1) The document discusses how neglecting zakat (charity) has contributed to widespread poverty in Muslim countries by ignoring Islamic teachings.
2) It examines Malaysia's successful revival of zakat collection through a mandatory salary deduction scheme, aimed at eliminating usury (riba) and eradicating poverty.
3) The study finds that reviving zakat according to Islamic principles and collecting it systematically could generate significant funds to address problems in Muslim nations, as demonstrated by Malaysia's model.
Fiqh, or Islamic jurisprudence, is based on five sources: the Quran, sunnah (sayings and actions of the Prophet), ijma (scholarly consensus), qiyas (analogical reasoning), and ijtihad (independent reasoning). The Quran and sunnah are the primary sources, outlining broad moral and legal principles. Scholars then derive further rulings and details through ijma, qiyas, and ijtihad to address issues not directly mentioned in the primary sources by building upon their principles using consensus, analogy, and independent reasoning.
The root word of ijtehad is “Juhd” which means “to try or strive”. It's the process in which a scholar independently strive to find answers, reasons or solutions to the problem in light of Quran and Ahadees.
Qiyaas
Sometimes they use analogy to find solutions. E.g: alcohol is forbidden. So if a thing has same effect as alcohol, it is also forbidden.
This method of analogy is called “Qiyaas”.
The document discusses the key concepts and principles of the Islamic economic system. It covers concepts like tawhid (unity of God), ownership, justice, and the roles and responsibilities of the ruler. It also describes some of the operational tools in Islamic economics like zakat (mandatory alms-giving), mudharabah (profit-sharing), and the prohibition of riba (usury or interest). Different methods like ijtihad (independent reasoning) are used to solve new economic issues within the framework of Islamic principles from the Quran and Sunnah. The overall organization of Islamic economics involves economic nationalism, trade based on sharia-compliant contracts and profit-sharing agreements, and welfare through zakat and other
Islamic economics has two main paradigms - those who see it as a branch of general economics, and those who see it as an independent discipline. There is no consensus on the definition of Islamic economics. The document discusses various scholars' views on the nature and definition of Islamic economics. It argues that developing a scientific definition is important. The key aspects of an Islamic economic paradigm discussed are: it is based on the philosophy of Tawhid, Rububiyyah, Khilafah, Tazkiyah and accountability. The economic agent in an Islamic system is the "Muslim" whose behavior is guided by obedience to Allah and seeking falah. This forms the basis of microfoundations for an Islamic
The document discusses the rights of non-Muslims in an Islamic state based on principles in the Quran and teachings of Muhammad. It states that non-Muslims should receive protection, freedom of religion, and assistance for basic necessities and the poor. The Quran teaches equality among all people and that there is no compulsion in religion. Non-Muslims would pay Jizya tax but are exempt from military service and some groups like monks are exempt from the tax. The document outlines rights like justice, property protection, freedom of work and worship for non-Muslims.
1. The document outlines several rights that Islam recognizes for all humans, including the right to life, safety of life, a basic standard of living, freedom from slavery, equality, and the right to cooperate or not cooperate with others.
2. It discusses principles like the prohibition of killing innocents, slavery, and discrimination based on characteristics other than piety.
3. The document concludes that Islamic scripture considers even minor issues of human relations and dignity, showing the comprehensiveness of its principles of human rights.
Fiqh, or Islamic jurisprudence, is based on five sources: the Quran, sunnah (sayings and actions of the Prophet), ijma (scholarly consensus), qiyas (analogical reasoning), and ijtihad (independent reasoning). The Quran and sunnah are the primary sources, outlining broad moral and legal principles. Scholars then derive further rulings and details through ijma, qiyas, and ijtihad to address issues not directly mentioned in the primary sources by building upon their principles using consensus, analogy, and independent reasoning.
The root word of ijtehad is “Juhd” which means “to try or strive”. It's the process in which a scholar independently strive to find answers, reasons or solutions to the problem in light of Quran and Ahadees.
Qiyaas
Sometimes they use analogy to find solutions. E.g: alcohol is forbidden. So if a thing has same effect as alcohol, it is also forbidden.
This method of analogy is called “Qiyaas”.
The document discusses the key concepts and principles of the Islamic economic system. It covers concepts like tawhid (unity of God), ownership, justice, and the roles and responsibilities of the ruler. It also describes some of the operational tools in Islamic economics like zakat (mandatory alms-giving), mudharabah (profit-sharing), and the prohibition of riba (usury or interest). Different methods like ijtihad (independent reasoning) are used to solve new economic issues within the framework of Islamic principles from the Quran and Sunnah. The overall organization of Islamic economics involves economic nationalism, trade based on sharia-compliant contracts and profit-sharing agreements, and welfare through zakat and other
Islamic economics has two main paradigms - those who see it as a branch of general economics, and those who see it as an independent discipline. There is no consensus on the definition of Islamic economics. The document discusses various scholars' views on the nature and definition of Islamic economics. It argues that developing a scientific definition is important. The key aspects of an Islamic economic paradigm discussed are: it is based on the philosophy of Tawhid, Rububiyyah, Khilafah, Tazkiyah and accountability. The economic agent in an Islamic system is the "Muslim" whose behavior is guided by obedience to Allah and seeking falah. This forms the basis of microfoundations for an Islamic
The document discusses the rights of non-Muslims in an Islamic state based on principles in the Quran and teachings of Muhammad. It states that non-Muslims should receive protection, freedom of religion, and assistance for basic necessities and the poor. The Quran teaches equality among all people and that there is no compulsion in religion. Non-Muslims would pay Jizya tax but are exempt from military service and some groups like monks are exempt from the tax. The document outlines rights like justice, property protection, freedom of work and worship for non-Muslims.
1. The document outlines several rights that Islam recognizes for all humans, including the right to life, safety of life, a basic standard of living, freedom from slavery, equality, and the right to cooperate or not cooperate with others.
2. It discusses principles like the prohibition of killing innocents, slavery, and discrimination based on characteristics other than piety.
3. The document concludes that Islamic scripture considers even minor issues of human relations and dignity, showing the comprehensiveness of its principles of human rights.
The document provides an outline and introduction to Islamic economics. It begins by defining conventional economics and discussing the four basic economic problems. It then contrasts capitalism and socialism, noting flaws in both systems. Islamic economics is introduced as accepting market forces but with moral and legal prohibitions, notably the prohibition of riba (interest/usury). Riba is defined from the Quran and hadith as an agreed excess without due consideration. The document provides background on distinguishing currencies from commodities in economic transactions.
1) The primary sources of Islamic law are the Quran, which was revealed to the Prophet Muhammad, and the Sunnah, which are the acts and sayings of the Prophet.
2) Secondary sources that are used when the primary sources do not provide a clear ruling include ijma (consensus of Islamic legal scholars), qiyas (analogical reasoning), istihsan (discretionary judgment), istislah (public interest) and istishab (presumption of continuity).
3) Qiyas uses analogy to apply rules from original cases in the primary sources to new cases not directly addressed in them, while istihsan allows departing from an analogy if another argument is
The document discusses various characteristics of an Islamic society, including:
1. Enjoining good and forbidding evil is an important principle where Muslims should encourage virtuous behavior and discourage sinful acts.
2. Social mobility existed where individuals could improve their social status through religious, scholarly or military achievements regardless of background.
3. The joint family system of extended families living together facilitated intergenerational support and respect for elders was strongly emphasized.
4. Marriage is considered an important institution in Islam with guidelines around choosing a pious partner, considerations for early marriages, and the conditions for polygamy or divorce.
Human Rights in Islam are based on equality, dignity, and respect for all humankind. The Quran established Islam as the first religion to provide a charter of basic human rights and freedoms, protecting the life, liberty, and property of all people, including non-Muslims. Key human rights in Islam include the right to life, freedom, owning property, social security, education, and protection against torture. Islam considers freedom and social security to be natural rights, and forbids torture as well as forcing confessions against one's will.
The term Sharia itself derives from the verb shara'a, which according to Abdul Mannan Omar's
Dictionary of the Holy Qur'an connects to the idea of "spiritual law" (5:48) and "system of
divine law; way of belief and practice" (45:18) in the Quran.
This document provides an overview of the Islamic economic system. It discusses the ideological basis of Islam compared to capitalism and socialism. The Islamic approach balances rights to private property with equality and justice. Key aspects of the Islamic economic system include equitable distribution of wealth through zakat and prohibitions on interest to prevent concentration of wealth. The goal is for a spiritual and legal system that allows market forces within divine restrictions to ensure fair circulation of resources.
Islam affords women extensive rights and empowerment not found in other religions or philosophies. Specifically:
1. Muslim women have the right to education, independent property, work or business to earn their own money, equal reward for equal work, expressing opinions and advocating causes.
2. Additional rights include provisions from husbands, negotiating marriage terms, divorce, keeping their own money, sexual satisfaction from husbands, child custody after divorce, choosing and refusing husbands, and remarrying.
3. Exceptions are made for fasting, praying, and congregational attendance during menstruation and post-childbirth bleeding, but women are otherwise allowed to do what men do and have historically governed Islamic provinces and states
This document discusses human rights in Islam. It begins by stating that the Quran and hadith are the primary sources of information on human rights in Islamic jurisprudence. It explains that the Quran explicitly addresses all aspects of human rights, such as ethics, worship, law, and governance. It then outlines several specific human rights guaranteed in the Quran and hadith, such as the rights to life, safety, dignity, basic standards of living, freedom, justice, and equality. The document argues that Islam established these rights over 600 years before similar rights were established in other civilizations and religions. It also discusses rights of citizens and non-combatants in Islamic law. In conclusion, it states that the human rights principles
Islamic law is derived from two primary sources - the Quran and the Sunnah of the Prophet Muhammad. The Quran contains fundamental directives from Allah, while the Sunnah represents the words, actions, and approvals of the Prophet. There are also four secondary sources of Islamic law: ijma (consensus of scholars), qiyas (analogical reasoning), ijtihad (independent reasoning), and istihsan (juristic preference). These secondary sources are used to derive rulings on issues not directly addressed in the primary sources and to adapt the law to new situations.
This document provides an overview of different economic systems including conventional, capitalist, communist/socialist, mixed, and Islamic systems. It discusses key principles such as private property and profit motive in capitalism, nationalization and equality in communism/socialism, and a mixture of public and private ownership in mixed economies. The Islamic economic system is defined as studying human behavior in using resources for individual and community benefit according to Sharia principles like tauhid and khalifah. It aims to fulfill the maqasid or purposes of Sharia like preserving religion, intellect, life, property, and dignity. In conclusion, while businesses generally seek profit, Islamic economy emphasizes using resources for broader human and social welfare within Sharia guidelines.
The document discusses women's rights in Islam. It explains how Islam restored rights and dignity to women at a time when women were widely seen as inferior in many societies. Some key rights established in Islam included allowing women to own property, have their own money and wealth, agree to marriage, keep their maiden name after marriage, divorce, educate themselves, and vote. It discusses how women had more inheritance rights under Islam compared to earlier societies. The document also outlines women's rights regarding marriage, divorce, education, employment, and dress in Islamic law and teachings. It emphasizes the principles of equality and dignity for women established in Islam.
This document provides an overview of Islamic jurisprudence and its historical background. It discusses the foundational period during the time of the Prophet Muhammad where rules were based on the Quran and Sunnah. It then describes the establishment period during the time of the Righteous Caliphs where deductive principles were developed to address new issues. Fiqh or Islamic jurisprudence is then introduced as the comprehensive understanding and collection of rulings derived from Islamic scripture. The document outlines the principal sources of Islamic law as revelation from God through the Quran and Sunnah and concludes by describing some key characteristics of Quranic legislation such as its gradual revelation and emphasis on rationale.
Introduction to Islamic Economic Systemdawah_islam
This document provides an introduction to the Islamic economic system. It discusses key concepts such as zakat (mandatory charity), public ownership of vital resources, currency based on gold and silver, and a prohibition on interest. Zakat facilitates wealth redistribution from rich to poor. Public ownership ensures equal access to necessities and prevents monopolization. An interest-free system is evidenced by Quranic verses. Copyright and patents are also discussed. Overall the document outlines some of the fundamental principles of Islamic economics.
Presentation by Al Midrar Institute
To contact us- Website: www.almidrar.com
Email: sawafai@almidrar.com
Phone number: (+92)21-358-92292
Facebook.com/almidrar
Facebook,com/almunadi
The document discusses the basic concepts of the Islamic economic system. It summarizes that Islam provides a balanced view between freedom and equality, allowing for private property rights but not unconditionally to cause disorder. The Islamic economic system aims for justice and equality in the distribution of wealth by taking from the rich and giving to the poor. It seeks to narrow the gap between rich and poor by having everyone participate equally in profits and losses while allowing market forces to operate.
There are differing views on the feasibility of ijma' or scholarly consensus in Islamic law. Some scholars like the Muktazilah and some Shia scholars believe ijma' is not feasible as it is impossible to get agreement among all scholars on legal issues due to their different locations, schools of thought, and potential for changing opinions. Other groups like the Zahiris and Imam Ahmad Hanbal believe ijma' is feasible but only applies to the consensus of the Prophet's companions. Imam Malik believed ijma' is feasible but only for the scholars of Madinah. Shia Imamiyyah only recognize the consensus of the Prophet's family. Modern scholar Abd al-Wahhab Kh
Minorities Rights in Islam and situation in pakistan Malik Abdul Wahab
This document provides an overview of minorities rights in Islam and the situation of minorities in Pakistan. It discusses the classical Islamic legal doctrines around the status and treatment of non-Muslims in Muslim societies. It notes that while the Quran and hadiths promote equitable treatment of minorities, Islamic jurisprudence established discriminatory rules. However, actual practice varied depending on political and economic factors. It then examines the current situation of religious minorities in Pakistan, including Hindus, Sikhs, and Ahmadis, noting ongoing issues of discrimination and lack of equal rights and protections according to the constitution.
