<![CDATA[Poverty is increasingly understood as a form of multidimensional deprivation that extends beyond income limitations to include restricted capabilities to achieve valued ways of living. In this context, zakat-based microfinance has emerged as an Islamic social finance instrument aimed at empowering mustahiq through business capital assistance, mentoring, and capacity-building initiatives. This study examines how productive zakat programs contribute to the expansion of mustahiq capabilities in East Java, Indonesia. A qualitative approach employing a qualitative secondary analysis design was used to reinterpret findings from empirical studies, institutional reports, and zakat empowerment program documents. The analysis was guided by Amartya Sen’s Capability Approach, which conceptualizes empowerment as the expansion of substantive freedoms rather than merely an increase in economic resources. The findings reveal that the effectiveness of productive zakat is determined less by the amount of capital distributed than by the quality of conversion factors that enable beneficiaries to transform resources into sustainable capabilities. Programs integrating business capital, training, mentoring, and community support demonstrate greater potential to enhance economic capacity, strengthen agency, expand social participation, and promote long-term self-reliance. These findings suggest that productive zakat should be understood not only as a poverty alleviation mechanism but also as a capability-enhancing instrument that fosters social inclusion and human development. This study contributes to the Islamic social finance literature by offering a capability-based reinterpretation of mustahiq empowerment.]]>
