Economics

Zakat

Published Oct 26, 2023

Definition of Zakat

Zakat is an obligatory act of charity in Islam. It is one of the Five Pillars of Islam and is considered a religious duty for all Muslims who meet the criteria. Zakat is a form of wealth redistribution and social solidarity, aiming to help the less fortunate members of society and promote equality and justice.

Example

Let’s consider the case of Ahmed, a Muslim man who works as a successful businessman. According to Islamic teachings, Ahmed is obligated to pay a portion of his wealth as zakat. He calculates his zakat based on a specific formula, which takes into account factors such as his total wealth, debts, and personal expenses.

Ahmed wants to fulfill his religious duty and help those in need. He pays his zakat to authorized organizations or directly to deserving individuals, such as the poor, the needy, those in debt, and travelers in need of assistance. Through his zakat payment, Ahmed contributes to providing basic necessities, supporting education, and improving the overall well-being of the less fortunate.

Why Zakat Matters

Zakat plays a crucial role in Islamic societies as it helps address poverty and inequality. It functions as a means of social welfare, ensuring that wealth is distributed more equitably among members of the community. By fulfilling this religious obligation, Muslims support the less fortunate, promote social cohesion, and fulfill their duty to contribute to the well-being of society. Zakat not only provides financial assistance but also fosters empathy, compassion, and a sense of communal responsibility.