Fintech For Good With Zakat in Islamic Finance

Fintech For Good With Zakat in Islamic Finance

To take it one step back, one must first understand Islam. The world has, according to the World Population Review , an estimated 1.9 billion Muslims worldwide . Looking at the overview of Islam on the BBC website, it is paraphrased that, the Five Pillars of Islam are the most important Muslim practice. They are the five obligations that every Muslim must satisfy in order for them to live a good and responsible life according to Islam. Those pillars consist of: With regards to alms, as mentioned in the Islamic Relief Worldwide website, “Muslims believe that paying zakat purifies, increases and blesses the remainder of their wealth.” In addition, “Zakat is also a spiritual connection to one’s maker – to purify your wealth for the will of Allah is to acknowledge that everything we own belongs to Him, and it is for Him that we strive to end poverty and help our brothers and sisters.” It further says, “According to the Hanafi madhab, zakat is 2.5 per cent of wealth that has been in one’s possession for a lunar year .” Throughout many Muslim-majority countries, zakat is voluntary. In six countries – Malaysia, Saudi Arabia, Pakistan, Sudan Libya and Yemen