MDEC 2093

PRINCIPLES OF ISLAMIC ECONOMICS

TOPIC :

DISTRIBUTION OF INCOME AND WHEALTH

IN ISLAM

PREPARED FOR :

MADAM SA’DIAH ABDUL KARIM

PREPARED BY:

WAN MUHAMMAD ZAFEER DANIEL BIN CHE MOHD ZAIRUDDIN

(2033034)

DIPLOMA ISLAMIC BANKING

FACULTY OF MANAGEMENT AND MUAMALAH

 TABLE OF CONTENT

NO. CONTENTS PAGE

1.0 Introduction 1

2.0 Five Selected Quranic Verses On Distribution Of Income And Wealth In Islam 2

3.0 Five Selected Hadith On Distribution Of Income And Wealth In Islam 3

4.0 Discussion Related To The Chosen Quranic Verses and hadith 4&5

5.0 Conclusion 6
 1.0 INTRODUCTION

In term of language

Zakat in Arab that means “that which purifies” , Zakat al-Mal “zakat on wealth” orn Zakah is a form

of almsgiving tthat often collected by the Muslim Ummah. In Islam, it is comsodered as a religious

obligation. It also next after prayer by Quranic ranking in importance.

In term of Shariah

Zakat also referring to the obligation that an individual has to donate to certain porpotion of wealth

each year to charitable causes. Zakat can be considered as a mandatory process for Muslim and is

regarded as a form of worship.

Aim of research

The aim of research is to expose about the main objective of zakat ; to achieve socio-economic

justice. With respect to the economic dimension of zakat, it is aimed to achieve the favourable

effects on several dimensions such as aggregate consumption, savings and investment, aggregate

supply of labour and capital, poverty eradication and economic growth.

 2.0 FIVE SELECTED QURANIC VERSES ON DISTRIBUTION OF INCOME AND
WEALTH IN ISLAM

 Theme : Benefits of Zakah

Verse 1
“Yet you shall duty establish the prayer. And you shall give the Zakat-
Charity, and therewith lend god a most goodly loan. For whatsever good
your advance for your souls, you shall finds its reward with god in the
Hereafter; yet it shall be far better and much greater in reward”

(Surat al Muzammil, 73:20)

Verse 2
“Then steadfastly continue to duly establish the Prayer, and give the
Zakat-Charity”

(Surat al Mujadilah, 58:13)

Verse 3
“For woe to those who associate gods with God, those who do not give
the Zakat-Charity, those who are disbelievers in the Hereafter”

(Surat Fussilat, 41:7)

Verse 4
“Indeed, prescribed charitable offerings are only to be given to the poor
and the indigent, and to those who work on administering it, and to
those whose hearts are to be reconciled, and to free those in bondage,
and to the debt-ridden, and for the cause of God, and to the wayfarer.
This is an obligation from God. And God is all-knowing, all-wise’

(Surat al Tawbah 9:60)

Verse 5
“And thus has He made me blessed, wherever I may be. And further, He
has enjoined me to be ever observant of the Prayer, and to give the
Zakat_Charity, as long as I am alive”

(Surat Maryam 19:31)

 3.0 FIVE SELECTED HADITH ON DISTREIBUTION OF INCOME AND WEALTH IN
ISLAM

 Theme: Benefits of Zakat

Hadith 1
“Every day two angels come down from Heaven and one of them says, ‘O
Allah! Compensate every person who spends in Your Cause; and the other
(angel) says, ‘On Allah! Destroy every misery”

( H.R Abu Huraira)

Hadith 2
“There is no Zakat either on a horse or a slave belonging to a Muslim”

( H.R Abu Huraira )

Hadith 3
“I gave the pledge of allegioance to the Prophet for offering prayer perfectly,
giving Zakat and giving good advice to every Muslim”

( H.R Jarir bin ‘Abdullah)

Hadith 4
“When a women gives in charity some of the foodstuff (which she has in her
house) without spoiling it,she will receive the reward because of his earning,
and the storekeeper will also have a reward similar to iot. The reward of one
will not decrease the reward of the others”

(H.R Aisha r.a)

Hadith 5
“The best charity is that which is practiced by a wealthby person.And start
giving first to your dependents”

( H.R Abu Huraira)

 4.0 DISCUSSION RELATED TO THE CHOSEN QURANIC VERSES AND HADITH

4.1 Discussion Based on Quranic Verses

The Quran describes Zakat as: The means by which to attain Allah’s mercy. “My Mercy

extends to all things. That (mercy) I shall ordain for those who have God-conciousness and give

their Zakat and those who believe in Our Signs.” Surah al-Araf 7:156. It tells Zakat is not a random

form of charity or imposed tax; zakat is not a means of giving to be generous – it is something that

Allah has ordained for us to do- it is an obligation. Not just that, Zakat also considered as a

distinctive quality of true believers. “Who are active in paying Zakat.” Surah al- Mu’minun 23:4

and also considered as important as Salah “And establish the prayer and pay the Zakat and bow

(in prayer) with those who bow” (Al Baqarah : 43). Here it shows that Zakat is something that has

been divinely ordained and is regarded as the right of both Allah and the poor.
 4.2 As Discussion From Hadith

Several different categories of charity are defined in Islam, the two most important being
zakat

(obligatory charity) and sadaqa (voluntary charity). Zakat is a specific, standardized percentage of

one’s extra wealth (over and above the necessities of life) that must be given to the poor and
those

in need. Sadaqah can be given to anyone in many forms including a smile, wise advice, or helping

to build a home or masjid.

The Prophet said: “Your smile for your brother is a charity. Your removal of stones, thorns or
bones

from the paths of people is a charity. Your guidance of a person who is lost is a charity.” (Bukhari)

Another Hadith illustrates the importance of every part of a person’s body performing a charity:

“A charity is due for every joint in each person on every day the sun comes up: to act justly
between

two people is a charity; to help a man with his mount, lifting him onto it or hoisting up his
belongings

onto it, is a charity; a good word is a charity; and removing a harmful thing from the road is a

charity.” (Al-Bukhari, Muslim)

 5.0 CONCLUSION

It is noteworthy to highlight Zakat is a bridge that connects the Muslims to the beautiful religion
of Islam. Zakat acts as the shield that protect Muslims from the evil of the pleasures and
splendors of ‘Dunya’ (world) and the key to achieve ultimate success in ‘Akhirah’ (hereafter).

The deed should be done wholeheartedly with sincere intention of pleasing The Almighty Allah
SWT.
The existence of countless starving, poor, hungry and destitute Muslims and non-Muslims in the
world points to the need for this essential teaching to be put into practice. Affluent Muslims may
not realize how their wealth could strengthen whole communities. Giving charity correctly is
crucial to both the well-being of the needy as well as the ultimate happiness of the wealthy. The
Prophet emphasized this principle repeatedly.