THE ROLE OF ZAKAT IN POVERTY ALLEVIATION: A COMPARATIVE STUDY OF DISTRIBUTION MECHANISMS IN MUSLIM COUNTRIES

Abstract

Zakat, an essential pillar of Islam, serves as a powerful financial tool for poverty alleviation and social equity in Muslim-majority countries. This study conducts a comparative analysis of zakat distribution mechanisms across various Muslim nations, examining their effectiveness in reducing poverty and enhancing economic stability. Different models of zakat administration, including government-managed systems (such as in Malaysia and Saudi Arabia) and privately organized structures (such as in Indonesia and Pakistan), are analyzed to assess their efficiency and impact on low-income populations. The study explores how institutional frameworks, transparency, and technological advancements influence zakat distribution and its accessibility to beneficiaries. Additionally, it highlights the challenges faced in zakat administration, such as mismanagement, lack of regulatory compliance, and unequal distribution, which hinder its potential in addressing economic disparities. The findings reveal that centralized and well-regulated zakat systems demonstrate higher efficiency in targeting and uplifting impoverished communities compared to decentralized models. The study also suggests policy recommendations for optimizing zakat management, such as integrating digital payment solutions, enhancing governance, and fostering public trust through accountability measures. By examining these comparative aspects, this research contributes to a deeper understanding of how zakat can be leveraged as a sustainable solution for poverty reduction in Muslim societies.