Abstract
The objective of this Systematic Literature Review (SLR) is to review the impact of zakat distribution on the development of asnaf (zakat recipients), using a logical framework to analyze the relationships between zakat inputs, distribution processes, and outcomes. The study follows the PRISMA protocol, comprising four stages: identification, screening, eligibility, and inclusion. Out of 947 articles retrieved, 651 were excluded, and after a detailed review, 44 articles published between 2020 and 2024 in the fields of economics and management were selected. Quality appraisal was conducted using the Mixed-Method Appraisal Tool (MMAT), and thematic data extraction was done inductively, validated by two experts. Thematic data extraction was performed inductively, and validation was provided by two experts to ensure the relevance and accuracy of the findings aligned with a logic model. The findings highlight three key areas of asnaf development programs: economic, educational, and health dimensions, alongside innovation and digital technology applications. Although these programs show positive effects on behavior and contribute to poverty alleviation, some have produced mixed outcomes, indicating that improvements are still needed in the implementation of productive zakat. This study offers practical insights for policymakers by identifying effective strategies for managing inputs to generate outputs that align with desired outcomes. It also outlines key directions for future research, including the development of asnaf career programs for economic empowerment, evaluations of educational initiatives targeting asnaf children, and the integration of Conditional Cash Transfer (CCT) models to address poverty and behavioral challenges more effectively.
Plain Language Summary
This study reviews how zakat (Islamic charitable giving) helps improve the lives of Asnaf, or zakat recipients, by analyzing existing research using a structured and systematic approach. Following the PRISMA guidelines, the researchers reviewed 947 articles and selected 44 relevant studies published between 2020 and 2024 in the fields of economics and management. These studies were carefully evaluated for quality and analyzed using a logic model to understand the link between zakat resources, how they are distributed, and the outcomes for recipients. The findings show that zakat programs mainly focus on improving economic status, education, and health, with support from digital tools and innovation. While many programs have positive effects such as encouraging better behavior and reducing poverty, while some study still show mixed results, especially in productive zakat programs meant to help people start or grow businesses. This review provides useful recommendations for policymakers on how to improve zakat programs and offers guidance for future research. Key suggestions include supporting career development for Asnaf, improving education-related initiatives, and exploring conditional cash transfer models to encourage long-term independence and responsibility among recipients.
Introduction
Zakat is one of the key pillars of Islam and is a mandatory form of almsgiving for Muslims who meet specific financial criteria. It involves the redistribution of wealth from those who are able to pay to those who are eligible to receive it, known as the eight categories of asnaf. This practice plays an important role in reducing poverty, narrowing income gaps, and boosting economic growth in the Muslim community (Rohaizan et al., 2020). To support the well-being of the asnaf, zakat institutions have introduced development programs that focus on education, health, financial support, and spiritual growth (MAIWP, 2021). Examples of these efforts include monthly financial aid to meet basic needs, school supplies to support children’s education, medical assistance such as dialysis treatment and medication, as well as capital to help asnaf start small businesses (MAIWP, 2021). These initiatives aim to improve the overall quality of life for the asnaf community.
To strengthen asnaf development programs, zakat institutions have implemented various initiatives. For instance, in the Federal Territories, the Federal Territories Islamic Religious Council (MAIWP) launched the MAIWP Strategic Plan 2021–2025 under the theme “Empowering & Enterprising.” The primary strategic focus of this plan is to enhance the impact and effectiveness of zakat distribution through poverty eradication and asnaf development outcomes.
The Federal Territory Islamic Religious Council (MAIWP) has organized its zakat distribution efforts through two main departments: the Zakat Distribution Division (BAZ) and the Asnaf Development Division (BPA), each with distinct roles in managing and supporting zakat beneficiaries (MAIWP, 2022). BAZ is in charge of handling all stages of the zakat distribution process, from receiving applications to providing financial help for daily needs, education, healthcare, and community support. On the other hand, BPA focuses on helping zakat recipients (asnaf) become self-reliant by offering programs that support business development, job skills, and spiritual growth. This clear separation of duties allows each division to focus more effectively on its specific goals. Aligned with this structure, Malaysia’s zakat accounting standards classify zakat distribution into two distinct reporting categories: consumptive zakat, which addresses basic needs, and productive zakat, which supports long-term development (Jabatan Akauntan Negara Malaysia, 2021).
Despite the various efforts undertaken by zakat institutions, the number of asnaf successfully lifted out of poverty remains significantly low. According to zakat distribution statistics, the annual allocation of zakat funds continues to increase. However, the number of asnaf beneficiaries has also risen correspondingly (JAWHAR, 2024). This trend indicates that the number of asnaf exiting poverty is lower than the yearly increase in new asnaf beneficiaries.
Although zakat programs aim to empower asnaf, they have yet to produce consistently strong outcomes. For example, in Terengganu, only between 6% to 15% of asnaf who received business support from 2016 to 2021 were considered to have the potential to escape poverty (MAIDAM, 2021). One of the main challenges is that only a small number of asnaf take part in business or entrepreneurial programs, while most continue to rely on monthly financial aid. In 2022, only 658 people in the Federal Territory received help to start a business, which is just 2.4% of the 27,255 people who received monthly assistance (MAIWP, 2021). Similarly, in Terengganu, only 205 people received business capital in 2021, which is just 9.5% of those receiving monthly financial aid (MAIWP, 2021). These figures highlight the need to strengthen the impact and reach of productive zakat programs.
Some of the challenges in reducing poverty among asnaf stem from their own behaviors and attitudes. For example, Zahid and Razali (2021) found that some asnaf are not motivated to work, prefer staying at home with family, and depend heavily on zakat support. Some are even satisfied with their current status and do not try to improve their situation. In more serious cases, a few individuals have reportedly misled zakat institutions just to keep receiving aid (Jaafar, 2023). In Indonesia, a study by Santoso et al. (2024) showed that many asnaf entrepreneurs stay poor because they run the same kind of business without trying new ideas or finding extra sources of income. These findings show that changing behavior and mindset is important to help asnaf truly escape poverty.
