AZKA International Journal of Zakat and Social Finance

The Study on Green Finance Awareness Among Lecturers in Politeknik Ungku Omar

Zainora Hayari, Roslina Ameerudin — Fri, 25 Sep 2026 00:00:00 +0000

Green finance has become a critical mechanism for addressing environmental challenges through sustainable economic development. As climate concerns grow, digital tools are giving green finance an advance. Fintech innovations are making sustainable investments easier to understand, quicker to access and open to more people empowering communities to build a better tomorrow. This study investigates the intersection of digital transformation, Fintech and green finance in terms of lecturers' awareness and perception at Politeknik Ungku Omar, Malaysia. The main objectives were to assess the level of green finance awareness, evaluate the influence of digital transformation and examine the role of Fintech in promoting sustainability. A quantitative research design was employed involving a structured questionnaire distributed to 100 lecturers across various departments. Data collection covered demographic details, awareness of green finance, perceptions of digital transformation and the role of Fintech in sustainability. Descriptive statistics, reliability testing and correlation analysis were conducted using Statistical software. The findings revealed high awareness of green finance, positive perception of digital transformation in finance and strong belief in Fintech's role in sustainability. Cronbach’s alpha values indicated high reliability. Significant positive correlations were observed between awareness, digital transformation and Fintech involvement, affirming the integrated role of digital tools in promoting sustainable financial practices. These findings can guide strategic planning for educational, financial and governmental institutions obligated to building environmentally responsible and digitally forward-looking economies.

The Role of Zakat, Waqf, and Islamic Microfinance in Advancing Sustainable Development in Malaysia

Nurul Suliyana Abu Zari, Norhidayah Abu Bakar — Fri, 25 Sep 2026 00:00:00 +0000

This study investigates the role of Islamic social finance (ISF) instruments, including zakat, waqf, and Islamic microfinance, in promoting sustainable development in Malaysia. The objective is to assess their roles in poverty reduction, financial inclusion, and micro-entrepreneur empowerment while aligning with national development goals and the Sustainable Development Goals (SDGs). The research relied on secondary data collected from government reports, academic literature, policy documents, and institutional case studies (i.e., Waqaf Tali Pancing). The findings indicate that Islamic social finance plays a crucial role in supporting socio-economic development. Zakat helps address basic needs and promotes financial inclusion. Waqf, particularly in the form of cash waqf, supports education, healthcare, and entrepreneurship. Islamic microfinance, notably through programs such as BangKIT, enhances income generation and business sustainability for underserved groups. These findings can guide Islamic financial institutions and NGOs in designing more effective and integrated ISF programs that are aligned with national and global development agendas. The study also proposes integrated strategies for enhancing ISF effectiveness aligned with national development priorities and SDGs.

Trust and Social Capital-Building Processes in Zakat-Managing Organizations: An Exploratory Study in Zanzibar

Khatib Mjaka Mkuu, Fauz Khamis — Fri, 25 Sep 2026 00:00:00 +0000

Zakat’s role in alleviating poverty in Zanzibar has largely diminished because of declining stakeholder trust in zakat-managing organizations. Although trust and social capital have received growing scholarly attention, little is known about the specific process through which zakat-managing organizations build stakeholder trust as part of their social capital. This study addresses this gap by exploring how zakat-managing organizations in Zanzibar build social capital through trust and proposes a conceptual framework linking social capital-building strategies to stakeholder trust. A qualitative, exploratory approach was adopted. In-depth, semi-structured interviews were conducted with 12 executives purposively selected from five zakat-managing organizations in Zanzibar. Data were analyzed using the thematic analysis procedure described by Clarke and Braun (2013). Based on executives’ perceptions, four strategies emerged as central to rebuilding stakeholder trust: adherence to principles and values, trust reinforcement regulations, professionalism, openness and transparency, and enhanced reputation and competencies. Continuous commitment to these strategies is crucial, as a lack of trust significantly impedes organizational performance. The findings offer zakat institutions, regulators, and policymakers concrete direction on transparency mechanisms, external audit, legal enforcement, leadership development, succession planning, and stakeholder engagement that can be used to design trust-building interventions. The study addresses an identified gap in the social capital-building processes of nonprofit charitable organizations. It offers theoretical value by exploring trust-building as a process, a topic rarely examined qualitatively, and is particularly novel given the absence of prior studies within this specific research context. This study is based on the perceptions of executives from five zakat-managing organizations only, and it does not capture the direct perspectives of zakat payers, beneficiaries, donors, or the wider community. Future studies should extend this exploration to other contexts and incorporate these additional stakeholder groups to validate and refine the proposed trust-building framework.

