The Role of Zakat in Maintaining Economic Stability Under the Threat of Global Economic Recession

Abstract

The world is currently under the threat of a global economic recession. This is as a result of several recent events such as the Covid-19 pandemic, the Russia-Ukraine conflict, and the increase in benchmark interest rates set by central banks. Under these conditions, an economic system is needed that can boost the people's economy. Islam is present by providing solutions to these problems, one of which is the zakat system. The purpose of this study is to determine the extent of the role of zakat in overcoming the global economic recession. This research uses library research method, which is research conducted by collecting data and information from books, journals and articles. The results of this study indicate that zakat as one of the instruments of Islamic philanthropy plays a role in improving the people's economy, also as a tax deduction and even in some countries, zakat is mandatory which if it is not implemented it will be subject to sanctions. If zakat is properly channelled to mustahik and utilised to support government activities, then the world economy can run stably and there is no need to worry about the threat of global economic recession because zakat can be relied upon as a solution to the global economic recession