Ijtihad refers to the total effort exerted by a qualified legal scholar, or mujtahid, to infer rulings of sharia from detailed scriptural evidence. The task of the mujtahid is to discover rulings that are explicitly stated in sources like the Quran and hadith, extend them to new cases, and discover rulings for cases not covered by sources. To perform ijtihad, one must possess expert knowledge of Arabic, the Quran, hadith, consensus (ijma), analogy (qiyas), objectives of sharia, and maxims of jurisprudence, among other qualifications. Today, for a mujtahid's opinion to have significance it must be accepted by
The document discusses the emergence of racialized environmental conflicts and identities in Latin America from the 1500s to present. It notes that over centuries, European colonizers imposed racial ideologies to justify controlling land and environments, displacing indigenous peoples. In the 20th century, modern development led to the idea that indigenous peoples were "disappearing." However, starting in the 1990s, environmental conflicts erupted where indigenous and Afro communities explicitly identified themselves and fought for land rights. Now in the 21st century, a new subjectivity is emerging where environmental justice is interconnected with indigenous and Afro identities. Scholars are rethinking how notions of environment and race are socially constructed through these political struggles over natural resources and land.
Task 4 hollywood, british and third world films introdpagoffs
Third World Cinema aims to question structures of power like colonialism and liberate oppressed groups facing gender, class, race, religion or ethnic oppression. It engages with questions of identity and diaspora communities, challenges views of history, and facilitates interaction between intellectuals and the public to imagine new possibilities through inclusion. The document discusses defining Third World Cinema and provides tasks to analyze a Third World film's conventions, funding, distribution, marketing, and how it differs from Hollywood and British films.
The document provides an outline and introduction to Islamic economics. It begins by defining conventional economics and discussing the four basic economic problems. It then contrasts capitalism and socialism, noting flaws in both systems. Islamic economics is introduced as accepting market forces but with moral and legal prohibitions, notably the prohibition of riba (interest/usury). Riba is defined from the Quran and hadith as an agreed excess without due consideration. The document provides background on distinguishing currencies from commodities in economic transactions.
1) The primary sources of Islamic law are the Quran, which was revealed to the Prophet Muhammad, and the Sunnah, which are the acts and sayings of the Prophet.
2) Secondary sources that are used when the primary sources do not provide a clear ruling include ijma (consensus of Islamic legal scholars), qiyas (analogical reasoning), istihsan (discretionary judgment), istislah (public interest) and istishab (presumption of continuity).
3) Qiyas uses analogy to apply rules from original cases in the primary sources to new cases not directly addressed in them, while istihsan allows departing from an analogy if another argument is
The document discusses various characteristics of an Islamic society, including:
1. Enjoining good and forbidding evil is an important principle where Muslims should encourage virtuous behavior and discourage sinful acts.
2. Social mobility existed where individuals could improve their social status through religious, scholarly or military achievements regardless of background.
3. The joint family system of extended families living together facilitated intergenerational support and respect for elders was strongly emphasized.
4. Marriage is considered an important institution in Islam with guidelines around choosing a pious partner, considerations for early marriages, and the conditions for polygamy or divorce.
Human Rights in Islam are based on equality, dignity, and respect for all humankind. The Quran established Islam as the first religion to provide a charter of basic human rights and freedoms, protecting the life, liberty, and property of all people, including non-Muslims. Key human rights in Islam include the right to life, freedom, owning property, social security, education, and protection against torture. Islam considers freedom and social security to be natural rights, and forbids torture as well as forcing confessions against one's will.
The term Sharia itself derives from the verb shara'a, which according to Abdul Mannan Omar's
Dictionary of the Holy Qur'an connects to the idea of "spiritual law" (5:48) and "system of
divine law; way of belief and practice" (45:18) in the Quran.
This document provides an overview of the Islamic economic system. It discusses the ideological basis of Islam compared to capitalism and socialism. The Islamic approach balances rights to private property with equality and justice. Key aspects of the Islamic economic system include equitable distribution of wealth through zakat and prohibitions on interest to prevent concentration of wealth. The goal is for a spiritual and legal system that allows market forces within divine restrictions to ensure fair circulation of resources.
Islam affords women extensive rights and empowerment not found in other religions or philosophies. Specifically:
1. Muslim women have the right to education, independent property, work or business to earn their own money, equal reward for equal work, expressing opinions and advocating causes.
2. Additional rights include provisions from husbands, negotiating marriage terms, divorce, keeping their own money, sexual satisfaction from husbands, child custody after divorce, choosing and refusing husbands, and remarrying.
3. Exceptions are made for fasting, praying, and congregational attendance during menstruation and post-childbirth bleeding, but women are otherwise allowed to do what men do and have historically governed Islamic provinces and states
This document discusses human rights in Islam. It begins by stating that the Quran and hadith are the primary sources of information on human rights in Islamic jurisprudence. It explains that the Quran explicitly addresses all aspects of human rights, such as ethics, worship, law, and governance. It then outlines several specific human rights guaranteed in the Quran and hadith, such as the rights to life, safety, dignity, basic standards of living, freedom, justice, and equality. The document argues that Islam established these rights over 600 years before similar rights were established in other civilizations and religions. It also discusses rights of citizens and non-combatants in Islamic law. In conclusion, it states that the human rights principles
Islamic law is derived from two primary sources - the Quran and the Sunnah of the Prophet Muhammad. The Quran contains fundamental directives from Allah, while the Sunnah represents the words, actions, and approvals of the Prophet. There are also four secondary sources of Islamic law: ijma (consensus of scholars), qiyas (analogical reasoning), ijtihad (independent reasoning), and istihsan (juristic preference). These secondary sources are used to derive rulings on issues not directly addressed in the primary sources and to adapt the law to new situations.
This document provides an overview of different economic systems including conventional, capitalist, communist/socialist, mixed, and Islamic systems. It discusses key principles such as private property and profit motive in capitalism, nationalization and equality in communism/socialism, and a mixture of public and private ownership in mixed economies. The Islamic economic system is defined as studying human behavior in using resources for individual and community benefit according to Sharia principles like tauhid and khalifah. It aims to fulfill the maqasid or purposes of Sharia like preserving religion, intellect, life, property, and dignity. In conclusion, while businesses generally seek profit, Islamic economy emphasizes using resources for broader human and social welfare within Sharia guidelines.
The document discusses women's rights in Islam. It explains how Islam restored rights and dignity to women at a time when women were widely seen as inferior in many societies. Some key rights established in Islam included allowing women to own property, have their own money and wealth, agree to marriage, keep their maiden name after marriage, divorce, educate themselves, and vote. It discusses how women had more inheritance rights under Islam compared to earlier societies. The document also outlines women's rights regarding marriage, divorce, education, employment, and dress in Islamic law and teachings. It emphasizes the principles of equality and dignity for women established in Islam.
This document provides an overview of Islamic jurisprudence and its historical background. It discusses the foundational period during the time of the Prophet Muhammad where rules were based on the Quran and Sunnah. It then describes the establishment period during the time of the Righteous Caliphs where deductive principles were developed to address new issues. Fiqh or Islamic jurisprudence is then introduced as the comprehensive understanding and collection of rulings derived from Islamic scripture. The document outlines the principal sources of Islamic law as revelation from God through the Quran and Sunnah and concludes by describing some key characteristics of Quranic legislation such as its gradual revelation and emphasis on rationale.
Introduction to Islamic Economic Systemdawah_islam
This document provides an introduction to the Islamic economic system. It discusses key concepts such as zakat (mandatory charity), public ownership of vital resources, currency based on gold and silver, and a prohibition on interest. Zakat facilitates wealth redistribution from rich to poor. Public ownership ensures equal access to necessities and prevents monopolization. An interest-free system is evidenced by Quranic verses. Copyright and patents are also discussed. Overall the document outlines some of the fundamental principles of Islamic economics.
Presentation by Al Midrar Institute
To contact us- Website: www.almidrar.com
Email: sawafai@almidrar.com
Phone number: (+92)21-358-92292
Facebook.com/almidrar
Facebook,com/almunadi
The document discusses the basic concepts of the Islamic economic system. It summarizes that Islam provides a balanced view between freedom and equality, allowing for private property rights but not unconditionally to cause disorder. The Islamic economic system aims for justice and equality in the distribution of wealth by taking from the rich and giving to the poor. It seeks to narrow the gap between rich and poor by having everyone participate equally in profits and losses while allowing market forces to operate.
There are differing views on the feasibility of ijma' or scholarly consensus in Islamic law. Some scholars like the Muktazilah and some Shia scholars believe ijma' is not feasible as it is impossible to get agreement among all scholars on legal issues due to their different locations, schools of thought, and potential for changing opinions. Other groups like the Zahiris and Imam Ahmad Hanbal believe ijma' is feasible but only applies to the consensus of the Prophet's companions. Imam Malik believed ijma' is feasible but only for the scholars of Madinah. Shia Imamiyyah only recognize the consensus of the Prophet's family. Modern scholar Abd al-Wahhab Kh
Minorities Rights in Islam and situation in pakistan Malik Abdul Wahab
This document provides an overview of minorities rights in Islam and the situation of minorities in Pakistan. It discusses the classical Islamic legal doctrines around the status and treatment of non-Muslims in Muslim societies. It notes that while the Quran and hadiths promote equitable treatment of minorities, Islamic jurisprudence established discriminatory rules. However, actual practice varied depending on political and economic factors. It then examines the current situation of religious minorities in Pakistan, including Hindus, Sikhs, and Ahmadis, noting ongoing issues of discrimination and lack of equal rights and protections according to the constitution.
Ijtihad refers to the total effort exerted by a qualified legal scholar, or mujtahid, to infer rulings of sharia from detailed scriptural evidence. The task of the mujtahid is to discover rulings that are explicitly stated in sources like the Quran and hadith, extend them to new cases, and discover rulings for cases not covered by sources. To perform ijtihad, one must possess expert knowledge of Arabic, the Quran, hadith, consensus (ijma), analogy (qiyas), objectives of sharia, and maxims of jurisprudence, among other qualifications. Today, for a mujtahid's opinion to have significance it must be accepted by
The document discusses the emergence of racialized environmental conflicts and identities in Latin America from the 1500s to present. It notes that over centuries, European colonizers imposed racial ideologies to justify controlling land and environments, displacing indigenous peoples. In the 20th century, modern development led to the idea that indigenous peoples were "disappearing." However, starting in the 1990s, environmental conflicts erupted where indigenous and Afro communities explicitly identified themselves and fought for land rights. Now in the 21st century, a new subjectivity is emerging where environmental justice is interconnected with indigenous and Afro identities. Scholars are rethinking how notions of environment and race are socially constructed through these political struggles over natural resources and land.
Task 4 hollywood, british and third world films introdpagoffs
Third World Cinema aims to question structures of power like colonialism and liberate oppressed groups facing gender, class, race, religion or ethnic oppression. It engages with questions of identity and diaspora communities, challenges views of history, and facilitates interaction between intellectuals and the public to imagine new possibilities through inclusion. The document discusses defining Third World Cinema and provides tasks to analyze a Third World film's conventions, funding, distribution, marketing, and how it differs from Hollywood and British films.
The 1824 presidential election saw four candidates from the Democratic-Republican party vie for the presidency: Andrew Jackson, John Quincy Adams, William Crawford, and Henry Clay. Jackson won a plurality of both the popular and electoral votes but failed to secure a majority, sending the election to the House of Representatives. There, Clay used his influence as Speaker of the House to elect Adams president, leading Jackson's supporters to cry "corrupt bargain." In 1828, Jackson ran against Adams for a rematch, attacking each other with harsh personal accusations. Jackson won in a landslide, marking the beginning of the Jacksonian era of American politics.
Public office is a position of trust created by law to exercise portions of governmental authority for the benefit of the public. Key aspects of public office are that it is a public trust, not a property right or contract. The President, Vice President, and other high-level officials can be removed through impeachment for crimes like betrayal of public trust or corruption. The House of Representatives has the sole power to initiate impeachment cases and a vote of one-third is needed to bring the case before the Senate for trial.
This document appears to be a collection of multiple choice questions about various topics related to ethics, including just war theory, terrorism, human cloning, genetic engineering, globalization, and HIV/AIDS. The questions cover concepts like just cause principle, definitions of war crimes, types of pacifism, requirements for war as a last resort, characteristics and goals of terrorists, arguments for and against human cloning, the use of genetically modified crops, stem cell sources, cloning of mammals, criteria for evaluating international organizations, economic impacts of technology, and statistics about HIV/AIDS prevalence.
Through the Family Lens: how death illuminates the modern family presents findings from research into the UK's Funeral Payments Scheme. The eligibility criteria for the scheme does not accurately reflect complex family relationships or changing definitions of family. Responsibility for funeral costs is decided based on normative views of family that some claimants do not fit. Claimants who want to pay for a funeral but are estranged from other family members risk being denied and saddled with debt. The research concludes that rising funeral costs, cultural unease with death, an emphasis on self-sufficiency over entitlement, and the marginalization of those who cannot afford end-of-life rituals combine to create distress around accessing support.
The document provides an overview of victimology in Pakistan, including:
- Victimology is an interdisciplinary field that studies victims of crime and terrorism. Victimization in Pakistan has been increasing in recent years across various crime categories.
- The criminal justice system in Pakistan is poorly equipped to support victims, with issues like corruption, lack of resources, and responsiveness. Victims face secondary victimization through the justice process.
- Specific groups like women, children, and minorities face particular forms of victimization. The rate of crimes against women is lower than other crimes but more severe in nature.
- Factors contributing to rising victimization include a lack of certainty of punishment, weapon proliferation,
The role of government in optimizing of “zakat” management at mamuju distri...Alexander Decker
The document discusses the role of local governments in optimizing zakat (charity) management in Mamuju District, West Sulawesi, Indonesia. It finds that while the national law does not mandate zakat payments or penalties for non-payment, the local government plays an important role through rulemaking, facilitation, and monitoring of zakat institutions. Zakat revenues and the number of donors in the district have increased from 2009-2012, indicating stronger public trust and institutional strengthening. However, the local zakat regulation needs to be updated to align with revisions to national zakat law regarding zakat organizations. The role of effective local leadership is key to encouraging understanding and cultural transformation around
A Comparison between Capitalism & Islamic Economical System An Overviewlinaodeh
The document compares the Islamic economic system to capitalism. The Islamic system emphasizes moral values and spiritual fulfillment over individual preferences. It also recognizes the concept of the afterlife and human brotherhood, which are absent from capitalism. When the Prophet Muhammad established the city of Medina, he introduced the concept of human brotherhood to share profits and trade between new immigrants, boosting the economy. Implementing Islamic values like morality, the afterlife, and brotherhood could make the system more beneficial than capitalism today by addressing issues it lacks.
