Title: Zakat fund – concept and perspective

Authors: Moid U. Ahmad, Athar Mahmood

Addresses: Finance Area, Jaipuria Institute of Management, A-32A, Sector 62, Noida 201301, India. ' Human Resource Management area, Jaipuria Institute of Management, Gomti Nagar, Lucknow 226001, India

Abstract: Islam, the Holy Quran and the Hadith lays great emphasis on Zakah (Zakat) as a social tool to bridge the differences between the rich Muslims and poor Muslims. This research paper underlines the importance of Zakah as a tool for poverty alleviation. It discusses the fundamental concept of Zakah, its calculation methodology and how it is levied. The paper suggests a novel concept of the Zakah Fund, which can be implemented as a tool of poverty alleviation. Also, the paper tries to analyse the viability of the concept by conducting a relevant survey, the conclusions from which can be used to enhance the understanding of the concept and its utility.

Keywords: development economics; Zakat; Islamic finance; Zakah Fund; poverty alleviation.

DOI: 10.1504/IJMEF.2009.029058

International Journal of Monetary Economics and Finance, 2009 Vol.2 No.3/4, pp.197 - 205

Published online: 02 Nov 2009 *

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