Research Article

Zakah in Non-Islamic Countries: Addressing Economic Struggles and Religious Commitments of Muslims in India

Volume: 6 Number: 1 January 15, 2026
TR EN

Zakah in Non-Islamic Countries: Addressing Economic Struggles and Religious Commitments of Muslims in India

Abstract

The research aims to examine the economic struggles faced by Muslims residing in non-Islamic countries using the case of Indian Muslims as an example. In these contexts, Muslims encounter difficulties in adhering to both national tax laws and Islamic Sharia principles. These economic conditions not only make it challenging to fulfill their religious obligations but also place the Muslim community at a disadvantage. The study primarily focuses on analyzing the treatment of the third pillar of Islam, "Zakah," and how its significance diminishes due to various factors present in non-Islamic societies. The research deeply probes the reasons why investment in precious metals (especially Gold) is comparatively less beneficial for Muslims than for non-Muslims, owing to Zakah obligations. It further explores the challenges faced by the community in identifying Sharia-compliant investment opportunities amid inflation, as well as their refusal to accept bank interest as compensation for inflation - factors that have a macroeconomic impact on their financial growth. The study also explores the inefficiencies in Zakah fund distribution caused by the absence of a centralized regulatory authority. Without an institutionalized framework for collection and allocation, the fund’s potential impact on poverty alleviation remains significantly constrained. The findings advocate for a harmonized mechanism to optimize Zakah deployment, ensuring measurable improvements in socio-economic conditions in non-Islamic countries where similar challenges persist.

Keywords

Ethical Statement

No funds, grants, or other support was received. The author certifies that there are no affiliations with or involvement in any organization or entity with any financial interest or non-financial interest in the subject matter or materials discussed in this manuscript.

References

  1. Aayog, N. (2021). SDG India,. Niti Aayog. Retrieved from https://www.niti.gov.in/sites/default/files/2025-04/SDG_India_Index_2020.pdf
  2. Abraham, D. W. (2018). Zakat as Practical Theodicy: Precarity and The Critique of Gender in Muslim India. Journal of Muslim Philanthropy & Civil Society , 2(1). doi:10.2979/muslphilcivisoc.2.1.02
  3. Adamu Ummulkhayr, M. Y. (2017). Determinants of Zakat Compliance Behavior among Muslims Living Under Non-Islamic Governments. International Journal of Zakat, 2(1), 95-108.
  4. Afendi, A. (2018). Pengaruh Variabel Makroekonomi Terhadap Jumlah Penerimaan Zakat di Badan Amil Zakat Nasional (Baznas) Pusat Tahun 2012 – 2016. Muqtasid: Journal of Islamic Economics and Banking, 9(1). doi:10.18326/muqtasid.v9i1.54-69
  5. Ahmad, Z. M. (2011). Pengaruh Indikator Makroekonomi terhadap Besarnya Jumlah Zakat yang Terkumpul di Lembaga Amil Zakat Dompet Dhuafa Republika Tahun 1993-2009. University of Indonesia. Retrieved from University of Indonesia Library: https://lib.ui.ac.id/detail?id=20300328&lokasi=lokal#
  6. Ahmed, H. (2004). Role of Zakah and Awaqf in Poverty Alleviation (2004 ed.). Jeddah, Saudi Arabia : Islamic Development Bank. Retrieved from https://ieaoi.ir/files/site1/pages/ketab/english_book/201.pdf
  7. Ahmed, S. A. (2020). A Critique of Zakat Practices in India. International Journal of Zakat and Islamic Philanthropy, 2(2). Retrieved from http://journal.zakatkedah.com.my/wp-content/uploads/2020/11/Vol2_2_19.pdf
  8. Allami, A. W. (2015). Principlizing Islamic Zakat as a System of Taxation. Brunel University, London, Brunel Law School, London. Retrieved from https://core.ac.uk/download/pdf/42131317.pdf

Details

Primary Language

English

Subjects

Islamic Economy , Finance and Investment (Other)

Journal Section

Research Article

Publication Date

January 15, 2026

Submission Date

February 23, 2025

Acceptance Date

July 9, 2025

Published in Issue

Year 2026 Volume: 6 Number: 1

APA
Ahmed, M. (2026). Zakah in Non-Islamic Countries: Addressing Economic Struggles and Religious Commitments of Muslims in India. Journal of Islamic Economics, 6(1), 77-102. https://doi.org/10.55237/jie.1645286

Journal of Islamic Economics is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY NC).