The Multidimensional Zakat as an Unthought in the Discourse on Islamic Solidarity Economy

Abderrazak Belabes, Huda Hassan Rajhi — Fri, 25 Sep 2026 00:00:00 +0000

This research begins with a conceptual problem: to what extent does labeling an economic institution as “Islamic” allow us to capture its specific logic when the analytical categories employed come from external theoretical frameworks? The literature on the Islamic solidarity economy tends to equate certain Islamic institutions with their modern equivalents, without always questioning the historical, ontological, and epistemological presuppositions of this transposition. This results in a tension between contemporary categories of solidarity and the normative and institutional structure specific to Islamic societies. The study adopts a qualitative, critical, and historical-conceptual approach, based on the analysis of categories, their presuppositions, and their institutional inscription. Zakat is chosen as a paradigmatic case study to examine this tension. The analysis shows that reducing zakat to a mechanism of solidarity tends to obscure three constitutive dimensions: its character as an obligatory religious duty, the recognition of specific rights for beneficiaries, and its inscription within a legal and institutional framework to ensure that rizq reach those entitled to it. The shift from the practice of zakat in Makkah to its institutional structuring in al-Madinah thus sheds light on its contribution to a structural conception of distributive justice. The article demonstrates that the challenge lies less in defining zakat than in transposing an analytical category that individualizes and moralizes a phenomenon that is also legal, institutional, and systemic. It therefore proposes re-examining Islamic economic institutions based on their own normative and institutional categories based on ahkam, qawa'id and maqasid al-Shari'ah.

Systematic Literature Review on European Zakat Studies

Raisa Aribatul Hamidah , Azhar Alam, Ilhamuddin Muqsith — Fri, 25 Sep 2026 00:00:00 +0000

This study systematically reviews the literature on zakat in Europe to examine the development, practices, regulatory frameworks, institutional arrangements, and socioeconomic contributions of zakat across European contexts. Using a systematic literature review (SLR) approach guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, the study identified, screened, and analyzed relevant publications indexed in the Scopus database. The review initially retrieved 871 records using the keyword “zakat.” After a systematic screening and eligibility assessment, 18 publications that specifically addressed zakat in European countries were selected for qualitative synthesis. The analysis examines the conceptual and theological foundations of zakat, its implementation within Muslim communities, governmental and legal arrangements, the development of zakat institutions, the involvement of Islamic financial institutions, and challenges affecting zakat management in Europe. The findings reveal diverse legal, regulatory, and institutional approaches to zakat across European countries. Although government involvement differs by national context, zakat institutions contribute to the administration and distribution of zakat and support various social and economic initiatives. The review also identifies gaps in the existing literature, particularly concerning governance, institutional effectiveness, digitalization, and the socioeconomic impact of zakat in European settings. This study contributes to a more comprehensive understanding of zakat as an Islamic social-finance instrument in Europe and offers directions for future research.

Wealth, Worship, and Welfare: Transformative Zakat and Qur’anic Ethics of Justice and Human Dignity

Sameeullah Bhat, Nasir Nabi — Fri, 25 Sep 2026 00:00:00 +0000

Zakat, as one of the foundational pillars of Islam, represents far more than a fiscal obligation; it constitutes a divinely ordained moral institution grounded in the Qur’anic vision of justice, ethical wealth management, and the preservation of human dignity. Employing a qualitative, textual, and analytical methodology, this study examines Zakat through an integrated framework that brings together its legal structure, spiritual purpose, and socio-economic function. The research draws upon primary Islamic sources, including the Qur’an and the Sunnah of the Prophet (SAW), alongside classical juristic literature and select contemporary scholarship, using thematic and normative analysis to explore Zakat’s conceptual foundations. The paper analyzes the jurisprudential parameters of Zakat, including liability thresholds (Nisab), conditions of obligation and exemption, and the eight Qur’anic categories of beneficiaries (al-Mustahiqun), situating them within their broader ethical and social objectives. Beyond its juristic contours, the study argues that Zakat operates as a transformative moral practice aimed at purifying wealth (Tazkiyat al-Mal), disciplining the acquisitive self, and translating faith (Iman) into socially meaningful action. By embedding ethical responsibility within economic activity, Zakat challenges the moral neutrality of wealth and reorients it toward collective welfare and social integration. Furthermore, the study explores Zakat’s role in safeguarding human dignity (Karamah al-Insaniyyah) by addressing poverty, debt, vulnerability, and social exclusion without reducing recipients to passive objects of charity. By harmonizing worship with social responsibility, Zakat emerges as a comprehensive Qur’anic model of distributive justice that bridges spirituality, law, and social ethics. The paper concludes that Zakat retains enduring relevance as a moral institution capable of responding to contemporary challenges such as economic inequality, persistent poverty, beggary, and ethical dislocation in Muslim societies.

