The Role of Technology in Effective Distribution of Zakat to Poor and Needy

M. Kabir Hassan and Aishath Muneeza ()
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Aishath Muneeza: International Center for Education in Islamic Finance (INCEIF)

A chapter in Islamic Finance, FinTech, and the Road to Sustainability, 2023, pp 309-331 from Palgrave Macmillan

Abstract: Abstract Technology has no religion. To enhance zakat administration, the use of technology has been explored today more than ever due to Industry 4.0. The objective of this desk research is to discuss the role of technology in distribution of zakat to poor and needy. The findings of this research suggest that though so far, zakat has been linked mostly with blockchain technology by researchers, there is still scope to use other types of technology such as artificial intelligence and machine learning. It is revealed that there are two major constraints faced in zakat distribution which need to be focused: that is inability to identify and validate the zakat recipients in a transparent and convenient manner by zakat administrators; and distribution of zakat without the recipient being physically present in zakat administrator’s office. To overcome these two constraints in zakat distribution stage, possible solutions using technology has been explored. This chapter concludes that using Internet of Things (IoT), a technology-based solution can be sought to the issues. It is anticipated that the findings of this research will motivate zakat administrators to use technology to complement their operations and also to formulate legal and regulatory frameworks to manage technology in relation to zakat.

Keywords: Effective zakat management; Islamic social finance; Technology; Zakat administration; Zakat disbursement (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pcichp:978-3-031-13302-2_14

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DOI: 10.1007/978-3-031-13302-2_14

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