The Emergence of Islamic Fintech and Its Applications *

Islamic Fintech is a disruptive force in the financial sector, promising increased financial inclusion, economic development, and a plethora of efficient, transparent, Shariah-compliant financial solutions due to its integration of technology with Islam’s profound ethical principles. This paper examines “Islamic Fintech,” a swiftly expanding component of the global financial ecosystem that combines financial technology with Shariah principles derived from the Holy Qur’an and the Sunnah. This burgeoning industry seeks to align finance with Islamic ethical and moral codes, with an emphasis on the prohibition of usury, speculation, and investments in immoral goods. This paper also examines the origins, applications, and regulatory governance of Islamic Fintech. It highlights the breadth of its innovative applications, such as Shariah-compliant digital banking, crowdfunding, and P2P lending platforms, as well as the incorporation of cutting-edge technology such as AI and machine learning for risk assessment and investment strategies, blockchain technology for Islamic cryptocurrencies, and Insurtech for the streamlined distribution of Islamic insurance products. In addition, the paper elaborates on the delineates the role of RegTech in Islamic fintech, discussing its applications and potential. The emergence of Islamic Fintech highlights the global desire to combine ethical finance with modern technical advancements. The article considers Islamic Fintech’s potential popular appeal as a preferred financial system, emphasising the balance between rapid technology innovation and deep-rooted Shariah norms.


INTRODUCTION
The term "Islamic Fintech," which refers to Islamic financial technology, has become more and more popular in the global financial ecosystem. The rising popularity of this industry is due to a desire to align financial services with Shariah principles, which are Islamic regulations drawn from the Holy Qur'an and the Sunnah (Prophet Muhammad's (s.a.w) example). The advent of Islamic Fintech, its uses, and the regulatory systems that oversee it are all critically examined in this study.
Since the development of the internet and the spread of digital advances in the financial sector, the term "Fintech," a portmanteau of "financial technology," has been popular . Islamic Fintech is a highly specialized area that has recently gained popularity. Islamic Fintech, as opposed to conventional Fintech, is founded on Islamic financial principles, which forbid usury, speculation, and investing in things that are considered sinful (Iqbal & Mirakhor, 2011).
The concept of the Islamic moral economy is directly tied to the development of Islamic Fintech. Understanding that Shariah law encompasses a comprehensive moral and ethical framework that regulates economic activity is crucial (Asutay, 2007). We explain how Islamic Fintech fits with the Islamic moral economy approach, illuminating its fundamental principles and ethical ramifications.
The variety of emerging cutting-edge applications and use cases is one of Islamic Fintech's most fascinating features. We look at important applications such as Islamic finance-compliant payment methods and digital banking (Qudah et al., 2023). Businesses and entrepreneurs can now access funds in a Shariah-compliant manner thanks to the adaptation of crowdfunding and P2P lending platforms for Islamic financing (Dawood et al, 2022). Another industry where technology is essential is wealth management, particularly with robo-advisory services that guarantee investments adhere to Islamic standards (Saad et al, 2020). Technology and Takaful (Islamic insurance) have been combined to create Insurtech, which streamlines the distribution of insurance products that adhere to Shariah (Rammal & Zurbruegg, 2010). Finally, the emergence of cryptocurrencies and blockchain technology has had significant effects on Islamic finance, leading to the creation of Islamic cryptocurrencies (Gomber et al., 2018).
The use of computing methods is a fascinating component of Islamic Fintech that is also covered in this study. Islamic finance has undergone a revolution thanks to the incorporation of Artificial Intelligence (AI) for risk assessment that complies with Shariah, machine learning for investment strategies, and deep learning for fraud detection. In addition, big data analytics, cloudbased Islamic banking, high-frequency trading, and algorithmic trading meth-ods have become essential elements for Shariah-compliant financial services (Gheeraert, 2014).
Regulatory Technology, or RegTech, is another notable component of Islamic Fintech. RegTech in the world of Islamic finance refers to the utilisation of cutting-edge technology to ensure that financial operations are both efficient and in accordance with the evolving Shariah rules. As fintech solutions continue to improve, it is more crucial than ever to monitor them and ensure they adhere to the norms of Islamic finance. RegTech tools that employ AI and blockchain enable real-time regulatory reporting and compliance reviews. They also facilitate the automation of complex Shariah audit processes. As the standards for Islamic financial operations become more complex, RegTech can play an even larger role in ensuring that innovation and compliance do not conflict (Syamlan & Antonio, 2023).
As a result of fusing technology with Islam's deep moral and ethical precepts, Islamic Fintech is a disruptive force in the financial sector. This industry can increase financial inclusion, promote economic growth, and offer a variety of effective and transparent financial solutions compliant with Shariah. Islamic Fintech can overcome obstacles and keep thriving as a powerful force in the global financial scene with constant innovation and cooperation among stakeholders.

DEFINITION AND FRAMEWORK OF ISLAMIC FINTECH
Islamic fintech is a new area that has attracted a lot of interest lately. Islamic Fintech is fundamentally the fusion of Islamic financial concepts with financial technology. Shariah law, which derives from the Qur'an and the Sunnah and attempts to ensure fairness, openness, and moral financial transactions, is the cornerstone of Islamic finance (Ahmed, 2011).
It's crucial to outline the ideas that set Islamic finance apart from traditional finance in order to comprehend Islamic Fintech. The prohibition of Riba (interest), Gharar (uncertainty), and Maysir (gambling) are among the fundamental precepts. Islamic finance also prioritizes risk-sharing, asset-backing, and the ban on investment in sectors that are deemed Haram, such as those that involve alcohol, gambling, and pork (Hassan & Lewis, 2007).
Islamic Fintech aims to offer financial services that are innovative, effective, and compliant with Shariah principles through the use of contemporary technologies. An overview of the main elements and guiding principles of Islamic Fintech is given in Table 1. Prohibition of fixed or floating payments or interests Gharar (Uncertainty) Prohibition of excessive uncertainty and ambiguity Maysir (Gambling) Prohibition of gambling and speculation Risk Sharing Profit and Loss Sharing Both parties must share profits and losses in transactions Asset Backing Tangible Assets Financial transactions must have an underlying asset Ethical Investments

Haram Screening
Avoidance of investments in alcohol, gambling, etc.
Source: (Hassan & Lewis, 2007;Ahmed, 2011) Islamic Fintech covers a wide range of services and applications in terms of its framework. These offerings are made to cater to the demands of Muslims and anyone else looking for an ethical substitute for traditional financial services. Shariah-compliant digital banking, peer-to-peer lending, crowdfunding, payments and money transfer services, and wealth management are a few of the services offered (Hasan et al., 2020).
The potential effect of Islamic Fintech on global financial inclusion is likewise considerable. According to the World Bank, there are more than 1.7 billion unbanked adults worldwide, with a sizable fraction living in countries with a majority of Muslims (Demirgüç-Kunt et al., 2018). These people may be able to receive financial services that are in line with their religious convictions thanks to Islamic Fintech.
Islamic Fintech is also a component of the larger Islamic economy, which also includes modest clothing, halal food, Islamic tourism, and Islamic media and entertainment. These industries frequently need certain financial services and goods that adhere to Islamic values. As a result, Islamic Fintech can significantly contribute to the development of these industries (Wilson, 2014).
Nevertheless, there are obstacles to the growth of Islamic Fintech, such as the requirement for regulatory frameworks that uphold both technology innovation and Shariah standards. Additionally, it's crucial to inform consumers and investors about Islamic Fintech and make sure that technology is used in a way that truly supports Islamic financial principles.
In conclusion, Islamic Fintech is a fast-developing industry that has the potential to advance economic growth, financial inclusion, and moral financial conduct in conformity with Shariah law. It is an inventive marriage of modern technology with conventional Islamic financial concepts that have the power to change the way in which finance is conducted.

THE EMERGENCE OF ISLAMIC FINTECH: ALIGNING WITH THE ISLAMIC MORAL ECONOMY PERSPECTIVE
The intricacies of the Islamic fintech framework, it becomes evident that it is not an isolated entity, but rather intertwined with the ethical framework rooted in Islamic values. The fundamental objective of Islamic fintech is to offer financial solutions that align with the ethical principles of Islam, hence being intrinsically linked to the moral economy of the Islamic faith.
The intersection of technology and Islamic moral economy presents an opportunity for Islamic fintech to emerge as a significant domain. This field enables the provision of financial transactions and services that adhere to Sharia law while also aligning with the elevated moral principles advocated by Islamic teachings. The aforementioned concept can be interpreted as a manifestation of Islamic moral economy facilitated by technology, with the aim of ensuring that contemporary financial solutions adhere to the moral and ethical principles mandated by Islamic philosophy.
The notion of the Islamic moral economy, which includes the ethical, social, and economic pillars supporting Islamic financial principles, and the development of Islamic Fintech are closely related (Asutay, 2012). With an emphasis on justice, equity, and welfare in economic operations, the Islamic moral economics framework offers an alternative to traditional economic theories (Chapra, 2000).
The Islamic moral economy's ban of Riba (interest), Gharar (uncertainty), and Maysir (gambling) serves as one of its guiding principles. According to El-Gamal (2006), these factors are thought to contribute to unfairness and inequality in economic interactions. By adhering to these criteria, Islamic Fintech can seek to harmonize financial innovation with the morals and ideals of the Islamic moral economy.
The emphasis on financial inclusion is another indication of how Islamic Fintech is in line with the Islamic moral economy. Particularly in emerging nations, a sizable percentage of the population is frequently excluded from traditional financial services. According to the World Bank (2022), approximately 29% of people worldwide do not have access to banking services. By providing digital financial services that adhere to Shariah, Islamic Fintech can increase financial inclusion for people who were previously excluded from the banking system for ethical reasons. Source: (Chapra, 2000;El-Gamal, 2006) Additionally, Islamic Fintech projects like P2P financing platforms and crowdfunding can be using at the forefront of advancing social welfare and entrepreneurship development. The emphasis on social welfare and economic justice in the Islamic moral economy is congruent with these platforms' provision of alternative funding sources for small-and medium-sized enterprises (SMEs) and social projects.
Islamic Fintech wealth management is uniquely different from other conventional wealth management tools since it adheres to Shariah rules. Islamic ethical factors, which include the impact on society and the environment, are taken into account when evaluating investments in addition to their financial returns.
Islamic Fintech must continually analyze and reevaluate its methods to ensure that technological advancements do not deviate from the core values and tenets of the Islamic moral economy. Industry stakeholders, including regulators, academics, and practitioners, must collaborate to ensure that Islamic Fintech adheres to its ethical foundations while utilizing the benefits of financial technology (Raza Rabbani et al., 2021).
Islamic fintech cultivates a financial ecosystem that can prioritizes moral economy, hence can boosting inclusion and enhancing financial stability. The concept envisions a societal framework in which financial institutions can serve not only as instruments for economic advancement, but also as channels for promoting ethical values and communal welfare.
As we delve deeper into the realm of Islamic fintech, it becomes clear to uphold a strong ethical framework and recognize that the rise of Islamic fintech serves as a promising indication of the potential to harmonize contemporary technologies with ethical economic principles. This convergence has the potential to cultivate a society that not only achieves economic prosperity but also upholds moral integrity.
In conclusion, by merging moral, social, and economic factors into financial innovation, Islamic Fintech represents an alignment with the Islamic moral economy. This alignment has the potential to improve social welfare, economic justice, and financial inclusion.

