You are here

Through Islamic Banks’ Zakat House (IBZH): Investment of Zakah Funds in Microfinance to Remove Poverty in Bangladesh: A New Model

Journal Name:

Publication Year:

Author NameUniversity of AuthorFaculty of Author
Abstract (2. Language): 
One of Zakat’s main objectives is to help eliminate poverty and famine. And in Shari’ah, the obligation of zakat payment is elaborated which if not maintained holds severe consequences. Zakat has its unique features of supporting the poor in providing a collateral free financial stability. The main socioeconomic factors in all the developing Muslim countries are poverty, unemployment and economic inequality which results in not meeting the basic needs of the poor. In a country like Bangladesh consisting of Muslim Majority, although governmental and nongovernmental institutions collect and distribute zakat yet the ultimate goal of zakat is not attained completely. At present, modern Islamic jurists reinforce the notion of microfinance investment through the collection and usage of zakat money. This paper consists of a static ground for the poverty removal creating a financial institution which is equally responsible as those present in Bangladesh but with a different route in eliminating poverty where schemes can be initiated along with opening opportunities of employment. Finally, it also surfaces the model in investment of zakat fund through IBZH with opinions of Islamic jurists. This Islamic Banks Zakah House (IBZH) is an amalgamated forum of the present eight established private Islamic banks of Bangladesh



AL-Quran al Karim.
Al-Hawari, Sayeed. AL-Istismaar wat Tamweel, P. 43
Ali, Yousuf (2000) “The Holy Quran”.
As-Subaili, yusuf ibn Abdullah. “Fiqhul Muamelat”, maktabuts shamela (3rd
ed.), vol, 1, page 379.
Assaduzzaman (1997). “The role of microcredit in poverty alleviation program”
in R.I Rahman (editor), poverty and development: Bangladesh
perspective, BIDS, Dhaka, (in Bangla).
Al-Qaradawi, Yosuf. “Fiqh al Zakah,” Translated in English by Monzer
Kahf, P.1:17.
Al-Ghazali, Abu Hamid. “Al-Mustasfa fi' Ilm al-'usul, ed. Muhammad 'Abd
al-Salam Abd al- Shaqi (Beirut: Dar al-Kutub al-'Ilmiyyah, 1413
A.H.), pp: 174.
Al-Alwan, Abdullah. “Ahkamuz Zakah Ala dawel Majahibul Arbiyah”,
Published by Majallatu Majmail Fiqhil Islami, No: 3, Vol. 1, P. 335-
Besley, T., and S. Coate. (1995) “Group Lending, Repayment in Collateral”,
Journal of Development Economics, 46: 1-18.
Conning, J. (1998) “Outreach, Sustainability and Leverage in Monitored and
Peer- Monitored Lending”, Journal of Development Economics, 60: 51-
Development in Bangladesh: A Case Study of BRAC”. Asian Journal of
Dyal-Chand, R. (2007) “the attorney’s role in the micro lending project” in clare,
Dalton, (ed.) progressing lawyering, Globalization and markets,
rethinking ideology and strategy, Boston Hein,
Farh, Abdul Fattah Md. (1997) “At tawjihul Istismaari Liz Zakah: Dirasah
Iqtisadiyah Fiqhiyah Tahliliyah Muqarana”, Published by Dubai Islami
Bank, Dubai, , P. 20
International Journal of Islamic Economics and Finance Studies, 2016, Year: 2, Vol: 2, No: 1 23
Furfur, Saleh. Fatwa on “Tawzifu Amwaliz Zakah Ma’a Admi At-Tamlik Lil
Mustahiq”, Majallatu Majmail Fiqhil Islami, No: 3, Vol. 1, P. 358.
Habib, Ahmad. “Financing Micro-entrepreneurs: An analytical study of Islamic
Microfinance Institutions”. Islamic Economic Studies, 9 (2), 27-64.
Hassan, M. K. and Khan, J. M. (2007) “Zakat, External Debt and Poverty
Ijjuddin, ibn Abdur Rahman. “Dawrul Muassasatiz Zakawiya fi Mualijatil
Faqr ifka Barnamijit Tanmiyatil Iqtisadiyah: A model for Selangor
Province, Malaysia” P. 1-20. Islamic Science University Malaysia.
Karim, M.R and M, Osada (1998) “dropping out: an emerging factors in the
success of micro credit based poverty alleviation programs” the developing
economics 36 (2): 257-288.
Khayat, Abdul Aziz. “Tawzifu Amwaliz Zakaht fi Mashari jat riyi Bila Tamlik
Fardi Lil Mustahiq”, Published by Majallatu Majmail Fiqhil Islami,
No: 3, Vol.1, P.371. And “Az Zakat wa Tatbikatuha Wa Istismaaruha”
P. 58, Conference was held on 1989.
Majallatu Majmail Fiqhil Islami, the 3rd OIC conference Volume-
1408H/1987. No.1, First Part, P.421
M. Kabir Hassan, “An Integrated Poverty Alleviation Model Combining Zakat,
Awqaf And Microfinance”, paper presented at the Seventh International
Conference – The Tawhidic Epistemology: Zakat and Waqf
Economy, Bangi, Malaysia, 2010, pp. 271-272.(54)
Mohit, M. A. and Nazyddah, N. (2011) “Social Housing Program of Selangor
Zakat Board of Malaysia and Housing Satisfaction”. Journal of Housing
and the Built Environment. 26 (2), p. 143-164.
Momen, M. N., and Begum, M. M. (2006) “Impact of Micro-Credit Program
for Women
Moududi, S.A. “Towards Understanding the Quran”, Leicester, UK: The
Islamic Foundation, Vol. II
Nadzri, F. A. A., Abd Rahman, R. and Omar, N. (2012) Zakat and Poverty
Alleviation: Roles of Zakat Institutions in Malaysia. International Journal
of Arts and Commerce. 1 (7), p. 61-72.
24 Uluslararası İslam Ekonomisi ve Finansı Araştırmaları Dergisi, 2016, Yıl: 2, Cilt: 2, Sayı: 1
Sabek, Sayed (1971). “Fiqhus sunnah”, Darul Kitab al arabi, vol. 3 page 202,
1st edition.
Shibbir, Mohammad Usman, Istismaaru Amwaaliz Zakah, International
conference in Jordan. P. 1-19
Shahadat Hossain, M.D. (2014). “An Analysis on Macroeconomic Performance
of Bangladesh” (Dhaka, Bangladesh: The Institute of Chartered
Accountants of Bangladesh, 2014), pp: 17.
Strategy in Bangladesh”. Journal of Economic Cooperation. 28 (4), p. 1-38.
Sera, A. (2012) “Zakat as a Benchmark to Evaluate Economic Growth: An
Alternative Approach”. International Journal of Business and Social
Science. 3 (18), p. 242-245.
Tantawi, Mohammad Sayeed.( 1994) “Muamelatul Banuk Wa Ahkamuha Ash-
Shariya” Dar-ul-Ma’arif, P.118.
Technology. 5 (11), p. 1269-1283.
Zarqa, Mustafa Ahmad. Published by Majallatu Majmail Fiqhil Islami,
No.1, P.44
Bangladesh: Priorities for Agriculture and Rural Development", Agriculture
in South Asia, The World Bank,
November 01, 2014.
Microfinance Regulatory Authority, List of Licensed MFIs as of 2
September 2013, available online at:
accessed on: 14 September
International Journal of Islamic Economics and Finance Studies, 2016, Year: 2, Vol: 2, No: 1 25
TheBangladeshcensusJul2012. accessed
December 28, 2012.

Thank you for copying data from