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What is Zakat and Islamic Banking Economics about?

This document presents a theoretical model exploring the interrelationships between Zakat (wealth tax in Islam), Islamic banks, and the economy. The model formalizes these relationships using mathematical equations within the framework of an Islamic economic perspective. It proposes that Zakat funds collected by Islamic banks can be productively used to finance business projects via instruments like interest-free loans and profit/loss-sharing partnerships. This circular flow of resources between Zakat, bank

Author

Rahmani Muharim

Language

EN