KEY APPLICATIONS OF ISLAMIC FINTECH: INNOVA-TIONS AND USE CASES
Islamic Fintech is quickly developing as it combines modern technology with Islamic financial principles as we can see in the Global Islamic Fintech Report 2022 (GIFT, 2022). This union has the opportunity to produce a wide range of apps that cater to numerous industries while upholding Shariah standards.
This section explores the exciting and diverse ways in which Islamic fintech has been orchestrating a new era of financial solutions that are not just innovative but also ethically grounded. Herein, we delve into the pivotal realms of digital banking and payment solutions, crowdfunding and P2P lending platforms, Takaful Insurtech, wealth management and robo-advisory services, and the integration of blockchain technology and cryptocurrencies into the Islamic financial sector. Through this exploration, we seek to uncover the unique functionalities and use cases that stand as a testament to the rich potential of Islamic fintech in fostering a financial ecosystem that is robust, modern, and morally grounded.

Digital Banking and Payment Solutions
Digital banking and payment solutions in Islamic fintech enable safe, fast and convenient transactions while preserving the fundamental principles of Islamic finance, which emphasize transparency.
Contemporary Islamic financial institutions provide mobile banking services. These mobile platforms include services like as transferring funds, making bill payments, and accessing account statements, all in accordance with Sharia-compliant financial products and services.
The Islamic fintech sector is also currently experiencing adoption of contactless payment methods. These payment methods prioritise ethical transactions and utilise technology to offer enhanced convenience and safety. We also can see that QR code payments involve the scanning of a QR code Islamic fin-tech companies have successfully included QR code payment solutions into their platforms. This integration has enabled the provision of efficient and secure payment choices, resulting in reduced transaction durations and enhanced convenience in sharing payment details.
Digital payment systems, which enable customers to execute transactions via mobile devices, are another important component. "Zilzar Life," which facilitates Halal transactions and has attracted users from all around the world, is one such application (Zilzar Life, 2021).
Digital wallets guarantee conformity to ethical principles and compliance with Islamic law during the execution of transactions and provision of services. These wallets provide a transaction experience while connect to Halal principles by refraining from engaging in businesses such as gambling, alcohol, or arms.
The digitalization of banking services is a component of digital banking. In terms of Islamic finance, this entails the development of websites that provide services like financing, investing, and savings in accordance with Shariah. One such is Maybank Islamic in Malaysia, which provides numerous online services that adhere to Shariah (Maybank, 2021).
These digital alternatives to traditional banking offer accessibility, effectiveness, and convenience while also having ability to address the Shariah concerns of a sizable Muslim population.

Crowdfunding and P2P Lending Platforms
In the dynamic and ever-changing field of Islamic fintech, crowdfunding and peer-to-peer (P2P) lending platforms emerge as effective mechanisms for investments and financial transactions. These platforms promote inclusiveness, transparency and socioeconomic empowerment by combining Islamic principles with contemporary financial technology. We can categorize crowdfunding in three types as Table 3.

Type
Features Donation-Based Platforms where people can give money to campaigns without expecting any money back. This is in line with the Islamic concept of charity.

Reward-Based
Backers get a good or service in exchange for their money, making the deal halal and moral. Equity-Based Investors get shares in an enterprise or venture, which encourages equity participation that is in line with the law of the Sharia.
EthisCrowd, a platform for financing Islamic real estate, serves as an illustration. It enables people to pool their money and participate in profitable social housing projects that also benefit society (EthisCrowd, 2021).
Peer-to-peer lending and Islamic crowdfunding are financial intermediation approaches that match lenders and borrowers in a way that complies with Shariah. They are designed to adhere to Islamic finance's fundamental concepts of profit and loss sharing and asset-backed financing (Muryanto et al., 2021). P2P lending can be put into three groups, as shown in Table 4. Profit-sharing agreements in which the gains are split in a way that has already been decided.

Musharakah
There are joint venture deals in which the profits and losses are shared.
Blossom Finance (2023) is an Islamic peer-to-peer (P2P) microfinance platform that aims to facilitate Sharia-compliant microfinancing options. The site is designed to promote ethical financing practices and contribute to economic growth.
Platforms for Islamic crowdfunding and peer-to-peer financing can have opened up a new frontier in the Islamic financial ecosystem. These platforms point to an encouraging future for Islamic financial technology, as they create potential for halal and inclusive investments that are founded on the Islamic principles of economic justice and welfare.
Islamic fintech envisions a future in which finance is not just a tool for fostering economic progress, but also a way of fostering social harmony, transparency, and economic justice. This future can be envisioned by cultivating a financial landscape that places an emphasis on ethical investments and collaborative financial engagements.

Takatech
The Islamic equivalent of traditional insurance, takaful is founded on the concepts of risk sharing and collaboration. Applications like automated underwriting, claim management systems, and customer support chatbots are examples of Insurtech in Takaful.
The Islamic financial ecosystem has experienced the emergence and ex-pansion of Takaful, a Sharia-compliant alternative to conventional insurance. Takaful operates based on the concepts of mutual help and risk-sharing. In recent times, there has been a notable potential in the adoption of technology in the Takaful industry, commonly referred to as 'Insurtech.' This integration can result in the advancement and improved effectiveness of Takaful services. This section examines the phenomenon of Takaful Insurtech, its global competitive landscape, and its significance in catering to the financially underserved community.
Takaful is based on Islamic concepts that advocate for the practise of cooperative risk-sharing and the prohibition of uncertainty (gharar) and gambling (maysir). Participants make financial contributions to a collective fund that is utilised to compensate for any losses experienced by any member of the group. We can state takaful's model in four models as Table 5. The participants and owners have reached a consensus to jointly distribute both financial gains and losses.

Wakalah (Agency Model)
In a pure agency contract, the operator receives compensation in the form of a fee.

Wakalah -Waqf Model
Taking the wakalah plan for funding and adding an endowment fund (waqf) to hold takaful donations. Extra money isn't given back to the players; it's kept for future use or to help good causes. Hybrid (Wakalah & Mudarabah) Contains parts of both the Wakalah and Mudarabah types. For underwriting and running costs, a wakalah fee is charged, and investments are handled on a mudarabah basis.
The incorporation of technology into the Takaful industry has facilitated the development of inventive solutions, including the use of digital platforms for policy management, the implementation of blockchain technology for claim processing, and the adoption of artificial intelligence-driven risk assessment tools. These advancements have contributed to enhanced operational efficiency and improved user comfort.
Noor Takaful in the UAE is one such; it has adopted Insurtech to provide customers with a streamlined online experience for Takaful products, including automating the claims process (Noor Takaful, 2021).
Takaful faces strong competition from well-established insurance companies in a global context. We can examine the comparison of Takaful and global insurance in Table 6. Takaful Insurtech is a keyway to reaching people who don't have bank accounts because it provides easy-to-use, digitalized, and affordable insurance options that follow Islamic principles. Two main strategies can be suggested to reach the Unbanked population in Table 7.

Micro-Takaful
Designed for low-income individuals, it provides inexpensive payments while covering essential risks.

Mobile Applications
Providing easy access to Takaful services via smartphones, hence reaching a larger clientele.
An Insurtech company in Malaysia can be given as an example of digital Takaful services through an intuitive mobile app, ensuring accessibility for the unbanked population (Salam Takaful, 2023).
Takaful Insurtech is a harmonic blend of tradition and modernity, creating a system based on mutual aid, risk-sharing, and ethical considerations and a beacon of hope in promoting financial inclusion and providing security to the weakest sectors of society, with a focus on harnessing technology to reach the unbanked people. It can envision a future in which insurance is more than just a financial tool, but also a medium for fostering community well-being, based on the rich principles of Islamic finance.

