Zakah and Waqf Sustainable Means of Poverty Reduction: A Literature Review

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Aminu Yakubu , Azreen Hamiza Binti Abdul Aziz , Shereeza Mohamed Saniff , Yunusa Aliyu , Yakubu Isa Abdulbari , Muhammad Salihu Abubaka , Malami Muhammad Garba


The Islamic economic tools zakah and waqf are among the several economic tools set by Islam to battle poverty and to enhance standard of living. Factually, Zakah aids in circulation and distribution of funds among the poor and less privilege in society. However, waqf provides revenue and services infrastructure, social welfare needs, and it improves family and community standard of living to the tolerable level. The objective of this study is to point out and discuss the role of zakah and waqf in poverty reduction and in enhancing the standard of living. The paper uses document research method to identify and analyse the significance of zakah and waqf in sustainable poverty reduction in the Islamic perspectives. The study shows that there is a positive impact of zakah and waqf in poverty reduction and enhancing living standard. Zakah serves as the prescribed mechanism in Islam for distribution of income from the wealthy to the poor and less privilege of the society. Through zakah’s generosity, the poor and less privilege of the society is guaranteed of having the approximate necessary amount of food or money to cater for his livelihood. Regarding waqf, it has been used since a long time ago to provide revenue for the society and to cater for social welfare, economic activities and infrastructural development. Therefore, in order to achieve benefit and significance of these two Islamic poverty reduction tools there is a need from governments and scholars of ummah to call on the wealthy and rich people to pay zakah according to the teachings of Islam. In addition, there is also need for the reform and improvement in the management of zakah and waqf institutions in Muslims society to provide warrant extensive achievement

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