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The Institutions Of Islamic Finance In Baitulmal

2429 words - 10 pages

Baitulmal means the Treasury, Baitulmal according to Fiqh is the exchequer of an Islamic state. Being public property, all the citizens of an Islamic state have some beneficial right over the Baitulmal, yet, nobody can claim to be its owner.
The institutions of Islamic finance in Baitulmal form have exist informally since the time of prophet Muhammad saw and continue to Rashidun Caliphate. However, Baitulmal in that time not exist fully because of the state income not growth so much. At that time, the income of state come from two sources, which are zakat and property that being obtained from war like ghanimah, jizyah and fai. The income that have be gather immediately divided for needy ...view middle of the document...

Baitulmal concept is the trusty because the property in Baitulmal should be treated as a property of Allah and all Muslim as the owner for the usufruct.

Within the Malaysian context, it functions as a collection and distribution centre for zakat and firth. Its job, pure and simple, is to help the Muslim poor. In Malaysia, the management and administration of Baitulmal have been hold under each sate power that been lead by Sultan or Raja as the leader for religion. The role is how to manage the divided and also the management for the property that don’t have any owner or any claim has been done.

Further to this, the property that has been collected in Baitulmal be the right for all people that lived or stayed in Islamic state. This property have come from sources like zakat, waqf, tax and else. For the state of Malaysia, the management and coordination Baitulmal have divided to two scope which is the national treasury through the Ministry of Finance Malaysia and treasury through state governments.

Most importantly, the involment of the leader for state should be done. Especially, in this new modern life. As a Muslim they should realized that the establishment of Baitulmal can help the growth of the economy in the state. This is by Baitulmal institutions that will manage the revenue and expenses of state and then will bring to the stabilization of economy.

2.1) Issue

Some of the people will regard that Baitulmal is a small entity in Majlis Agama Negeri (MAIN). And also just manage the property of Majlis. This is show that the differences between role of Baitulmal today and past are wide differently. On the other hand, show that Muslim today are been deceived by the growth of modern life. Beside that, some of action has be taken in Malaysia to hedge the poverty. Such as, full employment needed, price stability and sustainable economic growth. Next, provide the facility for citizen needed like a house and other forming a basis.

The main role of Baitulmal in help the growth of Muslim is give the zakat to a person that have fulfilled the requirement that have stated in Quran verses:
“Zakah expenditures are only for the poor and for the needy and for those employed to collect and for bringing hearts together and for freeing captives and for those in debt and for the cause of Allah and for the traveler - an obligation by Allah . And Allah is Knowing and Wise”.
Those are needed is a mandatory or be an obligation to help by used the property from Baitulmal itself. The history of Islam have proven that the poor can be helped or be hedged by Baitulmal wealth.
For example, in reign of caliph Umar bin Abdul Aziz, the wealth in Baitulmal is large because inexistence of poor that worthy to get zakat. Most of them became rich and then contribute for zakat.
The establishment of Zakat institution therefore can play an important role in complementing the Government’s poverty eradication effort...

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