Wealth Management and Robo-Advisory Services
Islamic wealth management involves Shariah-compliant financial planning, portfolio management, and investment guidance. Robo-advisory services, which use algorithms to provide investment advice, have had a disruptive impact.
Robo-advisors refer to digital platforms that employ algorithms and artificial intelligence to deliver automated financial advising and investment management services. The mentioned platforms have been designed in accordance with Islamic principles in order to provide robo-advisory services that are compliant with Sharia law. We can categorize its components as Table 8.

Components
Descriptions Algorithm-Based Advice Using algorithms to analyse market data and give financial advice that is in line with Sharia.

Automated Portfolio Management
Using automated tools to keep an eye on portfolios and make sure purchases follow Sharia rules.
Wahed Invest is an example of a Robo-advisor, using algorithms to build and manage diversified portfolios of Shariah-compliant assets. It ensures that the investments are in line with Islamic ethical concerns while taking into account the individual's risk tolerance and investment goals (Wahed Invest, 2021).
The integration of technology with Islamic principles in the form of Islamic wealth management and robo-advisory services can significantly transform the financial industry. Furthermore, it can promote inclusivity by expanding its reach to a wider range of individuals, such as the technologically proficient younger demographic and those residing in geographically isolated areas. This enables them to conveniently participate in halal investments, therefore providing them with a chance to be involved in this financial activity.
It can present a comprehensive analysis of select Islamic fintech enterprises specialising in robo-advisory and wealth management in Table 9. The table highlights the distinctive areas of expertise of each company and provides a concise overview of their respective service offerings.

Robo-Advisory Services
A global halal robo-advisor that gives people access to halal investment possibilities through an automated platform and a diversified portfolio.

Sarwa
Robo-Advisory Services It is the first robo-advisory tool in the Middle East. Its goal is to make investing in globally diversified portfolios of low-cost index funds easier and more accessible.

Qardus
Wealth Management Even though Qardus is mostly a P2P lender, it also has investment chances where people can invest in asset-backed halal products. Yielders Wealth Management A UK-based Islamic financial company that follows ethical and Sharia-compliant principles and makes it easier for people to invest in real estate. It gives people a chance to take part in real estate projects that are funded by crowdsourcing.

Elipsa
Wealth Management A platform that helps ensure Sharia compliance in the wealth management field by giving personalised financial advice and investment solutions that are powered by AI.

Robo-Advisory Services
Offers a wide range of financial goods and services that are in line with Sharia, including an automated advisory platform that helps investors make smart halal investments.

Islamicly Wealth Management & Advisory
An app that helps find and track Shariah-compliant securities around the world. This helps investors keep a halal portfolio and make sure their investment plans are in line with Islamic law.

Sharia-Portfolio
Wealth Management Offers wealth management services that are in line with Sharia, as well as personalised financial advice.

Robo-Advisory Services
Offers a range of Sharia-compliant products and has recently gotten into robo-advisory, using technology to make halal investments easier through investment strategies that are driven by algorithms.
Wealth management and robo-advisory services are being provided by the mentioned firms using cutting-edge technological tools. These marketplaces can play a critical role in promoting ethical investing options that are in line with Islamic beliefs, as well as boosting financial inclusion. It's important to keep in mind that certain firms' service offerings may extend beyond wealth management and robo-advisory to include other forms of financial guidance as well.

Islamic Cryptocurrencies and Blockchain Technology
The emergence of cryptocurrencies and blockchain technology has fundamentally can transform the worldwide financial environment, yielding noteworthy ramifications for the field of Islamic banking. The advent of cryptocurrencies poses both obstacles and opportunities within the realm of Islamic banking. The inherent characteristics of cryptocurrencies, such as decentralisation and digitization, can fit with the principles of Islamic finance, hence facilitating financial inclusion. The ongoing discourse revolves around how the suitability of cryptocurrencies can use a financial tool within the framework of Islamic fintech.
In light of the inherent volatility observed in cryptocurrencies, the adoption of stable coins, which are supported by actual assets such as gold or fiat currency, could potentially present a more congruent solution with the principles of Islamic finance.
Islamic Fintech has incorporated blockchain and cryptocurrency technology. For instance, Stellar is a cryptocurrency platform that may be used by Islamic financial institutions because it has received certification as Shariah-compliant (Stellar, 2021). We can see some other Islamic cryptocurrencies in Table 10. Built on the Ethereum platform and geared towards the supply chain of the Halal food business.
Ensures the authenticity and traceability of Halal foods.

ADAB Solutions
Only Shariah-compliant initiatives are listed on the First Islamic Crypto Exchange (FICE).
Integrates blockchain technology for Halal sector transparency and traceability.
Additionally, blockchain technology is being investigated for uses in Islamic finance. Integrating Blockchain into Islamic fintech has transformative potential, as it aligns perfectly with the emphasis on transparency, trustworthiness, and equity in Islamic finance principles. Its immutable record-keeping can streamline the zakat collection and distribution processes, thereby nurturing donor confidence. Moreover, the technology facilitates the automation of Shariah-compliant contracts, efficient cross-border remittances, and the tokenization of tangible assets, which is essential for fields such as Islamic real estate investments and sukuk (Selcuk & Kaya, 2021). Some of examples about blockchain-based Islamic fintech projects given in Table 11. Emirates Islamic Bank

UAE
Using blockchain technology to improve finance services and security.

Finterra
Singapore Provides a blockchain-based platform for administering end-to-end Islamic financial services, including waqf (charitable trust) and crowdfunding.
In summary, Islamic Fintech is a developing industry that combines financial technology breakthroughs with the moral and ethical tenets of Islamic banking. These technologies, which range from blockchain to digital banking, aim to offer effective, open, and moral financial services to a large worldwide audience.

APPLICATIONS OF ISLAMIC FINTECH: FINANCIAL COMPUTING PERSPECTIVE
Numerous applications that enhance efficiency, security, and customer experience have emerged as a result of the integration of computing technologies with Islamic fintech. In the context of Islamic finance, this section examines a number of such applications and their ramifications.
The field of Islamic finance currently has a significant capacity for change as it incorporates financial technology (fintech) developments that comply with Sharia law. This integration can reach incredible levels, involving the use of three powerful technologies: Artificial Intelligence (AI), Machine Learning (ML) and Deep Learning (DL). Artificial intelligence (AI) can help achieve this by automating the tracking of Islamic investments and transactions and providing predictive assessments to help make real-time decisions. In contrast, machine learning (ML) can serve as a powerful tool for formulating Islamic investment strategies as it has the capacity to analyze comprehensive datasets, adapt and improve its methods, and distinguish investment opportunities that comply with ethical principles mandated by Islamic law.
Deep Learning has the ability to solve critical problems in maintaining the integrity of Islamic finance using fraud detection and compliance measures. It rigorously examines transaction data to identify anomalies and ensure compliance with regulatory standards. Automating compliance monitoring through the interpretation of complex Shariah laws and regulations can contribute to establishing a transparent and secure ecosystem. The integrated use of artificial intelligence (AI), machine learning (ML) and deep learning (DL) in the Islamic fintech space not only guarantees adherence to Sharia principles and ethical standards in financial operations, but also marks a unique, remarkable era.

AI for Shariah-Compliant Risk Assessment
Artificial Intelligence (AI) plays a crucial role in risk assessment in the financial industry, enabling financial institutions to make informed decisions through the analysis of enormous datasets and the provision of accurate risk forecasts (Gai, Qiu, & Sun, 2018). In the context of Islamic finance, artificial intelligence has been effectively integrated to ensure Shariah-compliant risk assessment, thereby contributing to the efficiency, transparency, and resiliency of Islamic financial system. Due to its adherence to Islamic laws that prohibit interest (riba), uncertainty (gharar), and wagering (maysir), risk assessment in Islamic finance differs from that of conventional finance (Hassan, Antoniou, & Paudyal, 2005). Therefore, AI in Islamic finance must take these prohibitions into consideration when assessing risk.
Risk assessment using artificial intelligence (AI) has been done in Shariah-compliant frameworks. Islamic financial institutions may make sure that investments and products are compliant with Shariah law and risk appetites by utilizing AI. For example, banks can automate the process of stock screening for Shariah compliance by employing AI.

Machine Learning for Islamic Investment Strategies
Machine Learning (ML), a subset of Artificial Intelligence, is essential to the development of optimal investment strategies. ML algorithms can predict future trends and make informed investment decisions by learning from historical data and patterns.
ML algorithms can be used to filter Shariah-compliant equities based on business activities and financial ratios of the companies analyzed according to Shariah-screening rules. On the basis of these factors, support vector machines and decision tree algorithms can categorize equities as Shariah-compliant or non-compliant.
Machine learning can optimize portfolio selection in Islamic finance. ML algorithms can recommend optimal portfolio compositions that maximize returns while maintaining Shariah compliance by analyzing past performance, market trends, and risk factors (Gai, Qiu, and Sun, 2018).
Robo-advisors are a notable application of machine learning in Islamic investment strategies. Robo-advisors are digital platforms that offer algorithm-driven, automated financial planning services with minimal human oversight. In the context of Islamic finance, robo-advisors analyse large datasets to provide Shariah-compliant personalized investment advice to clients.
The implementation of machine learning in Islamic investment strategies is not, however, without obstacles. It calls for high-quality, pertinent, and clean data, interpretability of machine learning models, and privacy and security considerations.
In conclusion, the use of machine learning for Islamic investment strategies has the potential to increase efficiency and personalization in the Islamic finance industry, but its effective application requires addressing certain challenges and assuring the alignment of ML applications with Shariah principles.