To effectively support asnaf in overcoming poverty, financial assistance alone is insufficient. There must also be complementary efforts that encourage positive behavior and a sense of responsibility. One valuable approach is the Islamic principle of Hisbah, which emphasizes promoting good conduct and preventing harmful actions. Hisbah upholds values such as accountability, honesty, and moral responsibility. By integrating these principles into zakat programs, institutions can go beyond simply providing financial aid and also help guide asnaf toward becoming more responsible, ethical, and self-reliant individuals.
Based on the discussion of issues and challenges, the development outcomes of asnaf remain a critical concern that zakat institutions must effectively address. Therefore, the main objective of this Systematic Literature Review (SLR) on asnaf development outcomes is to assess the impact of zakat distribution on asnaf development using a logic framework to explore the relationship between zakat inputs, distribution processes, and outcomes. This study is significant in examining the effectiveness and progress of zakat distribution programs in delivering positive impacts across various aspects of asnaf development, particularly in helping to lift them out of poverty. Additionally, the review aims to identify research gaps for future studies and theoretical development, contributing to a clearer understanding of how zakat programs influence asnaf development and highlighting areas that require further investigation, including potential gaps in terms of key interventions that may be crucial but are possibly overlooked by zakat institutions in the implementation of development programs. Conducting a Systematic Literature Review (SLR) is essential to provide clear guidance and comprehensive understanding regarding studies on asnaf development outcomes. Accordingly, the findings of such research can offer valuable input to policymakers in formulating strategies to resolve inefficiencies in asnaf development programs by examining strategies implemented at the global level particularly those grounded in Islamic ethical principles such as Hisbah.
Addressing the challenges and significance of asnaf development outcomes, this study aims to contribute to a comprehensive understanding of asnaf development by (1) conducting an SLR to evaluate the impact of zakat distribution on asnaf development outcomes, (2) proposing a logic model to comprehensively examine the impact of zakat on asnaf development outcomes, and (3) identifying research gaps for future studies and theoretical development. Furthermore, the originality of this study lies in its integration of an SLR with a logic model, providing a deeper understanding of the relationship between inputs, zakat distribution programs, and targeted outcomes.
The solution of this study’s objectives contributes to a deeper understanding of how zakat is distributed to achieve asnaf development outcomes. The systematic review’s shows that zakat can help improve the lives of asnaf in many ways. Its impact can be seen in areas like motivation, how zakat programs are run, changes in behavior, and overall improvements in social and economic well-being. As an additional contribution, the proposed logic model serves as a starting point for theoretical development and identifying critical research gaps for future studies (Teufer et al., 2024).
Literature Review
Numerous studies have examined the role of zakat in improving the well-being of asnaf, particularly in areas such as economic development, education, health, and religious engagement. Most of the research has focused on helping asnaf through entrepreneurship programs in the economic field. To effectively support asnaf who are poor and in need, assistance must extend beyond providing business capital to include training and preparation. For example, in Selangor, the zakat board operates a program that offers business capital alongside training and education to asnaf entrepreneurs. (Manan et al., 2011). In Bangladesh, zakat is used for training, while business loans are given through microfinance (Bhuiyan et al., 2017). A recent approach recommends using zakat not only to provide funding but also to offer training for business expansion, enabling asnaf to grow their enterprises and reduce dependence on zakat over time (Zahri et al., 2023). These examples show that effective asnaf economic development includes business support, training, and targeted zakat distribution to help asnaf become more financially independent.
In the field of education, most studies have focused on how zakat can support asnaf pursuing higher education. For instance, Mat Isa et al. (2019) proposed a model to assist asnaf students in private universities with their tuition fees. Similarly, Osman et al. (2020) emphasized that continuous education programs funded by zakat can enhance asnaf’s prospects of escaping poverty. Regarding healthcare, effective management of zakat institutions plays a critical role. Suteki and Putri (2019) demonstrated that decentralizing control to local authorities can improve healthcare services by addressing weak monitoring systems. The importance of zakat support in healthcare became even more evident during the Covid-19 pandemic, as highlighted by Chotib (2021), who found that increased zakat distribution contributed to better health outcomes for recipients. Overall, research indicates that zakat assistance in education and health, particularly through higher education support and enhanced healthcare during crises and significantly aids asnaf in overcoming poverty.
Although various strategies have been implemented to achieve positive outcomes, previous research indicates otherwise. Research by Sharofiddin et al. (2019) discovered that the existing zakat distribution system in Selangor has a minimal impact on increasing the income of the poor. Statistically, zakat distribution does not significantly affect social welfare, particularly in the health sector. In contrast, studies in Indonesia, such as those by Lessy et al. (2020), asserted that zakat assistance in education and health sectors has successfully reduced household expenses for asnaf affected by disasters or facing financial crises. However, the amount of zakat received remains insufficient to cover other living expenses, such as food-related costs.
In conclusion, while various innovations and strategies for zakat distribution have contributed to developing human capital for asnaf in economic, educational, and health aspects, some studies still demonstrate less effective outcomes. Therefore, implementing SLRs is essential to assess the effectiveness of various zakat distribution models, identify key determinants of targeted outcomes, and evaluate effective strategies implemented to achieve comprehensive asnaf development. In addition, by utilizing a logic model, this framework will organize research findings through the relationship between input, program or project, output, and targeted outcomes, explaining the underlying theories and assumptions used (McLaughlin & Jordan, 2015). For the topic of asnaf development outcomes, measuring zakat distribution strategies is expected to be highly complex and comprehensive, considering development across all aspects of a Muslim’s life goals for success in this world and the hereafter (falah; Ibrahim & Tambi Chek, 2020).
Methodology
Compared to traditional literature reviews, SLR provides a comprehensive view of the knowledge built within existing studies (Pati & Lorusso, 2018), potentially encompassing conflicting findings (Siddaway et al., 2019). Through a holistic and thorough approach, SLR can offer a precise understanding of existing knowledge and may facilitate the development of additional theoretical insights previously overlooked (Paul & Criado, 2020; Siddaway et al., 2019). Furthermore, by providing a broad and comprehensive scope of past research, SLR enables researchers to identify potential future research agendas, unlike traditional literature reviews, which may not adequately focus on such agendas (Petticrew & Roberts, 2008; Sampaio & Mancini, 2007). SLR benefits from minimizing retrieval bias, which often occurs in traditional literature reviews when included articles do not accurately represent the overall literature (Siddaway et al., 2019). Lastly, SLR are literature reviews that follow a defined set of scientific methods designed to minimize systematic errors (bias; Higgins et al., 2011). These reviews aim to identify, appraise, and synthesize all relevant studies, regardless of their design, in order to address a specific research question (Petticrew & Roberts, 2008).
