Zakat fund – concept and perspective

Islam, the Holy Quran and the Hadith lays great emphasis on Zakah (Zakat) as a social tool to bridge the differences between the rich Muslims and poor Muslims. This research paper underlines the importance of Zakah as a tool for poverty alleviation. It discusses the fundamental concept of Zakah, its calculation methodology and how it is levied. The paper suggests a novel concept of the Zakah Fund, which can be implemented as a tool of poverty alleviation. Also, the paper tries to analyse the viability of the concept by conducting a relevant survey, the conclusions from which can be used to enhance the understanding of the concept and its utility.