Deep Learning in Fraud Detection and Compliance
Deep learning, a sophisticated subset of machine learning, has been increasingly utilised in the financial industry for fraud detection and compliance. These algorithms are capable of learning from large datasets and recognizing intricate patterns, allowing for more effective and efficient fraud detection.
The implementation of deep learning is indispensable for ensuring Shariah compliance and detecting fraudulent activities. First, deep learning algorithms can detect anomalies or discrepancies in financial transactions that may indicate fraudulent activity. They can learn and adapt from each transaction, making them remarkably effective at detecting fraudulent patterns and preventing potential hazards (Hodge & Austin, 2004).
Given the ethical and moral principles that govern the operations of Islamic financial institutions, compliance is an essential component of Islamic finance. Deep learning algorithms can be used to monitor and verify compliance, ensuring that all transactions and operations adhere to the Islamic law principles. This may entail analysing complex financial structures, analysing intricate contractual agreements, and confirming that these entities adhere to Shariah principles.
Anti-Money Laundering (AML) is one area where deep learning has been utilised in Islamic finance. Deep learning algorithms can shift through immense quantities of transactional data to identify suspicious patterns and flag possible instances of money laundering.
There are challenges associated with the application of deep learning to fraud detection and compliance. It requires vast quantities of high-quality data, sophisticated technical expertise, and robust computational resources. It is also essential to ensure the interpretability and transparency of deep learning models.
Finally, the implementation of deep learning for fraud detection and compliance in Islamic finance can enhance the integrity, dependability, and robustness of Islamic financial systems. However, to assure successful integration, the obstacles must be carefully addressed, and the applications must be in accordance with the principles of Islamic law.
The aforementioned technologies, including artificial intelligence (AI), machine learning (ML), deep learning, algorithmic trading, cloud computing, and big data analytics, are not exclusive to the domain of Islamic fintech. The computational techniques are widely applicable and have been utilised in many industries and for a multitude of objectives. The notable aspect of these entities is in their implementation within the framework of Shariah-compliant financing. We can compare the computing technologies in Islamic Fintech in Table 12.  (Sultan & Bechter, 2019) The above applications indicate a clear demand for start-ups to engage in innovative practises and offer solutions within the domain of Islamic fintech. Companies who possess the ability to harmonise technology breakthroughs with the principles of Shariah have the potential to capture a substantial market share, given the considerable size of the global Muslim community.
In brief, the broad applicability of these technologies, along with their distinct utilisation within the framework of Shariah-compliant financial practises, renders them a subject of significance within the domain of Islamic fintech.

REGTECH IN ISLAMIC FINTECH
Regulatory Technology (RegTech) is an important asset in this space as it leverages technological advances to facilitate organizations to achieve regulatory compliance with increased efficiency and reduced spending. It is important to understand the role and possibilities of RegTech in the Islamic fintech space, focusing on its capacity to ensure regulatory compliance, increase operational efficiency and foster innovation. RegTech's potential in helping Islamic fintech businesses navigate the regulatory environment effectively should not be overlooked.
RegTech is a relatively new industry that emerged in the wake of the 2008 financial crisis. It employs cutting-edge technology such as artificial intelligence (AI), machine learning (ML), and big data in order to assist businesses in more effectively complying with laws. In the context of Islamic financial technology, regulatory technology (RegTech) can be of assistance in ensuring that all financial goods and transactions comply with Sharia law, thereby cultivating a system that is founded on compliance and trust. Its applications can be found in a variety of fields, including as transaction monitoring, identity management and control, regulatory reporting, and risk management.
Regulatory technology (RegTech) solutions play a crucial role in enabling the continuous monitoring of financial transactions in real-time. This capability is particularly important in the context of Islamic finance, where adherence to Sharia standards is necessary at every stage of the transaction process. We can see the applications of RegTech in Islamic Fintech as shown Table 13. HelloGold: A gold trading platform with identity management security.

Regulatory Reporting
Automating the regulatory reporting procedure to ensure transparency and compliance.
RegAlytics: Providing solutions for automated regulatory reporting according to the Sharia law.

Transaction Monitoring
Real-time monitoring of transactions to identify immediately any non-compliant activities.
OneGram: A digital currency secured by gold that ensures compliance through real-time monitoring.
Upon contemplation of the development of RegTech within the Islamic fintech domain, it can become apparent that it serves as more than simply a supplementary instrument, but rather a crucial foundation that guarantees the longevity and advancement of the industry. Through the utilisation of technology, the facilitation of Shariah-compliant financial transactions establishes a foundation for a financial ecosystem that is more inclusive and ethical. This ecosystem is organically congruent with the Islamic ideals of equity, transparency, and shared wealth.
Furthermore, RegTech serves as a fundamental element in mitigating the complexities associated with regulatory compliance. Consequently, the accuracy and efficiency of these operations are enhanced. In addition, the analytical functionalities of RegTech can contribute to the real-time surveillance and documentation, promoting a flexible framework that can promptly address any instances of non-compliance, thereby safeguarding the integrity of Islamic financial activities.

CONCLUSION
Islamic Fintech, which represents the intersection of Islamic finance principles and digital innovation, is a rapidly growing component of the global financial ecosystem. The inherent ethical and moral dimensions rooted in Shariah principles, coupled with the disruptive power of technology, have the potential to reshape the financial landscape, thereby increasing financial inclusion and fostering economic growth while ensuring adherence to a religious and ethical framework .
The proliferation of Islamic Fintech applications demonstrates the adaptability and innovative potential of this discipline. Solutions such as Shariah-compliant digital banking, crowdfunding and P2P lending platforms, as well as robo-advisory services, Insurtech, and Islamic cryptocurrencies, demonstrate the breadth of technological innovation within the confines of Islamic finance principles (Gomber et al., 2018). In addition, the revolutionary incorporation of Artificial Intelligence, machine learning, and deep learning techniques in areas such as risk assessment, investment strategies, and fraud detection has given Islamic Fintech a new dimension (Gheeraert, 2014). The use of big data analytics, cloud-based banking, and high-frequency and algorithmic trading methods indicates that Islamic Fintech is making significant strides in providing Shariah-compliant financial services that are efficient and transparent.
Within the Islamic financial technology industry, RegTech can play a role as a leading light, illuminating the path for entities as they navigate the of Sharia compliance using cutting-edge technologies. RegTech has emerged not just as a tool, but also as a catalyst that fosters compliance, efficiency, and creativity. This can ensure a future in which Islamic finance is both technologically competent and Sharia-compliant.
Islamic Fintech is essentially the combination of Islamic moral and ethical principles with cutting-edge technological innovation. This integration creates a disruptive force in the financial sector that not only offers efficient and transparent financial solutions, but also coordinates them with a set of principles that promote moral and ethical behaviour. This industry is a major player in the global financial landscape due to its ability to surmount obstacles, innovate continuously, and foster cooperation among stakeholders. The prevalence of Islamic Fintech highlights the widespread acceptance of ethical finance, demonstrating that the integration of technology with ethical principles is not limited to a certain niche, but rather a global ambition. Although the trajectory of technology breakthroughs appears positive, it is imperative for stakeholders to uphold a delicate equilibrium between these rapid developments and the enduring principles of Shariah. The prospect of a future in which Islamic Fintech emerges as a widely adopted option, rather than a mere alternative, is a captivating notion that underscores the worldwide attraction of financial systems rooted in ethical principles. The advancement of Islamic Fintech necessitates a sustained dedication.
The path forward for Islamic Fintech requires an ongoing commitment to innovation, a focus on ethical and moral financial conduct, and an unwavering commitment to addressing the challenges of standardisation and regulatory governance. Its ability to promote financial inclusion and economic develop-ment, combined with its conformity with Shariah principles, demonstrates its potential as a transformative force in the financial world. Islamic Fintech has the potential to transform the financial landscape by making it more inclusive, ethical, and effective.

