The Role of Zakat in Promoting Economic Growth in Rural Communities
Rofik Hidayat

Faculty of Economics and Business, Airlangga University
Jl. Airlangga No.4 - 6, Airlangga, Kec. Gubeng, Kota SBY, Jawa Timur 60115, Indonesia
*rofik.hidayat-2023[at]feb.unair.ac.id

Abstract

This study analyzes the role of zakat as an economic driver and poverty alleviation instrument in the context of rural communities in Indonesia. Zakat, one of the main pillars of the Islamic economy, has great potential in supporting social and economic welfare, especially in villages that face greater economic challenges than urban areas. The research used literature review methodology, case study and qualitative approach to explore the experience and perception of zakat recipients, zakat managers, and other stakeholders. The results show that good zakat management can fund economic empowerment programs such as skills training, business capital provision, and village infrastructure development, so that zakat does not only function as social assistance but also as a sustainable economic stimulus. In addition, zakat is proven to be able to reduce poverty and economic inequality, increase income, and improve the welfare of rural communities. However, optimizing the potential of zakat in Indonesia still requires significant efforts from various parties. This research is expected to provide a comprehensive insight into the optimization of zakat for inclusive and sustainable economic development at the village level.

Keywords: Zakat, Economic Empowerment, Poverty, Village

Topic: Islamic social finance