The Role of Technology in Advancing Zakat Management

Abstract

Zakat, one of the five pillars of Islam, serves as a tool for wealth redistribution, promoting social justice, and reducing economic disparities in Muslim communities. However, traditional Zakat management has often struggled with inefficiencies, corruption, and limited reach. The digital age offers innovative opportunities to modernize Zakat management, using technologies such as digital platforms, blockchain, artificial intelligence (AI), and fintech. These technologies not only streamline Zakat collection and distribution but also enhance transparency, accountability, and financial inclusion. This paper explores the historical evolution of Zakat management, current technological trends, and the socio-economic impact of digitizing Zakat systems. Through case studies and literature reviews, we highlight how technology can address longstanding challenges in Zakat management while identifying potential barriers to implementation, such as regulatory and Sharia compliance issues. Ultimately, the paper proposes a conceptual framework for future Zakat systems that harness the power of technology to better serve communities in need.