Zakat Crude Palm Oil Futures (FCPO): Kajian Hukum Takyif Fiqhi dan Cadangan Kaedah Kiraan

Fri, 25 Sep 2026 00:00:00 +0000

Kelapa sawit merupakan salah satu jenis hasil pertanian yang menghasilkan keuntungan dalam jumlah yang besar yang memerlukan pemahaman dan kajian bagi zakat ke atas produk kewangan Islam yang moden ini demi manfaat umat Islam. Kajian ini bertujuan menganalisis zakat ke atas instrumen Niaga Hadapan Minyak Sawit Mentah atau Crude Palm Oil Futures (FCPO) dengan memberi penekanan kepada aspek sandaran fiqh (takyif fiqhi) serta cadangan kaedah pengiraan zakat yang praktikal. Perkembangan instrumen derivatif telah mewujudkan bentuk harta baharu yang berbeza daripada kerangka zakat tradisional, sekali gus memerlukan penilaian semula dari sudut hukum dan aplikasi. Kajian ini menggunakan metodologi kualitatif melalui kajian kepustakaan, temu bual bersama pedagang (trader) FCPO, pihak Bursa Malaysia, pakar Syariah serta analisis dokumen transaksi sebenar. Dapatan kajian menunjukkan wujud perbezaan dalam mentakyifkan FCPO sama ada sebagai hak kewangan atau representasi komoditi sebenar, yang memberi kesan langsung kepada asas pengiraan zakat. Selain itu, amalan dagangan sebenar lebih tertumpu kepada nilai portfolio secara kumulatif berbanding transaksi individu. Berdasarkan dapatan tersebut, kajian ini mencadangkan kaedah pengiraan zakat berasaskan penilaian nilai portfolio pada akhir haul dengan mengambil kira keuntungan serta penolakan kos transaksi. Pendekatan ini lebih praktikal dan selari dengan realiti pasaran semasa. Kajian ini turut mencadangkan keperluan standardisasi kaedah pengiraan zakat bagi instrumen kewangan moden.

The Role of the Effectiveness of Mosque Social Activities and Their Consistency in Repetition Donation Decisions (Case Study of Masjid Raya Al Insan)

Rudy Priyanto, Sepky Mardian — Fri, 25 Sep 2026 00:00:00 +0000

Mosques play a vital role in Islam, serving not only as places of worship but also as centers for various social activities and economic empowerment, including the collection of social funds such as zakat, infaq, and sadaqah (charity). However, data from the 2024 Mosque Information System (SIMAS) of the Ministry of Religious Affairs of the Republic of Indonesia shows that of the total 694,725 mosques and prayer rooms, only 28,138 have a Mosque Welfare Agency (BKM), indicating that the majority of mosque management remains traditional and has not adopted modern management. Masjid Raya Al Insan (MRAI) in Kebayoran Lama, South Jakarta, is known for frequently holding social and humanitarian activities, both routine and incidental, for the congregation and the community living around the mosque. Previous research has examined factors such as transparency, accountability, the attitude of mosque management, and the social and religious influences of donors on trust and donation decisions. However, there is still little research that specifically examines the role of the effectiveness of mosque social activities and their consistency on repeat donation decisions. Using a qualitative case study method through in-depth interviews with administrators and donors, this study evaluates the role of the effectiveness and consistency of MRAI's social programs on repeat donations. The results show that the effectiveness of social activities is assessed by the emotional impact and tangible solutions for the community, not simply by statistical figures. It was found that repeat donation decisions are driven by a strong synergy between theological motivation and trust in the integrity of the administrators. Specifically, the consistency of social programs proved to be a key factor in building donor loyalty, validating the paradigm that "busy mosques" that actively distribute funds actually attract more donations. The study concluded that program consistency creates a sense of security and inner satisfaction for donors. As a recommendation, mosque administrators need to immediately undertake digital transformation in transparent financial reporting and implement Customer Relationship Management (CRM) to maintain donor relationships to ensure the sustainability of funding for community programs.