Islamic Microfinance and Rehabilitation Model for the Slum and Floating Popul...Basharat Hossain
This paper designs a conceptual model of Islamic microfinance and reha-bilitation by using the waqf funds for the slum and floating population. It analyzes both the primary and the secondary data on the current status of Islamic microfinance cover-age (in thirteen countries), waqf estates (in seven countries), and the slum and floating population in thirty five Muslim countries of the world. The primary data was accumu-lated on 150 microfinance borrowers and 100 non-borrowers of Bangladesh. This pa-per presents a multifunctional structure of an autonomous waqf management institution to execute the model of this paper. This institution will be formed by the joint venture of the government, the national, as well as international Islamic agencies. Furthermore, this model will be implemented through five stages, the revival and registration of the waqf estate, accumulation of funds, initiating the Islamic microfinance and rehabilita-tion for the slum population, and finally, forward linkage that may help the slum people to contribute to the society
Keywords: Waqf, Islamic Microfinance, Rehabilitation, Slum population, Muslim countries.
JEL Classification: G21, O21, Z12 KAUJIE Classification: E23, H15, S4
This document summarizes a research paper presented at the First International Conference on Shari'ah Oriented Public Policy in Islamic Economic System in 2015. The paper proposes a two-tier mudarabah business model based on cash waqf to promote maqasid al-shari'ah and sustainable economic development for Islamic microfinance institutions. It discusses the objectives and potential of the proposed model to safeguard maqasid al-shari'ah, reform current Islamic microfinance frameworks, and help improve socio-economic conditions for the poor through financial inclusion. The paper reviews literature on waqf and microfinance concepts and analyzes how cash waqf-based microfinance can play an important role in poverty alleviation.
Challenges Sharia Microfinance Institutions: Evidence from IndonesiaMercu Buana University
The document discusses the challenges facing Baitul Mal Wa Tamwil (BMT), which are Islamic microfinance institutions in Indonesia, as they transform in accordance with new regulations. It identifies several key challenges BMTs may face: (1) meeting the evolving needs of low-income communities, (2) protecting customers as operations become more professional, and (3) finding new sources of funding. The document argues that to address these challenges, BMTs will need to innovate by better targeting underserved groups like women, developing new financing methods, undergoing organizational changes, and becoming more environmentally sustainable. Addressing these challenges is important for BMTs to fulfill their social purpose while remaining viable organizations in the future.
This document discusses the concepts of Bait-al-Maal (Door of Wealth) and Massraf houses in Islamic banking. It provides background on how the concept of Bait-al-Maal emerged after the death of Prophet Muhammad to keep money and goods, and how it relates to the functions of modern banks. The document also contrasts the priorities and principles of conventional banks, which focus on earning interest and wealth accumulation, with Massraf houses, which are based on Islamic principles of profit and loss sharing and promoting socio-economic development of communities over individual profit. The conclusion is that the foundations of Massraf houses conflict with interest-based conventional banking systems that are not compliant with Islamic teachings.
The document discusses the objectives and principles of Islamic banking. It outlines that Islamic banking aims to establish a just, equitable and compassionate society by prohibiting interest and excessive wealth, encouraging sharing of wealth through zakat and sadaqat, and providing basic human needs. It also aims to promote brotherhood through business partnerships like mudarabah and musharakah that are based on mutual consent and fair distribution of profits and losses.
The document summarizes an international conference on Islamic microfinance. It discusses various models of microfinance and their achievements. It emphasizes the importance of the cooperative model, highlighting the case study of Al Barakah Multi-purpose Cooperative Society, an Islamic microfinance cooperative in Mauritius. The conference explores concepts like ownership, accountability and worldviews from an Islamic perspective in the context of establishing sustainable Islamic microfinance.
The Urgency of Allignment Islamic Bank to Increasing the Outreach (Indonesia ...Mercu Buana University
The outreach of Islamic Bank is critical to circulate out of maslahah (beneficiaries) to the community (Ummah) and the implementation of Sharia in
totality (Kaffah). Nevertheless, Indonesia as the biggest Muslim in the world should facilitate the Muslim society to access their financial transaction
needs based their Islamic law. The study aims to examine the outreach of Islamic Bank in Indonesia. The methodology in this literature review is
qualitative that support with quantitative data. Three questions research is going to determine in this study are: (i) How the growth of Islamic Banks
from 2008 to 2015? (ii) How many the clients that have sworn out by Islamic Banks? (iii) What is the link between maslahah and the Islamic Bank
growth? We founded the outlet and business performance during 2008-2015 of Islamic Bank in Indonesia still behind from Conventional Bank thus
to improve the backward we need interaction, integration and evolution process from all stakeholders. Due to achieve the increasing of outreach we
also need the role of government in the political will that function to legitimate and enforce the alignment of Islamic Banks (Bank Syariah Mandiri,
BNI Syariah, BTN Syariah and BRI Syariah) became one state own Islamic Bank which objective to create social well-being of the community.
Knowledge and perception of students regarding islamic banking in Sindh Pakistansanaullah noonari
Abstract
This research investigated the relationship between the university student’s perception and knowledge about
different concepts and terms used in the Islamic banking and products and services offered. Impact of age,
gender, area of study, area of residence, CGPA and family’s monthly income on the perception and knowledge
of students about Islamic banking was also analyzed. Data was collected from the postgraduate students
(Respondents # 60) selected randomly from two public sectors universities (Sindh Agriculture University Tando
jam and University of Sindh) along with one private sectors (ISRA) university of Hyderabad. Simple linear
regressions were used in order to check the impact of socioeconomic characteristics on the knowledge and
perception of students. University students were mainly surveyed to assess the knowledge and perception of
country’s intellectual cream of Islamic banking crop. Results showed that religious sincerity, not the better
knowledge of Islamic banking was the strongest predictor of personal banking performances. Result reflected
that overall perception and knowledge of students was significantly different from zero. Result suggested that
students had better perception about the Islamic banking but poor knowledge. It was found that the Arabic
language in specifying the products and services hindered the understandings of the students. Coefficient of age
and income showed a positive relation with the perception and knowledge of students regarding Islamic banking
in both public sector universities and Private Sector University. Result for area of study also displayed positive
relation with the perception and knowledge of students regarding Islamic banking. Gender, area of residence and
CGPA were not statistically significant which means these did not affected significantly on the perception and
knowledge of students about Islamic banking however in case of private Sector University CGPA count to be
factor, significantly effecting the perception of students.
Keywords: Islamic banking, perception, knowledge, products and services.
This document provides background information on Islamic banking and profit and loss sharing (PLS) mechanisms. It discusses how Islamic banks were initially built on PLS rather than interest, but now focus more on being interest-free while abandoning PLS. It proposes that asymmetric information is one reason for the weak implementation of PLS. The document then provides details on Islamic banking principles and the two pillars of being interest-free and using PLS. It explains the PLS mechanisms of mudarabah and musharakah, and discusses their origins and legitimacy in the Quran.
Enhancing functionalities by providing trust element in e zakat systemKhairul Naim
The document discusses issues with the current e-zakat system in Malaysia and proposes solutions to improve trust in the system. It identifies two main issues: 1) inefficiency in distribution that fails to reach intended recipients, and 2) inability to identify prospective zakat payers. To address this, the document suggests: 1) enhancing zakat calculation through an expert system that provides explanations to build trust, and 2) increasing reporting, transparency and traceability to keep donors informed on distribution and build accountability.
This document is a project report submitted by Rashida Ansari to her professor Nishikant Jha on the topic of Islamic banking. It includes an introduction outlining the objectives and methodology of the project. The project provides information on the history and concepts of Islamic banking, which prohibits interest and is based on profit and loss sharing. It also discusses the sources and uses of funds for Islamic banks and provides examples of Islamic banking practices in various countries.
Entrepreneurship as a means to create islamic economyMurray Hunter
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This document provides an overview of Islamic banking. It begins with an executive summary defining Islamic banking as a system that is consistent with Islamic law and prohibits interest and investing in unlawful businesses. It then discusses the importance and growth of Islamic finance globally. The document outlines the objectives and methodology of a project on Islamic banking in India. It provides definitions and principles of Islamic banking, including prohibiting riba (usury or interest) and using equity-based investing. The history of Islamic banking concepts dating back to early Islamic and medieval periods is also summarized.
Performance of Islamic and Conventional Banks in Pakistan (2006-2011), a Comp...IOSR Journals
The aim of this paper was conducted to investigate the financial performance of Islamic and Conventional banks to support depositors, bank managers, shareholders, investors and regulators by providing true picture of financial position of Islamic as well conventional banks in Pakistan. The ratios often compare financial statement data with stock market trading information for publicly traded companies. Financial ratios are an important tool of economic decision-making for all businesses. . It is important to choose financial ratios that are applicable to the business at hand. There are hundreds of financial ratios available, some of which apply to all businesses and some of which are industry-specific. Financial ratios were estimated from annual reports and financial statements i.e. Income statement and Balance sheet for the period of 2008 to 2011. Twelve financial ratios were estimated to measure these performances in term of profitability, liquidity, risk and solvency, capital adequacy. To determine the significance of mean differences of these ratios, Independent sample t-test and ANOVA was used between and among banks. The study concluded that Islamic banks proved to be more liquid, less risky and operationally efficient than conventional banks
Economics is a fundamental part of every society, similarly, Islam is one of the dominant faith practiced all around the world and a complete code of life. It has given some specific guidelines regarding economics. The article discusses the core concepts of the economic system with reference to Islamic teachings. It covers concepts of Zakat, Riba and general guidelines about economic activity within a state, with reference to Pakistan. The paper has made the Quran and the state of Medina as the point of reference to understand the spirit of the economic system implemented in that milieu. And has tried to understand the contemporary basic economics affecting and influencing common life.
Principles of Islamic Sharia Economic Law in Facing the Challenges of Global ...AJHSSR Journal
ABSTRACT: This research is to examine the principles of Islamic Sharia Economic Law in Facing the
Challenges of Global Competition. Challenges about the readiness of the Indonesian nation in facing global
competition, especially the ASEAN economic community, have been carried out by many components of the
nation. The increase in global competition and the dynamics of society, causing the ability to survive for this
nation is something important so that they can compete in the life of the nation and do business and avoid
predatory predators. The problem that will be discussed in this study is How the Principles of Islamic Sharia
Economic Law in Facing the Challenges of Global Competition. The research method used is a normative
research method with a conceptual approach and analyzed using content analysis.
KEYWORDS : Shari'a Economic Law, Global Competition
The document discusses the economic system in Islam. It states that Islam provides guidelines for all spheres of life, including economics. The Islamic economic system aims to establish a just society where people behave honestly and responsibly in their transactions. It recognizes private, collective, and state possession of wealth. Some key principles of the Islamic economic system are that earnings and spending must be through halal means, individuals have a right to property with limits to ensure societal benefit, payment of zakat is compulsory to help the poor, and transactions involving interest are prohibited.
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
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Potential of zakat in eliminating riba and eradicating poverty in muslim countries
1. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
Potential of Zakat in Eliminating Riba
{CASE STUDY: SALARY DEDUCTION SCHEME OF MALAYSIA}
International Center for Education in Islamic Finance (INCEIF)
Lorong Universiti A, 59100 Kuala Lumpur, MALAYSIA
Abstract
From a mere glance at Muslim countries today, we realize that they are classified as third worl
though they adopt a secular system. The recent statistical data of 2009 shows the majority of people who live below
poverty are found in Muslim countries. Some scholars related this fact to the oppression, humiliation and the bad
policies which had been imposed in almost all Muslim countries during colonization and have continued up to the
present time. Others related this to the incompetence and the corruption on the part of their governments. We cannot
deny the above mentioned reasons as
believe that the main reason is imbued within Muslims themselves since they neglected almost all their Islamic
institutions, including the institution of zakat which is meant to
Hence, we believe that ignoring the teaching of Islam it the key factor for the wide spread of poverty in the Islamic
world as they have forgotten the advice of the Prophet (pbuh) in his saying“
you (the Ummah). You will never go astray as long as you follow these two things. One of these two things is Allah’s
Holy Book (the Quran al-Kareem) and the other is the Sunnah of his Most Beloved Prophet (pbuh)” Muwatta I
Malik.
ProblemStatement: For almost one century the institution of zakat has been neglected in almost all Muslim
countries since its administration has been decentralized and its dues become voluntary depending on the piety of the
individual. The problem now is how to revive and bring back this institution, within the current system, in order to
resume its role in eliminating riba and eradicating poverty in the Islamic world.
Objective: The main objective of this paper is to show how Malaysia succeede
institution of zakah within their current system, i.e. through
the author not only to look at the
statistical date supporting the huge amount of money that can be collected in the different Muslim countries from
this institution to overcome their problems.
Research Methodology: This paper uses both primary and secondary source. Data collected
include text from the Quran and hadith from the Sunnah of the Prophet (pbuh), while data collected from secondary
source includes books, articles, journals, annual reports, besides websites and e
Expected Findings: The expected findings of this paper are to provide guidance for Muslim countries to revive the
role of the institution of zakat according to the teaching of Islam on one hand, and on the other to provide statistical
evidence showing the huge amount of money that can b
salary deduction scheme of Malaysia.
Key words: zakat, salary, deduction, riba, poverty.
1. INTRODUCTION
From the time when colonization took place in the nineteenth up to the first half of the t
realized that the majority of Muslim countries are forced to follow the capitalist system which is not the Islamic way
of life. One of which is the system of taxation which has been followed by almost all Muslim countries unti
replacing one of the most important Islamic Institution, the institution of zakat, which is the third pillar of Islam.