INTRODUCTION
The concept of charity is one of the greatest forces to unleash human energies and transform them into civilized actions, where this idea can unleash the energies of many connotations, meanings, and values and transform them into civilized actions that give rise to sustainable development functions and institutions. The charity aims to foster a certain level of social solidarity among society's citizens. Charity addresses the toughest and most selfish desires of human desires, which is the instinct for love of possession, and turns it into a sincere desire for unlimited giving, and by releasing this energy from which multiple civilizational events emerge, as money is the foundation upon which different civilizational activities are built and which continue through securing and ensuring its continuity. (Aref, 2008, pp. 20-21). The charity increases investment, which is the main reason for the economic development process through its role in creating an attractive environment for investment, stimulating internal and external trade, and developing human resources that increase productivity, providing infrastructure and public services, which reduces investment costs and attracts new investments. (Ammar, 2013) The idea of charity has also managed to create the guarantor foundation for transforming ideas into continuous civilized actions, transforming dreams into civilizational institutions that benefit present and future generations, and keeping cultural endowment institutions in historical moments that were less prosperous (Aref, 2008, p. 21). No institution throughout history has been able to achieve this type of sustainability, continuity, and survival of values even if the economic and social conditions of its existence change except for the endowment foundation. (Aref, 2008, p. 23) The charity was also able to ensure that the condition of sufficiency in the duties of competencies is continuously fulfilled, that the basic functions of society are maintained, and that the highest values of the human community are achieved. The charity is the main supporter and main financier of civil society institutions and their dependence on the conduct of state affairs alongside government institutions, and this explains the strength, continuity, and progress of Islamic civilization in different eras.
The idea of charity managed to keep the cultural charity institutions in historical moments less prosperous. The charity has also been able to create a guaranteed basis for transforming ideas into civilized and continuous actions and turning dreams into civilizational institutions. Charity is a guide to civilization and the essence of the concept of civilized sustainability. Charity arises when society reaches the moments of civilization and the transition of humans from focusing on thinking about the necessary needs to caring for perfection and improvement. Charity has recently become a third economic sector and an important number in the economic equation, as it stimulates the economy and contributes to remedying some economic problems.
The focus of this research is a review of Islamic charity literature, with an emphasis on some of the fundamental issues concerning its application in the real world. The study attempts to highlight the role of charity in economic and social development through the ages, and the possibility of benefiting from this role in achieving economic development in several Muslim-majority nations, by studying the role of charity in treating some economic problems such as unemployment, poverty, the state's public budget deficit, and the redistribution of income and wealth for the benefit of the poor, in addition to studying the historical development of charity in Muslim-majority nations and the reasons for their prosperity and decline, and the factors affecting the charity movement, and identifying the most important problems and challenges facing the charity development in Muslim-majority nations, and ways to develop the charity to play its historical role and contribute to the process of economic development.
Charity is an important component of Islamic economics and plays a key role in economic development. Several Muslim-majority nations suffer from several economic and social problems, which hinder economic development efforts and their increasing cost, especially with the growing and persistent deficit in the public budget. This requires searching for alternatives to finance economic development efforts in it outside the state budget. Charity comes at the forefront of these alternatives, and then the study aims to identify how to use charity as a free, continuous, and renewable resource in treating some economic problems and contributing to achieving development.
This paper attempts to study the issue of charity as it represents an essential component of Islamic financing for setting up projects, providing bids, and preserving the Islamic identity. This study, therefore, set out to assess the effect of using charity as a tool for economic and social development and its role in treating some economic problems such as treating the problem of unemployment, poverty, and the deficit of the state's public budget.
The importance of the study is due to highlighting the role of charity (the charitable sector) as a third sector in the economy alongside the public and private sectors, which can contribute to achieving economic development, whether directly or indirectly, by referring to its historical and perceived role. In addition to shedding light on the Islamic endowment as it is an essential source of Islamic financing for charitable projects, civil society institutions, and public benefit. In addition to identifying problems of charity in Muslim-majority nations, and ways of developing charity to fulfill its perceived role in economic development.
There may be some possible limitations in this study. lack of data was a major constraint; the charity sector in Muslim-majority nations suffers from the lack of a database or accurate statistics on the size and development of the charity. The second limitation concerns the role of charity in economic life. This role is an indirect and multi-impact where it is not possible to identify specifically the economic effects of the development of the size of the charity or its revenue or a specific endowment project on economic life. Therefore, the research merely gave a brief analytical overview of the development of charity in Muslim-majority nations and the factors affecting them in light of available data and information on charity in Muslim-majority nations.
The main question of the study is what role can the charity play in treating some contemporary economic problems and achieving economic development in Muslim-majority nations? To answer this question, the study used a qualitative approach as part of exploratory studies to investigate a concept and phenomenon. The qualitative research approach relates to the gathering of data about phenomena, and events.
Given the various ways in which charity can contribute to addressing social issues and promoting economic growth, this study aims to propose a framework for revitalizing charitable efforts and leveraging them to tackle persistent problems. The proposed framework involves streamlining charitable procedures to remove barriers for potential donors and engaging Imams to encourage charitable giving. It is important to consistently raise awareness about the role of charity by highlighting the great reward that comes with charitable acts in the Hereafter. Collecting ongoing charitable donations will allow members of society to contribute to development projects, thereby increasing the charitable sector's impact and promoting a culture of charity. This, in turn, can help to address numerous economic and social challenges. By implementing these strategies, we can maximize the impact of charity in addressing pressing social issues. This study is anticipated to assist researchers interested in the Islamic economy by providing a critical review of what has been done in the charity sector. As a result, it opens new opportunities for researchers to create new innovative forms of the charitable sector to address socioeconomic issues in Muslim-majority nations.

CHARITY IN ISLAM
Charity is praised in the Quran and Hadith as the most honorable way to spend one's wealth for the sake of Allah. Despite its common usage, charity is used in different disciplines to mean different connotations. In the field of Islamic economy, charity is used not only for spiritual purification but also to build socioeconomic sustainability and social reforms that result in the well-being of an individual and society in this world and hereafter.
Charity is a voluntary work that carries out part of the income and wealth of the rich in favor of the poor classes today and in the future. Charity is a productive wealth that is placed in an investment field in the manner of perpetuation (Kahf, 2001, p. 12). As it works to transfer money from consumption to investment, it provides financial resources to carry out service development projects that contribute to economic development.
Charity and altruism appear to be inextricably linked. Altruism can be identified by looking at purportedly "altruistic" behavior. A distinction must be made between the acts we observe and the internal state because an altruistic act can have multiple motivations. Being altruistic can create a desire to help others, but the decision to act is made after considering the agent's constraints (Alchian, 1973).
The idea of charity is a multidimensional concept. It links a nation's prosperity and continuity to competition, transparency, and morally responsible behavior for the sake of prosperity and economic progress. As previously stated, both the Quran and the Prophet Muhammad's words (Hadith) contain encouragement to make charitable donations, including the following: A notable example of charity, as a business with Allah, is the financing of health and education. In the past and recent years, the charity has played an important role in health and education spending in many countries. Muslims were racing to endow mosques, schools, universities, libraries, places for children's education, and copying books until the Islamic civilization became famous for huge libraries since ancient times (Saati, 1996 AD, p. 191) and the charity was not limited to only the construction and management of buildings, but it includes everything that students and teachers need of housing, food, clothing, pens, books, libraries, health care, etc.., this is what made the charity is an important source of funding for education. (Malawi, 2009, p. 16). There is no doubt about the importance of education in the economic development process, as studies indicate that education stimulates individual income in a variety of cases and the size of the return from education varies according to the conditions of time and space, and it is difficult to achieve high rates of economic development considering illiteracy spread among the population. (United Nations, Summary Report, 2003, pp. 5-6).
This distinction is further exemplified in the financing of health. Investing in health is an investment in human and economic development, as healthy development increases productivity, productive life, and the ability of individuals to work, and therefore international institutions advise developing countries to invest at least 15% of their national budget in the health sector (United Nations, 2011, p. 1). The endowment has borne the burdens of health in the Islamic nation through different eras. As the endowments covered aspects of economic and social life. Considering what Muslim-majority nations and developing countries suffer from, the charity stands out to play its historical role in spending on health institutions, by spending on establishing hospitals and healthcare homes and providing free treatment to those in need, which was already achieved in the early ages of Islam (Malawi, 2009, p. 16).
The level of economic growth and performance is affected by the prevailing social, political, and cultural factors in society, as the economic activity takes place within the framework of these (Hussein, 1985, p. 185). The prevailing systems and cultural patterns of society exert an indirect influence on the economic factors that interact in determining the level of economic growth (Shafi'i, D.T., p. 48). Cultural and social factors may bear many obstacles to economic development, especially about the beliefs, customs, and traditions that are inherent in the rural personality and resist social change. (Hussein, 1985, pp. 161-172). Therefore, achieving economic development may require a change in the prevailing systems and cultural structure of society. (Shafi'i, D.T., p. 49). When examining the most important factors affecting the cultural and social level, we find nothing but education. Hence, the role of charity in the positive influence on the cultural and social level and the diffusion of science and culture are highlighted through mosques, schools, libraries, and universities.

Value-Free Economics
A moral economy is an economy focused on morality, honesty, and justice as opposed to one where it is believed that the market is exempt from such concerns. (Thompson, Edward P, 1991). The issue of value-free economics has been a controversial and much-disputed subject within the field of economics. Most economists, however, would acknowledge that the claim of an economic theory free of values is critical in establishing the discipline's scientific nature. (Coddington 1972, Gordon 1977, Samuels 1977, Sugden 1981, Colander 1994. A positive, value-free economics is widely regarded as the ideal, in the sense that it does not rely on any set of value judgments or any philosophical or psychological framework. A moral issue is a challenge not only because the technical aspects are considered but also because moral principles are considered. Islamic financial institutions must foster a supportive atmosphere of strategic collaboration between Islamic charitable foundations and corporate entities to activate the corporate social responsibility of the business organizations. Moving on now to consider political stability and social security. Political and social stability is one of the most important components of economic development, and the endowment works in many areas of interest to the poor and middle classes, which works to achieve political stability and social security through its role in redistributing income and wealth between the poor and the rich and among different generations, and achieving the principle of social solidarity, and achieving the principle of altruism, by providing many general social goods and services for all members of society such as education, health, security, housing ... etc., which has a direct impact on the segments of society. (Al-Banna, 2009, p. 663) which promotes a spirit of cooperation and love among citizens, reducing hatred and sedition, which arises as a result of the disparity in the distribution of incomes and wealth among classes of society, which reduces political turmoil resulting from a feeling of class inequality and societal injustice. (Arjaoui, 1997, p. 28).
As was pointed out in the introduction to this paper, the endowment historically represented the best compensation for the state's failure to provide the basic needs of society, which has often made it a protective shield from the revolution over political power. Some countries have attempted to replace the endowment system with Non-governmental organizations (NGOs), but they have not been able to compensate for the role the charity was playing (Al-Subaihi, 2012, p. 2).
Charity reduces the economic cost of daily life for individuals within so-ciety, which increases the real average wage of prevailing wages. This leads to a decrease in the degree of feeling of poverty and destitution and thus reduces the demand of workers to increase wages, which lowers production costs and enhances opportunities for competition and expansion of production capacity which is reflected in the form of increased demand for labor and reducing the problem of unemployment.
These experiments illustrate that charity has distinct functions in helping the poor meet their basic needs, especially the needs that maximize their ability and motivate them to participate in effective social participation based on themselves and their capabilities, which helps the poor to develop their capabilities and overcome the conditions that imposed on them the state of social marginalization (Al-Banna, 2009, pp. 670-671). Another example of this is the role of charity in caring for the poor and orphans and reducing the cost of independency: The high dependency ratio of poor families is one of the most important causes of poverty, as poverty is usually associated with families with large numbers of children and orphan families, and women-headed families (Pronk 1994, p.62). The endowment works to alleviate the suffering of these families either directly through redistribution of the endowed charity revenues allocated to spend on the poor, (Al-Banna, 2009, p. 671) or indirectly using public services and projects that endowments provide, such as health services and free education for their children in schools and universities established by endowments.
Overall, these cases support the view that charity opens the way for community members to choose projects that suit their needs and aspirations developmental. Public participation is a basic principle in planning for economic and social development, and there is no doubt that the development plans and programs are truly reflective of the aspirations and hopes of all segments of society (Al-Darsh, DT, p. 5) to achieve cooperation and harmony that helps the development process succeed. Regime shedding leads to a low rate of public participation in political and economic life, and a widespread lack of confidence among members of society in the development programs provided by the government, which negatively affects the success of the development process (Qanous, 1999, 158).

