ENHANCING ZAKAT MANAGEMENT THROUGH DIGITALIZATION: A LITERATURE REVIEW ON EMERGING TECHNOLOGIES AND BEST PRACTICES

Abstract

The digitalization of zakat management has emerged as a critical solution to address longstanding challenges such as inefficiency, lack of transparency, and limited accessibility in traditional zakat systems. Despite the growing adoption of digital technologies like blockchain, artificial intelligence (AI), and digital platforms, significant gaps remain in understanding their impact on zakat operations and the barriers to their implementation. This study aims to review the role of emerging technologies in enhancing zakat management,, review key challenges faced during digitalization, and analyse actionable recommendations for practitioners and policymakers.Employing a systematic and data-driven methodology, this study utilized Scopus AI to conduct a comprehensive review of peer-reviewed literature published between 2018 and 2025. Findings indicate that digital technologies have increased the effectiveness and transparency of zakat collection and distribution to a significant extent, enabling real-time tracking, reducing administrative costs, and gaining stakeholders' trust. Blockchain enables secure and impenetrable records, while AI improves decision-making capabilities using predictive analysis and automation. However, issues such as data security concerns, limited technological infrastructure, and resistance hinder its extensive uptake. The study further stresses the requirement for capacity development programs, regulatory frameworks, and collaboration between zakat institutions and technology firms in overcoming these problems. Theoretical contributions enrich literature on digitalization in Islamic finance, whereas applied recommendations offer experience into initiating scaleable and sustainable digital zakat platforms. Whereas the study provides useful findings, secondary data utilisation and analysis on specific locations limit its global applicability. Follow-up studies should explore empirical evidence from underserved areas and examine the long-term impacts of developing technology on zakat management. This study emphasizes the potential of digitalization to revolutionize zakat systems, making it easier to distribute resources in a balanced manner and overall welfare.