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Moderating Role of Economic Development’s on Zakat Success Factors and Compliance: A Saudi Arabian Perspective

Published in Economics (Volume 13, Issue 2)
Received: 25 February 2024     Accepted: 29 March 2024     Published: 29 April 2024
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Abstract

The paper report a result of an investigation in the moderating influence of economic development on the relationship between zakat success factors and compliance to pay zakat, focusing on key factors such as zakat awareness, support for zakat practices, understanding zakat application, and willingness to implement zakat. Data from 250 respondents within the General Authority of Zakat and Tax (GAZT) in Saudi Arabia were collected using a quantitative approach using questionnaires. Analysis was conducted utilizing AMOS 20 and SPSS 20.1 software. The study reveals a positive direct effect of zakat success factors on compliance to pay zakat, with economic development playing a crucial moderating role. This underscores the significance of economic development in influencing the relationship between zakat awareness, support for zakat practices, and zakat compliance. The practical implications extend to zakat institutions, urging them to enhance strategies for transparency and compliance by securing additional resources for development and organizing educational initiatives to cultivate positive attitudes towards zakat. The research contributes uniquely to the literature by incorporating economic development as a mediator in the zakat success factors and compliance relationship, offering valuable insights for researchers, economists, and zakat institutions. The findings emphasize the multifaceted impact of zakat on economic structures, social transformation, poverty reduction, and inequality. Additionally, the study highlights zakat's role in achieving sustainable economic growth and reducing social issues, advocating for its integration as a financial system to address challenges in the Muslim world. Despite limitations in respondent selection and timeframe, the research opens avenues for future studies, suggesting a broader exploration of Zakat's impact on sustainable development, climate change, wealth distribution, and economic transformation.

Published in Economics (Volume 13, Issue 2)
DOI 10.11648/j.eco.20241302.12
Page(s) 48-58
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Zakat, Economic Development, Compliance, Success Factors, Moderating Role, Awareness, Support, Willingness, Understanding, GAZT, Saudi Arabia

References
[1] Ackoff, R. L. 1953. The Design of Social Research, Chicago, University of Chicago Press.
[2] Ahmad, M., & Mahmood, A. (2016). Zakat fund - concept and perspective. Int. J. Monetary Economics and Finance, Vol. 2, Nos.
[3] Al-Damigh, S. (2014). Poverty Line in Saudi Arabia. Riyadh-SA: King Khalid Foundation.
[4] Casteel, A., & Bridier, N. L. (2021). Describing populations and samples in doctoral student research. International Journal of Doctoral Studies, 16, 339-362.(CC BY-NC 4.0)
[5] Gay, L. R., Mills, G. E., & Airasian, P. W. (2012). Educational Research: Competencies for Analysis and Applications 10th.
[6] Gravetter, F. J., & Wallnau, L. B. (2017). Statistics for the behavioral sciences (10th ed.). Wadsworth.
[7] Henryson, S. 1971, Gathering, analyzing, a Henryson, S. Gathering, analyzing, and using data on test items. In R. L. Thorndike (Ed.), Educational measurement (2nd ed.), Washington, DC: Council on Education.
[8] Khasandy, A., & Badruddin, R. (2019). The Influence of Zakat on Economic Growth and Welfare Society in Indonesia. Financial Services Authority, School Of Business Yogyakarta, Indonesia.
[9] Perbawa, A., & Abdullah, H. (2016). Determinant Factors of Awareness for Paying Zakat on Baznas, Indonesia. Faculty Of Business And Management Sciences, Universiti Islam Sharif Ali, Brunei Darussalam.
[10] Quran. (n.d.). The Quran (Word by Word translation). Retrieved from
[11] Quran. (n.d.). The Quran (Yusuf Ali, Trans.). Retrieved from
[12] Sabine O’Hara, The Five Pillars of Economic Development, 2018, A Study of a Sustainable Future for Ward 7 and 8 in Washington, D. C:
[13] Sahaluddin, N., & Wan Mokhtar, W. (2019). The Awareness of Zakat in the Universal Society. Universiti Sultan Zainal Abidin (Unisza).
[14] Salkind, N. J. (Ed.). (2010). Encyclopedia of research design. Sage.
[15] Sawmar, Abdulsalam Ahmed; Mohammed, Mustafa Omar, (2019). Governance of Formal Zakat Institution in Saudi Arabia; Issues and Challenges to Improving Zakat Payers’ Compliance, International Islamic University, International Journal of Zakat Vol. 4(2).
[16] Suprayitno, E. (2020). The Impact of Zakat on Economic Growth in 5 State in Indonesia. International Journal Of Islamic Banking And Finance Research, Vol. 4(No. 1).
[17] Thelwell, K. (2018). Poverty in Saudi Arabia. The Borgen Project. From
[18] Todaro, M. P. and Smith, S. C. (2006) Economic Development. 8th Edition, Addison-Wesley, Reading.
[19] Turner, A. (2003). Sampling frames and master samples. Expert Group Meeting To Review The Draft Handbook On Designing Of Household Sample Surveys. From
[20] Wetzels, M., Odekerken-Schröder, G., & Van Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: guidelines and empirical illustration. MIS quarterly, 177-195.
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  • APA Style