ECONOMICS OF WAQF: THE ENDOWMENT EFFECT
Historically, the concept of endowment existed before the advent of Islam. Similar ideas were found and worked on by previous systems and laws on Islam, even if it was not named by this name. And managing its affairs, just as the Grand Mosque and Al-Aqsa Mosque were standing before Islam on such an idea, and this can only be conceived as in the meaning of the endowment, as the Romans and Germanic knew similar ideas of the endowment, whether in terms of idea or structure. (Imam, 1996, p. 144) However, Islam was the first to put it in an organized legislative framework, and the endowment in Islam was not limited to the temples and rituals but rather extended to the social, economic, military, and other aspects. The endowment acquires its legitimacy with the texts of evidence from the Quran and Sunnah, and the Companions and the scholars of the nation agreed that it is permissible. An endowment is a permissible contract that is not required by some jurists, it is necessary for others (Ibn Abdin, 2003, p. 520).
The singular Waqf and plural Awakaf in Arabic mean to stop, preserve, or contain. (Shukor, Anwar, Aziz, & Sabri, 2017a). Several definitions of endowment have been proposed. According to Sayid Sabiq, Waqf means to hold the property and give benefit in the way of Allah (Sabiq, 2006: 423). It comes in the sense of imprisonment, prevention, and reasoning, and each of these terms revolves around one basic concept which is that the endowment means to hold and imprison the property, not disposing of it, and benefiting from a specific class of its revenues over time in legitimate and organized ways (Al-Basuony, 2014, p. 28).

Implication of Endowment in the Society
Several motives for the endowment differ in their impact according to the conditions of time and place and according to the economic, social, and political conditions and the extent of religious and ideological commitment. Some resort to using the Waqf to achieve some economic gain, or to protect from the dangers of political volatility.
There are many factors affecting the size and development of endowments such as the level of religious and ideological commitment, the size of the population and the level of economic growth, the level of income and wealth and the forms of their distribution, the extent of trust of the endowment owners of the institutions based on the endowment, and the policy of the ruling authority towards the endowment is one of the most important factors affecting the size and development of endowments. In addition, the endowment's success depends to a large extent on the independence of its administration from the government, so that the endowment administrator can implement the conditions of the endowment to meet the interests of the endowment. And that the success of the endowment is at the forefront of the Islamic state, due to the conviction of the person who owned the endowment that what he spends on the endowment is a trade with God and seeking reward from God alone.
The problem of insufficient funding for development and the weak rates of capital accumulation are among the most prominent obstacles to economic development in several developing countries. The development process needs to achieve high rates of capital accumulation in addition to the most efficient use of available savings (Al Kafri, 2018). The endowment increases the capital accumulation and preserves the existing capital assets by increasing the accumulation of productive capital allocated to charitable work in society, by creating new endowments and preserving and maintaining existing endowment funds from converting to any other use (Abul Hassan, 2010, p312). The endowment works to preserve the existing capital assets and prevent the transfer of the suspended capital to another non-productive activity and allocate part of the endowment's revenue for its maintenance or increase in its origin, whether that was required or not required (Kahf, 2001, p. 13). The Islamic endowment contributes to addressing many economic problems, including the problem of unemployment, poverty, and the treatment of the state's public budget deficit, and this can be explained as follows:

Financing of Poverty Alleviation Programs
The various forms of charity contribute to treating the problem of poverty through their role in treating its causes and working to change the economic and social characteristics of the poor. The endowment works to combat poverty in several aspects, the most important are the following: • The role of the endowment in the treatment of the unemployment problem: thus, part of the unemployed poor get out of poverty once and for all by turning them from unproductive individuals suffering from poverty and unemployment into productive individuals who add to the national product and provides a permanent source of income for them instead of being recipient subsidies. The importance of this role is because it works to exploit the most important production resource available to all members of society (Youssef, 2010, p. 102).
• The role of the endowment in improving the ability of the poor to earn, through the following points: • Ensure the burden of education for poor families, as the prevalence of ignorance, illiteracy, and limited culture is one of the most important causes of poor efficiency and low productivity and income.
• Improving the health status of the poor, as poor people suffer from the spread of diseases and epidemics, low health levels, and lack of food and medicine, which leads to the spread of poverty and low productivity and reduces the number of working hours, which is a waste of human resources and a reduction in the role of human capital in the production process (Hamed Abdullah, 1993 AD, p. 254). The endowment contributes to reducing poverty through its role in spending on the health sector, and tackling undernutrition through the endowment for the establishment of hospices and wells (Farhat, 2009, pp. 308-309) • Facilitating access to credit: One of the most important obstacles facing the poor in their endeavor to get rid of poverty is the difficulty in obtaining credit, whether from a formal or informal institution (Abu Al-Anin, 2004, p. 116). Many obstacles in the case of financing projects for the poor are either due to inadequate conditions for lending, or because of their poor financial collateral and high level of risk, so that they lend to them at high-interest rates, or because financial institutions prefer financing large businessmen with large projects and strong collateral (Al-Beltagy, DT,. Here, the endowment's role in progress stands out this service is carried out in cooperation with other Islamic financial instruments and spending on the bank of debtors, which reduces the degree of risk so institutions accept to lend to them and finance their projects, or to create endowments whose returns are used to supply the poor with the tools of the profession that they are good at or to provide good loans and assistance to small entrepreneurs. • Reducing risks and increasing the capital accumulation of the poor; one of the economic characteristics of the poor is avoiding taking risks and rejecting everything new. The poor prefer to work in the government sector even if it is less income, in addition to simulation in their consumption behavior, (Youssef, D., p. 15). It leads to a lower marginal propensity to save for poor families and lowers their share of capital accumulation and fixed assets. An endowment is a tool of social solidarity for members of society, and its mechanism to secure the poor against the dangers of the purchasing power parity of their income, and a major component of the Islamic strategy to reduce poverty.
• The role of the endowment in raising technical and skill efficiency: The phenomenon of poverty in developing countries is closely related to the problem of low productivity (Pronk, 1994, p. 65) as the productivity of workers in poor countries is low compared to rich countries due to the low quality of labor in terms of level education, health, and food (Hamdi Abdel-Azim, 2000, pp. 96-98) where the productivity of the worker in the OECD countries (high income) in 2006 was four times the productivity in developing countries, and about 18 times the productivity in the least developed countries, measured in fixed dollars and adjusted with purchasing power parity of International Labour. The importance of the endowment here is meeting these needs. The endowment can contribute to the establishment of training centers for different professions, or support and establishment of industrial and agricultural technical education schools, which increases the efficiency of workers and increases job opportunities and reduces poverty.

