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All Journal International Journal of Zakat (IJAZ) Journal of Islamic Economics Lariba
Norma Md Saad
International Islamic University Malaysia
Religion Economics, Econometrics & Finance Social Sciences

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The Comparison between Consumption and Production-based Zakat Distribution Programs for Poverty Alleviation and Income Inequality Reduction Qurroh Ayuniyyah; Ataul Huq Pramanik; Norma Md Saad; Muhammad Irwan Ariffin
International Journal of Zakat Vol 2 No 2 (2017)
Publisher : Center of Strategic Studies (PUSKAS) BAZNAS

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (688.716 KB) | DOI: 10.37706/ijaz.v2i2.22

Abstract

This study attempts to analyze the effect of consumption and production-based zakat distribution programs in eradicating poverty and reducing income inequality of the zakat beneficiaries by using the modification of the Center of Islamic Business and Economic Studies (abbreviated as CIBEST) model, Deciles method, Gini coefficient and Atkinson index. It takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (abbreviated as BAZNAS) in three different cities and regencies including Bogor, Depok and Sukabumi. It suggests that the present zakat distribution programs conducted by BAZNAS can significantly alleviate poverty and reduce income inequality among zakat beneficiaries. It is observed that one year after receiving zakat programs, production-based programs have higher increase of the material and spiritual condition (represented by falah index) by 300 percentage points while households who obtained consumption-based programs rise by only 20 percentage points. It is also found that the Gini coefficient decreases by 0.017 points while Atkinson index falls by 0.042 points indicating that the income inequality among observed zakat beneficiaries are improved. This study has substantiated the role of zakat for poverty alleviation and income inequality reduction that can benefit development in general. Keywords: Zakat Distribution Programs, Poverty, Income Inequality
Best practices of waqf: Experiences of Malaysia and Saudi Arabia Norma Md Saad; Salina Kassim; Zarinah Hamid
Journal of Islamic Economics Lariba Vol. 2 No. 2 (2016)
Publisher : Department of Islamic Economics, Islamic University of Indonesia

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Abstract

The main focus of this paper is to examine the best practices of selected waqaf entities in Malaysia and Saudi Arabia. The waqaf entities involved in this study include two corporate waqaf institutions namely Kumpulan Waqaf An-Nur Berhad and IIUM Endowment Fund and five waqaf entities under Islamic Development Bank in Saudi Arabia.This study analyses projects and programs undertaken by these selected waqf entites to achieve their respective objectives.  Such a comparison is necessary considering the diverse experiences of these selected waqaf entities in view of the differences in their endowments and different corporate management models. The paper concludes that these waqaf entities have adopted an innovative approach developing waqf programs and experimenting new ways of managing and investing waqaf assets. They have created opportunities for the improvement of waqaf institutions and revitalize the potentials of these waqaf assets to yield greater benefits to the society.
Co-Authors Ataul Huq Pramanik Muhammad Irwan Ariffin Qurroh Ayuniyyah Salina Kassim Zarinah Hamid