    Almasah, S. A. M., Bardai, B. B., Al-Dubai, M. M. (2024). Moderating Role of Economic Development’s on Zakat Success Factors and Compliance: A Saudi Arabian Perspective. Economics, 13(2), 48-58. https://doi.org/10.11648/j.eco.20241302.12

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    ACS Style

    Almasah, S. A. M.; Bardai, B. B.; Al-Dubai, M. M. Moderating Role of Economic Development’s on Zakat Success Factors and Compliance: A Saudi Arabian Perspective. Economics. 2024, 13(2), 48-58. doi: 10.11648/j.eco.20241302.12

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    AMA Style

    Almasah SAM, Bardai BB, Al-Dubai MM. Moderating Role of Economic Development’s on Zakat Success Factors and Compliance: A Saudi Arabian Perspective. Economics. 2024;13(2):48-58. doi: 10.11648/j.eco.20241302.12

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  • @article{10.11648/j.eco.20241302.12,
      author = {Safa Abbas Mohammed Almasah and Barjoyai Bin Bardai and Maged Mustafa Al-Dubai},
      title = {Moderating Role of Economic Development’s on Zakat Success Factors and Compliance: A Saudi Arabian Perspective
    },
      journal = {Economics},
      volume = {13},
      number = {2},
      pages = {48-58},
      doi = {10.11648/j.eco.20241302.12},
      url = {https://doi.org/10.11648/j.eco.20241302.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20241302.12},
      abstract = {The paper report a result of an investigation in the moderating influence of economic development on the relationship between zakat success factors and compliance to pay zakat, focusing on key factors such as zakat awareness, support for zakat practices, understanding zakat application, and willingness to implement zakat. Data from 250 respondents within the General Authority of Zakat and Tax (GAZT) in Saudi Arabia were collected using a quantitative approach using questionnaires. Analysis was conducted utilizing AMOS 20 and SPSS 20.1 software. The study reveals a positive direct effect of zakat success factors on compliance to pay zakat, with economic development playing a crucial moderating role. This underscores the significance of economic development in influencing the relationship between zakat awareness, support for zakat practices, and zakat compliance. The practical implications extend to zakat institutions, urging them to enhance strategies for transparency and compliance by securing additional resources for development and organizing educational initiatives to cultivate positive attitudes towards zakat. The research contributes uniquely to the literature by incorporating economic development as a mediator in the zakat success factors and compliance relationship, offering valuable insights for researchers, economists, and zakat institutions. The findings emphasize the multifaceted impact of zakat on economic structures, social transformation, poverty reduction, and inequality. Additionally, the study highlights zakat's role in achieving sustainable economic growth and reducing social issues, advocating for its integration as a financial system to address challenges in the Muslim world. Despite limitations in respondent selection and timeframe, the research opens avenues for future studies, suggesting a broader exploration of Zakat's impact on sustainable development, climate change, wealth distribution, and economic transformation.
    },
     year = {2024}
    }
    

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    AU  - Safa Abbas Mohammed Almasah
    AU  - Barjoyai Bin Bardai
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    AB  - The paper report a result of an investigation in the moderating influence of economic development on the relationship between zakat success factors and compliance to pay zakat, focusing on key factors such as zakat awareness, support for zakat practices, understanding zakat application, and willingness to implement zakat. Data from 250 respondents within the General Authority of Zakat and Tax (GAZT) in Saudi Arabia were collected using a quantitative approach using questionnaires. Analysis was conducted utilizing AMOS 20 and SPSS 20.1 software. The study reveals a positive direct effect of zakat success factors on compliance to pay zakat, with economic development playing a crucial moderating role. This underscores the significance of economic development in influencing the relationship between zakat awareness, support for zakat practices, and zakat compliance. The practical implications extend to zakat institutions, urging them to enhance strategies for transparency and compliance by securing additional resources for development and organizing educational initiatives to cultivate positive attitudes towards zakat. The research contributes uniquely to the literature by incorporating economic development as a mediator in the zakat success factors and compliance relationship, offering valuable insights for researchers, economists, and zakat institutions. The findings emphasize the multifaceted impact of zakat on economic structures, social transformation, poverty reduction, and inequality. Additionally, the study highlights zakat's role in achieving sustainable economic growth and reducing social issues, advocating for its integration as a financial system to address challenges in the Muslim world. Despite limitations in respondent selection and timeframe, the research opens avenues for future studies, suggesting a broader exploration of Zakat's impact on sustainable development, climate change, wealth distribution, and economic transformation.
    
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