The protocol outlines the rationale behind the review question and the proposed methodologies, while also addressing how bias will be minimized. Additionally, it explains how various study types will be categorized, assessed, and reported. The protocol further includes information on the strategy for disseminating the findings of the review (Page et al., 2021). This study employs the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol to systematically organize articles related to outcomes in asnaf development through zakat distribution (Moher et al., 2010). The protocol encompasses four main stages: identification, screening, eligibility, and inclusion. PRISMA protocol was preferred due to its structured guidelines, facilitating a clear and systematic review process (Shaffril et al., 2021). Hence, by adhering to the PRISMA protocol, this study aims to ensure a thorough and transparent examination of existing literature.
Identification
The first stage of the review focuses on identifying appropriate keywords, followed by a broad search for related terms using various sources, including thesauruses, recommended database keywords such as Scopus, asking the opinion of experts, and previous research studies (Shaffril et al., 2021). In November 2024, a strategically systematic search was conducted specifically in Scopus and Web of Science databases to minimize retrieval bias. For this phase, a total of 999 articles were collected using keywords such as “development,”“develop,”“empower,”“productive,”“asnaf,”“zakat,” and “zakah.” This rigorous process ensures that the literature reviewed is comprehensive and specifically aligned with the criteria of the cash transfer program. At this stage, 99 overlapping records were excluded, leaving a total of 900 articles for further analysis. During this phase, the systematic search was conducted by first and second authors, who also reviewed the identified articles for relevance, with input from third author for keyword validation and expert recommendations.
Screening
In the second stage, the collected articles were filtered based on specific inclusion and exclusion criteria (Table 1). This study focuses on empirical research articles published between 2020 and 2025 to reflect the field’s maturity, capturing the latest advancements and trends in zakat programs and asnaf development, while also considering the integration of new methodologies and evolving socio-economic conditions (Shaffril et al., 2021). Furthermore, to ensure clarity, only articles published in English and Malay are selected (Shaffril et al., 2018). Considering that systematic reviews emphasize socio-economic impact, selecting articles targets relevant subject areas to ensure that the articles are pertinent. Based on these criteria, 661 articles were excluded for not meeting the requirements, leaving only 239 articles for further evaluation.
Inclusion and Exclusion Criteria.
Eligibility
Eligibility is the third step, during which the authors carefully reviewed the retrieved articles to ensure that all remaining studies (after the screening phase) met the predefined criteria. The titles and abstracts of the studies were initially screened by two reviewers. In the second stage, the eligible studies were cross-checked for full-text review by a third reviewer to minimize potential selection and inclusion biases from the first two reviewers. Thirteen articles were excluded due to lack of access. The remaining 226 articles were then carefully read and re-evaluated. The final stage involved full-text screening to select studies that met the inclusion criteria. This step was carried out by two reviewers, with an additional cross-check conducted by a third and a fourth reviewer to further reduce the risk of inclusion bias. Only articles directly relevant to the study were advanced to the final inclusion stage. This rigorous review process resulted in the exclusion of an additional 182 articles, with 57 did not focus on zakat in relation to asnaf, 93 did not specifically address asnaf development, and 32 were review articles rather than original empirical studies. The process for each stage was clearly outlined, with discrepancies resolved through reviewer discussions, where differences in evaluations were addressed by comparing interpretations, reaching a consensus, or revisiting articles for further clarification to ensure consistent application of the predefined criteria.
Quality Appraisal
In the quality appraisal process of this systematic literature review (SLR), the researchers employed the Mixed-Method Appraisal Tool (MMAT) by Hong et al. (2018). This tool was used to assess the quality of selected studies across various designs, including qualitative, randomized controlled trials, non-randomized studies, quantitative descriptive studies, and mixed methods. This tool enabled a thorough evaluation of each article’s methodology and analysis to ensure high standards of quality and reduce bias.
The articles were evaluated based on five main criteria aligned with the research design. For qualitative studies, MMAT emphasized the relevance of research questions, adequacy of data collection, and coherence in data sources, collection, analysis, and interpretation. For quantitative studies, the appraisal focused on the appropriateness of sampling strategies, sample representativeness, measurement techniques, and analysis suitability. In mixed-method studies, the assessment examined the rationale for using mixed methods, the integration of qualitative and quantitative data, and the effectiveness of the research design in addressing the research questions.
The corresponding author, with the assistance of three co-authors, conducted a thorough review of each article’s methodology and analytical rigor, placing particular emphasis on the consistency of sampling and analysis. Each article was evaluated using three response options: “yes,”“no,” or “don’t know/can’t tell.” Articles were deemed eligible for inclusion in the review if they satisfied at least three of the established criteria. Any disagreements regarding the evaluation were addressed through discussion among the authors. In the end, 14 articles met all five criteria, 15 articles met at least four criteria, and 15 articles met at least three criteria, ensuring the methodological and analytical quality of the studies included in the review (Table 2).
Results of the Quality Assessment.
Note. QA = quality assessment; QN (DC) = quantitative descriptive; QN (R) = quantitative randomized; QN (NR) = quantitative non-randomized; QL = qualitative; MX = mixed-method; C = do not know/cannot tell.
Inclusion
At the inclusion stage, each article’s content was carefully reviewed to ensure relevance for synthesis. In the final selection, 44 articles were identified as suitable for further analysis (Figure 1).
The selection process using the PRISMA protocol.