Since then zakat institution, in almost all Muslim countries, was placed under religious authority and its payment
becomes voluntary. This creates an ambiguous situation on the understanding of giving zakat among Muslims today.
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
114
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
n Eliminating Riba and Eradicating
Muslim Countries
{CASE STUDY: SALARY DEDUCTION SCHEME OF MALAYSIA}
Magda Ismail A. Mohsin
International Center for Education in Islamic Finance (INCEIF)
The Global University of Islamic Finance
Lorong Universiti A, 59100 Kuala Lumpur, MALAYSIA
E-mail: magda@inceif.org
From a mere glance at Muslim countries today, we realize that they are classified as third worl
though they adopt a secular system. The recent statistical data of 2009 shows the majority of people who live below
poverty are found in Muslim countries. Some scholars related this fact to the oppression, humiliation and the bad
which had been imposed in almost all Muslim countries during colonization and have continued up to the
Others related this to the incompetence and the corruption on the part of their governments. We cannot
deny the above mentioned reasons as the catalyst for the spread of poverty in the Islamic world. However, we also
believe that the main reason is imbued within Muslims themselves since they neglected almost all their Islamic
institutions, including the institution of zakat which is meant to eliminate riba and eradicate poverty in their societies.
Hence, we believe that ignoring the teaching of Islam it the key factor for the wide spread of poverty in the Islamic
world as they have forgotten the advice of the Prophet (pbuh) in his saying“…I have left two things behind me for
you (the Ummah). You will never go astray as long as you follow these two things. One of these two things is Allah’s
Kareem) and the other is the Sunnah of his Most Beloved Prophet (pbuh)” Muwatta I
: For almost one century the institution of zakat has been neglected in almost all Muslim
countries since its administration has been decentralized and its dues become voluntary depending on the piety of the
lem now is how to revive and bring back this institution, within the current system, in order to
resume its role in eliminating riba and eradicating poverty in the Islamic world.
: The main objective of this paper is to show how Malaysia succeeded in reviving and bringing back the
institution of zakah within their current system, i.e. through salary deduction scheme. A scheme which encourages
the potential of zakat in eliminating riba and eradicating poverty but to
statistical date supporting the huge amount of money that can be collected in the different Muslim countries from
this institution to overcome their problems.
This paper uses both primary and secondary source. Data collected
include text from the Quran and hadith from the Sunnah of the Prophet (pbuh), while data collected from secondary
source includes books, articles, journals, annual reports, besides websites and e-books.
findings of this paper are to provide guidance for Muslim countries to revive the
role of the institution of zakat according to the teaching of Islam on one hand, and on the other to provide statistical
evidence showing the huge amount of money that can be collected as zakat if they follow the current practice of
salary deduction scheme of Malaysia.
zakat, salary, deduction, riba, poverty.
From the time when colonization took place in the nineteenth up to the first half of the twentieth century, it has been
realized that the majority of Muslim countries are forced to follow the capitalist system which is not the Islamic way
of life. One of which is the system of taxation which has been followed by almost all Muslim countries unti
replacing one of the most important Islamic Institution, the institution of zakat, which is the third pillar of Islam.
Since then zakat institution, in almost all Muslim countries, was placed under religious authority and its payment
tary. This creates an ambiguous situation on the understanding of giving zakat among Muslims today.
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
nd Eradicating Poverty in
{CASE STUDY: SALARY DEDUCTION SCHEME OF MALAYSIA}
International Center for Education in Islamic Finance (INCEIF)
From a mere glance at Muslim countries today, we realize that they are classified as third world countries even
though they adopt a secular system. The recent statistical data of 2009 shows the majority of people who live below
poverty are found in Muslim countries. Some scholars related this fact to the oppression, humiliation and the bad
which had been imposed in almost all Muslim countries during colonization and have continued up to the
Others related this to the incompetence and the corruption on the part of their governments. We cannot
the catalyst for the spread of poverty in the Islamic world. However, we also
believe that the main reason is imbued within Muslims themselves since they neglected almost all their Islamic
eliminate riba and eradicate poverty in their societies.
Hence, we believe that ignoring the teaching of Islam it the key factor for the wide spread of poverty in the Islamic
ave left two things behind me for
you (the Ummah). You will never go astray as long as you follow these two things. One of these two things is Allah’s
Kareem) and the other is the Sunnah of his Most Beloved Prophet (pbuh)” Muwatta Imam
: For almost one century the institution of zakat has been neglected in almost all Muslim
countries since its administration has been decentralized and its dues become voluntary depending on the piety of the
lem now is how to revive and bring back this institution, within the current system, in order to
d in reviving and bringing back the
salary deduction scheme. A scheme which encourages
potential of zakat in eliminating riba and eradicating poverty but to provide
statistical date supporting the huge amount of money that can be collected in the different Muslim countries from
This paper uses both primary and secondary source. Data collected from primary source
include text from the Quran and hadith from the Sunnah of the Prophet (pbuh), while data collected from secondary
findings of this paper are to provide guidance for Muslim countries to revive the
role of the institution of zakat according to the teaching of Islam on one hand, and on the other to provide statistical
e collected as zakat if they follow the current practice of
wentieth century, it has been
realized that the majority of Muslim countries are forced to follow the capitalist system which is not the Islamic way
of life. One of which is the system of taxation which has been followed by almost all Muslim countries until today,
replacing one of the most important Islamic Institution, the institution of zakat, which is the third pillar of Islam.
Since then zakat institution, in almost all Muslim countries, was placed under religious authority and its payment
tary. This creates an ambiguous situation on the understanding of giving zakat among Muslims today.
2. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
Some mixed between zakat and taxes and so believes that paying their taxes will cover paying their zakat. Others,
who are more sincere, found themselves p
addition to their obligatory zakat.1
The aim of this study is to clarify this ambiguous situation and to highlight not only in principles the importance of
the institution of zakat as one of the key institutions in eliminating riba and eradicating poverty but also to provide
statistical data to support this fact. To achieve this, the study is divided into five sections including the introduction.
Section two provides an overview on
Section four analyzes the statistical data on poverty, external debts and zakat on ten selected Muslim countries; this
is followed by the conclusion and recommendation for fut
2. OVERVIEW ON THE INSTITUTION OF ZAKAT
2.1 What is Zakat?
Literally zakat means blessing, purification, increase and goodness. Zakat is the third pillar of Islam, it is obligatory
upon all Muslims to give part of their wealth
basis or once harvested. It is also important to note that zakat has to be paid from lawful wealth and assets, and zakat
cannot be calculated on prohibited or unlawful wealth, such as income from interest,
acquired or earned through unlawful means. There are two types of zakat, zakat al
the month of Ramadan before Eid prayers on every single Muslim, and zakat on wealth. Zakat on wealth includes
more than fourteen types of wealth that man possesses such as
jewelry,commercial assets, agriculture, honey and animal products, mining and fishing, rented buildings, plants, and
fixed capital2
and lately zakat includes s
1
For more information on this issue please refer to Yusuf al Qaradawi,
Lebanon, 2nd
editions, 1999 (Arabic). See also
regulations and philosophy in the light of Qur'an and
Centre King Abdulaziz University Jeddah, Saudi Arabia, Vol.I
Sharoja Sapiei, A Comparative Analysis on Zakat and Conventional Taxation
2
Yusuf al Qardawi, Fiqh al Zakat, Vol. I, p 52.
3
Nur Barizah, A.B., 2008. Study Guide: Zakat
Kuala Lumpur, ISBN: 978-983-43538
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
115
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
Some mixed between zakat and taxes and so believes that paying their taxes will cover paying their zakat. Others,
who are more sincere, found themselves paying more than others as they are forced to pay their compulsory taxes in
The aim of this study is to clarify this ambiguous situation and to highlight not only in principles the importance of
as one of the key institutions in eliminating riba and eradicating poverty but also to provide
statistical data to support this fact. To achieve this, the study is divided into five sections including the introduction.
Section two provides an overview on the institution of zakat. Section three highlights the zakat on monthly salary.
Section four analyzes the statistical data on poverty, external debts and zakat on ten selected Muslim countries; this
is followed by the conclusion and recommendation for future research.
OVERVIEW ON THE INSTITUTION OF ZAKAT
Literally zakat means blessing, purification, increase and goodness. Zakat is the third pillar of Islam, it is obligatory
upon all Muslims to give part of their wealth and assets once it reaches al-nisab/the minimum assigned on
. It is also important to note that zakat has to be paid from lawful wealth and assets, and zakat
cannot be calculated on prohibited or unlawful wealth, such as income from interest,
acquired or earned through unlawful means. There are two types of zakat, zakat al-Fitrah which has to be given in
the month of Ramadan before Eid prayers on every single Muslim, and zakat on wealth. Zakat on wealth includes
re than fourteen types of wealth that man possesses such as livestock, gold, silver currency and
jewelry,commercial assets, agriculture, honey and animal products, mining and fishing, rented buildings, plants, and
and lately zakat includes salary, wages, bonuses, grants, gift and dividend income.
FIGURE 1: TYPES OF ZAKAT
For more information on this issue please refer to Yusuf al Qaradawi, Fiqh al Zakah, Mu’assassat al Risalah, Beirut,
99 (Arabic). See also Yusuf al Qardawi “Fiqh al-Zakat: A comparative study of
regulations and philosophy in the light of Qur'an and Sunnah”, trans. By Monzer Kahf
Centre King Abdulaziz University Jeddah, Saudi Arabia, Vol.I & II. See also Mohd Zulkhairi Mustapha and Noor,
A Comparative Analysis on Zakat and Conventional Taxation, Jurnal Syariah, 13:1 2005 p 67
, Vol. I, p 52.
Nur Barizah, A.B., 2008. Study Guide: Zakat Accounting Concepts and Applications. Wisewords Publishing,
43538-1-0.
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
Some mixed between zakat and taxes and so believes that paying their taxes will cover paying their zakat. Others,
aying more than others as they are forced to pay their compulsory taxes in
The aim of this study is to clarify this ambiguous situation and to highlight not only in principles the importance of
as one of the key institutions in eliminating riba and eradicating poverty but also to provide
statistical data to support this fact. To achieve this, the study is divided into five sections including the introduction.
the institution of zakat. Section three highlights the zakat on monthly salary.
Section four analyzes the statistical data on poverty, external debts and zakat on ten selected Muslim countries; this
Literally zakat means blessing, purification, increase and goodness. Zakat is the third pillar of Islam, it is obligatory
nisab/the minimum assigned on annual
. It is also important to note that zakat has to be paid from lawful wealth and assets, and zakat
stolen property, or wealth
Fitrah which has to be given in
the month of Ramadan before Eid prayers on every single Muslim, and zakat on wealth. Zakat on wealth includes
livestock, gold, silver currency and
jewelry,commercial assets, agriculture, honey and animal products, mining and fishing, rented buildings, plants, and
alary, wages, bonuses, grants, gift and dividend income.3
Mu’assassat al Risalah, Beirut,
A comparative study of zakat,
trans. By Monzer Kahf. Scientific Publishing
Mohd Zulkhairi Mustapha and Noor,
, Jurnal Syariah, 13:1 2005 p 67-68
Accounting Concepts and Applications. Wisewords Publishing,
3. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
2.2 Administration of Zakat
As highlighted in al-Quran, the administration of zakat must be handled by the state in terms of collection and
distribution of the zakat money. The following Quranic verse in
collection by the state from all eligible Muslims in order to purify and to increase their wealth;
ٌMNِPَR ٌSNِTَU ُ ﱠﷲَو ْMُ[َ ٌ]َ^َU َ_َ` َaَb نﱠِإ ْMِ[ْNَPَR
Of their goods (wealth), take alms, that so thou mightest purify and sanctify them; and pray on their
behalf. Verily thy prayers are a source of security for them: And Allah is One Who hea
and, the following Quranic verse in
follows;
ٌMNِPَR ُ ﱠﷲَو ِ ﱠﷲ َ]ِe ًgَhiِjَk ِlNِmﱠnا ِ]ْpِاَو ِ ﱠﷲ ِlNِmَU qِkَو َ]Nِeِرsَtْاَو ِبsَvﱢjا qِkَو
"Zakat is for the poor, and the needy and those who are employed to administer and collect it, and the new
converts, and for those who are in bondage, and in debt and service of the cause of Allah, and for the
wayfarers, a duty ordained by Allah, and Allah is the All
Following the above guidance from the Quran this type of administration was practiced during the
Prophet (pbuh) where the collection and the distribution of zakat were directly placed under the state. This was then
followed during the time of the first Caliph Abu Bakr al
who refused to pay their zakat.4
The same was practiced by all Caliphs, after Abu Bakr al
agents to collect the zakat money from all eligible Muslims and placed it in the
recipients of zakat.5
Along centuries the state continued to manage the collection and the distribution of zakat until
the end of the Ottoman Empire where zakat administration was placed under religious authority and its collection
become voluntary.
2.3 Structure of the Administration
As mentioned above it is the responsibility of the state to manage zakah in terms of collecting it from all eligible
Muslim and in terms of distributing it to eight categories of recipients as highlight in the above Quranic verse. The
following is the modus operandi and the structure of its administration as recommend by Islam:
i. The state appoints agents to manage the zakah, i.e. to collect and to distribute the zakah.
ii. Then the appointed collector will collect the zakah from all eligible Musli
iii. The collected amount of zakah will be placed in
iv. The appointed distributor will prepare a list of the eight categories of people mentioned in al
distribute it accordingly to the poor, n
debtors, in the way of Allah and for the travelers.
4
Abu Hurairah's narration that, "When the Messenger of Allah (pbuh) who was deceased and Abu Bakr was
appointed as the first Caliph for the Muslim durin
pay the zakat. In this case Abu Bakr (ra ‘a) said, 'By Allah, I would definitely fight against those who make a
difference between Prayer and Zakat, for it is the obligation upon the rich. By
even if they withheld a cord (used for hobbling the feet of a camel) which they used to give to Allah's Messenger
(pbuh) as Zakat.'
