Abstract

This paper examines the role of Zakat – the third pillar of Islamic- as an ideal God-reveled economic model aimed at balancing the disparity between rich and poor people in Muslim communities, thereby, setting a good example for other human societies to follow. This is presented as an effective model for achieving balance development in society throw mobilizing resources in the pursuit of stable growth and job creation. Such ideal properties of Zakat are than contrasted against the contemporary capitalist regimes which suffer from socioeconomic crises of unemployment, poverty and various manifestations of social instability. The paper provides indicators showing that decline of poverty in Muslim countries is attributed to the role of Zakat institutions within those countries. In concluding, the paper recommends the establishment of a global Zakat forum, bringing together experts and scholars from all over the world to study and discuss related experiences and ideas, through conferences and workshops. This is likely to create a common forum for standardizing Zakat mechanisms and helping Muslim countries to eradicate poverty.