Data Extraction and Analyses
The data is analyzed thematically inductively to identify and inform existing patterns in the research by detecting any similarities or relationships within the available data (Braun & Clarke, 2019). Inductive coding in a systematic literature review (SLR) facilitates the discovery of new insights, accommodates the complexity and diversity of the literature, is inclusive in nature, and helps identify emerging trends within empirical data (Shaffril et al., 2021). The identified themes were then presented to two experts in qualitative synthesis and logic frameworks for validation. The experts were tasked with assessing the relevance of the themes in relation to the inputs, processes, outputs, and outcomes defined in the logical framework. Furthermore, they were asked to evaluate how well the themes aligned with the research questions. Following this review, all five input themes, three process themes, five output themes, seven behavioral outcome themes, and three outcome themes were retained. Subsequently, reporting will follow a structured format that includes the study background and a logical framework (Anderson et al., 2011; Teufer et al., 2024). This is based on the logical model by McLaughlin and Jordan (2015) encompassing inputs (necessary resources such as human, financial, and system resources), processes (activities conducted to achieve outputs, such as policies related to asnaf entrepreneurship), outputs (products or programs developed through processes, such as the number of asnaf entrepreneurship programs), and outcomes (results or impacts from the developed programs). Meanwhile, for outcome reporting, a division will be made into behavioral outcomes to assess the impact of programs on behavior change, as well as socio-economic impacts (Anderson et al., 2011; Teufer et al., 2024).
Application of Logical Model
The logical model was applied as a guiding framework throughout the systematic literature review to ensure a structured and comprehensive analysis of the included studies. It was instrumental in categorizing and analyzing the identified themes by focusing on four key components: inputs, processes, outputs, and outcomes. The inputs encompassed necessary resources, such as financial, human, and system resources. The processes referred to the activities and policies implemented to achieve outputs, such as programs related to asnaf entrepreneurship. Outputs represented the products or programs developed through these processes, while outcomes reflected the results or impacts of these initiatives (McLaughlin & Jordan, 2015). Comprehensive frameworks like the logical model are essential for understanding complex programs and projects that aim to enhance socio-economic impacts (Anderson et al., 2011). By utilizing this model, the research team was able to systematically identify, code, and categorize the themes emerging from the selected studies. This approach ensured that the analysis remained aligned with the research questions and objectives, while facilitating the identification of relationships and patterns across studies. In the context of asnaf development outcomes, the programs and projects implemented by zakat institutions are diverse and multifaceted. Various forms of outputs, including both consumptive and productive zakat distribution, are carried out to develop asnaf across different life aspects, such as welfare, health, education, economics, protection, and spirituality (JAWHAR, 2024; MAIWP, 2021). Therefore, the use of a logical model is crucial for justifying the scope of the study, guiding SLRs related to asnaf development outcomes, and facilitating interpretation and conclusions regarding literature findings (Anderson et al., 2011).
Results
Background of the Study
The discussion of the study background will focus on the study period, country, research methodology, and publication journals (Table 3).
List of Selected Articles by Country and Research Methodology.
Note. QT = quantitative; QL = qualitative; MM =mixed method.
Duration of Study
Based on 44 articles, the majority of studies were conducted in 2020 (13 studies), followed by 2021 (11 studies), 2024 and 2025 (6 studies), and 2022 and 2023 with four studies each (Figure 2).
Number of studies by year.
Country
It was found that most studies were conducted in Indonesia (22 studies), followed by Malaysia (14 studies). Pakistan contributed three studies, while Brunei, Mauritius, Singapore, Thailand, and Tunisia each contributed one study. Additionally, one study focused on all OIC countries collectively. Notably, the high number of studies conducted in Indonesia and Malaysia is due to the active involvement of both countries in research related to zakat and Islamic social finance (Figure 3).
Number of studies by country.
Research Method
In conducting research on the development outcomes of asnaf, qualitative and quantitative research methods are relatively balanced, with 21 and 22 studies, respectively. However, only one study employed a mixed-methods approach (Figure 4).
Number of studies by research methodology.
Publication Journals
The 44 selected articles were published across 36 different journals, with Global Journal Al-Thaqafah and Asian Social Work and Policy Review leading with three studies, followed by International Journal of Ethics and Systems, International Journal of Professional Business Review, Journal of Economic Cooperation and Development, and Journal of Fatwa Management and Research each with two studies. The remaining 30 journals had one study each (Figure 5).
Number of studies by publication journals.
Logic Framework
Based on the thematic analysis conducted, five main inputs were identified in the development outcomes of asnaf: financial resources, human resources, policy and regulatory formation, program and project development, and collaboration between zakat institutions and external parties. Accordingly, these five inputs form three crucial processes: the development of zakat distribution programs by cluster, innovation in zakat development models, and the application of digital technology. These five essential inputs contribute to the three processes, which in turn create outputs in the form of programs and activities, as well as outcomes in developing asnaf through the implemented programs and activities. This study adapts the logic model from (Teufer et al., 2024; Figure 6).
Logic model of asnaf development program.
Output
The discussion of output for the first theme, which is the development of zakat distribution programs by cluster, focuses on the economic cluster. Most of the research focuses on supporting asnaf entrepreneurs through programs that teach skills and provide business support (Ali et al., 2024; Herianingrum et al., 2024; Mahmood et al., 2020; Syahid et al., 2024; Widiastuti & Rani, 2020; Zahri et al., 2023). Two common ways to help asnaf are giving direct business capital and helping with business planning, especially for those affected by natural disasters so they can start or grow their businesses (Herianingrum et al., 2024; Widiastuti & Rani, 2020). Arifin and Anwar (2021) also pointed out that zakat plays an important role in starting and developing businesses for those interested in entrepreneurship. Overall, zakat can empower asnaf economically by supporting their business activities.
Furthermore, Mahmood et al. (2020) emphasized the importance of understanding the behaviors and skills of millennial asnaf. They recommended developing programs specifically tailored to meet the needs and preferences of this younger generation. In contrast, Syahid et al. (2024) emphasize the need for continuous training and support initiatives to foster entrepreneurial skills and empowerment among asnaf entrepreneurs. This includes the integration of Islamic economic principles, which are expected to provide a strong foundation in both Shariah and governance aspects for the management of asnaf business affairs (Bathara et al., 2023).
