Zakat Analysis

827 Words2 Pages
bulb-icon

Recommended: Zakat and it's advantages

BROAD PROBLEM AREA
Islam is a religion which guides us about all aspects of social life through Quran. Quran also give guidance about financial and economic structure. Figures point out that only 20% of the world's inhabitants live at a high level of comfort and luxury, whereas the vast majority of the people are facing poverty, ignorance, malnutrition, and several of them live on less than a dollar a day. The breach amongst the two lives is growing day after day. The spreading of that gap is supported by certain policies which disturb the income and wealth of both parties. The strange thing that such situations are originating in the same country, where there are areas / segments / groups harshly facing the displays of the low living standards, whereas others live in the similar country in entirely different life of luxury and wealth. All of this is due either to the procedures leading to poor distribution of income and wealth, or policies that would widen the income gap or both.
Zakat is mandatory on all Muslims men and women who own a specified limit of wealth, to pay each year a recommended share from capital or savings like farm produce, livestock, business, cash and valuable metals such as gold and silver. The Quran has mentioned Zakat more than eighty times. It is a duty from Allah similar to the duty of ‘Salat’.
The Zakat, if observed and performed as ordered by Allah, is capable of eliminating poverty and income inequality in the Muslim populations. As one of the pillars of Islam, Zakat can eradicate poverty and accomplish the equality in distribution of income among the fellows of the Muslim community.
It is adequate to note that the financial assets in banks for the rich Arabs, their amount is valued is more than 1190 ...

... middle of paper ...

..." (6: 165)
Zakat can prove to be a real blessing if it is used for productive and constructive purposes to the permanent benefit of the poor. Then only will it encourage investment and savings. Distributing money among the poor and needy directly after taking them from the rich is not enough at all.
Zakat is the basis of our economy. If we make use of this Islamic institution in an intelligent way, do away with the old feudal system and wipe out corrupting, the country can be changed into a true welfare state.
TECHNIQUE
The data is collected through various articles and journals which are related to the Zakat and its impacts on economies of different countries.
TIME/BUDGET
This research is thoroughly based on reading articles and journals from different sources which are related to how Zakat impact the economy of a country and the research takes approx 2-3 weeks.

Show More
Related

  • Wealth in The Greath Gatsby

    953 Words  | 2 Pages

    Within modern society, monetary wealth is the main source of control and power; most people today see wealthy people as “more important” or “more powerful” just cause they have more money than them. Thus in turn giving the wealthy people the upper hand with no one to stand against them allowing them to do as they please. This is the case through many countries around the world. In some countries it varies slightly with the governments listening to there people but taking more influence from these wealthy people, it is on very rare occasion that these people are treated equally with the middle and lower class family’s. A study by Drs Keltner and Piff at the Universit...

    Read More

  • Who Was Muhammad?

    3246 Words  | 7 Pages

    Muslims are expected to give alms to the Muslim community that amount to 2.5% of one’s income. The principle of knowing that all things belong to God is essential to purification and growth. Zakāt is obligatory for all Muslims who are able to do so. Currently,Muslims are living under secular governments and must pay taxes to them. So the zakat is in addition to their secular taxes. Because there is no central Islamic state, each person must choose where to give his money.

    Read More

  • Equity And Efficiency Tradeoff Essay

    1046 Words  | 3 Pages

    Despite the numerous wealth generated on a daily basis from oil exportation over the years and the vast amount of untapped resources laying in commercial quantity, the country does not have a single or recognize means of directly addressing the welfare of its citizenry. Only the present democratic administration has promised to execute out a compulsory cash transfer of N5,000 to the poorest 25 million Nigeria (based on some conditions), pay graduating corp members some stipends for a year and design a one-meal a day for public primary school

    Read More

  • Spread Of Islam Dbq Essay

    624 Words  | 2 Pages

    “But the believers who do good works, both men and women shall enter paradise”(Document B). This shows that this religion has benefits for both men and women which was not a popular thing. The Qu’ran provides rewards to all people in their religion, as long as they follow the Qu’ran. In Islam it is against the law to take, someone’s belongings in unjust means (Document B). This shows that Islam protects personal belongings, this may be an appealing to those not in the Islamic faith.The Islamic faith has a property peace and a responsibility to help each other which includes giving to the

    Read More

  • Aladdin Analysis

    1826 Words  | 4 Pages

    Throughout Islam, there are many rituals and things that are required of Muslims. In Islamic cultures, females wear Hijab, a head covering that is often worn in public. In the movie Aladdin, the women in the marketplace are wearing Hijab. Another reference to Islam is when Aladdin gives away the bread that he and Abu stole at the beginning of the movie to two children who were also seemingly living on the streets. A huge part of Islam is charity, so much so that according to Joseph Liu (2012), all able Muslims are required to make donations to the poor. “The amount is typically 2.5% of a person’s total wealth, not just annual income” (Liu,

    Read More

  • Technical Efficiency Essay

    1916 Words  | 4 Pages

    The data provided by the Near East Bank for the purposes of this study not only included 10 years of data (2004-2013) but also rendered all figures in 2013 USD. To facilitate calculation, these figures were then rendered into millions of USD. For reasons of privacy, the Near East Bank did not send identified data, as private banks in TRNC are not obligated to disclose their financial data to any party other than the Central Bank of TRNC itself.