Wakalah Zakat and Distribution Governance: A Comparative Study of Five Zakat Institutions in Malaysia

Fri, 25 Sep 2026 00:00:00 +0000

Wakalah zakat is a distribution mechanism that permits eligible zakat payers or appointed institutions to distribute part of zakat funds to qualified asnaf under the authority and conditions predetermined by zakat institutions. Although “wakalah” refers to a form of authorized representation in Islamic law, its public presentation and policy communication vary across state zakat authorities, namely Pusat Pungutan Zakat-Majlis Agama Islam Wilayah Persekutuan (PPZ-MAIWP), Majlis Agama Islam Negeri Sembilan (MAINS), Lembaga Zakat Negeri Kedah (LZNK), Majlis Agama Islam Kelantan (MAIK), and Majlis Agama Islam dan Adat Istiadat Melayu Perlis (MAIPs). This study compares how wakalah zakat arrangements are publicly communicated and disclosed by five selected zakat institutions in Malaysia. Utilizing qualitative document analysis, the study examines official websites, institutional documents, application forms, and academic literature related to wakalah zakat, accountability, and Islamic social finance. The findings show that PPZ-MAIWP provides the most organized publicly disclosed model among the sources examined through MyWakalah, while MAINS provides a fixed refund of 37.5%. LZNK emphasizes distribution to the destitute, the poor, and fisabilillah, while MAIK discloses a related waad concept through its e-Pembayar system. From a public-disclosure perspective, the study finds that wakalah zakat should be understood as a governance mechanism involving transparency, reporting, beneficiary targeting, and cross-state policy communication.

Analitik Ramalan Berasaskan Kecerdasan Buatan untuk Mengenal Pasti Pembayar Zakat Tidak Berulang: Satu Kajian Awal ke Arah Kelestarian Kutipan Zakat

Khairil Faizal Khairi, Azuan Ahmad, Nur Hidayah Laili — Fri, 25 Sep 2026 00:00:00 +0000

Kajian ini menilai kebolehlaksanaan penggunaan analitik ramalan berasaskan kecerdasan buatan (AI) untuk mengenal pasti dan mengurus pembayar zakat tidak tegar di Pusat Pungutan Zakat (PPZ-MAIWP). Menggunakan pendekatan kaedah campuran, penyelidikan ini menggabungkan analisis kualitatif terhadap corak tingkah laku pembayar zakat dengan set data kuantitatif yang besar, melibatkan 504,206 rekod kutipan sejarah dari tahun 2021 hingga 2025. Bagi membezakan antara pembayar tegar dan tidak tegar, kajian ini membangunkan dan menguji empat versi model klasifikasi pembelajaran mesin (Versi 1 hingga Versi 4). Walaupun penilaian awal menunjukkan kadar ketepatan hampir sempurna (~100%), ujian diagnostik lanjut mendedahkan bahawa keputusan tersebut adalah ralat positif (false positive). Hasil ini telah dimanipulasi oleh isu kebocoran data (data leakage) akibat kecenderungan struktur dalam set data terutamanya pergantungan keterlaluan pada pemboleh ubah “kategori_zakat”. Penemuan kritikal ini menekankan kepentingan tadbir urus data yang ketat dan kejuruteraan ciri (feature engineering) dalam analitik kewangan Islam. Meskipun berdepan kekangan pemodelan awal, kajian ini berjaya mengeluarkan cadangan tingkah laku yang mendalam daripada data tersebut. Kajian ini menterjemahkan petunjuk tingkah laku yang kompleks ini kepada Sistem Pemarkahan Berasaskan Peraturan yang praktikal dan mudah difahami (skala 0 hingga 100). Sistem ini mampu menyediakan institusi zakat dengan maklumat strategik untuk mengoptimumkan strategi pengekalan pembayar zakat dan seterusnya membuktikan bahawa pengurusan zakat yang berkesan bukan sahaja bergantung pada ketepatan ramalan, malah pada ketelusan dan kebolehtafsiran isyarat tingkah laku. Bagi memastikan AI yang dibangunkan lebih komprehensif, kajian ini mencadangkan kerangka kerja untuk peningkatan model masa depan (Versi 5). Iterasi seterusnya akan menyepadukan analisis RFM (Recency, Frequency, Monetary) bersama algoritma pembelajaran mesin termaju seperti XGBoost dan LightGBM untuk mengubah pembuatan keputusan institusi secara menyeluruh melalui struktur data yang teguh dan prinsip AI yang beretika.