The institutionalisation of Zakat for promotion of investment: Between reality and challengens

The Zakat is an important financial instrument of Islamic economic, which can achieve society benefits if it can be used effectively in the economic and financial systems. This may reduce the poverty by creating job opportunities for people. This paper presents a theoretical approach and an empirical study that demonstrate how the institutionalization of one of the most important Islamic economic principle, Zakat, can promote investment by achieving an ideal distribution of wealth. Also , this paper aims to propose some recommendations to improve the management of Zakat