Financing of Employment Programs
The great task of Islamic political economy is to devise a production mechanism that not only is efficient and addresses issues of unemployment and inflation, but also addresses the problem of distribution. The problem of unemployment in Egypt, for example, is due to many internal and external factors, and the endowment contributes to treating it either directly or indirectly through what the endowment provides for job opportunities for those in charge of the endowment institution and the institutions that the endowment is creating (Mansour, D.T. 2015, p. 115), or indirectly through the impact of endowment on economic life, as the endowment stimulates the economic climate, and increases aggregate demand (consumer and investment expenditure), as the spread of endowments increases the consumer demand by redistributing income and wealth for the benefit of the poor classes. When the wealthy endow some of their money in favor of the poor classes, whether directly, such as endowment for the poor and the needy, or indirectly, such as endowment for the institutions that serve the poor classes, such as health, educational and other institutions which leads to a reduction in the burdens of living conditions of the poor classes, and provides them with a portion of the financial resources available to them, directing them to consumer activity, as it is known that the marginal propensity to consume of poor classes is greater than the marginal propensity to consume wealthy classes (Naguib, 2001, p. 137). In addition to the spread of endowments and their coverage of a large number of aspects of economic and social life, alleviates the pressure on the state's public budget, and reduces the financial needs of the state, which works to provide a portion of its financial revenues that could be directed to the benefit of the poor classes in the form of support or additional services, or reducing taxes and fees for citizens, and this leads to an increase in consumer demand and overall demand in general, (Mansour, D.2015. P. 116), which leads to the revitalization of the production system, the increase in the demand for labor, the increase in incomes, and the increase in aggregate demand again.
The endowment also increases the accumulation of productive capital allocated to charitable work in society, the expansion of productive capacity through the constant call to establish new endowments, and the preservation and maintenance of existing endowment funds from switching to any other use (Kahf, 1998, p8). The endowment is a productive wealth that is placed in an investment field as a matter of perpetuity. It is forbidden to sell or stop it from working. It must be invested, maintained, and preserved in its productive capacity. It is a cumulative investment that is increasing day by day that includes the endowments created by previous generations. In addition to the endowments that will be created by the present and future generations, (Kahf, 2001, p. 12). This works to increase the demand for labor and provide many job opportunities.
The endowment can also contribute to reducing unemployment through its role in supporting small entrepreneurs, by establishing endowments aimed at supporting them, whether by providing tools for the profession or trade, or good loans. The endowment also worked to reduce unemployment through its role in stimulating internal and external trade, by providing many services that encourage trade, such as building roads, bridges, and wells, and providing many free services to traders, which encouraged them to carry out their activities and create new markets. (Mansour DT 2015, p. 122). This has worked to provide job opportunities, either directly by increasing the number of workers in the commercial field, or indirectly by providing some advantages for producers, which encourages them to increase their activity and absorb new numbers of workers, such as the expansion of markets in front of their products, obtaining production requirements at the lowest cost, and taking advantage of specialization and division of labor in improving quality and reducing production costs.
On the other hand, one of the most important contributions of the Islamic Endowment in treating the problem of unemployment is the endowment provided by institutions and activities that work to raise the efficiency of the human element and improve the quality of the workforce in society (Al-Zawawi, 2004, p. 164) through its role in establishing schools, institutes, and universities, Libraries, books, and the care of science students and their affiliates, which improves the quality of the workforce in society and increases its capacity for production, innovation, and creativity (Saati 1996, p. 191) The endowment can also play an auxiliary role in economic policies to treat the problem of unemployment, as there is no conflict between their goals, which makes the endowment valuable contributions that work to implement and achieve the goals of economic policies interested in treating unemployment, which qualifies the endowment to play an important role in this area, especially since the endowment has a great role throughout history in Islamic civilization, and it has recently become an important figure in the economic equation, which proves its ability to finance activities that contribute to addressing some economic problems, including unemployment, poverty, and the budget deficit.

Financing of the Budget Deficit
The endowment has many contributions to reducing the state's public budget deficit through its role in treating the causes of the deficit, its role in reducing public expenditures, providing public goods and services to citizens, and limiting government activities and expenditures to producing the necessary goods, in addition to its role In increasing public revenues through its role in stimulating economic activity, the role of the endowment in treating the budget deficit can be identified through the following: The endowment is one of the resources of a special nature that distinguishes it from the rest of public revenues, as it is a form of voluntary and sustainable grants (financial spending) for the public benefit, which is based on the complete freedom of the endowment and the extent of his conviction to endow part of his property in favor of a specific category (Al-Mutairi, 2008, P. 45). This explains the indirect relationship between the endowment and the public budget, as it is not the authority of governments to reduce the budget deficit by directly exploiting the endowment resources, but this is done indirectly without being planned by the financial authorities. (Hassouna, 2006, p. 12). The relationship between the endowment and the public budget is an integration relationship and not contradictory. To the extent that the endowment contributes to the various activities, that bear its burdens on the public budget, the public budget deficit decreases, as a result of the fulfillment of basic needs that were burdening the public budget. (Hassouna, 2006, p. 15) One of the most important causes of the public budget deficit in any country is the growing growth in its public expenditures and the inability to reduce it, and the widening gap between public expenditures and revenues, especially since most of these expenditures are focused on consumer aspects. The role of the endowment in reducing public spending can be identified as follows: • Restricting the government's activities and expenditures to produce the necessary public goods as far as their expected resources allow: This forms the root of the Islamic economic system, as endowment institutions throughout history have produced quite a few commodities currently produced by the public sector in many countries, which has alleviated relying on the public budget, (Hassouna, 2006, p. 27).
• The contributions that the endowment can make in the field of education and health, social solidarity, and military expenditure. The endowment throughout history bears the burdens of education and health in Islamic civilization until the beginning of the modern era, it also had a prominent role in achieving social solidarity among members of society, in addition to its role in military expenditure through endowments for building forts, endowments for weapons, orchards, and equip armies. (Al-Sadhan, 2006, p. 27) • The role of the endowment in limiting the increase in payments of wages and salaries. Endowments work to achieve a kind of social solidarity between members of society, by meeting many of the basic needs of disadvantaged groups, (Al- Saad, 2005, p. 138) and redistributing income and wealth in favor of the poor classes. , (Tufail, 1420 AH, p. 1216) and providing many public goods and free services to workers in different institutions (Al-Sadhan, 2006, pp. 37-38) This works to reduce the economic cost of daily life for individuals, which leads to raising real wages, and then reducing the degree of feeling of poverty and destitution, which works to reduce the increase in wages and salaries item for government workers and the public sector and reduce the budget deficit.
The endowment indirectly contributes to increasing the public revenues of the state through the impact of the endowment on economic life, and this can be identified as follows: • Increasing tax revenue by increasing employment for the workforce: where the endowment creates new job opportunities, either directly by providing many job opportunities for those in charge of the endowment system, the institutions that the endowment creates, or indirectly through the impact of the endowment on economic life, which stimulate the economic climate, increase investment spending, increase capital accumulation, and expand production capacity which increases the income tax revenue.
• Increasing the proceeds of taxes on profits: As the endowments indirectly increase the consumer demand of the society as a result of redistributing income in favor of the poor, which increases the demand for the products of the investment sector, in addition to the facilities and services provided to the investment sector, which works to increase investment expenditure, capital accumulation, expansion of investment projects, increase profits, and thus increase the tax revenue on capital gains.
• Increasing the proceeds of customs taxes: The Waqf indirectly stimulates internal and external trade (Al-Husseini Ammar, 2013), which leads to an increase in trade exchange between different countries and regions, which increases the revenue from customs taxes.
• Increase the profits of the public sector: As the public sector, like all sectors in society, benefits from the services provided by the endowment, whether directly or indirectly, as a result of the free endowment services that benefit workers in this sector such as education, health, etc., which increases their level of efficiency professional and their real wages rates, which is reflected in reducing production costs to increase profits or reduce losses, and as the public sector belongs to the state, this reduces expenditures or increases revenue in the budget, thus reducing the budget deficit.

Financing of Economic Development
The endowment has many contributions to overcoming the obstacles and problems of economic development. Endowment contributes to meeting basic needs and remedying the deviation of productive structures, as the endowment redistributes income for the benefit of the poor classes, and this is what drives the productive structures towards the production of goods that meet the basic needs of most members of society. Endowments also contribute through free services and infrastructure projects. This results in reducing the production costs of local products (Al-Farran, 2009, p. 121). This enhances competitiveness, reduces imports, and supports exports of different commodities, which diversifies the export basket and reduces fluctuations in export earnings and foreign exchange, and achieves economic stability. in addition, to eliminating technical dependency, as developing countries, including Egypt, suffer from the intransigence of developed countries and their obstruction to transferring new technology to developing countries. The technology produced in developed countries does not reflect the real needs of developing countries as it was designed to conform to the needs of developed countries, which makes them very expensive for poor countries, reduces their benefit and creates a state of economic and technical dependency (Al-Shukairy, 1408 AH, P. 24). Therefore, the importance of using the endowment in financing research and training operations and discovering the new technology that is appropriate to the circumstances and needs of developing countries, and works to move the wheel of development, and get rid of the economic and technical dependence of the West, and the endowment had previously made significant contributions to spending on science and scientists in their discoveries, research and trips Scientific, where the endowment was a source of funding for scientific research by providing decent living for scientists and researchers of different directions, and providing salaries and financial allocations for spending on them and bearing the cost of the housing, clothing, food and drink they need (Saleh, 1997, p. 10).
The effectiveness of the endowment technique has been exemplified in the financing of infrastructure. The historical role of the Waqf stands out as an effective system in setting up such projects, as endowments have spread throughout the ages to mosques, schools, hospitals, and universities, to construct roads, bridges, arches, wells, and establish and operate a beacon to guide ships. (Farran, 2009, p. 121). This is what qualifies the endowment to do the job in the event of revitalization.

CONCLUSIONS AND POLICY IMPLICATIONS
The research aimed to identify the role that the charity can play in treating some economic problems and achieving economic development. The research reached results and recommendations, the most important are the following:

Conclusions
Several issues have arisen as a result of governments in majority-Muslims countries controlling the majority of the charitable sectors, including the abolition of civil endowments, administrative corruption, lack of a database or accurate statistics, and weak protection over endowment properties, a large number of disputes and attacks on them, the lack of proportionality between the nature of the current government administration and the feature of independence and decentralization of the endowments, and the high costs of endowment and the low ability of the community to endow, the absence of a database or accurate statistics on the size and development of endowments, the subjection of endowments to serve the objectives of the ruling authority, the non-economic management of endowment assets.
Charity throughout history contributed to the treatment of many economic problems such as unemployment, poverty, and the deficit of the state budget through the positive effects of the endowment on economic and social life. The endowment has a positive role in treating the problems facing economic development and providing the preconditions and basic requirements for it, and this is what qualifies it to play a role in this field, especially with its zero cost.
Charity plays an indirect role in alleviating the financial burdens imposed on the state by contributing to spending on satisfying public needs such as building schools, hospitals, places of worship, social solidarity... etc. Spending on these projects provides a portion of the state's financial resources for use in spending on other development projects.
The subordination of endowments to serve the objectives of the ruling authority weakened the endowment system, so endowments must be freed from the control of the ruling authority, by providing for the fortification and endowment in the constitution.