The role of spiritual factors in entrepreneurship is also significant, as Al-Bohari et al. (2025), Ali et al. (2024), and Rahman et al. (2025) highlighted. This study emphasized that qualities such as faith, trustworthiness, resilience, reliance, and sincerity are crucial for the moral and entrepreneurial development of asnaf. Therefore, zakat institutions should offer financial assistance and non-material support, such as motivational courses and advisory services, to foster spiritual growth alongside business development. For example, a study by Ishak et al. (2025) in Malaysia found that financial management courses significantly improved the financial habits of asnaf participants. Consistent saving increased from 16% to 94%, timely bill payments rose from 42% to 87%, and expense tracking improved from 26% to 90%, indicating a marked enhancement in financial discipline.
To make zakat funds last longer in helping asnaf with their businesses, Zahri et al. (2023) suggested using zakat for micro-financing based on the Islamic principle of Qard, which offers a new way to support asnaf entrepreneurship. Studies comparing zakat programs in countries like Indonesia and Brunei show different approaches. For example, the Sejahtera Jawa Timur Program in Indonesia has three parts: revolving loans, help with business tools, and community development through zakat. This program offers financial aid, training on managing funds, and skill building. In Brunei, the Asnaf Zakat Empowerment Program (PROPAZ) focuses on giving capital loans, business training, and community support to empower asnaf. Overall, these programs show that zakat can improve the economic lives of asnaf by combining money help with training, skills development, and spiritual support (Wijayanti & Ryandono, 2020).
In addition to entrepreneurial programs, asnaf development programs also focus on development through educational programs (Aziz et al., 2020; Hasbi et al., 2023; Lessy et al., 2020; Othman et al., 2021; Raies, 2020; Toni, 2020; Zulkifli et al., 2021). Previous research by Aziz et al. (2020) concluded that zakat institutions are serious with regard to enhancing the human capital development of asnaf by allocating zakat funds to three main clusters: education, health, and poverty alleviation. In Malaysia, education is a crucial sector, with aid programs focusing on school assistance and higher education support (Othman et al., 2021). In contrast to this focus, Zulkifli et al. (2021) proposed that educational programs for mothers are equally important to ensure the development of their human capital. Furthermore, to strengthen zakat distribution programs for educational development, previous studies have also suggested various programs, such as continuous educational development programs (Hasbi et al., 2023), provision of educational subsidies for the potential (Raies, 2020), and free tuition support programs (Lessy et al., 2020).
Zakat distribution programs also focus on development in the health cluster (Akmal et al., 2021; Hasbi et al., 2023; Lessy et al., 2020; Toni, 2020). Notably, Zakat programs that focus on health are important to help asnaf stay healthy so they can take care of their families better (Akmal et al., 2021). Key program suggestions include strengthening community programs so they can better identify and provide the specific health support that people need (Toni, 2020). Moreover, to strengthen health cluster asnaf development programs, zakat recipients with low educational levels in Indonesia are provided with health grant assistance for a 5-year period, aimed at offering free health care and health education (Lessy et al., 2020). Similarly, in the same country, Hasbi et al. (2023) recommended developing methods to assess the effectiveness of zakat programs in improving the health of asnaf. They emphasized the importance of evaluating not only financial outcomes but also non-material factors, such as the long-term impacts on future generations.
An important outcome of recent zakat initiatives is the development of Shariah-based economic programs that assist asnaf in managing their businesses in accordance with Islamic law (A. Alam et al., 2022). A. Akbar et al. (2024) further recommended designing career support programs tailored to the specific needs and skills of poor asnaf, enabling zakat institutions to provide customized training. Additionally, Iskandar et al. (2021) proposed integrating Islamic finance mechanisms, such as zakat, with commercial finance into a unified system to enhance the effectiveness and efficiency of support for asnaf. These approaches contribute to the ongoing improvement of zakat programs aimed at fostering asnaf development.
Programs that focus on changing behavior are also important. In Selangor, spiritual development is prioritized before giving material support, helping asnaf entrepreneurs develop good habits and maintain resilience in their businesses. Ali et al. (2024) highlight that spirituality is key to strengthening moral values and supporting asnaf development. Similarly, Ryandono and Nanda (2020) recommend that zakat institutions offer comprehensive spiritual guidance programs.
The asnaf entrepreneurship program is strengthened through partnerships with external organizations to ensure zakat distribution is managed professionally (Sudirman et al., 2022). These collaborations include governance models involving universities and corporate organizations (Mustari et al., 2024), as well as cooperative frameworks between zakat donors and recipients (Herianingrum et al., 2024). To tackle key challenges in asnaf development, Fadilah et al. (2021) recommend implementing community-based economic empowerment programs that address multiple dimensions, providing a comprehensive and holistic approach to enhancing the economic well-being of asnaf.
Finally, a significant output developed by zakat institutions involves the creation of computerized systems and digital technologies (Che-aron & Yanya, 2024; Chuttur, 2023; Hadi & Basit, 2021; Riyanto et al., 2021). Notably, the study by Hadi and Basit (2021) posited a conceptual model for digital technology development that considers legal and Shariah compliance. Similarly, Riyanto et al. (2021) emphasized the need for programs that prepare asnaf to adapt to the digital environment.
In conclusion, the development of zakat distribution programs focuses on three main clusters: economy, education, and health, emphasizing asnaf entrepreneurship, skills enhancement, and spiritual growth. Previous studies indicate that a combination of financial aid, along with training, skills development, and spiritual guidance, is crucial for the success of asnaf development programs. Simultaneously, innovative efforts such as business loan schemes, partnerships with external organizations, motivational training, and integrating Islamic social finance also play important roles in reducing poverty and fostering community development. Furthermore, digital technology is increasingly important in improving the efficiency and effectiveness of zakat distribution while ensuring compliance with Shariah principles.
Outcome
The discussion of outcomes are divided into two main topics: behavioral change and socio-economic impact. Regarding behavioral change, the development programs for asnaf successfully enhance the productivity attitudes of beneficiaries after receiving various forms of benefits, both material and spiritual (Akmal et al., 2021; A. Alam et al., 2022; Fadilah et al., 2021; Othman et al., 2021; Roziq et al., 2022; Sudirman et al., 2022). In Indonesia, Fadilah et al. (2021) used RAPFISH and Monte Carlo analyses to assess the economic sustainability of six Zakat Community Development (ZCD) sites. The results showed moderate sustainability across all sites, with income level being the main factor influencing this outcome (leveraging value 1.77). Sustainability scores ranged from 55.84 to 68.03, supported by stable market conditions and human resource policies. These findings indicate growth in the productive capacity of asnaf small and medium enterprises (SMEs), which contributes to sustainable income and employment.