5
Mahmood Namazi, Bayt al-Mal and the Distribution of Zakah,
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
116
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
Quran, the administration of zakat must be handled by the state in terms of collection and
y. The following Quranic verse in Surah Al-Taubah (9:103) shows the compulsory
collection by the state from all eligible Muslims in order to purify and to increase their wealth;
ﱢlَbَو sَ[ِp ْMِ[Nﱢzَ{ُ`َو ْMُھُjﱢ[َ}ُ` ًgَvَ~َb ْMِ[ِاَ•ْeَأ ْ]ِe ْ•ُ‚ٌMNِPَR ٌSNِTَU ُ ﱠﷲَو ْMُ[َ ٌ]َ^َU َ_َ` َaَb نﱠِإ ْMِ[ْNَPَR
Of their goods (wealth), take alms, that so thou mightest purify and sanctify them; and pray on their
behalf. Verily thy prayers are a source of security for them: And Allah is One Who hea
and, the following Quranic verse in Surah al-Tauba (9:60) highlights its distribution to eight categories of people as
ْMُ[ُp•ُPُv ِgَƒﱠَ„ُTْاَو sَ[ْNَPَR َ]NِPِesَ…ْاَو ِ]NِzsَnَTْاَو ِءاَjَ‡ُƒْPِ ُتsَvَ~ﱠ‰ا sَTﱠŠِإٌMNِPَR ُ ﱠﷲَو ِ ﱠﷲ َ]ِe ًgَhiِjَk ِlNِmﱠnا ِ]ْpِاَو ِ ﱠﷲ ِlNِmَU qِkَو َ]Nِeِرsَtْاَو ِبsَvﱢjا qِkَو
ٌMNِ^َ‹
Zakat is for the poor, and the needy and those who are employed to administer and collect it, and the new
who are in bondage, and in debt and service of the cause of Allah, and for the
wayfarers, a duty ordained by Allah, and Allah is the All-Knowing, the Wise".
Following the above guidance from the Quran this type of administration was practiced during the
Prophet (pbuh) where the collection and the distribution of zakat were directly placed under the state. This was then
followed during the time of the first Caliph Abu Bakr al-Siddiq (ra‘a) who highlighted that he will fight against those
The same was practiced by all Caliphs, after Abu Bakr al
agents to collect the zakat money from all eligible Muslims and placed it in the Baitulmaal
turies the state continued to manage the collection and the distribution of zakat until
the end of the Ottoman Empire where zakat administration was placed under religious authority and its collection
2.3 Structure of the Administration of Zakat
As mentioned above it is the responsibility of the state to manage zakah in terms of collecting it from all eligible
Muslim and in terms of distributing it to eight categories of recipients as highlight in the above Quranic verse. The
is the modus operandi and the structure of its administration as recommend by Islam:
The state appoints agents to manage the zakah, i.e. to collect and to distribute the zakah.
Then the appointed collector will collect the zakah from all eligible Muslims from their different wealth.
The collected amount of zakah will be placed in Baitulmaal/State Treasury.
The appointed distributor will prepare a list of the eight categories of people mentioned in al
distribute it accordingly to the poor, needy manager of zakah, reconciliation of hearts, freeing captives,
debtors, in the way of Allah and for the travelers.
Abu Hurairah's narration that, "When the Messenger of Allah (pbuh) who was deceased and Abu Bakr was
appointed as the first Caliph for the Muslim during that time, some Arab tribes became apostates and refused to
pay the zakat. In this case Abu Bakr (ra ‘a) said, 'By Allah, I would definitely fight against those who make a
difference between Prayer and Zakat, for it is the obligation upon the rich. By Allah, I would fight against them
even if they withheld a cord (used for hobbling the feet of a camel) which they used to give to Allah's Messenger
Mal and the Distribution of Zakah, unpublished paper.
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
Quran, the administration of zakat must be handled by the state in terms of collection and
(9:103) shows the compulsory
collection by the state from all eligible Muslims in order to purify and to increase their wealth;
ﱢlَbَو sَ[ِp ْMِ[Nﱢzَ{ُ`َو ْMُھُjﱢ[َ}ُ` ًgَvَ~َb ْMِ[ِاَ•ْeَأ ْ]ِe ْ•ُ‚
Of their goods (wealth), take alms, that so thou mightest purify and sanctify them; and pray on their
behalf. Verily thy prayers are a source of security for them: And Allah is One Who heareth and knoweth.
(9:60) highlights its distribution to eight categories of people as
ْMُ[ُp•ُPُv ِgَƒﱠَ„ُTْاَو sَ[ْNَPَR َ]NِPِesَ…ْاَو ِ]NِzsَnَTْاَو ِءاَjَ‡ُƒْPِ ُتsَvَ~ﱠ‰ا sَTﱠŠِإ
Zakat is for the poor, and the needy and those who are employed to administer and collect it, and the new
who are in bondage, and in debt and service of the cause of Allah, and for the
Following the above guidance from the Quran this type of administration was practiced during the time of the
Prophet (pbuh) where the collection and the distribution of zakat were directly placed under the state. This was then
Siddiq (ra‘a) who highlighted that he will fight against those
The same was practiced by all Caliphs, after Abu Bakr al-Siddiq, who appointed
Baitulmaal to be distributed to the
turies the state continued to manage the collection and the distribution of zakat until
the end of the Ottoman Empire where zakat administration was placed under religious authority and its collection
As mentioned above it is the responsibility of the state to manage zakah in terms of collecting it from all eligible
Muslim and in terms of distributing it to eight categories of recipients as highlight in the above Quranic verse. The
is the modus operandi and the structure of its administration as recommend by Islam:
The state appoints agents to manage the zakah, i.e. to collect and to distribute the zakah.
ms from their different wealth.
The appointed distributor will prepare a list of the eight categories of people mentioned in al-Quran, and
eedy manager of zakah, reconciliation of hearts, freeing captives,
Abu Hurairah's narration that, "When the Messenger of Allah (pbuh) who was deceased and Abu Bakr was
g that time, some Arab tribes became apostates and refused to
pay the zakat. In this case Abu Bakr (ra ‘a) said, 'By Allah, I would definitely fight against those who make a
Allah, I would fight against them
even if they withheld a cord (used for hobbling the feet of a camel) which they used to give to Allah's Messenger
4. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
FIGURE 2: STRUCTURE OF THE ADMINISTRATION OF ZAKAT
2.4 Reasons for the State to handle the Administration of Zakat
As highlighted above, zakat has to be handled by the state in terms of its collection from all eligible Muslims on their
wealth and to be distributed to the eight recipients of zakat as mentioned in al
Muslim prefer to give their zakah by themselves rather than giving it to the state to distribute it. This will create
doubt of whether the zakah has been disturbed to right recipients or not, and whether their distributed zakah will be
accepted as zakah or as saddaqah. This doubt has bee
highlighted in the following hadith:
لs‡k ؟Ž•Uور ﷲ •ا s[•e ‘’jp ~‡k _•Uر •ا ةsz{ا ‘iأد اذا:
s[~p ]e •PR s[T–وا sھj—أ _و Ž•Uور ﷲ •ا s[•e ‘’j"•~هne •k lm•‹ ]p ~T‹أ مsešا رواه
Anas narrates that "a man asked the Messenger of Allah (pbuh), If I give
would I be fulfilling it as far as Allah and His Messenger ar
you give it to my messenger, you are freed from that obligation as far as Allah and His Messenger are
concerned. You deserve its reward, and if it is tampered with later, the sin is on whoever changes it."
So this means it is better for every Muslim to give his zakah to the state to distribute it rather than having a doubt of
fulfilling ones responsibility towards given zakah. If they still like to contribute more, then they can give through
voluntary sadaqqah/charity. The following are reasons for the state to handle the collection and the distribution of
zakat6
:
• Collection and distribution of zakat by the state gives the state the responsibility to collect zakat from all
affordable people and distributes i
above.
• Muslim obligation would be fulfilled towards giving the zakat which is the third pillar of Islam.
• Some Muslim may have no concern in paying their obligation if it left to the
eight recipients of zakat will be lost resulting in an unjust society.
• Receiving zakat directly from the state and not from the rich will preserve the dignity of the recipients from
direct humiliation.
2.5 Objectives of Zakat
Zakat has many objectives which had been highlighted in both the Quran and the Hadith. Some of these objectives
are:
6
For more information on this please see
Bayt al-Mal and the Distribution of Zakah.
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
117
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
STRUCTURE OF THE ADMINISTRATION OF ZAKAT
2.4 Reasons for the State to handle the Administration of Zakat
ed above, zakat has to be handled by the state in terms of its collection from all eligible Muslims on their
wealth and to be distributed to the eight recipients of zakat as mentioned in al-Quran. At the present time many
by themselves rather than giving it to the state to distribute it. This will create
doubt of whether the zakah has been disturbed to right recipients or not, and whether their distributed zakah will be
accepted as zakah or as saddaqah. This doubt has been clearly rectified during the time of the Prophet (pbuh) as
MPUو ŽNPR ﷲ •Pb ﷲ •لUj لsv a—ر أن"لs‡k ؟Ž•Uور ﷲ •ا s[•e ‘’jp ~‡k _•Uر •ا ةsz{ا ‘iأد اذا
p ~‡k q•Uر •ا s[›iأد اذا M…Šs[~p ]e •PR s[T–وا sھj—أ _و Ž•Uور ﷲ •ا s[•e ‘’j
Anas narrates that "a man asked the Messenger of Allah (pbuh), If I give zakat to the person you send,
would I be fulfilling it as far as Allah and His Messenger are concerned?' The Prophet answered, 'Yes, if
you give it to my messenger, you are freed from that obligation as far as Allah and His Messenger are
concerned. You deserve its reward, and if it is tampered with later, the sin is on whoever changes it."
for every Muslim to give his zakah to the state to distribute it rather than having a doubt of
fulfilling ones responsibility towards given zakah. If they still like to contribute more, then they can give through
/charity. The following are reasons for the state to handle the collection and the distribution of
Collection and distribution of zakat by the state gives the state the responsibility to collect zakat from all
affordable people and distributes it in a just and even way to the eight categories of recipients mentioned
Muslim obligation would be fulfilled towards giving the zakat which is the third pillar of Islam.
Some Muslim may have no concern in paying their obligation if it left to them, so in this case the rights of the
eight recipients of zakat will be lost resulting in an unjust society.
Receiving zakat directly from the state and not from the rich will preserve the dignity of the recipients from
Zakat has many objectives which had been highlighted in both the Quran and the Hadith. Some of these objectives
r more information on this please see Yusuf al Qardawi “Fiqh al-Zakat: Vol. II, p 113,
Mal and the Distribution of Zakah.
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
STRUCTURE OF THE ADMINISTRATION OF ZAKAT
ed above, zakat has to be handled by the state in terms of its collection from all eligible Muslims on their
Quran. At the present time many
by themselves rather than giving it to the state to distribute it. This will create
doubt of whether the zakah has been disturbed to right recipients or not, and whether their distributed zakah will be
n clearly rectified during the time of the Prophet (pbuh) as
Ž•R ﷲ q•ر žŠأ ]R:MPUو ŽNPR ﷲ •Pb ﷲ •لUj لsv a—ر أن
p ~‡k q•Uر •ا s[›iأد اذا M…Š
to the person you send,
e concerned?' The Prophet answered, 'Yes, if
you give it to my messenger, you are freed from that obligation as far as Allah and His Messenger are
concerned. You deserve its reward, and if it is tampered with later, the sin is on whoever changes it."
for every Muslim to give his zakah to the state to distribute it rather than having a doubt of
fulfilling ones responsibility towards given zakah. If they still like to contribute more, then they can give through
/charity. The following are reasons for the state to handle the collection and the distribution of
Collection and distribution of zakat by the state gives the state the responsibility to collect zakat from all
t in a just and even way to the eight categories of recipients mentioned
Muslim obligation would be fulfilled towards giving the zakat which is the third pillar of Islam.
m, so in this case the rights of the
Receiving zakat directly from the state and not from the rich will preserve the dignity of the recipients from
Zakat has many objectives which had been highlighted in both the Quran and the Hadith. Some of these objectives
Vol. II, p 113, Mahmood Namazi
5. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
• Spiritual and material purification for the giver, specifically zakat does not only purify the wealth of the
Muslim but also purifies his heart from selfishness and greed for wealth.
• Spiritual purification of the recipient of zakat, as it purifies his heart from envy and jealousy, from hatred
and uneasiness; and it fosters in his heart, instead, goodwill and warm wishes for the giv
• Spiritual purification of the society at large from class warfare and suspicion, from ill feelings and distrusts,
from corruption and disintegration, and from all such evils.
• Economically, zakat will circulate the wealth from the rich to the poor re
wealth.
• Assist the recipients of zakat to be active members in the society, thus from being receiver of zakat, instead
will be giver of it.
• Foster poverty eradication from Muslim societies.
• Help the state in establishing
help eliminate riba and eradicate poverty from Muslim societies.
3. ZAKAT ON MONTHLY SALARY
3.1 Legitimacy of Zakat on Monthly Salary
It is well understood in shariah
commercial assets, agriculture, honey and animal products, mining and fishing, rented buildings, plants, and fixed
capital.7
However, nowadays, income in terms of salaries, wages, profit
important source of living for the majority of Muslim population. As such these categories of people cannot be
excluded from the compulsory due. This raises the following questions;
important source of income today, is subject to zakat? Can zakat be given on monthly basis? To answer these
questions let us first highlight the five conditions that must be observed while imposing zakat on income in general
and zakat on salaries in particular.
i. Full Possession: Every Muslim who is of a certain age and has full and legal ownership of enough assets is
required to pay zakat.
ii. Fulfilling one’s Basic Needs:
requirement before imposing zakat on income. The person who reaches the
basic need is not subject to pay zakat.
iii. Fulfilling the Nisab (Minimum Amount Liable to Zakat):
that zakat on income can be calculated as follows; 2.5% from the total annual net income (after the actual
basic needs expenses are deducted) which exceed
clothing, accommodation, education, transportation and medical
outstanding debt within the same year only.
iv. Completion of Haul/ Lapse of a Full Year:
conditions for the payment of zakat,
payment, because the prophet accepted the advance payment of zakat of his uncle al ‘Abbas.
