The Role of Productive Zakat on Economic Growth after the Covid-19 Period

Zakat is the giving of a portion of one's wealth by an individual. Zakat is obligatory when one's wealth reaches the nisab threshold and the haul period has passed. This study aims to analyze the role of productive zakat in fostering the economic growth of communities affected by the Covid-19 pandemic. Using a qualitative descriptive method, this research indicates that productive zakat significantly influences the efforts and welfare of recipients, as providing business capital enables them to generate income over the long term. As businesses grow, recipients will employ workers to facilitate their operations, which in turn affects the unemployment rate. When individuals have employment and clear income, it impacts their purchasing power, leading to an increase in Gross Domestic Product growth.

Authors

Publication Details

Journal
South Asian Research Journal of Business and Management
Published
2024-09-09
DOI
https://doi.org/10.36346/sarjbm.2024.v06i05.001
Primary Topic
Islamic Finance and Banking Studies
Type
article
Field-Weighted Citation Impact
0.00
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article

The Role of Productive Zakat on Economic Growth after the Covid-19 Period

Windhu Putra, Puan Gustiari Mas, Sisi Amalia
South Asian Research Journal of Business and Management
Islamic Finance and Banking Studies
article

The Role of Productive Zakat on Economic Growth after the Covid-19 Period

Windhu Putra, Puan Gustiari Mas, Sisi Amalia
article en

Abstract

Zakat is the giving of a portion of one's wealth by an individual. Zakat is obligatory when one's wealth reaches the nisab threshold and the haul period has passed. This study aims to analyze the role of productive zakat in fostering the economic growth of communities affected by the Covid-19 pandemic. Using a qualitative descriptive method, this research indicates that productive zakat significantly influences the efforts and welfare of recipients, as providing business capital enables them to generate income over the long term. As businesses grow, recipients will employ workers to facilitate their operations, which in turn affects the unemployment rate. When individuals have employment and clear income, it impacts their purchasing power, leading to an increase in Gross Domestic Product growth.

South Asian Research Journal of Business and ManagementVol. 6(05)
Openalex Percentile: Top 73%
Islamic Finance and Banking Studies
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