Policy Implications
The findings of my paper have considerable managerial implications, including the following: Attention must be paid to studying the charity sector in Muslim-majority nations, how it is used and its impact on economic and social life, and its vital role in treating some contemporary economic problems and achieving economic development.
Recovering all the endowments that have been confiscated by the government, and the responsibility for this is the Ministry of Endowments, which must be the first to demand the restoration of their properties, in addition to adequate compensation for the proceeds of these endowments in the previous period.
Reconsidering the law prohibiting civil endowments and trying to reform its system by what is decided by Islamic law, the responsibility for this is the parliament.
Combating corruption, weak protection, and frequent attacks on endowment assets, and this can be done by removing the endowments from the government bureaucracy department by opening the way for individual and collective administration supported by judicial supervision, in addition to issuing laws to fortify the properties of endowments and criminalizing all the attacks that occur.
The problem of inconsistency between the nature of the current charity management with the feature of independence and decentralization that characterized the endowments can be overcome by allowing the emergence of multiple forms of endowment management systems instead of being limited to the central government style. Patterns of endowment management should be reconsidered and supported by judicial supervision, government administration, and endowment management through the boards of directors of some NGOs, and it is suggested that the field be left to the Waqf to choose the management style that obtains its confidence and achieves the goal of the endowment.
It is also possible to overcome the problem of the high costs of endowment projects and the low ability of members of the community to endow by finding new ways of financing endowments that depend on the permissibility of a collective or joint endowment by collecting ongoing charities and converting them into a large endowment. Examples include the idea of endowment funds and endowment instruments which includes endowment stocks, and endowment bonds such as endowment participation bonds, in addition to the great role that charities can play in this field.
Civil society organizations can contribute to the civil revival of the endowment through their role in rebuilding trust in the endowment system, providing those who wish to endow with full information about the different needs and priorities of society, and informing public opinion about the role the endowment plays in society, and it can also it plays an important role in distributing endowment rents to targeted groups like the poor.
The non-economic management of charity assets is one of the problems of the endowment in Muslim-majority nations. Therefore, it is necessary to separate the economic and the social aspect of the endowments, even though the social aspect may be the goal of the endowment.
Addressing the causes of the decline in the processes of charity in several Muslim-majority nations in the modern era by working to correct the distorted mental image of most of society about the endowment, such as its decline in some activities such as mosques and correcting the mental image of the state's role in economic and social life. In addition, carrying out awareness campaigns aimed at raising the level of charity culture, and facilitating procedures for establishing and documenting charity.

Extended Abstract
In this study, alternative methods suggested instead of commodity forward, commodity futures and commodity option contracts in contemporary Islamic law literature are evaluated The majority of contemporary Islamic jurists are of the opinion that the aforementioned contracts are not permissible. For this reason, it is important to identify and analyze the alternatives to be proposed instead of these contracts. The study consists of two main parts. In the first part, alternatives of commodity forward and commodity futures contracts, in the second part, alternatives of commodity options contracts are examined. Some of the methods proposed as alternatives to commodity forward and commodity futures contracts are classical and some are contemporary methods. Among the classical methods, there are salam contract, forward (credit) sales contract, and istisna' contract. Contemporary methods include parallel salam, parallel istisna', and suq̣ ūq. All of the methods proposed as an alternative to commodity option contracts consist of classical methods. Among these, sale contracts on condition of discretion, down payment contracts, sale contracts, forward (credit) sale contracts and istisna' contracts can be counted. Contemporary Islamic lawyers, who do not allow commodity forwards and commodity futures, are in disagreement as to whether it is necessary to seek alternatives for commodity forwards and commodity futures, and commodity options contracts. While a group of jurists adopt the view that alternatives that are legitimate in Islamic law can be proposed for these transactions, some other jurists are of the opinion that it is not the right approach to propose an alternative for these transactions, considering that it is unnecessary to propose an alternative for an illegitimate transaction. The study is based on the approach of Islamic jurists who propose alternatives in this regard. In the study, the definition and nature of commodity forward and commodity futures contracts and the classical methods proposed as an alternative to commodity option contracts are briefly mentioned. The focus here is on the "alternative" aspect of the classical methods proposed as an alternative to commodity forward and commodity futures contracts and commodity option contracts. For this purpose, the purposes and functions of the aforementioned contracts have been revealed and the classical methods proposed as an alternative to these have been evaluated in terms of these purposes and functions. First of all, the definition and nature of the modern methods proposed as an alternative to commodity forward and commodity futures contracts and commodity option contracts are revealed, as they are less known compared to classical methods. Then, the views of contemporary Islamic jurists on the ruling of these methods are briefly mentioned. Finally, contemporary methods proposed as alternatives are evaluated in terms of the purpose and functions of commodity forward and commodity futures contracts. In addition to many other purposes and functions, speculation and hedging come first among the purposes and functions of realizing commodity forward and commodity futures contracts and commodity option contracts.
The provision of speculation is controversial among contemporary Islamic jurists. The prevailing view in contemporary Islamic law literature is that it is not legitimate because the purpose of speculation is gambling or it means gambling. For this reason, there is no alternative that has been proposed for the purpose of speculation in the contemporary Islamic law literature. Because it is not right to seek alternatives for an illegitimate purpose. On the other hand, hedging purpose has been accepted as a legitimate aim in contemporary Islamic law literature. As a matter of fact, when we look at the reasons for the emergence of commodity forward and commodity futures contracts in history, it is seen that the primary reason is to protect producers and traders from risk. One of the first organized and organized examples of derivative contracts is the Chicago Mercantile Exchange, which was established in Chicago, USA in 1848. In Chicago, which is one of the important trade centers, due to the variability between supply and demand, farmers were going to cut prices due to product surplus at one time of the year and even had to dump their products into the Lake Michigan. On the other hand, in another period of the year, there were exorbitant increases in prices due to product shortages. To prevent this and to control prices, the Chicago Mercantile Exchange was established by the merger of several traders. Thus, while the farmers were protected from the risk of their goods being retained and prices falling by selling their products before the physical delivery date, the merchants were protecting themselves against exorbitant price increases that would occur if the product was not found with the contracts they made before the due date. Considering the actors that carry out commodity forward and commodity futures contracts for hedging purposes today, these include importers, exporters, manufacturers, traders, investors, portfolio managers and banks. In hedging, partial hedging can be aimed as well as full hedging. When the transactions in derivative markets are examined, it is seen that the aim of the participants is not to eliminate the losses completely, but to reduce and minimize the risks. In the contemporary literature, it is seen that the alternatives proposed for commodity derivatives are generally considered within the framework of hedging purposes.

Extended Abstract
States need various financial resources to perform their functions. Since ancient times, taxes have been the primary source of income for governments. Today, taxes are collected from consumption as well as capital and income for purposes such as meeting public needs and struggling with economic and social problems. Everyone is obliged to pay their share of these taxes according to their financial situation. For muslim citizens, apart from taxes, there is also a duty of zakāt. These two financial duties together can turn into a heavy burden. In countries that are not governed by religious references, the possibility of counting tax as zakāt is questioned in various academic environments in order to eliminate this inequality against both tax and citizens who pay their zakāt. Although the issue of the political authority holding the citizens liable with tax as well as zakāt has been discussed in the books of fiqh, the issue has not been dealt with in the context of tax inequality. In this respect, the issue stands before us as a current problem. The 'ushūr tax, which was collected as zakāt from muslim merchants in the past, has the quality of a practical example for the evaluations to be made on this issue.
'Ushūr is a kind of tax that dates back to ancient times. During Caliph 'Umar's reign, it was started to be collected from muslim merchants within the scope of a kind of zakāt. Non-muslim merchants were also obliged to pay 'ushūr; however, a higher rate of tax was collected from them than muslims. While zakāt was collected from muslims at the rate of one-fourth of 'ushūr, tax was taken from ḥarbīs as 'ushūr and from dhimmīs as half of 'ushūr. The 'ushūrs collected from non-muslims were accepted as jizya and khrāj and used in public service, and those collected from muslims were allocated to places where zakāt was paid. However, in both groups, the zakāt base was determined as a criterion in order to be liable for the 'ushūr tax and collections were made from them at the same payment points. As a result of these common features, both types of collection can be confused with each other, and moreover, the collection of 'ushūr as zakāt can be misconstrued as deduction of tax to zakāt.
If a classification were to be made on the basis of its nature and purpose of collection, it is possible to say that 'ushūr is a customs tax for ḥarbīs and a security tax for dhimmīs. Because while 'ushūr was taken from the ḥarbīs in return for the opportunity to trade in the Islamic country, this tax was collected from the dhimmīs in return for the road and market security provided to them. The rate of this tax, for which non-muslim merchants were held responsible, was shaped entirely in line with the political and economic characteristics of the period. On the other hand, 'ushūr was collected from muslim merchants in accordance with the conditions of zakāt. However, this collection is not the price of the road safety provided, but the result of the right and responsibility of the political authority to collect zakāt. Zakāt is one of the religious duties, and the state does not have to provide any service for it to be required. Since there is also an environment for collecting zakāt at the points where the 'ushūr tax is collected from non-muslim merchants, the political will collected zakat under the same name from the muslim merchants.
Since zakāt could be collected with the 'ushūr system in the past, it is theoretically possible to collect zakāt with the tax mechanism today. In countries that are not governed by religious references, some of the taxable income that is eligible for zakāt can be collected within the scope of zakāt in order to eliminate the tax inequality that develops against zakāt payers. However, this method does not seem possible in practice since it is against the principle of tax union according to the current legislation in our country. In our opinion, tax inequality can be eliminated by establishing a zakāt fund under the control of the state and providing tax refunds in the amount of money invested there. On the other hand, tax refund should not be applied to the consumption tax, which all citizens are liable to, in order not to cause a new injustice; it should be provided only on income and capital tax.