Yusuf al-Qardawi in his book Fiqh al
giving zakat from salaries during the early days of Islam. Besides his
income whether salaries, wages, professional income, or return on capital invested in other than trade, such
as shipping, planes, and hotels, is
year.11
7
Yusuf al Qardawi “Fiqh al-Zakat. Vol.I, p 52.
8
Zakat is only payable on assets that have been held for
= 365.25 days) http://www.islamic
9
For more detail see Yusuf al Qardawi
10
Ibid, p 252-258
11
Ibid, p 259. For more information on zakah on income please refer to Nur Barizah Abu Bakar, Motivations of
Paying Zakat on Income: evidence from Malaysia, International Journal of Economics and Finance
August 2010. p76.
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
118
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
Spiritual and material purification for the giver, specifically zakat does not only purify the wealth of the
fies his heart from selfishness and greed for wealth.
Spiritual purification of the recipient of zakat, as it purifies his heart from envy and jealousy, from hatred
and uneasiness; and it fosters in his heart, instead, goodwill and warm wishes for the giv
Spiritual purification of the society at large from class warfare and suspicion, from ill feelings and distrusts,
from corruption and disintegration, and from all such evils.
Economically, zakat will circulate the wealth from the rich to the poor resulting in a just distribution of
Assist the recipients of zakat to be active members in the society, thus from being receiver of zakat, instead
Foster poverty eradication from Muslim societies.
Help the state in establishing eight financial institutions each according to its recipients, which will turn
help eliminate riba and eradicate poverty from Muslim societies.
ZAKAT ON MONTHLY SALARY
3.1 Legitimacy of Zakat on Monthly Salary
that zakatable wealth includes livestock, gold, silver currency and jewelry,
commercial assets, agriculture, honey and animal products, mining and fishing, rented buildings, plants, and fixed
However, nowadays, income in terms of salaries, wages, profit and professional incomes become the most
important source of living for the majority of Muslim population. As such these categories of people cannot be
excluded from the compulsory due. This raises the following questions; is the current salary, which is
important source of income today, is subject to zakat? Can zakat be given on monthly basis? To answer these
questions let us first highlight the five conditions that must be observed while imposing zakat on income in general
Every Muslim who is of a certain age and has full and legal ownership of enough assets is
Fulfilling one’s Basic Needs: Fulfilling the basic needs mentioned above, it is a very important
t before imposing zakat on income. The person who reaches the nisab
basic need is not subject to pay zakat.
(Minimum Amount Liable to Zakat): There is a consensus among Muslim scholars
ome can be calculated as follows; 2.5% from the total annual net income (after the actual
basic needs expenses are deducted) which exceed nisab. The actual basic needs expenses comprises: food,
clothing, accommodation, education, transportation and medical expenses, and financial obligations such as
outstanding debt within the same year only.
Lapse of a Full Year: Although the completion of haul
conditions for the payment of zakat,8
some Muslim scholars agreed on the permissibility to advance zakat
payment, because the prophet accepted the advance payment of zakat of his uncle al ‘Abbas.
Qardawi in his book Fiqh al-Zakat10
provided ample evidences which supported the practice of
at from salaries during the early days of Islam. Besides his views on the payment of zakat on
income whether salaries, wages, professional income, or return on capital invested in other than trade, such
as shipping, planes, and hotels, is zakatable once received, without the requirement of the lapse of one
. Vol.I, p 52.
ble on assets that have been held for at least one year i.e. 1 year Hijri = 354.5 days, 1 year Solar
http://www.islamic-world.net/economics/zakat.htm (access on July 2010).
For more detail see Yusuf al Qardawi Fiqh al Zakat Vol. I, pp 250-270
Ibid, p 259. For more information on zakah on income please refer to Nur Barizah Abu Bakar, Motivations of
Paying Zakat on Income: evidence from Malaysia, International Journal of Economics and Finance
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
Spiritual and material purification for the giver, specifically zakat does not only purify the wealth of the
Spiritual purification of the recipient of zakat, as it purifies his heart from envy and jealousy, from hatred
and uneasiness; and it fosters in his heart, instead, goodwill and warm wishes for the giver.
Spiritual purification of the society at large from class warfare and suspicion, from ill feelings and distrusts,
sulting in a just distribution of
Assist the recipients of zakat to be active members in the society, thus from being receiver of zakat, instead
eight financial institutions each according to its recipients, which will turn
livestock, gold, silver currency and jewelry,
commercial assets, agriculture, honey and animal products, mining and fishing, rented buildings, plants, and fixed
and professional incomes become the most
important source of living for the majority of Muslim population. As such these categories of people cannot be
is the current salary, which is the most
important source of income today, is subject to zakat? Can zakat be given on monthly basis? To answer these
questions let us first highlight the five conditions that must be observed while imposing zakat on income in general
Every Muslim who is of a certain age and has full and legal ownership of enough assets is
Fulfilling the basic needs mentioned above, it is a very important
nisab but still does not fulfill his
There is a consensus among Muslim scholars
ome can be calculated as follows; 2.5% from the total annual net income (after the actual
. The actual basic needs expenses comprises: food,
expenses, and financial obligations such as
haul (one year) is one of the
on the permissibility to advance zakat
payment, because the prophet accepted the advance payment of zakat of his uncle al ‘Abbas.9
Moreover, Dr.
provided ample evidences which supported the practice of
views on the payment of zakat on
income whether salaries, wages, professional income, or return on capital invested in other than trade, such
eceived, without the requirement of the lapse of one
at least one year i.e. 1 year Hijri = 354.5 days, 1 year Solar
(access on July 2010).
Ibid, p 259. For more information on zakah on income please refer to Nur Barizah Abu Bakar, Motivations of
Paying Zakat on Income: evidence from Malaysia, International Journal of Economics and Finance, Vol. 2 No. 3
6. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
3.2 Zakat Calculation on Income
For the calculation of zakat on income Muslim scholars agreed that zakat from labor and professions can be
calculated at the rate of 2.5%.12
As such three differ
as follows:
i. 2.5% from the total annual gross income which exceed
ii. 2.5% from the total annual net income (after the allowable basic needs expenses d
nisab.
iii. 2.5% from the total annual net income (after the actual basic needs expenses deduction) which exceed
The actual basic needs expenses comprises: food, clothing, accommodation, education, transportation and
medical expenses.
3.3 Zakat Calculation on Salary
The following is an on-line zakat calculator to calculate the zakat from the total annual gross income ahead for one
year. After deducting all expenses from the total annual gross income the balance, if it reaches t
subject to zakat of 2.5%. To facilitate payment for each individual the amount of zakat is then divided for 12 month.
The beauty of this scheme is that by the end of each year if the giver of zakah found that his saving is more than the
previously calculated one in this case he can give the balance to zakat department. And if he spends more than the
previously calculated one i.e. on unexpected expenditure, then he can provide all the bills for this unexpected
expenditure to zakat department and they will refund him the balance due.
FIGURE 3:
3.4 Current Practices on Zakat on Monthly Salaries
At the present time income is the most important source of taxes today. It includes wages, salaries, rents, profit
dividend and other forms of earnings received in a given period. As highlighted above, these categories of people
cannot be excluded from the payment of zakat. Recently some Muslim countries enacted laws for the collection of
zakat on income on obligatory basis such as in Sudan and on voluntary basis such as in Malaysia.
In Sudan, the Sudanese Zakat Law of 1986 gives the right to the government to collect and to distribute zakat from
all wealth including wages, salaries, professional income and other
to the government to deduct zakat on monthly basis, besides income tax, from all Muslims’ salaries working inside
Sudan as well as from all Sudanese working outside Sudan. However, this raises the issue o
scholars. Since this is out of the scope of this study will focus more on Malaysian scheme.
In Malaysia, the Malaysia Tax Law via section 44(11A) of the Income Tax Act 1967 allows companies to pay zakat
12
For more details, see Yusuf al Qardawi
13
The study of the economics of zakat, Monzer Kahf pp 11
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
119
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
3.2 Zakat Calculation on Income
For the calculation of zakat on income Muslim scholars agreed that zakat from labor and professions can be
As such three different approaches were given to validate zakat payment on income
2.5% from the total annual gross income which exceed nisab. Example: RM 34,800 x 2.5% = RM 870.00.
2.5% from the total annual net income (after the allowable basic needs expenses d
2.5% from the total annual net income (after the actual basic needs expenses deduction) which exceed
The actual basic needs expenses comprises: food, clothing, accommodation, education, transportation and
line zakat calculator to calculate the zakat from the total annual gross income ahead for one
year. After deducting all expenses from the total annual gross income the balance, if it reaches t
subject to zakat of 2.5%. To facilitate payment for each individual the amount of zakat is then divided for 12 month.
The beauty of this scheme is that by the end of each year if the giver of zakah found that his saving is more than the
previously calculated one in this case he can give the balance to zakat department. And if he spends more than the
previously calculated one i.e. on unexpected expenditure, then he can provide all the bills for this unexpected
ment and they will refund him the balance due.
FIGURE 3: ON-LINE ZAKAT CALCULATOR
3.4 Current Practices on Zakat on Monthly Salaries
At the present time income is the most important source of taxes today. It includes wages, salaries, rents, profit
dividend and other forms of earnings received in a given period. As highlighted above, these categories of people
cannot be excluded from the payment of zakat. Recently some Muslim countries enacted laws for the collection of
tory basis such as in Sudan and on voluntary basis such as in Malaysia.
In Sudan, the Sudanese Zakat Law of 1986 gives the right to the government to collect and to distribute zakat from
all wealth including wages, salaries, professional income and other forms of earnings.13
This law also gives the right
to the government to deduct zakat on monthly basis, besides income tax, from all Muslims’ salaries working inside
Sudan as well as from all Sudanese working outside Sudan. However, this raises the issue o
scholars. Since this is out of the scope of this study will focus more on Malaysian scheme.
In Malaysia, the Malaysia Tax Law via section 44(11A) of the Income Tax Act 1967 allows companies to pay zakat
For more details, see Yusuf al Qardawi Fiqh al Zakat Vol. II, p269.
The study of the economics of zakat, Monzer Kahf pp 11-13.
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
For the calculation of zakat on income Muslim scholars agreed that zakat from labor and professions can be
ent approaches were given to validate zakat payment on income
. Example: RM 34,800 x 2.5% = RM 870.00.
2.5% from the total annual net income (after the allowable basic needs expenses deduction) which exceed
2.5% from the total annual net income (after the actual basic needs expenses deduction) which exceed nisab.
The actual basic needs expenses comprises: food, clothing, accommodation, education, transportation and
line zakat calculator to calculate the zakat from the total annual gross income ahead for one
year. After deducting all expenses from the total annual gross income the balance, if it reaches the nisab, will be
subject to zakat of 2.5%. To facilitate payment for each individual the amount of zakat is then divided for 12 month.
The beauty of this scheme is that by the end of each year if the giver of zakah found that his saving is more than the
previously calculated one in this case he can give the balance to zakat department. And if he spends more than the
previously calculated one i.e. on unexpected expenditure, then he can provide all the bills for this unexpected
At the present time income is the most important source of taxes today. It includes wages, salaries, rents, profits,
dividend and other forms of earnings received in a given period. As highlighted above, these categories of people
cannot be excluded from the payment of zakat. Recently some Muslim countries enacted laws for the collection of
tory basis such as in Sudan and on voluntary basis such as in Malaysia.
In Sudan, the Sudanese Zakat Law of 1986 gives the right to the government to collect and to distribute zakat from
This law also gives the right
to the government to deduct zakat on monthly basis, besides income tax, from all Muslims’ salaries working inside
Sudan as well as from all Sudanese working outside Sudan. However, this raises the issue of double taxation among
scholars. Since this is out of the scope of this study will focus more on Malaysian scheme.
In Malaysia, the Malaysia Tax Law via section 44(11A) of the Income Tax Act 1967 allows companies to pay zakat
7. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
through tax deduction subject to a maximum of 2.5% of the aggregate income.
to pay their zakat on monthly basis through tax rebate
Muslim to pay their zakat on monthly basis through tax
shows the payment of zakat through tax rebate. From the schedule of monthly tax deductions in Malaysia we
realized that it is divided according to the number of wives and according to the number
facilitate explanation we used the same schedule to calculate zakat on monthly basis based on one wife and one child
only as shown below.
TABLE 1: PAYMENT OF ZAKAT THROUGH TAX REBATE
To clarify and as seen in the table above,
as zakat (tax-rebate) and the balance of RM1149.08 will go to tax department. This example is not only to explain
the current practice of giving zakat from monthly salary in Malaysia,
the different countries the huge amount of money that can be collected from zakat on salary which is one of the many
types of zakattable wealth highlighted above. To provide more evidence, let us look at the fo
The last years witness tremendous achievement of zakat collection in Malaysia which is attributed to several reasons
including increasing level of awareness, introducing new methods of payment such as salary deductions, payments
through banks and other non-banks financial institutions.
14
Zahri Hamat, Business Zakah Accounting and Taxation in Malaysia,
at:http://eprints.usm.my/17152/1/Business_Zakat_Accounting_and_Taxation_in_Malaysia.pdf
15
The Malaysia Tax Law states that “The equivalent of amount paid in respect of an
religious dues which are obligatory”.
