Zakat as Social Capital: Unlocking the Potential of Zakat as an Impactful Investment in an Inclusive Economy Unlocking the Potential of Zakat as an Impactful Investment in an Inclusive Economy

Abstract

Zakat, as a key instrument in the Islamic economic system, has a strategic role in wealth redistribution to reduce poverty and social inequality. This article examines the potential of zakat as social capital that can be used to drive inclusive economic growth through an impact investment framework. So far, zakat has been known as a direct wealth distribution tool, but now, zakat can be optimized into an instrument for sustainable economic empowerment through management that focuses on social investment that focuses on sustainable results. This study suggests an integrative model that combines the principles of zakat with the idea of ​​impact investment. In this model, zakat funds are used to support productive economic initiatives, such as micro-enterprise financing and skills training, as well as to meet basic needs. Zakat given in this way not only helps mustahik in the short term, but also helps them become more financially independent. This study suggests that zakat and impact investment can work together to provide broader and more sustainable economic opportunities for marginalized communities. Therefore, zakat may be a key driver for an inclusive and equitable economy in the future.