Does Zakat reduce poverty? Evidence from Tunisia using the Fuzzy Approach

Abstract

Zakat is one of the five pillars of Islam; it is compulsory for all the well-off Muslims and is given to the needy. This study examines Zakat's impact on poverty in Tunisia. Using simulated data of individuals from Tunisian household surveys in 2010 and 2015, we measure the effect of Zakat to reduce poverty. This study uses the Fuzzy Approach to conclude that Zakat does reduce poverty. The simulation results display a significant decrease in the poverty index of Tunisia's seven regions.