Abstract
The main objective of this paper is to analyze the management of zakat funds in Brunei Darussalam. More specifi cally, it aims at investigating how zakat funds recipients perceive the quality of the current zakat management with special attention to the aspect of zakat funds disbursement. It also aims to examine how effi cient Brunei’s zakat administration is, particularly the distribution aspect. This paper is explanatory and descriptive in nature and uses both secondary and primary data to examine the trends of zakat collection and distribution. The fi ndings in this paper show that zakat management in Brunei Darussalam is progressing to achieve the main objectives of zakat system. The paper also provides some useful policy implications to improve the management of zakat funds and how policy-makers can respond to the challenges positively as well as to develop and support zakat institutions in Brunei Darussalam to be more efficient and reliable in the collection and distribution of zakat funds. Keyword: Zakat management, Islamic finance, zakat recipients, Brunei Darussalam.
Highlights
Zakat is one of the five pillars of Islam, having important socioeconomic implications, and has to be administered by the state
The main objective of this paper is to analyze zakat management in Brunei Darussalam and how zakat recipients perceive the quality of the current zakat management, especially in relation to disbursement
The questionnaire consists of five sets of questions, including the respondents’ demographic characteristics, view on the early stage of applying for zakat, view after receiving zakat funds, view on the Empowerment Zakat Recipients Program (EZRP), and view on the objective of zakat distribution
Summary
Zakat is one of the five pillars of Islam, having important socioeconomic implications, and has to be administered by the state. The Islamic renaissance in the present world has led to its institutionalized administration in some Muslim countries, such as Brunei, Malaysia, Sudan, Saudi Arabia, and Kuwait (Kahf, 1997; Sadeq, 1994). Zakat is an obligatory religious duty on Muslims to achieve divinely prescribed socioeconomic objectives. It is a self-help measure adopted with full religious backing to support those poor and destitute who are unable to help themselves to alleviate misery and poverty in Muslim society (Chapra, 1992). Two systems of zakat management commonly exist in the Muslim world: compulsory and voluntary systems. Compulsory zakat system is mostly managed by governments, while voluntary zakat system has multiple models. The common models are the neighborhood or committee-based model, nongovernmental organization-based model, semi-government-based model, and government-based model (Abioye, 2008)
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