The Effectiveness of the Asnaf Behavior in the Distribution of Productive Zakat in the State of Terengganu: A Review

Abstract

Zakat is one of the pillars of Islam and serves as a cornerstone of the Islamic economy. Productive zakat has a positive impact on improving the standard of living for asnaf. The distribution of productive zakat to asnafpreneurs involves permanent ownership (tamlik) without need for repayment. The effectiveness of the asnaf behavior in distributing productive zakat can create opportunities to develop businesses, thereby enhancing their standard of living and lifting them out of poverty. Statistics on the number of hardcore poor in Terengganu show a reduction of 3,268 families over a four-month period compared to 7,426 families in January this year. The question remains, does the distribution of productive zakat affect the reduction of poverty rates in Kuala Terengganu? To what extent does the distribution of productive zakat prove that asnaf can escape poverty in the long term? The objective of this study is to assess the effectiveness of distributing productive zakat in reducing poverty. The methodology in this study is descriptive research, utilizing data obtained from literature reviews as a source of discussion. From the review, productive zakat provides many opportunities for asnaf to escape poverty. However, the success of businesses is measured by the behavior and characteristics of the asnaf themselves in managing productive capital. Appropriate improvements need to be implemented to enhance the effectiveness of this program.