16
Mohd. Ma’sum Billah. “Administration of
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
120
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
ct to a maximum of 2.5% of the aggregate income.14
The same Act encourages Muslims
to pay their zakat on monthly basis through tax rebate15
as highlighted in Table (1). This encourages the majority of
Muslim to pay their zakat on monthly basis through tax rebate leaving their Net Pay unchanged. The following table
shows the payment of zakat through tax rebate. From the schedule of monthly tax deductions in Malaysia we
realized that it is divided according to the number of wives and according to the number
facilitate explanation we used the same schedule to calculate zakat on monthly basis based on one wife and one child
: PAYMENT OF ZAKAT THROUGH TAX REBATE
To clarify and as seen in the table above, if a Muslim with a monthly salary of RM10, 000.00 he can give RM202.92
rebate) and the balance of RM1149.08 will go to tax department. This example is not only to explain
the current practice of giving zakat from monthly salary in Malaysia, but also to add to the Muslim’s knowledge in
the different countries the huge amount of money that can be collected from zakat on salary which is one of the many
types of zakattable wealth highlighted above. To provide more evidence, let us look at the fo
The last years witness tremendous achievement of zakat collection in Malaysia which is attributed to several reasons
including increasing level of awareness, introducing new methods of payment such as salary deductions, payments
banks financial institutions.16
In 2005 a study was conducted on the collection of zakat
Zahri Hamat, Business Zakah Accounting and Taxation in Malaysia,
http://eprints.usm.my/17152/1/Business_Zakat_Accounting_and_Taxation_in_Malaysia.pdf
The Malaysia Tax Law states that “The equivalent of amount paid in respect of any zakat, fitrah or other Islamic
religious dues which are obligatory”.
Mohd. Ma’sum Billah. “Administration of al-zakat for the poverty alleviation in Malaysia”, unpublished paper.
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
The same Act encourages Muslims
as highlighted in Table (1). This encourages the majority of
rebate leaving their Net Pay unchanged. The following table
shows the payment of zakat through tax rebate. From the schedule of monthly tax deductions in Malaysia we
realized that it is divided according to the number of wives and according to the number of children. Hence, to
facilitate explanation we used the same schedule to calculate zakat on monthly basis based on one wife and one child
: PAYMENT OF ZAKAT THROUGH TAX REBATE
if a Muslim with a monthly salary of RM10, 000.00 he can give RM202.92
rebate) and the balance of RM1149.08 will go to tax department. This example is not only to explain
but also to add to the Muslim’s knowledge in
the different countries the huge amount of money that can be collected from zakat on salary which is one of the many
types of zakattable wealth highlighted above. To provide more evidence, let us look at the following examples.
The last years witness tremendous achievement of zakat collection in Malaysia which is attributed to several reasons
including increasing level of awareness, introducing new methods of payment such as salary deductions, payments
In 2005 a study was conducted on the collection of zakat
http://eprints.usm.my/17152/1/Business_Zakat_Accounting_and_Taxation_in_Malaysia.pdf p16.
y zakat, fitrah or other Islamic
for the poverty alleviation in Malaysia”, unpublished paper.
8. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
on salary from 394 academic staff of the international Islamic University Malaysia IIUM. The study shows that
almost half a million of Ringgit Malay
total collection of zakat as a whole in Malaysia experienced a tremendous increase of 220.6% i.e. an increase from
RM373million in 2002 to RM1.196 billion in 2009.
Despite this increase, some argue that zakah collection is yet to reach its full potential in Malaysia, since its
collection is still through voluntary basis, while others argue that its fund were not effectively distributed.
because zakah in Malaysia is collected through the State Majlis i.e. the Islamic Council of each state in the country.
This in turn results in having surplus of zakah funds in some states while in others they have shortage of zakah
funds.20
Nevertheless, we believe that by following the
distributing to all recipients of zakah in State (A) to Sate (B) if they have shortage of zakah and there are still some
recipients who are in need of zakah.21
4. ROLE OF ZAKAT IN ELIMINATING RI
4.1 Overview of Poverty in Ten selected Muslim Countries
As mentioned previously the recent statistical data of 2009 shows that the majority of people who live below poverty
are found in Muslim countries. For example, 42 millio
Afghanistan, 44 million in Indonesia, 13 million in Iran, 65 million in Bangladesh, 17 million in Sudan, 10 million in
Yemen, 8 million in Algeria,16 million in Egypt and 105 million in Nigeria. Moreov
the sake of developing their countries and eradicating poverty worsen the situationand for generations to come.
According to Mr. Obasanjo, the ex-President of Nigeria during the G8 meeting, regarding the external borrowing
the sake of developing his country and eradicating poverty said:
“All that we had borrowed up to 1985 or 1986 was around $5 billion and we have paid about $16
billion yet we are still being told that we owe about $28 billion. That $28 billion came ab
of the injustice in the foreign creditors’ interest rates. If you ask me of what is the worst thing in the
world, I will say it is compound interest
As such and due to this compound interest, the statistical data of 2010 show that the exte
reach $57.2 billion, Afghanistan $3 billion, Indonesia $196 billion, Iran $13 billion, Bangladesh $24.4 billion,
Sudan $38 billion, Yemen $7 billion, Algeria $4.1 billion, Egypt $30.6 billion and Nigeria $44 billion.
17
Nur Barizah Abu Bakar, Motivations of Paying Zakat on Income: evi
of Economics and Finance, Vol. 2 No. 3 August 2010 p83.
18
Hairunnizam Wahid, Radiah Abdul Kader and Sanep Ahmad, Localization of zakat Distribution, Religiosity,
Quality of Life and Attitude Change (perceptions o
Malaysia Indonesia Conference on Economics, Management and Accounting 2012 p 2
19
Abd. Halim Mohd Noor, Assessing Performance of Nonprofit Organization: A Framework for Zakat Institution
British Journal of Economics, Finance and Management Sciences, Vol. 5, August 2012 (1) p 12
20
Muharaman Lubis and others, Enhancement of zakat distribution management system: case study Malaysia.
Published paper at http://irep.iium.edu.my/4261/1/IMAC2011_EnhancementZakatDistribution.pdf
21
For more information on this issue please refer to Yusuf al Qaradawi,
Beirut, Lebanon, 2nd
editions, 1999 (Arabic) pp 809
22
http://www.youtube.com/watch?v=SaeRum
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
121
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
on salary from 394 academic staff of the international Islamic University Malaysia IIUM. The study shows that
almost half a million of Ringgit Malaysia had been collected as zakat from salary within one year
total collection of zakat as a whole in Malaysia experienced a tremendous increase of 220.6% i.e. an increase from
RM373million in 2002 to RM1.196 billion in 2009.18
increase, some argue that zakah collection is yet to reach its full potential in Malaysia, since its
collection is still through voluntary basis, while others argue that its fund were not effectively distributed.
lected through the State Majlis i.e. the Islamic Council of each state in the country.
This in turn results in having surplus of zakah funds in some states while in others they have shortage of zakah
Nevertheless, we believe that by following the teaching of Islam, it is permissible to give the surplus, after
distributing to all recipients of zakah in State (A) to Sate (B) if they have shortage of zakah and there are still some
21
ROLE OF ZAKAT IN ELIMINATING RIBAAND ERADICATING POVERTY
4.1 Overview of Poverty in Ten selected Muslim Countries
As mentioned previously the recent statistical data of 2009 shows that the majority of people who live below poverty
are found in Muslim countries. For example, 42 million people live below poverty in Pakistan, 15 million in
Afghanistan, 44 million in Indonesia, 13 million in Iran, 65 million in Bangladesh, 17 million in Sudan, 10 million in
Yemen, 8 million in Algeria,16 million in Egypt and 105 million in Nigeria. Moreover,
the sake of developing their countries and eradicating poverty worsen the situationand for generations to come.
President of Nigeria during the G8 meeting, regarding the external borrowing
the sake of developing his country and eradicating poverty said:
All that we had borrowed up to 1985 or 1986 was around $5 billion and we have paid about $16
billion yet we are still being told that we owe about $28 billion. That $28 billion came ab
of the injustice in the foreign creditors’ interest rates. If you ask me of what is the worst thing in the
world, I will say it is compound interest.”22
As such and due to this compound interest, the statistical data of 2010 show that the external debt of Pakistan
reach $57.2 billion, Afghanistan $3 billion, Indonesia $196 billion, Iran $13 billion, Bangladesh $24.4 billion,
Sudan $38 billion, Yemen $7 billion, Algeria $4.1 billion, Egypt $30.6 billion and Nigeria $44 billion.
Nur Barizah Abu Bakar, Motivations of Paying Zakat on Income: evidence from Malaysia, International Journal
of Economics and Finance, Vol. 2 No. 3 August 2010 p83.
Hairunnizam Wahid, Radiah Abdul Kader and Sanep Ahmad, Localization of zakat Distribution, Religiosity,
Quality of Life and Attitude Change (perceptions of zakah recipients in Malaysia), paper presented at the 13
Malaysia Indonesia Conference on Economics, Management and Accounting 2012 p 2
Assessing Performance of Nonprofit Organization: A Framework for Zakat Institution
itish Journal of Economics, Finance and Management Sciences, Vol. 5, August 2012 (1) p 12
Muharaman Lubis and others, Enhancement of zakat distribution management system: case study Malaysia.
http://irep.iium.edu.my/4261/1/IMAC2011_EnhancementZakatDistribution.pdf
For more information on this issue please refer to Yusuf al Qaradawi, Fiqh al Zakah, Mu’assassat al Risalah,
editions, 1999 (Arabic) pp 809-815.
http://www.youtube.com/watch?v=SaeRum-GJMY
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
on salary from 394 academic staff of the international Islamic University Malaysia IIUM. The study shows that
sia had been collected as zakat from salary within one year17
. Similarly, the
total collection of zakat as a whole in Malaysia experienced a tremendous increase of 220.6% i.e. an increase from
increase, some argue that zakah collection is yet to reach its full potential in Malaysia, since its
collection is still through voluntary basis, while others argue that its fund were not effectively distributed.19
This is
lected through the State Majlis i.e. the Islamic Council of each state in the country.
This in turn results in having surplus of zakah funds in some states while in others they have shortage of zakah
teaching of Islam, it is permissible to give the surplus, after
distributing to all recipients of zakah in State (A) to Sate (B) if they have shortage of zakah and there are still some
As mentioned previously the recent statistical data of 2009 shows that the majority of people who live below poverty
n people live below poverty in Pakistan, 15 million in
Afghanistan, 44 million in Indonesia, 13 million in Iran, 65 million in Bangladesh, 17 million in Sudan, 10 million in
er, borrowing with interest for
the sake of developing their countries and eradicating poverty worsen the situationand for generations to come.
President of Nigeria during the G8 meeting, regarding the external borrowing for
All that we had borrowed up to 1985 or 1986 was around $5 billion and we have paid about $16
billion yet we are still being told that we owe about $28 billion. That $28 billion came about because
of the injustice in the foreign creditors’ interest rates. If you ask me of what is the worst thing in the
rnal debt of Pakistan
reach $57.2 billion, Afghanistan $3 billion, Indonesia $196 billion, Iran $13 billion, Bangladesh $24.4 billion,
Sudan $38 billion, Yemen $7 billion, Algeria $4.1 billion, Egypt $30.6 billion and Nigeria $44 billion.
dence from Malaysia, International Journal
Hairunnizam Wahid, Radiah Abdul Kader and Sanep Ahmad, Localization of zakat Distribution, Religiosity,
f zakah recipients in Malaysia), paper presented at the 13th
Malaysia Indonesia Conference on Economics, Management and Accounting 2012 p 2-3.
Assessing Performance of Nonprofit Organization: A Framework for Zakat Institution,
itish Journal of Economics, Finance and Management Sciences, Vol. 5, August 2012 (1) p 12-13.
Muharaman Lubis and others, Enhancement of zakat distribution management system: case study Malaysia.
http://irep.iium.edu.my/4261/1/IMAC2011_EnhancementZakatDistribution.pdf
Mu’assassat al Risalah,
10. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
Once the zakah is collected by the state this will assist the state in financing the eight recipients of zakah through
eight financial institutions, which in turn will eliminate dealing with
below24
:
i. Financial Institution for Faqir/Poor
This financial institution is meant to help the poor individuals who are without any means of livelihood and material
possessions and who will be forced to borrow with r
zakat recipients and providing them with the basic needs and with the jobs they need, their situation will improve and
they will be active members in the society and hence the following years th
zakat recipients. This act will help the stop this category of poor from borrowing with riba to meet their basic needs.
ii. Financial Institution for Miskeen
This financial institution is meant to finance the
or in kind or both. They may have job but their income is below the minimum requirement. So in this case,
financing this category of people can be in terms of providing them skills a
meet their basic necessities but also to improve their overall situation. This category may take lesser years than the
above mentioned category in terms of being zakat givers. Similar to the above, through this fin
category of zakah recipient will not be force to borrow with riba to meet their needs.
iii. Financial Institution for ‘Amil/Zakat Manager
This financial institution is meant to finance the appointed zakat managers
gathering information and distributing to the mentioned zakat recipients. For efficient management of zakat the state
must appoint its staff based on the dignity of each individual in terms of his ethics, honesty and
towards himself and his society at large. Consequently, this efficient management will result not only in earning
lawful earning and gaining good reputation but in increasing their earing through collecting the zakah from all
eligible Muslim and hence their portion of earning will increase. Furthermore, the efficient management of this
institution will help in eliminate borrowing with riba among the rest of zakah recipients.
iv. Financial Institution for al-Muallafah Qulubuhm
This financial institution is meant to finance people who are inclined to enter or have already converted to Islam.
Besides, it also helps in financing da‘wah
world. Moreover, using this share in
channel this can help people to stop dealing with riba.
v. Financial Institution for fi ar-Riqab
Historically speaking this financial institution is
buy their freedom. Recently prisoners of war, criminal prisoners
category of zakat recipients. Therefore, financing them can take the form
criminal prisoners and providing them with the skills to find jobs once they are out from prison or financing their
families while they are in prison. This share will also stop this category of recipient from bo
vi. Financial Institution for Gharimin/
This group includes all who do not own
personal use and those whose debts are caused by their social and political respo
institution for al-gharimin can finance those who have financial difficulties in repaying their borrowed loan to meet
their crucial needs and also to assist them in finding extra job to meet their needs in the future.
vii. Financial Institution for Fisabillillah
This financial institution is meant to finance any form of struggle or work for the love of Allah. Therefore, it can
finance the fighters and the border guards, buying weapons and military shi
depending on any external borrowing with riba to finance this category.
viii. Financial Institution for Ibnus Sabil
This financial institution is meant to help the travellers who face difficulti
reasons such as loss of their money or their belongings et cetera. Hence the presence of this financial institution in
24
Al-Qardawi, Fiqh al-Zakat (1999) pp 539
Reading, Islamic Research and Training Institute, IDB, Jeddah 1997, p4
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
123
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
Once the zakah is collected by the state this will assist the state in financing the eight recipients of zakah through
eight financial institutions, which in turn will eliminate dealing with riba among these categories as explained
/Poor
This financial institution is meant to help the poor individuals who are without any means of livelihood and material
possessions and who will be forced to borrow with riba to provide them. Therefore, by financing this category of
zakat recipients and providing them with the basic needs and with the jobs they need, their situation will improve and
they will be active members in the society and hence the following years they will be zakat givers rather than being
zakat recipients. This act will help the stop this category of poor from borrowing with riba to meet their basic needs.
