Zakat As An Islamic Economic Instrument In Realizing Social Welfare

Abstract

Zakat is one of the main pillars in Islamic economics that functions as an instrument of wealth redistribution to improve social welfare and economic development of the community. This study aims to explore the role of zakat in reducing poverty, empowering communities, and supporting the achievement of sustainable development goals. The method used in this study is a literature review by analyzing various literature related to zakat, including books, scientific articles, and data related to the implementation of zakat in various Muslim countries. The results of the study indicate that zakat not only functions as a tool for poverty alleviation, but also as a means of economic empowerment through productive zakat. In addition, transparent and technology-based zakat management has been shown to increase the effectiveness of zakat fund distribution. This study also identifies challenges faced in zakat management, including public awareness and uneven distribution. The conclusion of this study confirms that zakat has great potential in realizing social welfare and inclusive economic development, but requires more professional management and active community participation to achieve optimal impact. These findings are expected to provide insight for policy makers and zakat management institutions in designing more effective and sustainable programs.