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Islamic Finance Wealth

Zakat is a mandatory charitable contribution that Muslims are required to pay each year based on their wealth and possessions. [1] It is considered an act of worship that purifies wealth. [2] Zakat can be used to help the poor, needy, debtors, travelers, and those working to collect and distribute zakat funds. [3] Paying zakat is one of the Five Pillars of Islam and helps uplift the less fortunate in the community.

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40 views

Islamic Finance Wealth

Zakat is a mandatory charitable contribution that Muslims are required to pay each year based on their wealth and possessions. [1] It is considered an act of worship that purifies wealth. [2] Zakat can be used to help the poor, needy, debtors, travelers, and those working to collect and distribute zakat funds. [3] Paying zakat is one of the Five Pillars of Islam and helps uplift the less fortunate in the community.

Uploaded by

SRI RAHAYU BINTI MUKLAS Moe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ZAKAT

‫هّٰلِل‬
‫ف َو َن َه ْوا َع ِن ا ْل ُم ْن َك ۗ ِر َو ِ َعاقِ َب ُة ااْل ُ ُم ْو ِر‬ َّ ‫ص ٰلو َة َو ٰا َت ُوا‬
ِ ‫الز ٰكو َة َواَ َم ُر ْوا ِبا ْل َم ْع ُر ْو‬ ِ ‫– اَلَّ ِذ ْينَ اِنْ َّم َّك ٰ ّن ُه ْم فِى ااْل َ ْر‬ 
َّ ‫ض اَ َقا ُموا ال‬

(They are) those who, if We establish them in the land, establish regular prayer
and give their Zakat, enjoin the right and forbid wrong: with Allah rests the
outcome of all affairs.” (Surah Al-Hajj 22:41).

Zakat is an Islamic finance term referring to the obligation that an individual has


to donate a certain proportion of wealth each year to charitable causes.

Assalammualaikum and a very good day to the honourable judges, perspective


contestant and for those viewers and listeners who are listening.

Brothers and sisters,

Zakat is a mandatory process for Muslims and is regarded as a form of worship.


Giving away money to the poor is said to purify yearly earnings that are over and
above what is required to provide the essential needs of a person or family.

Zakat is the most prominent concept in the Islamic tradition commanding and
authorising practices of giving. Commonly translated into English as 'Islamic
alms', zakat is mentioned in the Quran on more than 30 occasions, often in
verses praising the giving away of wealth, material or financial, in a virtuous act
of renunciation and reliance.

The Qur’an describes Zakat as: The means by which to attain Allah’s mercy

‫صيبُ ِب ِه‬ ِ ‫ال َع َذابِي ُأ‬ َ َ‫ْك ق‬ ِ ‫َوا ْكتُبْ لَنَا فِي هَ ِذ ِه ال ُّد ْنيَا َح َسنَةً َوفِي‬
َ ‫اآلخ َر ِة ِإنَّا هُ ْدنَا ِإلَي‬
َ‫ون ال َّز َكاة‬
َ ُ‫ون َويُْؤ ت‬ َ ‫ت ُك َّل َش ْي ٍء فَ َسَأ ْكتُبُهَا لِلَّ ِذ‬
َ ُ‫ين يَتَّق‬ ْ ‫َم ْن َأ َشاء َو َرحْ َمتِي َو ِس َع‬
١٥٦﴿ ‫ون‬ َ ُ‫ين هُم بِآيَاتِنَا يُْؤ ِمن‬Aَ ‫﴾ َوالَّ ِذ‬
“My Mercy extends to all things. That (Mercy) I shall ordain for those who have
God-consciousness and give their Zakat and those who believe in Our
Signs.” (Surah Al-A`raf 7:156).

Ladies and gentleman,

How Zakat Works


Zakat is one of the Five Pillars of Islam, the others being declaration of faith,
prayer, fasting during Ramadan, and the Hajj pilgrimage. It is a compulsory
procedure for Muslims earning above a certain threshold and should not be
confused with Sadaqah, the act of voluntarily giving charitable gifts out of
kindness or generosity.

Religious texts offer comprehensive descriptions of the minimum amount of zakat


that should be distributed to those less fortunate. It generally varies, depending
on whether wealth came from farm produce, cattle, business activities, paper
currency, or precious metals, such as gold and silver.

Zakat is based on income and the value of possessions. The common minimum


amount for those who qualify is 2.5%, or 1/40 of a Muslim's total savings and
wealth. 

The Prophet said: Allah permitted not even a prophet to adjudge zakat[-
worthiness]. Rather, He Himself ruled on it and permitted it in eight cases.
Therefore, if you belong to any of these, I shall most surely give you your right. -
Abû Dâ’ûd

So, where can your zakat go?

1. The poor (al-fuqarâ’), meaning low-income or indigent.


2. The needy (al-masâkîn), meaning someone who is in difficulty.
3. Zakat administrators.
4. Those whose hearts are to be reconciled, meaning new Muslims and
friends of the Muslim community.
5. Those in bondage (slaves and captives).
6. The debt-ridden.
7. In the cause of God.
8. The wayfarer, meaning those who are stranded or traveling with few
resources.

While zakat is not the only form of charity in Islam, it is so important that it was
made the Third Pillar. Through zakat the prosperous can uplift the poor, help
those who are troubled and comfort those who are in hardship. The law of zakat
establishes the rights of the poor to support and help, and releases those who
are held captive as slaves or as debtors. Zakat has the power to change the
world. But it starts with you paying it.

Thank you.

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