Additionally, zakat institutions have demonstrated greater innovation through the development of comprehensive program models (Arifin & Anwar, 2021; Arwani et al., 2022; Mustari et al., 2024; Riyanto et al., 2021; Sarasi et al., 2019). Existing asnaf development programs also educate beneficiaries toward self-reliance (Arifin & Anwar, 2021; Toni, 2020) and proactivity (Mahmood et al., 2020; Zulkifli et al., 2021). In Malaysia, Zulkifli et al. (2021) observed a positive shift in the proactive behavior of asnaf following zakat assistance. Recipients reported increased participation in community activities and collaborative development efforts, with mean scores of 3.45 for both indicators. These findings suggest that improvements in living standards (mean = 4.50) and material assets (mean = 4.01) contributed to enhanced social engagement among beneficiaries. Key strategies for improving zakat management include partnerships with external organizations, programs integrating both consumptive and productive zakat distributions, and the adoption of digital technologies. In Indonesia, Abidin and Utami (2020) demonstrated that the use of digital technology such as collaboration with external partners and innovations like ATM-based rice aid during disasters significantly boosted operational efficiency and increased zakat collections by 55.9%. Similarly, Chuttur (2023) reported that in Mauritius, technology adoption improved administrative processes with 70% of zakat organizations utilizing both digital and manual systems to manage beneficiary data and distribution records. Collectively, these studies highlight the critical role of digital tools in enhancing the effectiveness and governance of zakat operations across diverse contexts.
Furthermore, other research indicates that asnaf develop stronger entrepreneurial skills through business experience supported by zakat organizations (Afandi, 2022; Sudirman et al., 2022; Syahid et al., 2024; Widiastuti & Rani, 2020). This experience helps them become better prepared and more resilient in managing risks, especially during challenging times like pandemics or natural disasters (Abidin & Utami, 2020). Furthermore, studies show that asnaf are motivated to keep learning and improving their knowledge and business skills, particularly those involved in entrepreneurship (Hasbi et al., 2023; Raies, 2020).
From a socioeconomic perspective, some of the positive impacts of asnaf development programs include reducing unemployment rates (A. Alam et al., 2022; Lessy et al., 2020; Raies, 2020; Sudirman et al., 2022), increasing income and business profits (M. M. Alam et al., 2021; Arwani et al., 2022; Aziz et al., 2020; Syahid et al., 2024; Widiastuti & Rani, 2020) and enhancing entrepreneurial activities (Arifin & Anwar, 2021; Mahmood et al., 2020). It also involves reducing poverty rates through active participation in entrepreneurship, whether in the short-term or long-term (Iskandar et al., 2021; Othman et al., 2021; Roziq et al., 2022; Zahri et al., 2023; Zulkifli et al., 2021). Both Indonesia and Malaysia have reported positive results from their asnaf development initiatives. In Indonesia, the BAZNAS productive zakat program in Jepara Regency (2018) found that 5 out of 15 participants maintained their businesses until 2020, with one individual notably improving their welfare. All participants experienced enhanced living conditions through employment or increased income, highlighting the program’s contribution to economic growth (Arifin & Anwar, 2021). Likewise, Malaysia’s Asnaf development program has fostered greater self-reliance among entrepreneurs. Participants demonstrated strong empowerment indicators, such as independently managing businesses (score 3.7), setting prices (3.6), and enhancing income strategies (3.5). Although some empowerment areas were less prominent, the overall pattern suggests progress toward economic independence (Syahid et al., 2024). Furthermore, a study by Zuhairah et al. (2025) in Malaysia revealed that Zakat cash assistance (ZCAP) significantly and directly boosts entrepreneurial development intentions (EDI) among asnaf entrepreneurs (β = significant, p < .05), with robust predictive validity (Q2 for EDI > 0.5). However, the mediating effects of psychological safety and normative environment (PSNE) were not significant (p > .05).
Furthermore, the development programs have successfully increased human capital among beneficiaries through comprehensive programs covering economic, educational, and health aspects (Akmal et al., 2021; Aziz et al., 2025; Hasbi et al., 2023), improved their health in the health sector (Lessy et al., 2020; Othman et al., 2021), and enhanced the understanding and learning of the children of beneficiaries in the field of education (Afandi, 2022). Aziz et al. (2025) carried out a study in Pakistan employing multilevel modeling to evaluate the effect of zakat on education. The results showed that zakat expenditures on formal education significantly decreased educational deprivation (−0.128), highlighting its role in improving access to education and educational outcomes for underprivileged families.
An increase in asnaf income positively contributes to their well-being and social empowerment (Othman et al., 2021; Zahri et al., 2023), enabling them to better support their families (Arwani et al., 2022), and their food security (A. Akbar et al., 2024). A study in Indonesia revealed that among 15 mustahik interviewed, 8 reached a level of prosperity by meeting at least three welfare criteria set by BAZ/LAZ in Pekalongan City. They experienced improved economic conditions, which enabled them to better support their families. However, seven individuals remained less prosperous, with incomes barely covering daily needs, which limited their ability to save or contribute donations. This highlights that, although productive zakat assistance increased monthly income, its effectiveness in supporting families depended largely on adequate capital and consistent mentoring and monitoring (Arwani et al., 2022). Similarly, in Malaysia, asnaf participating in development programs demonstrated increasing economic independence and successfully avoided usurious transactions, highlighting the broader effectiveness of zakat-based empowerment initiatives (Zahri et al., 2023).
The effective implementation of zakat programs has played a key role in helping beneficiaries shift from being zakat recipients to becoming zakat contributors (Zulkifli et al., 2021). As a result, they are able to increase their contributions by supporting other asnaf through zakat payments and infaq donations, while also saving part of their income for future needs (Arwani et al., 2022). In some instances, beneficiaries have even been able to create employment opportunities for other asnaf individuals (Aziz et al., 2020; Rusydiana et al., 2025).
