Islamic Economy

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KULIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

ENGLISH FOR ACADEMIC WRITING

(LE4000)

DRAFT 2

SEMESTER 2, SESSION 2016 / 2017

NAME OF LECTURER         : MDM MAJDINA MANSOR

SECTION                       : EIGHT (8)

MEMBERS NAME        : AMMAR HATIM BIN MUHAMAD JAMRI                  (1328905)         

                                              MUHAMMAD HAKIMI BIN MUHAMMAD HELMI   (1329113)

DATE OF SUBMISSION    : 14TH APRIL 2017

MAIN IDEA 2

        Furthermore, the issue of economy gap can be solved by strengthen the waqaf and zakat institutions. Basically, the goal of Islamic teaching is that to distribute wealth and to provide justice and fairness to others. So that, as Allah mention in Quran “Take, (O, Muhammad), from their wealth a charity by which you purify them and cause them increase and invoke (Allah’s blessings) upon them. Indeed, your invocations are reassurance for them, And Allah hearing and knowing” (9:103). It is clear that both zakat and waqaf carried the same function which is charity that can be distributed to others which this is a part of economy that Allah SWT promote to us. Currently, what happen today is promoting the concept of equality and not equity which is justice. For example, the taxes impose to the citizens it include all level of people whether they are rich or poor. Even though the taxes would be distributed back by government to citizens through subsidies, programmes, and others. Somehow, the taxes would be difficult to poorer to pay rather than richer. Meanwhile, the zakat and waqaf are implementing the concept of equity which is the poorer can feel the wealth from the richer. For example, the zakat is only imposed to people who have the surplus wealth to be distributed to poorer. It is same with waqaf which everyone can let their wealth to be used for others for example of house, land and others.

        Even the concept of zakat and waqaf introduced long time ago, the islamic institutions that manage the zakat and waqaf wealth are still new. There are many issues come out during the management and distribution of the wealth. So that, according to Sheila Ainon (2015), it must be a proper legal and regulatory framework in order to make the management and administration of these zakat and waqaf institutions to be standardized. Thus, by strengthening the zakat and waqaf institutions it can ensure the proper distribution of wealth to the poorer as long as can mitigate the problem of economy gap in our country.