This study addresses the role of Zakat in economic development. It does so after providing an overall understanding of Zakat and how important it is to fulfill this obligatory duty. This study explains the concept of economic development in Islam and in comparative to other economic and political systems.

The study shows the positive role of Zakat in solving the problems of poverty, unemployment and wealth concentration and other problems that increase the suffering of the individual and deepen the economic backwardness of the nation.

This positive role can be achieved not just by spending the Zakat on the poor directly, but when Zakat is invested in projects of economic development to stimulate the local economy and create jobs.

The study shows the similarities and the differences between the Zakat and tax, it shows what distinguishes Zakat and make it more productive comparing it to other economic systems. The study also shows the importance of grass-roots action by Zakat committees and charity organizations in advancing economic development.

Finally, the study concludes by illustrating the great role of the institution of Zakat in economic development.