Zakat redistribution linked to lower poverty and inequality, study finds

The association was strongest for long-term poverty reduction during the COVID-19 period across eight countries.

Editorial illustration — not from the study.

Researchers analyzed quarterly panel data from eight countries with formal zakat management systems. They examined poverty and income inequality while accounting for GDP per capita, inflation and the Human Development Index.

The analysis found a significant negative association between zakat redistribution and poverty in both the short and long term. For income inequality, the relationship was significant over the long term, while a short-term association appeared only in the full-sample analysis. The poverty association was strongest over the long term during the COVID-19 period.

What the study found

Zakat redistribution was associated with lower poverty in both the short and long term. The strongest long-term association with lower poverty occurred during the COVID-19 period. Redistribution was also associated with lower income inequality over the long term, while the short-term relationship was significant only when researchers analyzed the full sample. Results remained consistent in additional analyses using two alternative statistical methods.

Why the findings matter

The findings suggest that zakat redistribution may support poverty reduction across normal, crisis and recovery periods, with its strongest long-term poverty association during the COVID-19 period. The researchers say stronger zakat governance, collection, redistribution and digitalization could improve its contribution to reducing poverty and inequality during future economic crises.

Evidence and caveats

The study used secondary data from official international and national databases and analyzed quarterly panel data for eight purposively selected countries from 2016 to 2025. Because the quarterly observations were created through quadratic match-average interpolation, they were not all directly observed at quarterly intervals. The findings come from panel-data statistical models rather than a randomized intervention, so they show estimated relationships and do not by themselves establish that zakat redistribution caused the changes. The researchers tested the results with additional methods, which produced consistent estimates.

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