Miskeen/Needy
This financial institution is meant to finance the needy individuals according to their basic necessities
or in kind or both. They may have job but their income is below the minimum requirement. So in this case,
financing this category of people can be in terms of providing them skills and means to find better jobs not only to
meet their basic necessities but also to improve their overall situation. This category may take lesser years than the
above mentioned category in terms of being zakat givers. Similar to the above, through this fin
category of zakah recipient will not be force to borrow with riba to meet their needs.
/Zakat Manager
This financial institution is meant to finance the appointed zakat managers in terms of collecting
distributing to the mentioned zakat recipients. For efficient management of zakat the state
must appoint its staff based on the dignity of each individual in terms of his ethics, honesty and
ards himself and his society at large. Consequently, this efficient management will result not only in earning
lawful earning and gaining good reputation but in increasing their earing through collecting the zakah from all
ortion of earning will increase. Furthermore, the efficient management of this
institution will help in eliminate borrowing with riba among the rest of zakah recipients.
Muallafah Qulubuhm/Converts to Islam
stitution is meant to finance people who are inclined to enter or have already converted to Islam.
da‘wah/spreading the words of Allah globally to reach all individuals living in this
world. Moreover, using this share in spreading the knowledge of the prohibition of riba globally e.g. through a global
channel this can help people to stop dealing with riba.
Riqab/Liberating Slaves/Captives
Historically speaking this financial institution is meant to finance those who need the money to pay their master to
buy their freedom. Recently prisoners of war, criminal prisoners and family of prisoners had been included in this
category of zakat recipients. Therefore, financing them can take the form of liberating prisoners of war or educating
criminal prisoners and providing them with the skills to find jobs once they are out from prison or financing their
families while they are in prison. This share will also stop this category of recipient from bo
Gharimin/ Debtor
This group includes all who do not own nisab above what is needed to pay their debts, those whose debts are for
personal use and those whose debts are caused by their social and political responsibilities.
can finance those who have financial difficulties in repaying their borrowed loan to meet
their crucial needs and also to assist them in finding extra job to meet their needs in the future.
Fisabillillah/for the Sake of Allah
This financial institution is meant to finance any form of struggle or work for the love of Allah. Therefore, it can
fighters and the border guards, buying weapons and military ships, building barracks, et cetera without
depending on any external borrowing with riba to finance this category.
Ibnus Sabil/stranded during a journey
This financial institution is meant to help the travellers who face difficulties in continuing their journey due to
reasons such as loss of their money or their belongings et cetera. Hence the presence of this financial institution in
Zakat (1999) pp 539-744. See also Monzer Kahf, ed., Economics of Zakah
Reading, Islamic Research and Training Institute, IDB, Jeddah 1997, p4-6
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
Once the zakah is collected by the state this will assist the state in financing the eight recipients of zakah through
riba among these categories as explained
This financial institution is meant to help the poor individuals who are without any means of livelihood and material
iba to provide them. Therefore, by financing this category of
zakat recipients and providing them with the basic needs and with the jobs they need, their situation will improve and
ey will be zakat givers rather than being
zakat recipients. This act will help the stop this category of poor from borrowing with riba to meet their basic needs.
needy individuals according to their basic necessities either in cash
or in kind or both. They may have job but their income is below the minimum requirement. So in this case,
nd means to find better jobs not only to
meet their basic necessities but also to improve their overall situation. This category may take lesser years than the
above mentioned category in terms of being zakat givers. Similar to the above, through this financial institution this
collecting, keeping records,
distributing to the mentioned zakat recipients. For efficient management of zakat the state
must appoint its staff based on the dignity of each individual in terms of his ethics, honesty and responsibilities
ards himself and his society at large. Consequently, this efficient management will result not only in earning
lawful earning and gaining good reputation but in increasing their earing through collecting the zakah from all
ortion of earning will increase. Furthermore, the efficient management of this
stitution is meant to finance people who are inclined to enter or have already converted to Islam.
globally to reach all individuals living in this
spreading the knowledge of the prohibition of riba globally e.g. through a global
meant to finance those who need the money to pay their master to
and family of prisoners had been included in this
of liberating prisoners of war or educating
criminal prisoners and providing them with the skills to find jobs once they are out from prison or financing their
families while they are in prison. This share will also stop this category of recipient from borrowing with riba.
above what is needed to pay their debts, those whose debts are for
nsibilities. Therefore, this financial
can finance those who have financial difficulties in repaying their borrowed loan to meet
their crucial needs and also to assist them in finding extra job to meet their needs in the future.
This financial institution is meant to finance any form of struggle or work for the love of Allah. Therefore, it can
ps, building barracks, et cetera without
es in continuing their journey due to
reasons such as loss of their money or their belongings et cetera. Hence the presence of this financial institution in
Economics of Zakah, Book of
11. EJBM-Special Issue: Islamic Management and Business
ISSN 2222-1719 (Paper) ISSN 2222
Vol.5 No.11 2013
Co-published with Center for Research on Islamic Management and Business (CRIMB)
Muslim countries is more recommended to encourage more travellers to travel in order to explore, sh
latest knowledge that can benefit the Muslim Ummah at large.
4.3 Role of Zakah in Eradicating Poverty
One may ask, can zakah eradicate poverty from Muslim society.
which show that zakah managed to eradicate total poverty during the time of S. Umar ibn al Khattab (13
during the time of S. Umar bin Abdul Aziz (99
Abu Ubaid reports from Amr bin Shuayb that Muadh ibn Jabal continued as a governor in Yemen from the time of
the Prophet (pbuh) until the time of Umar ibn al Khattab. During the time of Umar ibn al
send the balance of zakah, after disturbing it to the eight recipients of zakah in Yemen, to Madinah. However, S.
Umar rejected this act and informed him to take from the rich people in Yemen to be given to the poor among them.
Then Muadh clarified that he already did and this is the balance which he found no one want to take it from him. The
same happened for three year. The second incident happen
governor of Egypt wrote to him asking what to do with the proceeds of zakah as he didn’t find deserving poor and
needy all over the country. S. Umar ibn Abdul Aziz replied to him to buy slaves and set
on the highways, and to call to help young men and women get married, to repay borrowers debts, and to give
orphans and needy until enriched them all.
From these two incidents we realized that zakah has to be distributed
channel to other needy categories, within the society, to satisfy their needs until it enriched them all. Once done,
only then it can be transfer to other states or to other Muslim countries.
As we know, collection of zakat today is regulated by the state or religious body in almost all Muslim countries
while contributions are made on voluntary basis. Therefore, contribution of zakat cannot be realized in today’s
Muslims economy since its amount is very mini
Islam, we believe that its administration must be centralized and its collection must be made compulsory upon all
eligible Muslim, only then its huge amount will be realized.
One may asked how much fund can be collected from zakat compared to the amount borrowed. A recent study
conducted by the author shows that huge amount of zakat can be collected within shorter time and even from one
source of zakatable wealth,27
for example, zakat
If we assumed Muslim population in a given country is 23 million, of which 3 million are rich people, 10 million are
middle class people and the rest of the population are unproductive members in the society (young, poor and old age).
Assuming that the collection of zakat becomes compulsory, this means on average the rich can give $1000/year and
the middle class can give $100/year as zakat. Therefore, a total of $4 billion/year can be collected as zakat as seen
below.
Following the same example let us find how much money as zakat can be collected within the above mentioned
Muslim countries.
25
See M. Kabir, Hassan, An integrated Poverty Alleviation Mdodle combining Zakah, Awqaf and M
Unpublished paper presented at the Seventh International Conference
Waqf, Bangi, 2010.
26
Habib Ahmed, Role of Zakah and Awqaf in Poverty Alleviation
27
Magda Ismail A. Mohsin. Utilization of Zakat and Waqf as Community Empowerment for Economic
Transformation of Muslim Societies
Islamic Finance and Economics, organized by INSANIAH & IRTI,
amic Management and Business
1719 (Paper) ISSN 2222-2863 (Online)
124
Center for Research on Islamic Management and Business (CRIMB)
http://www.crimbbd.org
Muslim countries is more recommended to encourage more travellers to travel in order to explore, sh
latest knowledge that can benefit the Muslim Ummah at large.
4.3 Role of Zakah in Eradicating Poverty
One may ask, can zakah eradicate poverty from Muslim society.25
Historically speaking there were two incidents
d to eradicate total poverty during the time of S. Umar ibn al Khattab (13
during the time of S. Umar bin Abdul Aziz (99-101H).
Abu Ubaid reports from Amr bin Shuayb that Muadh ibn Jabal continued as a governor in Yemen from the time of
t (pbuh) until the time of Umar ibn al Khattab. During the time of Umar ibn al
send the balance of zakah, after disturbing it to the eight recipients of zakah in Yemen, to Madinah. However, S.
ed him to take from the rich people in Yemen to be given to the poor among them.
Then Muadh clarified that he already did and this is the balance which he found no one want to take it from him. The
same happened for three year. The second incident happened during the time of S. Umar ibn Abdul Aziz when the
governor of Egypt wrote to him asking what to do with the proceeds of zakah as he didn’t find deserving poor and
needy all over the country. S. Umar ibn Abdul Aziz replied to him to buy slaves and set them free, to build rest areas
on the highways, and to call to help young men and women get married, to repay borrowers debts, and to give
orphans and needy until enriched them all.26
From these two incidents we realized that zakah has to be distributed every year to its people. Moreover, it can be
channel to other needy categories, within the society, to satisfy their needs until it enriched them all. Once done,
only then it can be transfer to other states or to other Muslim countries.
lection of zakat today is regulated by the state or religious body in almost all Muslim countries
while contributions are made on voluntary basis. Therefore, contribution of zakat cannot be realized in today’s
Muslims economy since its amount is very minimal. In order to activate the role of zakat as it is the third pillar of
Islam, we believe that its administration must be centralized and its collection must be made compulsory upon all
eligible Muslim, only then its huge amount will be realized.
asked how much fund can be collected from zakat compared to the amount borrowed. A recent study
conducted by the author shows that huge amount of zakat can be collected within shorter time and even from one
for example, zakat from salary.
If we assumed Muslim population in a given country is 23 million, of which 3 million are rich people, 10 million are
middle class people and the rest of the population are unproductive members in the society (young, poor and old age).
ng that the collection of zakat becomes compulsory, this means on average the rich can give $1000/year and
the middle class can give $100/year as zakat. Therefore, a total of $4 billion/year can be collected as zakat as seen
ample let us find how much money as zakat can be collected within the above mentioned
An integrated Poverty Alleviation Mdodle combining Zakah, Awqaf and M
Unpublished paper presented at the Seventh International Conference – The Tawhid/Epistemology Zakah and
Role of Zakah and Awqaf in Poverty Alleviation, IRTI 2004, Occasional Paper No. 8, p 31.
Utilization of Zakat and Waqf as Community Empowerment for Economic
Transformation of Muslim Societies, paper presented at the Life-3 INSANIAH International Conference on
Islamic Finance and Economics, organized by INSANIAH & IRTI, Langkawi , 28-31 October 2011.
www.iiste.org
2863 (Online)
Center for Research on Islamic Management and Business (CRIMB)
Muslim countries is more recommended to encourage more travellers to travel in order to explore, share and gain
Historically speaking there were two incidents
d to eradicate total poverty during the time of S. Umar ibn al Khattab (13-22H) and
Abu Ubaid reports from Amr bin Shuayb that Muadh ibn Jabal continued as a governor in Yemen from the time of
t (pbuh) until the time of Umar ibn al Khattab. During the time of Umar ibn al-Khattab, Muadh ibn Jabal
send the balance of zakah, after disturbing it to the eight recipients of zakah in Yemen, to Madinah. However, S.
ed him to take from the rich people in Yemen to be given to the poor among them.
Then Muadh clarified that he already did and this is the balance which he found no one want to take it from him. The
ed during the time of S. Umar ibn Abdul Aziz when the
governor of Egypt wrote to him asking what to do with the proceeds of zakah as he didn’t find deserving poor and
them free, to build rest areas
on the highways, and to call to help young men and women get married, to repay borrowers debts, and to give
every year to its people. Moreover, it can be
channel to other needy categories, within the society, to satisfy their needs until it enriched them all. Once done,
lection of zakat today is regulated by the state or religious body in almost all Muslim countries
while contributions are made on voluntary basis. Therefore, contribution of zakat cannot be realized in today’s
mal. In order to activate the role of zakat as it is the third pillar of
Islam, we believe that its administration must be centralized and its collection must be made compulsory upon all
asked how much fund can be collected from zakat compared to the amount borrowed. A recent study
conducted by the author shows that huge amount of zakat can be collected within shorter time and even from one
If we assumed Muslim population in a given country is 23 million, of which 3 million are rich people, 10 million are
middle class people and the rest of the population are unproductive members in the society (young, poor and old age).
ng that the collection of zakat becomes compulsory, this means on average the rich can give $1000/year and
the middle class can give $100/year as zakat. Therefore, a total of $4 billion/year can be collected as zakat as seen
ample let us find how much money as zakat can be collected within the above mentioned
An integrated Poverty Alleviation Mdodle combining Zakah, Awqaf and Micro-finance.
The Tawhid/Epistemology Zakah and
, IRTI 2004, Occasional Paper No. 8, p 31.
Utilization of Zakat and Waqf as Community Empowerment for Economic
3 INSANIAH International Conference on
31 October 2011.