In a very in-depth article written by IslamiCity, there you will find information on Zakat and how the system created the first universal welfare system in human history. Benefiting all Muslims worldwide.
The Prophet Muhammad (PBUH) initiated a revolutionary shift based on the enduring values of the Quran. He implemented Zakat, which pioneered the world's first universal welfare-based economy. However, despite abundant natural resources, many Muslim communities continue to suffer economic deprivation.
The Arabic term "Zakat" denotes growth and development, highlighting how any disruption in the flow of resources owned by Allah can hinder their intended growth and development. The persistent global economic disparity persists because humanity often neglects Zakat's fundamental economic principle: the unrestricted distribution of resources to all.
The Quran highlights the importance of economics in human life, teaching us to work for the good of this life and the hereafter. Economic prosperity is a means, not an end, and is a prerequisite for growth and development in life. Allah fulfills this promise by creating resources for the nourishment and growth of all moving creatures, and no one has the right to own or control the Allah-given natural resources or restrict their flow to humanity at large.
The Quran recognizes that long-term dependence on others can lead to degradation of the human self, loss of dignity, and lack of freedom and thought. Alms (Sadaqaat) are for the poor, needy, those in bondage and debt, in the cause of God, and the wayfarer. The root meaning of Sadaqaa comes from the root S-D-Q, meaning truth and power. It is used to gradually change an unbalanced economic system from capitalist politics of greed to one that guarantees equal opportunities and protection to all.
Quranic Zakat, as implemented by Prophet Muhammad (PBUH), forms the bedrock of an economic system ensuring economic security and dignity for all. \
For further references and deeper insights, check out the full article here.
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