Zakat Distribution Strategy of Poverty Alleviation in the Perspective of SDGs: A Case Study in Indonesia and Malaysia
DOI:
https://doi.org/10.21580/economica.2026.17.1.30433Keywords:
Zakat Distribution, Poverty Alleviation, SDGs, Indonesia, MalaysiaAbstract
Zakat is considered to be a critical Islamic social finance mechanism for helping alleviate poverty and achieving sustainable development goals in countries with Muslim populations. The purpose of this research is to examine the contribution of Zakat distribution towards realizing SDGs, particularly poverty reduction, in Indonesia and Malaysia using the qualitative research methodology that involves interviews of key players at BAZNAS (Indonesia), MAIS (Malaysia) and UiTM as well as document review of the organizations' institutional reports and scholarly literature. It has been found out that Zakat organizations work towards achieving SDG targets, namely eradication of poverty (SDG 1), reduced inequalities (SDG 10), and economic growth (SDG 8) through the implementation of different programs, which involve financial assistance, vocational training, and educational activities. For instance, BAZNAS in Indonesia uses technology in Zakat for entrepreneurship programs to target poor people and increase their economic independence. At the same time, MAIS in Malaysia focuses on education and healthcare to tackle structural problems related to socio-economic mobility. However, some limitations related to Zakat distribution include inefficiency in coordination, lack of transparency, and cultural resistance to modernization. The study suggests some recommendations for solving the aforementioned challenges, which include introduction of centralized.
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