Zakat, Islamic wealth management & wealth effects
The purification of wealth through charity is considered a significant part of the trusteeship of wealth or wealth management. In the Quranic verses 17:26-27 & 29-30, Almighty Allah clarifies the right that the deserving and the needy have over the wealth entrusted to man, further instructing that these rights be fulfilled as a financial obligation. For example, hoarding excessive wealth (wealth that is not invested) is actually irrational as zakat is charged on all financial and real assets, resulting in a negative rate of return (zakat rate) Al-Jarhi (1985).
Zakat , Wealth effects , Islamic wealth management
Mahomed, Ziyaad. (n.d.). Zakat, Islamic wealth management & wealth effects. CIWM Bulletin, Special Edition (2013-2015), pp. 14-16.