The developmental role of Zakat funds in reducing poverty

Abstract

Zakat is an effective economic and social tool for achieving financial balance and dispersing wealth concentration. It contributes to the redistribution of national income in favor of vulnerable and needy groups. Its impact is not limited to meeting the immediate consumption needs of the poor, but extends to economic empowerment through financing small projects and providing the means of production. This transforms individuals from recipients of zakat into productive contributors to the economy. Zakat also enhances purchasing power in society, stimulating aggregate demand and driving economic growth away from stagnation. From an institutional perspective, the modern digital and administrative organization of zakat institutions contributes to improving targeting efficiency and ensuring that support reaches its rightful recipients accurately and fairly. Thus, zakat represents a fundamental pillar in sustainable development strategies and in reducing unemployment and poverty rates in Muslim societies.