect primary data, which was analysed using a thematic analysis approach. Secondary data were obtained from the annual financial reports of Zakat institutions and analysed using a statistical analysis approach. This study has found that Zakat has a significant impact on the spiritual, social, and economic aspects of those who have been giving Zakat consistently without any negligence. To confirm the result, secondary data analysis reveals that the Zakat payments of givers have increased over the years. The study concludes that the wealth of those who calculate and give Zakat properly grows annually, and their spiritual, social, and economic aspects are gradually enhancing. This study, which was conducted only in the Eastern Province, is a recommendation and research limitation that should be carried out in all provinces of Sri Lanka, country-wide.

Exploring Waqf Management Models in Turkey: Implementation Potential and Adaptation Barriers in Indonesia

2025-01-16T11:59:47+00:00

This Effective waqf management is crucial for preserving waqf assets and maximizing their benefits to beneficiaries (maukuf alaih). The waqf management system in Turkey, which has been evolving since the Ottoman Empire, demonstrates significant progress through a development model that optimally utilizes waqf assets. This study aims to explore Turkey's waqf management model and assess its potential implementation in Indonesia, a country with substantial waqf potential. Employing descriptive qualitative methods and literature analysis, this research identifies key elements of the waqf management systems in both countries. The findings reveal that Turkey has a more structured and modern waqf management system, bolstered by supportive regulations and innovative models. Conversely, Indonesia's waqf management faces numerous challenges, particularly in regulation, management, and human resources. The potential adoption of the Turkish model in Indonesia appears promising, particularly for enhancing the efficiency and productivity of waqf assets. However, several obstacles must be addressed, including regulatory and policy difference cultural and social variations, infrastructure and technological readiness, and human resource capacity. These challenges require contextual adaptation and strategic collaboration among stakeholders to ensure the successful integration and sustainable development of waqf institutions in Indonesia.

Zakat Management for Bengkalis Economic Transformation: A Comprehensive Empowerment Strategy

2025-02-04T03:46:58+00:00

The management of zakat has evolved as a significant tool for economic transformation, particularly in regions with a predominantly Muslim population like Bengkalis. This article explores the strategic role of zakat in driving economic empowerment and reducing poverty within the framework of Islamic principles. The study delves into how effective zakat distribution and utilization can lead to a sustainable economic transformation by fostering entrepreneurship, alleviating financial hardships, and supporting community development projects. Key findings highlight the need for an integrated approach that combines zakat management with modern economic tools and policies. This includes enhancing institutional capacities, adopting digital platforms for zakat collection and disbursement, and engaging local stakeholders in decision-making processes. The research emphasizes the role of innovative programs that focus on education, skill development, and microfinance for the mustahiq (zakat recipients), aiming to uplift them into the ranks of muzakki (zakat payers). The article concludes by presenting a comprehensive empowerment strategy for Bengkalis, emphasizing collaboration between government.

Tax-Zakat Relationship in Islamic Law

2025-03-15T11:30:09+00:00

The relationship between zakat and tax in Islamic law has been a subject of scholarly debate due to their overlapping economic functions and distinct religious foundations. This study investigates the historical development of zakat and tax, focusing on their similarities and differences within Islamic economic thought. The research highlights that zakat, as one of the five pillars of Islam, was initially state-administered but later evolved into an individual responsibility, while tax emerged as a state-enforced financial obligation. Using a comparative analysis, this paper investigates the theoretical and practical aspects of zakat and tax, focusing on their legal definitions, collection mechanisms, and economic impacts. The findings indicate that although both serve as financial tools for wealth redistribution and social welfare, zakat is divinely mandated with fixed rates and designated recipients, whereas tax is state-imposed, flexible, and adjustable according to fiscal policies. The study suggests that while zakat inspired tax models could enhance equity in modern economies, their theological distinctions must be preserved.

Exploring Zakat Distribution Methods and Payoffs Through Scoping Reviews

2025-03-19T17:25:01+00:00

Zakat is essential for socioeconomic development, poverty reduction, and income redistribution. The intricacies and efficacy of zakat distribution methods, including as cash transfers, in-kind donations, microfinance initiatives, and educational help, are investigated in this research. The results show that one of the best ways to reduce poverty and promote financial stability is through cash transfers, especially when paired with financial literacy training. Though their success requires on strong institutional frameworks, microfinance projects offer promise in promoting economic self-sufficiency and small company development. Zakat-based education support improves school enrollment and retention rates but lacks sufficient evidence on long-term behavioral and socio-economic impacts. The study underscores the importance of context-sensitive zakat distribution practices and the need for comprehensive monitoring and evaluation systems to ensure program effectiveness. The heterogeneity of zakat interventions poses challenges for systematic reviews and meta-analyses (SRMAs), emphasising the need for methodological rigor when synthesizing evidence across diverse socio-economic and cultural contexts. Future research should focus on longitudinal studies and behavioral outcomes to strengthen the evidence base for policy and practice. This study contributes to the ongoing discourse on optimizing Zakat's role in achieving sustainable socio-economic development.

