chapter  12
13 Pages

Zakat: its micro-entrepreneurship model and socio-humanitarian impact

ByMohd Ma’Sum Billah

This chapter deals with zakat as a divine obligatory tax in Islam which is imposed on the wealthier and is aimed at poverty eradication and shared prosperity. In particular it argues that zakat, when conceptualized within the general objectives of Islamic law (maqasid al-Shari’ah), can be seen as an instrument for general human welfare for all the members of the community, where economic development is fostered also through micro-entrepreneurial mechanisms with an underlying humanitarian impact. In this light, the study indicates the mechanisms to facilitate the implementation of zakat in relation to entrepreneurial objectives also through cooperatives, takaful and capacity building, and provides some final recommendations for a model of poverty eradication compliant with the maqasid al-Shari’ah.