Ihtifaz: Journal of Islamic Economics, Finance, and Banking
Vol. 8 No. 2 (2025)

The Role of Zakat in Poverty Alleviation: A Socio-Economic Analysis

Aiman, Muhammad (Unknown)
Munkhotilah Rifki Nurhidayat (Unknown)



Article Info

Publish Date
30 Dec 2025

Abstract

Introduction to The Problem: Poverty continues to be a major issue in Muslim-majority countries across Southeast Asia, the Middle East, and Africa. Despite government programs, inequality and wealth distribution gaps are still increasing. Zakat offers a structured mechanism for redistribution, but its implementation is often limited by weak governance, low public awareness, and poor integration into national development frameworks. Purpose/Objective Study: This study aims to analyze the role of zakat in poverty alleviation from a socio-economic perspective. It seeks to identify zakat’s contribution to reducing poverty, assess the effectiveness of management and distribution, examine institutional challenges, and provide recommendations to strengthen the zakat system for greater social welfare impact. Design/Methodology/Approach: The study adopts a qualitative approach using a literature review of academic journals, Islamic economics books, institutional zakat reports, and empirical research. Previous findings are compared across local, national, and international contexts to understand patterns, weaknesses, and opportunities in zakat management. Findings: The findings show that zakat significantly reduces poverty when managed transparently and professionally. Zakat supports mustahik by meeting basic needs and funding empowerment programs such as business capital assistance, skills training, and scholarships. Digital zakat platforms enhance collection and distribution efficiency, but obstacles remain, including regulatory inconsistencies, low muzakki participation, and weak long-term planning.

Copyrights © 2025






Journal Info

Abbrev

ijiefb

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

The Ihtifaz, Journal of Islamic Economics, Finance, and Banking published by Department of Islamic Banking, Ahmad Dahlan University, is a peer-reviewed open access international journal published twice in a year (June and December). The Ihtifaz aims to provide an international forum for researchers ...