Driving Zakat Payment Decision in the Indonesian Zakat Institution: The Role of Shariah Audit, Accountability and Trust

2025-05-07T02:37:46+00:00

This study aims to determine the effect of the Implementation of Sharia Audit, Accountability and Transparency on the Decision of Muzaki to Pay Zakat: With Trust as an Intervening Variable at the Indonesian Zakat Initiative (IZI) Zakat Amil Institution. The study employed the population from the existing muzaki of LAZ IZI. The study collects the by distributing questionnaires with the Simple Random Sampling Technique. This study applies the SEM Partial Least Square (PLS) method. The findings of this study indicate that all determinants of zakat payment decisions demonstrate a positive and significant influence. These influences occur both directly and indirectly, except for the transparency. Trust emerges as a key driver in the decision to pay zakat through this zakat institution. These findings are consistent with previous research. This study may offer strategic insights for this institution in formulating initiatives to increase the public willingness to pay zakat through their organization. The significance of these findings is rooted in the fact that all three determining variables—Sharia compliance, accountability, and transparency—are aspects directly governed by the management of zakat institutions. The extent to which these institutions uphold Sharia principles and ensure credible governance practices directly influences the public trust and their subsequent zakat paying decisions. These findings further suggest actionable recommendations for regulatory bodies, including the Ministry of Religious Affairs and BAZNAS, to reinforce zakat governance frameworks in alignment with the principles of good governance.

A New Analytical Framework of Saudi's Economic Diversification Through a Systemic Approach to Zakatable Assets

2025-09-06T05:32:42+00:00

The purpose of this research is to propose a framework for analyzing Saudi Arabias economic diversification based on a systemic approach to zakatable assets. The interest of such an approach is to invite economists and decision-makers to consider problems in their entirety over a long period of time, considering the interactions between the different elements of a complex system, rather than analyzing them in isolation by extrapolating very short-term trends. This perspective transcends traditional frameworks, focused on the production of goods and services and the creation of value in financial markets, to rethink wealth creation and well-being, which cannot be limited to purely financial considerations. The research advocates a deeper understanding of economic life by connecting the world we live from to the world we live in. Such a connection reveals the limitations of economic analyses focused on the concepts of growth and competitiveness. Hence the interest in the meanings of tawlid (engendering life) and inzal al-mal (sending down what is beneficial to life), as well as the matrix of the weights of zakatable assets based on what is essential for life before any other consideration. Beyond the mainstream discourse that limits life to adaptation to the market, the research opens up possibilities to influence the market, create a new market, and overcome the commodification of life.

Traditional Approaches to Zakat Fund Management in Bangladesh: An Analysis of Mechanisms, Constraints, And Countermeasures

2025-02-18T05:38:34+00:00

The paper investigates the traditional modes of Zakat fund management in Bangladesh, their operational processes, prevailing constraints, and possible countermeasures. Embedded in Islamic values and socio-cultural norms, traditional Zakat institutions continue to play an important role in poverty reduction and community welfare. The research uses a qualitative approach, namely thematic content analysis, to analyze secondary data obtained from academic literature, government reports, institutional publications, and media sources. The study, through its analysis, identifies major collection and distribution mechanisms, management practices, and systemic weaknesses—such as inefficiency, lack of transparency, and poor public awareness—that undermine the effectiveness of Zakat as a means of achieving social justice. The study underscores the importance of structured policies, enhanced accountability, modern management tools, and community-based strategies to augment the outreach of traditional Zakat mechanisms. This paper provides important implications for policymakers, Islamic financial institutions, and community leaders interested in streamlining Zakat governance within a traditional setup.

Digital Zakat Management in Muslim Countries: A Comparative Analysis Through a Literature-Based Lens

2025-02-21T18:34:33+00:00

Digitalization of Zakat management has become a landmark change in most Muslim-majority nations, facilitating efficiency, transparency, and financial inclusion. A qualitative, literature-based research design was used in this study, with secondary data obtained from academic journals, institutional reports, and online platforms. The data gathered were subjected to thematic content analysis to determine the emerging trends, strategies, and issues in digital Zakat implementation. Four major themes were identified: technological platforms, regulatory frameworks, digital literacy, and emerging tools like blockchain. Comparative results show that nations such as Malaysia and Saudi Arabia have made significant advancements through state-driven programs and fintech collaborations, while countries such as Bangladesh and Indonesia need to address issues of infrastructure, awareness, and regulatory support. The research adds to knowledge on the changing face of digital Zakat and provides practical lessons for policymakers, institutions, and researchers.

Efficiency Analysis of Indonesian Zakat Institutions at the Provincial Level

2025-01-06T10:05:20+00:00

This research aims to evaluate the efficiency of the National Zakat Agency (BAZNAS) at the provincial level in Indonesia. The study utilizes data from seven provincial BAZNAS offices that issued financial reports during the period of 2020-2022. Data Envelopment Analysis (DEA) with a production approach is adopted as a research method. The input variables include personnel costs, operational costs, and total assets, while the output variables encompass the costs of zakat collection and the costs of zakat distribution of zakat. The research findings highlight significant variations in efficiency levels among provinces. DKI Jakarta and DI Yogyakarta provinces stand out with the highest efficiency scores, while Bengkulu, and Sumatera Utara show lower efficiency. These findings are crucial as they indicate opportunities to enhance zakat management efficiency in several provinces, emphasizing the importance of efficient zakat management in poverty alleviation efforts. The implications of this research are highly relevant for policymakers and stakeholders in optimizing zakat collection and utilization. This research makes a unique contribution by identifying efficiency variations among provinces and offering recommendations for provinces with low efficiency to adopt best practices from more efficient provinces.