Positive outcomes extend to zakat recipients and zakat institutions. Previous studies indicate that zakat institutions have successfully improved operational efficiency (Chuttur, 2023), enhanced the implementation of digital zakat by asnaf (Hadi & Basit, 2021), increased zakat revenues due to higher payer confidence (Abidin & Utami, 2020), and managed zakat institutions professionally and responsibly (Riyanto et al., 2021). However, some asnaf development programs yield negative outcomes. Sarasi et al. (2019) found that zakat programs in Indonesia with higher fund-per-recipient ratios particularly poverty-empowerment-based programs, suffered from significantly reduced efficiency levels. The study showed that these programs experienced a sharp decline in efficiency scores, in some cases approaching zero, highlighting a substantial reduction in productivity in philanthropic fund allocation. This, in turn, may lead to ineffective poverty eradication efforts. Additionally, Ryandono and Nanda (2020) found that despite increased business capital assistance, productive zakat recipients often do not show positive progress due to the absence of continuous support programs, such as guidance and ongoing training. The situation is further complicated when the capital provided is insufficient, leading recipients to use the funds for household expenses rather than business development.
The impact of asnaf development programs is mixed. For example, M. M. Alam et al. (2021) found that zakat distribution plays a significant role in maintaining the economic well-being of asnaf, while its effects on social and environmental factors are moderate. The study also reports substantial improvements across all three dimensions of sustainable development. The economic dimension’s average score increased by 29%, rising from 2.7 to 3.48. The social dimension saw a 22% increase, moving from 3.3 to 4.02. Meanwhile, the environmental dimension improved by 20%, with scores rising from 3.44 to 4.13. These results demonstrate positive and consistent progress across economic, social, and environmental areas, indicating overall advancement in sustainable development outcomes. Moreover, Uinar et al. (2019) found that the effectiveness of zakat distribution programs tends to be confined to consumptive allocations, whereas productive zakat has not achieved optimal outcomes in promoting community economic development. Similarly, a study by Aziz et al. (2020) in Pakistan revealed that zakat disbursement in Khyber Pakhtunkhwa (KPK) is significantly associated with a reduction in multidimensional poverty, demonstrating its potential in alleviating poverty. However, the reach of the program remains limited, benefiting only 2% to 3% of the population, despite an overall poverty rate of approximately 25%. This limited impact is further hindered by fragmented program structures, poor targeting, and weak institutional implementation.
Overall, the findings indicate that asnaf development programs positively promote positive behavior among asnaf, improve their socio-economic status, reduce poverty, increase income, and enhance human development. Despite that, there are challenges in ensuring the effectiveness of these programs, with some studies highlighting insufficient allocation of funds and a lack of follow-up programs to support existing initiatives, such as continuous guidance and training. Additionally, some programs revealed mixed outcomes, with productive zakat distributions requiring further improvement to achieve more optimal impacts.
Based on the literature review and the logic model, this study proposes that effective allocation and management of zakat funds positively impact the economic empowerment of asnaf recipients. Incorporating behavioral conditionalities, such as employment and education requirements, is expected to improve their educational and health outcomes. Additionally, continuous support through guidance and entrepreneurial training can enhance the sustainability and productivity of asnaf. The use of digital monitoring systems, like the Asnaf Development System, is likely to increase transparency and efficiency, improving overall program outcomes. Finally, applying the Hisbah framework can encourage self-reliance and reduce dependency by overseeing both financial aid and recipient behavior.
Discussion
The findings of this study indicate that zakat distribution programs have contributed positively to asnaf development particularly in the economic, educational, and health sectors. The overall impact remains inconsistent and, in some cases, limited. This is largely due to the absence of structured follow-up initiatives such as continuous mentoring, skills training, and effective monitoring systems. Moreover, the review identified a gap in the integration of behavioral change strategies, which are crucial for encouraging self-reliance and reducing long-term dependency on assistance.
An important innovation introduced in this study is the use of a logic model framework to systematically evaluate the relationship between zakat inputs, processes, and development outcomes. This model provides a clearer structure for understanding how different components of zakat programs contribute to asnaf empowerment. Additionally, the study proposes the integration of Conditional Cash Transfer (CCT) principles into zakat distribution such as requiring recipients to seek employment, participate in entrepreneurial training, or engage in personal development programs to enhance the sustainability of assistance and promote behavioral transformation.
Theoretical Implications
The concept of asnaf development should be addressed holistically to align with the Islamic principle of al-Falah, which defines true success as the integration of material well-being and spiritual fulfillment (Ibrahim & Tambi Chek, 2020). From this perspective, development outcomes should not be limited to material improvements such as poverty reduction or transitioning from zakat recipients to contributors, but should also encompass social empowerment, enhancement of human capital, and spiritual development. These dimensions reflect the comprehensive objectives of zakat as envisioned in Islamic teachings.
Additionally, this review identifies a methodological gap in current research: the predominance of cross-sectional studies, which capture data at a single point in time and fail to account for long-term developments. To address this limitation, future research should incorporate longitudinal methods to more accurately evaluate the lasting effects of zakat programs on individual behavior, economic status, and self-reliance.
A further theoretical implication lies in situating asnaf development within the broader framework of the Islamic economic cycle. As asnaf progress from beneficiaries to contributors, the dynamic interaction between zakat payers and recipients can help foster a sustainable economic system for the ummah (global muslim community). This conceptual lens presents an opportunity for future research to explore zakat not merely as a form of social assistance, but as a strategic driver for long-term, community-based economic resilience.
Practical Implications
To improve the effectiveness of zakat distribution and asnaf development programs, policymakers must address insufficient fund allocation and the lack of ongoing support by ensuring continuous guidance and training for recipients. Introducing productive Conditional Cash Transfer (CCT) programs with employment-based conditionalities such as requiring asnaf to secure or maintain jobs, can foster greater self-reliance and economic empowerment. For instance, the Grameen Bank’s model combines microfinancing with ongoing mentorship to ensure that entrepreneurs do not rely solely on initial capital but develop sustainable business practices (Yunus, 1999). Similarly, zakat programs should follow this model by incorporating financing mechanisms alongside training and support. Additionally, strengthening monitoring and evaluation through due diligence and financial analysis is essential to measure impact and enhance accountability (Saleh & Karia, 2024). Leveraging digital technology, such as the Asnaf Development System (ADS), will facilitate comprehensive, real-time management of zakat distribution, increasing transparency and operational efficiency for sustained poverty alleviation outcomes (MAIS, 2025).
