The role of Zakat in poverty alleviation in Somalia : analytical study on Islamic economics

Abstract EN

Historically, the applications of Zakat pillar approved is be effective meaning to poverty alleviation and realization of the principle of brotherhood in Muslim community by minimizing poverty rate to lowest level, the poverty disappeared during period of Omar bin al khadab caliphate and the time of Omar bin Abdul Aziz because just rule and good leadership when Islamic caliphate fall and the influences of western system dominated the Islamic world, zakat has lost its glory as it is main character Islamic economic system.

so, the poverty rate has been increased since that time, therefore this paper aims to present a comprehensive mutual understanding to the extent of need to re-establish Zakat institutions, especially, in Somalia in the rebuilding stage and reformation of developmental institutions.

There is a demanding need for reduction of the extreme poverty by clearly utilizing zakat in poverty alleviation and economic growth.

The study has approached the descriptive analytical method to explain the concepts and the relationship between Zakat institution mechanism and poverty factors.

The author used secondary data and found result that there is negative relationship between effectiveness of zakat role and poverty level in Somalia.

The study also suggests that effectiveness of Zakat role in poverty reduction will improve by re-establishing zakaat institution which requires synergism between deferent efforts of community institutions like microfinance intuitions, intellectuals and relative organization in public sector so that the poverty is reduced.