Poverty remains a major development challenge in Aceh Province, Indonesia, underscoring the need for sustainable economic empowerment through productive zakat funds. This study analyzes the effectiveness of productive zakat utilization in developing mustahik (zakat beneficiary) micro-enterprises at Baitul Mal Aceh. Using a qualitative case-study approach, data were collected through semi-structured interviews, observation, and documentation with purposively selected program administrators and mustahik. Effectiveness was assessed across five indicators: business income growth, capacity development, sustainability, ability to meet household needs, and business independence. Findings show a positive impact: average monthly business income rose from IDR 1,850,000 to IDR 2,950,000 (59.5%), and turnover rose from IDR 3,450,000 to IDR 5,250,000 (52.2%), with 86.7% of mustahik experiencing income growth and 80% showing capacity improvement. However, effectiveness remains suboptimal due to limited entrepreneurial skills, restricted market access, and inadequate post-disbursement mentoring. Productive zakat holds significant potential as an economic empowerment instrument when supported by sustainable capacity building, monitoring, and evaluation.
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