    Read More

  • Poverty in Social Classes

    665 Words  | 2 Pages

    The world contains a lot of societies, cultures, and classes. Each household belongs to some social class that represents their level of education, their work position, and their financial status. These different classes have created a conflict between people. It fills rich people's minds with the thought that poor people are criminals, and that conflict ended up with creating poverty. The authors Gilbert, Kahl, Magnet, and Gans are discussing the important causes and reasons that created poverty in comparing and contrasting these points with each other.

    Read More

  • What is Islamic Finance?

    3003 Words  | 7 Pages

    Islamic finance is a financial system that operates according to Islamic law (which is called sharia) and is, therefore, sharia-compliant. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic law and the finance industry rules and regulations that apply to their conventional counterparts. Therefore, islamic finance is to be assets based as oppose to the currency based whereby investment structured on exchange or ownership of assets, and money is simply mechanism for transaction process. It would based on two sources which are Al-Quran and As-Sunnah.

    Read More

  • Essay On Income Inequality

    1524 Words  | 4 Pages

    If income inequality continues to grow, the economy will break down. For example, if the housing price continues to rise because of the rich people, poor people will not have a place to live since they cannot afford to buy these expensive houses. When this happens, it will create another housing bubble because the houses are not worth buying, which means the market value of the house exceeds the house’s value; therefore, nobody will buy the house including the riches since they already have houses to live. Moreover, poor people do not believe they can get access to wealth because they cannot afford anything, and they cannot afford the tuition fees for a good education, which is the traditional route to success.

    Read More

  • Wealth and Poverty in Islam

    1795 Words  | 4 Pages

    to help the poor. And he has to remember that Allah is able to take

    Read More

  • The Advantages of Islamic Finance and Banking

    1173 Words  | 3 Pages

    First of all, let us outline how Islamic banks actually work and what their main differences are in comparison with conventional banks. In this banking system, banks are operated by Islamic laws (known as Sharia), so Islamic economic principles are considered as primary guidance. Two basic doctrines behind Islamic banking are the sharing of profit and loss and, significantly, the prohibition of the collection and payment of interest . Hence unlike conventional commercial banks, Islamic banks do not pay or charge interest on lending or borrowing of money. This is because the Sharia’s strictly prohibits, among other things, the receipt and payment of riba (interest) /. The interpretations to clarify the meaning behind this restriction suggests that earning or charging extra amount of money from debtor has to be seen something as immoral behavior, because making pressure on your borrower is actually unfair from the view point of Islam. To make it clear, the religion of Islam basically promote the principle of justic...

    Read More

  • Zakat

    693 Words  | 2 Pages

    The reasons why we are obliged to pay it is that everything belongs to God, and that wealth is merely loaned to us from Allah, and that we should look after it and use it well. Our possessions are purified by setting aside a portion of it for those in need. Moreover, paying Zakat raises our self esteem as we know that we have performed an act of humility. A reference from the Quran states:

    Read More

  • Research Methodology Essay

    1182 Words  | 3 Pages

    In this chapter, the researcher discusses further on research methodology used in the current research to achieve the research objectives as previously highlighted in Chapter One. This chapter will discuss on research design, population, sampling design and data collection method.

    Read More

  • Solutions to Poverty

    1333 Words  | 3 Pages

    More fortunate people must also be willing to help their fellow citizens in need. Volunteer programs should be overflowing with people who want to help. For example, Habitat for Humanity is one organization who builds houses for the needy. If everyone dedicated some of their extra time and money in organizations that help "poor" people, poverty would begin to see a decrease. There are many other organizations that help "poor" people, and if everyone pitches in, one world problem may be diminished in the future.

    Read More

  • Importance And Importance Of Research

    755 Words  | 2 Pages

    The role of research in modern times has great impact and importance because it is not confined to only specific field like applied economics; it has widespread and affected other fields of work like science, business/management, social science etc. Through scientific and inductive thinking which research inculcates, at the same time it also promotes the logical habit of thinking and organization. Research is equally important in all fields, there is no much significance for specific field, as it has been made necessary in all fields for solving operational problems and studying varied social problems of society. Hence, the use of research has turned to be an aid for all government and economic policies in an economic

    Read More

More about Zakat Analysis

Open Document