The Role of Productive Zakat in Advancing Sustainable Poverty Reduction through Maqāṣid-Based Welfare Frameworks
Keywords:
Maqāṣid Sharia, productive zakat, Islamic social finance, poverty alleviation, welfare measurement, sustainable development, SEM-PLSAbstract
This study examines the role of Maqāṣid Sharia–based welfare frameworks in reshaping human development measurement and evaluates the contribution of productive zakat to multidimensional welfare improvement. Using a qualitative systematic literature synthesis approach, the study integrates empirical findings on Islamic social finance, zakat effectiveness, Maqāṣid Sharia Index (MSI), and poverty and welfare dynamics. The review synthesizes evidence from SEM-PLS studies, longitudinal analyses, and policy-oriented research to identify institutional factors, welfare mechanisms, and measurement frameworks. The findings show that Maqāṣid Sharia expands conventional human development concepts by incorporating material, social, and spiritual dimensions such as education, health, moral development, and social justice. Productive zakat significantly improves household welfare through income generation, asset accumulation, and microenterprise development, especially when supported by training, mentorship, and market access. While consumptive zakat mainly provides short-term assistance, productive zakat contributes to long-term poverty reduction and economic empowerment. Institutional governance, including Shariah governance, transparency, Islamic social reporting, and Maqāṣid-based performance measurement, plays a crucial role in improving allocation efficiency and welfare outcomes. The integration of zakat institutions with national poverty alleviation systems and Sustainable Development Goals (SDGs) further strengthens policy coherence and scalability. Evidence also indicates that zakat contributes to food security, educational access, family resilience, and spiritual well-being, although outcomes vary depending on institutional capacity and program design. The study concludes that productive zakat aligned with Maqāṣid Sharia principles and supported by strong governance is an effective mechanism for sustainable and multidimensional welfare improvement. It also highlights the importance of standardized reporting systems, digital governance, and integration with national development strategies to strengthen zakat effectiveness and policy impact.
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