This study also provides critical insights to stakeholders, including zakat payers, by offering evidence-based evaluations that can increase public confidence in contributing to zakat institutions. Furthermore, a global review of asnaf development programs offers policymakers best practices and benchmarks to enhance the local implementation of zakat initiatives.
Monitoring behavioral changes in asnaf is equally vital. While some behavioral improvements were reported, many studies highlight limitations in fostering lasting change, indicating a need for more innovative program designs focused on long-term transformation and personal development.
To the best of our knowledge, this is the first SLR on zakat outcomes utilizing a logic model framework. This structured approach allows clearer analysis of program inputs, activities, outputs, and outcomes, improving both design and evaluation of asnaf development efforts.
Limitations of the Study and Future Research Agenda
Using a logic model, SLR on asnaf development outcomes focuses on using inputs to shape program outputs to achieve the predetermined outcomes related to asnaf development. This study does not directly examine the relationships between variables used in previous studies, including mediating and moderating variables. Therefore, further research on this topic requires an SLR with a framework like Input, Mediator, and Outcome (IMO; Paul et al., 2024).
The study’s findings focus on entrepreneurial development programs and their impact on the economic sector and poverty reduction. However, the number of asnaf participating in these programs is relatively small compared to the overall number of asnaf who receive support such as monthly financial assistance (MAIWP, 2022). Hence, the future research agenda should focus on studies related to asnaf career development programs as an alternative solution to empower the economic community. Moreover, to further enhance economic empowerment, employment-based programs, similar to global initiatives like Conditional Cash Transfer (CCT) programs, Earning Income Tax Credit (EITC), and Welfare-to-Work, should be explored as effective strategies for supporting asnaf in transitioning from dependency to self-sustainability (Agostini et al., 2023).
In the field of educational development, most previous research has focused on improving access to higher education for asnaf children. However, there is a lack of studies that explore behavioral challenges, particularly issues like discipline problems and frequent school absenteeism. These concerns are especially important now, as poor behavior among underprivileged children has become a significant issue (Muda et al., 2023). If left unaddressed, such problems could hinder broader efforts to break the cycle of poverty. Therefore, this study is important for evaluating how effective current programs are and for developing better ways to monitor and reduce disciplinary issues among asnaf children who receive zakat support.
Lastly, unconditional conditional cash transfers are among the most common forms of support provided by zakat institutions, whether for basic needs (consumptive assistance) or for developmental purposes such as scholarships, school-related expenses, or business capital (Hussain, 2021). However, given certain behavioral challenges observed among some asnaf, such as low motivation, dependency on aid, or selling assistance for quick cash, it is important to consider the potential of Conditional Cash Transfer (CCT) models. CCTs offer financial support tied to specific responsibilities that recipients must meet in order to continue receiving aid (Fiszbein & Schady, 2009). Common conditions globally include ensuring children attend school (education), attending health check-ups (health), or actively seeking employment (employment). These programs aim to reduce poverty by encouraging recipients to engage in positive, forward-looking behaviors (Nazareno & de Castro Galvao, 2023). Given their proven effectiveness, with implementation in nearly 70 countries (Lindert & Core, 2014), incorporating CCT approaches into asnaf development programs presents a promising area for further exploration.
Conclusion
A Systematic Literature Review (SLR) is a structured method used to comprehensively identify, evaluate, and synthesize relevant research, following a transparent, organized, and replicable process at each stage. This study offers a detailed and systematic analysis of asnaf development outcomes using the SLR approach within a logic model framework, marking a novel contribution to the field of zakat research. Based on 44 selected studies, asnaf development programs are generally categorized into three key areas: economic, educational, and health-related support. The core program designs emphasize entrepreneurship, ongoing education, and spiritual development, supported by innovative strategies. These include business capital financing, partnerships with external organizations, and the integration of digital technologies to improve program efficiency and impact.
Although some studies state that asnaf development programs provide positive impacts on the behavior of asnaf individuals, improving socio-economic levels and reducing poverty rates, some programs still demonstrate negative or mixed outcomes. This clearly indicates that productive zakat distribution programs require further improvements to achieve optimal impacts.
From an implications perspective, this study provides significant contributions to the body of knowledge and theoretical development by exploring a more holistic concept of asnaf development aligned with the goal of al-Falah (Muslim’s life goals for success in this world and the hereafter). It underscores the need for longitudinal studies to evaluate the impact of asnaf development programs on behavioral changes and socio-economic outcomes while also exploring the potential of economic cycle principles or the economic ecosystem between zakat payers and recipients.
This study also contributes to policymakers by identifying effective input management strategies that help generate outputs aligned with intended outcomes. In particular, the findings support zakat institutions in enhancing the implementation of zakat distribution and asnaf development programs, while offering guidance for designing more effective development strategies. In addition, the application of a logic model, which clearly defines inputs, activities, outputs, and outcomes, provides essential information for conducting more comprehensive evaluations of program impacts.
Finally, in addressing the identified research gaps, future research should focus on asnaf career development programs as an alternative approach to economic empowerment. This includes evaluating the influence of educational development programs on behavioral changes among asnaf children, particularly in relation to discipline and school absenteeism, as well as exploring the integration of Conditional Cash Transfer (CCT) models into asnaf development efforts. Closing these research gaps has the potential to equip policymakers with more holistic solutions to effectively address poverty and behavioral challenges among the asnaf population.
Footnotes
Funding
The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This work was supported by the Faculty of Economics and Management Research Innovation Grant, Universiti Kebangsaan Malaysia [Grant No: EP-2023-076].
Declaration of Conflicting Interests
The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Data Availability Statement
The data supporting the findings of this review are derived from publicly available literature. All included studies are cited in the references section.