DIGITALIZING ZAKAT ADMINISTRATION SYSTEMS TO IMPROVE POVERTY ALLEVIATION EFFICIENCY IN DEVELOPING NATIONS
Indonesia Indonesia Indonesia 
Bangladesh 
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Digital Zakat, Islamic Social Finance, Poverty Alleviation
Abstract
Zakat, as a fundamental Islamic socio-financial instrument, holds significant potential for poverty alleviation in developing nations. However, traditional zakat administration systems remain plagued by inefficiencies in collection, distribution transparency, and beneficiary targeting, limiting their socioeconomic impact This study aims to examine how digitalization of zakat administration systems can enhance operational efficiency and improve poverty alleviation outcomes in developing nations. A mixed-methods approach was employed, combining a systematic literature review of 87 peer-reviewed studies published between 2010–2024 with comparative case analysis across five developing nations Indonesia, Malaysia, Pakistan, Bangladesh, and Sudan that have implemented digital zakat platforms. Data were analyzed using thematic analysis and cross-case synthesis. Findings reveal that digitalized zakat systems significantly reduced administrative costs by an average of 34%, improved fund distribution accuracy by 41%, and expanded beneficiary reach by up to 58% compared to conventional systems. Digital platforms also enhanced donor trust through real-time tracking and automated reporting mechanisms. Digitalization substantially transforms zakat administration by bridging institutional gaps, reducing leakages, and accelerating poverty reduction. Strategic investment in digital infrastructure, regulatory frameworks, and digital literacy among stakeholders is critical for sustainable implementation in developing nations.
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References
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Copyright (c) 2026 Harun Masykur, Sabik Khumaini, Muhammad Nurzansyah, Arif Hossain
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