Zakat

(Dickson, 2004, 207) Salat provides believers with a direct communion with Allah five times a day, helping to keep one from creating attachments to non-essential things. Another of the Arkan al-Islam is Zakat, the act of giving. Muslims that are economically well-off must give a minimum of 2.5% of excess personal wealth to the less fortunate once a year (Morrissey, 2010,110). Muslims adults must also perform the act of Sawm, which is the act of fasting from dawn to sunset in the month of Ramadan, the ninth month of the Islamic calendar(Hayward,2003,1.), the month when Muhammad was sent the message of the Quran by the angel Jibril. The exceptions for those not able to fast are those who are too old, sick, on a long journey and women who are pregnant, breastfeeding or menstruating. During Sawm Muslims should not eat, drink, smoke or have sexual intercourse during the hours of daylight. Hajj is the fifth pillar of Islam, Hajj is the pilgrimage to the ka’ba in Mecca, all Muslims that are financially and physically able are expected to complete the pilgrimage at least once in their lifetime. The Quran states ‘perform the visit and

advances the wellbeing and soundness of individual money related organizations and screens their effect on the monetary framework in general;

Islam is more than a religion, it’s a culture, and as such has an effect on political, social, and economic aspects of life—this is especially true outside of the Western world. Followers of Islam believe in full submission to God and this submission is practiced in the secular realm (Taha, 114). Of the five pillars of Islam, one (the zakat) has a direct affect on economic policy and ethics. The culture of Islam has shaped economic and business guidelines In the Islamic World and continues to do so. Cultural ideals attributed to the Qur’an or the Prophet Muhammad, have been a vital source for economic and business practices that have helped to shape the history of many Islamic nations, and are guiding the creation of policies

The five pillars of Islam are the things the Muslims have to do to live a good and responsible life according to Islam. The Shahada is the pillar where every Muslim sincerely recites their faith. When a Muslim recites their faith, they claim that Allah is the only god, Muhammad is the prophet, and that they will obey all the commitments of Islam. Salat is the prayers that are to be performed five times a day. Muslims are to pray before sunrise, midday, late afternoon, after sunset, and between sunset and midnight. They believe that prayers set the rhythm of the day. Children are encouraged to start praying at age seven. Zakat is paying taxes that will benefit the poor or those who are less fortunate. Zakat as seen as a type of worship and self-purification. Sawm is the fasting during the month of Ramadan (ninth month if the Islamic calendar). During the Ramadan Muslims are to give up during the day; any food or drink, smoking, and any type of sexual activity. Hajj is the pilgrimage to Mecca. Once a year Muslims gather together at Mecca and praise to the Allah together. Mecca is the place that is holy for every Muslim, a non-Muslim cannot

Being a member of the Bank requires that one has to meet up with the goals and expectations of the Bank. A definite time frame is usually given to these goals and periodic appraisals are done to see if efforts are directed accordingly towards attaining them. This approach I have employed in my personal endeavors and this has in the last two years consistently brought me to 90-95 percent success level in achieving my goals. This has singled me out for nomination into several implementation, steering and organizing committees of different bodies outside the

One of the best examples of unification through the Muslim world can be seen throughout its use of “Five Pillars of Islam.” One of its pillars is the practice of Zakat. Which means almsgiving which takes away the classes for a moment and has everyone help everyone. They do this by giving back to the poor if they had the money to do so. SO even if you had enough money to live but non to give, that you could help the lower class through action or other things. This who practice was an orientation of Islam to help the needed and have concern for the needy. The Muslim practices would give away 20% of their earnings for the needy/poor or the slaves that they had. This also helped with its spread through the civilians because it accommodation of the lower classes. Through the Christian world we can see this through giving money in the communion basket in churches or even through the nuns work. Nuns has been known to take care of the elderly, the needy and the poor through means of

The third pillar is charity to the poor. It is expected that a good Muslim will donate so much of their annual income or product to charity, although the amount varies between Muslim countries. Muhammad, who maintained a focus on creating a more just society with less poverty, injustice or inequality, started this trend. Some Islamic countries incorporate this charity into governmental policies, which support things like welfare and disability. Other, less money-based economies, donate crops and livestock to fulfill this obligation (Molloy, 434). Another important component to this pillar is the understanding that a devote Muslim will act with generosity in mind on a daily basis. The religion assumes that believers will commit random acts of kindness throughout everyday life. These random acts can be in the form of charity or generosity (Molloy, 434).

Finally, the last Pillar of the five is called Zakat. Zakat is paying alms or charity to poor people and in need. It is the same as if you were to give a homeless man a dollar or some change out of generosity. Instead of just being generous, however, Zakat enforces that you must give charity to the needy. Changing their life, as well as the donor's life. Through The Five Pillars, lifestyle is changed through numerous ways for anybody practicing the Islam

The second pillar Salat, or regular prayer, ascertains Muslim's devout compliance to Allah's purpose for Muslims. Salat is a distinctive mark of believers and provides Muslims with the opportunity for direct communication with Allah. Ritualised Salat ensures that Muslims do not get to attached to material and non-essential things, thus outlining that Allah's divine intendment installs complete control and is the central figure in a Muslim's life – not the existent of secular entities and monetary dependence (testament to the Qur'anic condemnation of usury and interest - Sura 2:275). The prevention of monetary dependence is also made present through the third of the Arkan al-Islam – Zakat, or obligatory almsgiving. (Penney, 1989 pg. 14) Zakat is an act of devotion and duty, and is paid to gain Allah's favour. (Whitehead, 2004 pg. 29)

Incumbent upon the mutual participation of mosques would be the creation and routine use of a control process to ensure compliance. This would include compliance audits of all participating organizations involved; pertaining to all areas of zakat management. Stern assessment will demonstrate compliance with zakat law and also emanate confidence in the system, potentially spurring growth. The compliance must also assess the collection and handling of zakat funds, as discrepancies often occur and are relatively easy to correct.

Becoming an expert in Islamic economics and finance field is one of my long-term goals in life. I started to organize and made a plan towards achieving that dream since senior high school. The concern towards Islamic economics and finance concept, and its application for society and the country began when I was reading a book entitled Islamic banking-theory and practice. After finishing reading the book, my interest in Islamic economic and finance topics rose and strengthen my own determination to become the expert of Islamic economics and finance. The main principle of Islamic economics and finance which offers the just and ethics in economic activity, poverty alleviation through income distribution mechanism, and prevention of economic and

must embark on a personal and inner jihad. Zakat is a crucial aspect of Islam and

Zakat can be defined as “the amount of money or kind taken from specific types of wealth when they reach a specific amount at a specific time which must be spent on specific categories in specific ways”. Different from wakaf,

In most Islamic countries, they tend to practice two types of financing in banking industry which are conventional and Islamic banking. The country like in Malaysia has successfully developed an Islamic banking system that operates in parallel with the conventional banking system. There is similarity between conventional banking and Islamic banking which helps to promote economic growth provided financing services such as credit facilities for business activity, mortgage, securities, etc. in order to achieve their same ultimate profit objectives. However, there are also having differences in practicing financial services due to most investors having their own preferences on their investments and

This study is about Investment Management System of Al-Arafah Islami Bank Limited (AIBL), Investments are operating by this bank with Islami sharia formula as no interest payment system but give profit from client deposit amount. Investment practice consists of some stage like Selection of the client, Application stage, Processing and appraisal, Sanctioning stage, Documentation stage, Disbursement stage, Monitoring & Recovery stage. It has been found that the investment process is lengthy and tiresome for the clients. AIBL investment process should become easier and should increase their investment ratio by reducing lengthy time process of investment and reducing required return on investment. It should also increase